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Wednesday, December 13, 2017

MPs call for probe into planned merger of SSE and npower

MPs have called for a competition probe into the merger between two of the UK's biggest energy suppliers saying it risked resulting in less competition and a bad deal for consumers.

The tie-up, agreed last month, will see the household supply businesses operated by SSE and npower join forces - reducing the industry's dominant "big six" to a "big five".

Now the Commons Business, Energy and Industrial Strategy (BEIS) Committee has written to the Competition and Markets Authority (CMA) to call for an investigation.

Rachel Reeves, chair of the committee, said: "The energy market isn't working for consumers.
"The proposed merger between SSE and npower risks damaging the development of a more competitive energy market, reducing consumer choice, and threatening to be a bad deal for consumers.

"The CMA needs to look at the potential impacts of this merger and launch a full investigation if there is any risk to competition within the energy market."

preview imageVideo:November: Can Big Six merger be good for customers?Under the deal, SSE and Innogy - the German owner of npower - will demerge their UK supply operations which will then join forces to create a new London-listed company.

The tie-up would consolidate SSE's position as the country's second-largest supplier of household energy behind Centrica-owned British Gas, with a combined base of more than 11 million customers and combined sales of £11bn.

Read the full story at Sky News