SSE and Npower merger will not go ahead
Npower and SSE, two of the big six energy firms, will no longer go ahead with their planned merger.
The merger was given the final green light by the Competition and Markets Authority in October, but the companies have failed to reach an agreement to continue.
The board of SSE has said that the deal would no longer be in the interests of customers, employees or shareholders.
It said that the decision to call off the merger was influenced by a range of factors, including the changing energy market and clarity over the new energy price cap, which comes into effect in January.
The energy price cap will limit the maximum amount suppliers can charge for each unit of gas and electricity you use – and a maximum daily standing charge (what you pay simply to have your home connected to the grid).
What do the energy firms say?
SSE chief executive Alistair Phillip-Davies said: “This was a complex transaction with many moving parts. We closely monitored the impact of all developments and continually reviewed whether this remained the right deal to do for our customers, our employees and our shareholders. Ultimately, we have now concluded that it is not. This was not an easy decision to make, but we believe it is the right one.
“SSE Energy Services remains a profitable business with a strong track record, a customer-centric culture and an excellent team that has enabled it to be a market-leader for many years. We will build on this while continuing with separation activity in preparation for its long-term future outside the SSE group.”
Martin Hermann, retail chief operating officer of Innogy SE, which Npower is a part of, said: “Adverse developments in the UK retail market and regulatory interventions such as the price cap have had a significant impact on the outlook for the planned retail company.
“We negotiated intensively with SSE on adjustments to the transaction as announced in November 2017.
“Unfortunately, we could not reach an agreement that was acceptable for both sides. We are now assessing the different options for our British retail business.”
News Source: Money Saving Expert