Two of Britain’s biggest energy companies, SSE and Npower, are in talks to spin off and combine their household supply businesses in a bold move announced weeks after the government pledged to end “rip-off” electricity and gas prices. London-listed SSE and Npower, owned by Germany’s Innogy, said talks were “well advanced” but a final decision had not yet been taken on the terms of any combination. A tie-up would reduce the “big six” UK energy providers to five and would create a powerful new company with just under 13m customer accounts.
FT 7th Nov 2017 read more »
SSE and npower, two of the UK’s biggest energy companies, are planning to combine their household energy supply businesses in a potentially seismic shake-up of the market. The two firms said they were in well-advanced talks to create a new independent energy supply firm. The new business would combine the nearly 13 million customers they currently supply with electricity and gas.
Guardian 7th Nov 2017 read more »
BBC 7th Nov 2017 read more »
Experts said that the proposed merger faced significant hurdles, including concerns over competition, at a time when critics have raised concerns about the alleged abuse of market power by big suppliers and over its impact on consumers. The combined business would have a 24 per cent share of the domestic electricity supply market, marginally ahead of British Gas, the biggest supplier, on 22 per cent. In the gas market it would have a 19 per cent share, still well below the 33 per cent of British Gas. SSE said that it would contribute its household supply and services business, which has 7.7 million gas and electricity accounts, estimated to equate to just under five million households. The business has been losing customers for years, though it still enjoyed record profit margins of 6.95 per cent last year. Npower, which has been loss-making for two years as it battles IT issues, would contribute its entire British retail business, including its substantial business energy supply division, which ranks among the biggest in the UK. It has about five million gas and electricity accounts and supplies about 2.8 million households.
Times 8th Nov 2017 read more »