Select committee urges watchdog to investigate SSE and Npower merger

Select committee urges watchdog to investigate SSE and Npower merger

The Business, Energy and Industrial Strategy (Beis) Committee has urged the UK’s monopoly watchdog to investigate the planned merger between SSE and Npower.

The committee is concerned that the merger between the second and sixth largest energy suppliers would reduce competition in the market and have a negative effect on consumers.

Rachel Reeves MP, who chairs the committee, wrote a letter to the Competition and Markets Authority (CMA) encouraging it to consider the impacts of the merger.

In the letter, Reeves said: “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 energy 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”.

Unions also opposed the deal due to the threat it poses to jobs. Kevin Coyne, Unite’s national energy officer, said: “Job losses could be on the cards to feed insatiable shareholder hunger”.

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