The Competition and Markets Authority (CMA) has given the go-ahead for the merger between SSE and Npower, two of the Big Six in the UK.
This is despite initial fears that the coupling could significantly reduce competition for consumers, particularly those on standard variable tariffs (SVTs).
However, Anne Lambert, the CMA’s chairwoman for the inquiry, reiterated that the merger “will not impact how SSE and Npower set their SVT prices because they are not close rivals for these customers.”
The government new price cap on SVTs is due to take effect at the end of the year – which will help consumers save up to £100 on their annual bill. With more than two thirds of its customers on SVTs, SSE is heavily exposed by the cap.
SSE Chief Executive Alistair Phillips-Davies believes that the transaction presents a “great opportunity to create a more agile, innovative and efficient company that really delivers for customers and the energy market as a whole.”
The merger is expected to complete towards the end of 2018 and the beginning of 2019.