CMA Clears Merger Between SSE and Npower to Proceed
October 10 2018 - 02:46AM
Dow Jones News
By Oliver Griffin
The U.K.'s monopoly watchdog said Wednesday that the proposed
merger between SSE PLC's (SSEZY) household-energy and services
business and Npower can now proceed.
The Competition and Markets Authority said it had examined
concerns around how the merger would affect so-called standard
variable tariff prices, but found after an investigation that SSE
and Npower--which is owned by Innogy SE (IGY.XE)--aren't close
rivals on these tariffs.
According to the CMA, the number of people switching energy
provider in the U.K. is the highest in a decade and the proportion
of standard variable tariffs has fallen. Customers usually switch
to a cheaper type of tariff, the CMA said.
SSE Chief Executive Alistair Phillips-Davies said the company
welcomed the decision by the CMA. "We are very pleased that the
final report of the CMA's investigation confirms its provisional
findings that the proposed merger of SSE Energy Services and Npower
does not raise any competition concerns," he said.
Write to Oliver Griffin at oliver.griffin@dowjones.com;
@OliGGriffin
(END) Dow Jones Newswires
October 10, 2018 02:31 ET (06:31 GMT)
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