SSE PLC (LON:SSE) has said it is “pleased” with news that the UK regulator has provisionally cleared the planned merger of its energy services retail business with German firm Innogy's Npower after concluding that it does not raise competition concerns.
In a notice on its website, the Competition and Markets Authority said it had looked closely at the impact on choice for consumers who shop around less for power deals and found that the two groups were not close rivals for the more expensive standard variable price deals still used by such UK consumers.
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In a statement, SSE chief executive, Alistair Phillips-Davies, commented: "Following a thorough and in-depth investigation, we are pleased the CMA has provisionally concluded that the proposed merger of SSE Energy Services and npower does not raise competition concerns.”
He added: "We look forward to continuing to engage with the CMA as it prepares its Final Report ahead of the statutory deadline in October. We remain confident that the formation and listing of the new company is on track for completion by the end of SSE's financial year."
The CMA will now take views and evidence on the provisional decision until September 20 before coming to a final view, with the deadline for a final report is October 22.
The merger will create Britain's second-largest retail power provider and reduce the ‘Big Six’ dominating the market to five companies as they face political scrutiny over their tariffs and pressure from smaller rivals.
Combined, SSE and Npower would have 11.5mln customers, making the new company second only to Centrica PLC's (LON:CNA) British Gas unit, which has more than 14mln customer accounts.