Npower and SSE face investigation over fears merger could push up energy costs for customers
THE planned merger between Npower and SSE has been referred for a full investigation amid fears it could push up energy costs for customers.
The tie-up would create a company with around 11.5 million customers making it the second-biggest UK energy supplier behind British Gas.
Last month, the Competition and Markets Authority (CMA) said it was concerned the merger, announced last November, could reduce competition.
Today the CMA concluded neither firms had been able to offer measures to address its worries about the impact the deal could have on customers.
A decision on the merger will now be made by an independent panel supported by the CMA. The deadline for the final report is 22 October.
Alex Neill, from consumer group Which? welcomed the CMA's decision.
How to save hundred of pounds by switching energy suppliers
DON'T be put off switching energy suppliers because you can't be bothered as you could be getting a much better deal if you went elsewhere. Here's how to do it:
Shop around - If you're on a standard variable tariff deal you are throwing Away up to £300 a year. Use a comparion site like MoneySuperMarket.com or EnergyHelpline.com to see the best deals that are available to you.
The cheapest deals are usually found online and are fixed deals - meaning you'll pay a fixed amount often for 12 months.
2. Switch - When you've found one, all you have to do is contact the new supplier.
It helps to have the following information - which you can find on your bill - to hand to give the new supplier.
- Your postcode
- Name of your existing supplier
- Name of your existing deal and how much you pay
- An up-to-date meter reading
It will then notify your current supplier and begin the switch.
It should take no longer than three weeks to complete the switch and your supply won't be interrupted in that time
She said: "Mergers of big players in essential markets such as energy risk reducing competition and harming consumers."
"As both these big suppliers struggle with providing good customer service, coming in the bottom half of our satisfaction survey, it's only right that the competition authorities investigate further before allowing any venture to go ahead."
Under the proposed deal, the new company will be listed on the London Stock Exchange with SSE shareholders holding 65.6 per cent and Npower owner Innogy holding 34.4 per cent.
The new energy company would bring the Big Six down to five and experts are warning that less competition in the market could see the price of energy go up - although we don't know by how much just yet.
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According to uSwitch, the average tariff from the Big Six is now £326 more expensive than the best deal on the market.
The rip-off is causing such concern that the Government is set to introduce an energy price cap, which will limit the cost of standard variable tariffs until at least 2020.
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But Brits are still reluctant to switch - more than nine million households didn't change provider once between 2012 and 2017, costing them more than £1,500 over the five years.
We regularly report on how you can save hundred of pounds a year by switching energy company but people are often put off by the hassle.
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