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| Version 2 | Version 3 |
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| MPs call on competition watchdog to probe energy giant merger | MPs call on competition watchdog to probe energy giant merger |
| (about 1 month later) | |
| Planned SSE-npower deal seen as bad for UK consumers with new entity along with British Gas holding almost 50% of energy share, warn MPs | |
| Adam Vaughan | |
| Mon 4 Dec 2017 12.31 GMT | |
| Last modified on Mon 4 Dec 2017 14.37 GMT | |
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| An influential group of MPs has called on the competition watchdog to investigate the merger of two of the UK’s biggest energy companies, warning it threatens to be a bad deal for households. | An influential group of MPs has called on the competition watchdog to investigate the merger of two of the UK’s biggest energy companies, warning it threatens to be a bad deal for households. |
| The intervention by the business, energy and industrial strategy (BEIS) committee adds to the mounting pressure for an inquiry into SSE and npower combining to create an energy giant that will shrink the “big six” suppliers to five. | The intervention by the business, energy and industrial strategy (BEIS) committee adds to the mounting pressure for an inquiry into SSE and npower combining to create an energy giant that will shrink the “big six” suppliers to five. |
| The GMB union recently said ministers should step in and block the merger if the competition watchdog fails to act. | The GMB union recently said ministers should step in and block the merger if the competition watchdog fails to act. |
| Rachel Reeves, chair of the BEIS committee, said: “The energy market isn’t working for consumers. 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.” | Rachel Reeves, chair of the BEIS committee, said: “The energy market isn’t working for consumers. 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 Labour MP has written to to Andrea Coscelli, chief executive of the Competition and Markets Authority, saying it was “concerning” that the merger could undermine the market’s competitiveness. | The Labour MP has written to to Andrea Coscelli, chief executive of the Competition and Markets Authority, saying it was “concerning” that the merger could undermine the market’s competitiveness. |
| “The merger would reduce the big six energy companies to five, with almost half of the domestic energy share held between British Gas and the proposed SSE-npower merged business,” wrote Reeves. | “The merger would reduce the big six energy companies to five, with almost half of the domestic energy share held between British Gas and the proposed SSE-npower merged business,” wrote Reeves. |
| The chair urged the watchdog to look in detail at the possible impacts on the market and fully investigate the risk of reduced competition. | The chair urged the watchdog to look in detail at the possible impacts on the market and fully investigate the risk of reduced competition. |
| Npower and SSE are in discussions with the CMA. The new firm would have more electricity customers than any other supplier and be only around 1m customer accounts behind market leader British Gas, which has been shedding hundreds of thousands of customers in recent months. | Npower and SSE are in discussions with the CMA. The new firm would have more electricity customers than any other supplier and be only around 1m customer accounts behind market leader British Gas, which has been shedding hundreds of thousands of customers in recent months. |
| An SSE spokesperson said: “The merger will improve competition by offering customers a completely new model combining the resources of established players with the agility and innovation of an independent supplier – turning 60 competitors into 59, not five, and ultimately offering better value for customers.” | An SSE spokesperson said: “The merger will improve competition by offering customers a completely new model combining the resources of established players with the agility and innovation of an independent supplier – turning 60 competitors into 59, not five, and ultimately offering better value for customers.” |
| A spokesperson for npower owner Innogy said: “The transaction will create a new, strong and independent British retail energy supplier, which will provide a better deal for consumers and help deliver the government’s plans for more competition in the market.” | A spokesperson for npower owner Innogy said: “The transaction will create a new, strong and independent British retail energy supplier, which will provide a better deal for consumers and help deliver the government’s plans for more competition in the market.” |
| A CMA spokesperson said: “We will consider all mergers that meet the legal criteria for an investigation under the Enterprise Act.” | A CMA spokesperson said: “We will consider all mergers that meet the legal criteria for an investigation under the Enterprise Act.” |
| The BEIS committee is also tasked with scrutinising the government’s draft legislation for an energy bills price cap, which is expected to take effect at the start of 2019, around the time the npower and SSE hope to wrap up a merger. | The BEIS committee is also tasked with scrutinising the government’s draft legislation for an energy bills price cap, which is expected to take effect at the start of 2019, around the time the npower and SSE hope to wrap up a merger. |
| The merger could also potentially be investigated by the European commission competition body. | The merger could also potentially be investigated by the European commission competition body. |
| • Follow Guardian Business on Twitter at @BusinessDesk, or sign up to the daily Business Today email here. | • Follow Guardian Business on Twitter at @BusinessDesk, or sign up to the daily Business Today email here. |
| SSE | |
| RWE npower | |
| Energy industry | |
| Innogy | |
| Utilities | |
| Competition and Markets Authority | |
| news | |
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