SSE’s merger with Npower has led to discussions with the CMA
The talks will centre around SSE’s merger plans, despite the company losing customers in Q3
Energy company SSE has is currently in early stage talks with the Competition and Markets Authority (CMA) surrounding its impending merger with Npower.
With decreasing customer numbers reported in its third quarter, SSE is fighting a losing battle against an increasing consumer drive for competitive energy deals. The company has lost about 40,000 customers in the process, the company has said.
In the first stages of its investigation, SSE has stated its plans to create an independent supplier arm through the German company, which is owned by Innogy, which will reduce the number of Big Six energy suppliers to five in total.
UtilityWeek reports that the two companies will “continue to work constructively with the CMA and other interested parties during this process and remain confident hat the creation of a new independent energy supply and services business in Great Britain will serve the needs of customers, employees and other stakeholders in the long term.”
With the aim to complete the merger by the end of 2018, SSE aims to invest up to £6bn till 2020., with the majority spend put towards renewable energy and hydro projects, as well as smart technologies.
“There will be a greater focus on creating value from owning, operating and developing assets and infrastructure, and we will contribute to the creation of a new energy supply market model that combines the resources and experience of two established players with the focus and agility of an independent supplier,” UtilityWeek added.
“The SSE group will evolve significantly between now and the end of the next financial year,” observed SSE Chief Executive Officer Alistair Phillips-Davies.
“There will be a greater focus on creating value from owning, operating and developing assets and infrastructure; and we will contribute to the creation of a new energy supply market model that combines the resources and experience of two established players with the focus and agility of an independent supplier.”
The company’s increased investment in wind and hydro projects has led to the development of the iconic £2.6bn Beatrice Offshore Windfarm project, which is set to power over 400,000 homes through the implementation of 84 Siemens turbines, providing 588MW capacity.
Partnering with Copenhagen Infrastructure Partners (CIP) and Red Rock Power Ltd, who all share a stake in the project, it will become one the largest private investment renewable energy projects to be completed in Scotland in 2019.