SSE drops Npower merger plans as government plans to cap tariff prices
Date: 2018-12-20   Author: Pankaj Singh  Category: #news

SSE drops Npower merger plans as government plans to cap tariff prices

Reports confirm that Scottish energy firm SSE plc has called off its plans to merge with Npower, blaming the challenging market conditions and Government’s upcoming price cap. SSE said that it has not been able to agree terms for the new company’s financial support and added that it would now be considering selling its retail arm.

Further from the reports, the tie-up to create UK’s second largest energy firm, behind British Gas, first came into doubt when SSE issued a warning about some uncertainty around the deal last month, owing to the incoming cap on default tariff prices.

SSE said in a statement that after further discussions in regard to potential changes of the commercial terms which were proposed for the merger of Npower and SSE Energy Services, the Board of SSE has decided that it is not in the best interests of shareholders, employees or customers to proceed with the transaction.

Alistair Phillips-Davies, Chief Executive Officer of SSE plc, said in a statement that it was a complex transaction with a lot of moving parts. The company has monitored the impact of all developments very closely as well as continuously reviewed whether this remained the right deal for shareholders, our employees and our customers, he added.

Mr. Phillips-Davies further said that the company has ultimately concluded that the deal is not suitable. SSE believes it is the right decision to not merge, though it is not an easy one to make. The company is further exploring all the available options with a view to deliver this future in the best possible way.

Sources familiar with the matter revealed that SSE earlier blamed delays on the recently introduced plans from the Government to cap energy bills at £1,136 a year. The cap, that is due to come into force by January, would mean that suppliers like SSE and Npower would have to cut the prices they charge.



About Author


Pankaj Singh

Pankaj Singh

Pankaj Singh Develops content for Algosonline, Market Size Forecasters, and a couple of other platforms. A Post Graduate in Management by qualification, he worked as an underwriter in the UK insurance domain before deciding to switch his field of profession. With exp...

Read More

More from Pankaj


Post Recommendents

Nomura Holdings to acquire U.S. M&A firm Greentech in US$92m deal
Author: Pankaj Singh

Nomura Holdings, a financial holding company in Japan, has recently announced that it will buy Greentech Capital Advisors, a mergers and acquisitions advisory company from the U.S. that specializes in renewable energy. This will be the company&rsq...


Perfect Day raises $140 Mn in a Series C funding round led by Temasek
Author: Saipriya Iyer

Perfect Day, a US-based food technology startup that has innovated new processes of creating dairy products by using casein, reportedly announced that it raised $140 million in a Series C funding round. This investment...


Current Health raises $11.5 million in Series A funding round
Author: Pankaj Singh

Current Health, a renowned New York based universal patient management platform, reportedly announced that it has closed a $11.5 million Series A funding round which was co-led by UK based MMC Ventures.