SSE has confirmed it will be merging its British domestic business with Npower to form a new energy company, knocking down the big six to just five. The new firm is expected to be roughly the size of market leader British Gas and will serve about 11.5 million customers.
SSE Retail’s chief operating officer, Tony Keeling, said that they had been looking for a way to adapt to the new direction the energy market is moving into and saw the merger as an opportunity to evolve: “By merging SSE’s retail business with Npower’s retail business to form a new organisation, we think we can be more efficient, more agile and more innovative for customers.”
The ‘State of the Market’ report released by OFGEM this week shows a general dissatisfaction from customers towards utility companies and as a result energy suppliers have been feeling the pressure of increased competition in the market. Keeling commented during the press release that “We think [the merger] is very good for competition and customers. There are over 60 [utility companies] competing in the market and if you look back to 2011, there were only eight.”
Rising NCC costs and an industry shift towards renewables have coupled with poor customer service and low consumer confidence to increase competition in the energy market. Smaller niche suppliers are entering the market putting pressure on the big six. With the energy market evolving fast than ever it is possible that this is a sign for more significant changes to come
SSE and nPower business accounts will not be directly affected, however should you be interested as to how this change in the market may have a knock-on effect on the industry as a whole feel free to contact one of our account managers today for a friendly chat.