npower plans merger
Read the latest information on npower’s proposed merger with SSE’s household energy and energy services business
npower’s parent company, innogy SE, has announced that it proposes to merge npower with SSE’s household energy and energy services business in Great Britain to form a major, independent British retail energy company. The new company will have a premium listing on the London Stock Exchange and innogy will hold a minority stake of 34.4%, with SSE’s shareholders (not SSE itself) holding the remaining 65.6% stake.
Why are you proposing to merge with SSE’s household energy and energy services business?
This is an exciting opportunity to create a new, independent British energy company, better able to face the challenges and deliver on the future opportunities of the British energy market. By combining the complementary skillsets of npower and SSE, we will be able to share best practice and guarantee the highest level of customer service, while driving down our costs.
npower’s leading digital platform and both companies’ energy services offerings will enable us to broaden and further develop our value proposition for customers. We will have the ability to compete and build the energy world of the future.
Why are you doing this now?
The energy retail market in Great Britain is increasingly competitive and changing rapidly, and more needs to be done to lower costs, further improve customer service and engage with those that are vulnerable. By combining with SSE, we can create a new British energy company, one which can better face the challenges – and deliver on the opportunities – of the British energy market. The higher level of efficiency we’ll achieve through the combined company will ultimately benefit our customers.
Does the deal have to be cleared by the competition authorities before it can go ahead?
Yes, the proposed merger is subject to review by the Competition and Markets Authority (CMA). We are co-operating fully with the CMA during the review process.
The CMA announced on 30 August that it’s provisionally cleared the merger. More information on the CMA’s decision can be found here. Final clearance from the CMA is expected on 22 October but npower and SSE will remain as independent competitors until after the deal has gone through.
Why is it a good deal for competition in the energy market in Great Britain?
We are creating a stronger new competitor in the market with a leading customer offering, able to better meet the demands and opportunities of the British energy market. The government’s draft energy bill has outlined the need for companies to increase levels of efficiency in order to benefit customers. This proposed merger will deliver on this and more.
What will be the name of the new company?
No decisions have been made yet about the name of the new company and it’s expected that the businesses will continue to operate under their existing brands in the short to medium term.
Who will lead the new company? Who will be included in the senior management team?
On 6 April, SSE and innogy announced that Katie Bickerstaffe has been appointed Chief Executive Designate of the new combined company. More information about her appointment can be found here. Gordon Boyd has been appointed Chief Financial Officer Designate. Further information on other Board appointments can be found here. We expect to announce the designated Chair of the new company shortly.
How many customers will the Combined Retail Company serve? How many employees?
There’s lots to do before the new company can start to operate, but when it does it will be a new home energy solutions supply and services company serving more than 11.5 million customer accounts and employing around 15,000 people across Great Britain.
Where will the new headquarters be?
No decisions have been made yet on where the headquarters of the combined company will be. This will be a decision for the new management team to consider.
What does this mean for customer bills?
The increased level of efficiencies and synergies we’ll achieve with the new combined company will enable us to build even more attractive propositions for customers.
When can customers expect to be moved over to the new combined company? Can you guarantee they won’t experience any disruption?
Nothing can happen until merger clearance is received from the CMA. A precise timeline has not been established yet but we anticipate clearance in around Q1 2019. If and when the merger is completed, npower customers will see no immediate change in their supplier. You will continue to be supplied by and receive bills from npower until the npower and SSE business are able to integrate. Avoiding disruption will be a priority during the integration of the two businesses.
What does the transaction mean for npower’s business customers?
What does the transaction mean for npower’s business customers? npower Business Solutions blog for more information on what the proposed merger means for them.