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SSE and innogy confirm talks to merge supply and services divisions
10 November 2017, 01:52 | Austin Hogan
Energy supplier SSE says it has been in talks with the owner of rival Npower with a view to forming a new United Kingdom energy business.
In a statement to the market this afternoon, SSE said the new company would see SSE's domestic supply and services business in Great Britain combine with innogy's GB-facing household and business energy supply division.
The new supplier could be listed in London by the end of next year or early 2019, just as the government's sweeping price cap on standard energy tariffs is expected to come into effect.
SSE, formerly known as Scottish and Southern Energy, supplies energy to 7.77 million households while Npower serves 4.8 million.
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The announcement comes after reports yesterday evening that Innogy was looking for a sale or partnership in the UK.
Innogy confirmed the two were in "advanced exclusive discussions".
'The new listing will be born into a hard environment to say the least, but the prospect of cost savings, greater scale and a greater focus on retail activities should all count in its favour, ' he said.
George Salmon, equity analyst at Hargreaves Lansdown, ' said it was "no surprise" SSE was taking action given the presssures on the energy market.
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