Energy firm SSE has admitted there is “some uncertainty” that its merger with rival Npower will go ahead. The announcement comes after the companies delayed the tie-up due to the incoming energy bill price cap of £1,137 (US$1,471) a year for “typical usage.”
It means suppliers will have to cut the price of their default tariffs to the level of the cap or below it.
The SSE-Npower merger, which has been cleared by the British competition regulator, would create the UK’s second-biggest energy company. However, Perth-based SSE has revealed it has been hit by widened losses for its household gas and electricity supplier.
SSE announced an update on the discussions would be disclosed by mid-December. But it added: “There is now some uncertainty as to whether this transaction can be completed, as originally contemplated.
“Nevertheless, the board believes that the best future for SSE energy services, including its customers and employees, will continue to lie outside the SSE group.”