The ‘Big 6’ could soon be the ‘Big 5’, with a merger between Npower and SSE provisionally being given the go-ahead.
In November last year, Npower and SSE announced that their domestic household energy supply and services businesses would join together. An investigation was then conducted by the Competition and Markets Authority (CMA) which found that there’s “plenty of choice in the energy market” and that a merger between the two companies will not impact how Npower and SSE set their standard variable tariff prices.
The investigation by the Competition and Markets Authority also found that if customers on a standard variable tariff switch to another provider, they will most likely end up switching to a cheaper, non-standard variable tariff as opposed to another SVT.
The report also found that currently the number of people switching energy provider is the highest it has been for a decade. And, unsurprisingly, those that do not switch are normally with one of the ‘Big 6’ energy suppliers SVT’s and are paying much higher prices. With over 70 energy companies available to choose from, the CMA found that there is “plenty of choice for people when they shop around”.
Other key findings included:
- Npower and SSE don’t compete closely on SVT prices
- Wholsesale costs changing are the main reason for price chnages of SVTs
- The majority of Npower and SSE customers will switch to a completely different supplier rather than the other provider
If you’re currently an Npower or SSE customer, then now could be a great time to switch. Have a look at our reviews of some of the 70+ other suppliers available and see which one may be better for you. You can always compare tariffs too using our uSwitch tool here: https://www.energy-review.co.uk/switch