Monopoly power
October 17, 2018

24%

The combined electricity market share of SSE and Npower

This month, the Competition and Markets Authority gave the two energy providers final clearance to go ahead with their merger, taking the Big Six down to the Big Five.

The decision, which makes an already highly concentrated market even more concentrated, was taken at the same time as the Government is introducing a price cap to tackle what the Prime Minister called “rip-off” prices.

In a statement released when the merger was announced, the consumer group Which? noted that “mergers of such big players in essential markets, such as energy, are rarely a good thing for consumers, especially given the low levels of competition”.