November 9 (Renewables Now) - UK energy group SSE Plc (LON:SSE) said Thursday that it needs to revise the commercial terms of the proposed merger of SSE Energy Services with German Innogy SE's (ETR:IGY) local retail business Npower due to some recent market developments.
In particular, SSE pointed at the potential impact of the new energy price cap, known as the Default Tariff Cap, as the reason for the review.
Completion of the proposed combination will now be delayed beyond the first quarter of 2019, the groups said, adding that work towards listing the new company would continue.
Innogy and SSE, two of the six largest energy suppliers in the UK, agreed in November 2017 to create a joint retail energy company that will offer electricity and gas supply and energy-related services to retail and business customers. Innogy will control 34.4% of the company, with SSE owning the remaining 65.6% of the business.
Alistair Phillips-Davies, CEO of SSE plc, said that the objective remained the creation of a new, independent energy supplier.