Pulse.Assent

The decision comes after a provisional clearance from the inquiry group of independent Competition and Markets Authority (CMA) panel members, who investigated how the merger would affect householders. The group specifically examined competition concerns around how the deal would impact ‘standard variable tariff’ prices.

Following a period of consultation, the CMA has decided to clear the merger after finding that SSE and Npower are not close rivals for customers on these tariffs.

Anne Lambert, Chair of the Inquiry Group, said:

With many energy companies out there, people switching away from expensive standard variable tariffs will still have plenty of choice when they shop around after this merger.

But we know that the energy market still isn’t working well for many people who don’t switch, so we looked carefully at how the merger would affect SVT prices. Following a thorough investigation and consultation, we are confident that SSE and Npower are not close rivals for these customers and so the deal will not change how they set SVT prices.

The CMA found that the number of people switching energy provider is the highest in a decade and the proportion on SVTs has fallen, with customers usually switching to a cheaper, non-SVT, tariff.

However, as those who do not switch are usually on one of the large energy suppliers’ already expensive SVTs, the CMA carefully examined whether the merger would change how larger suppliers set these prices.

It found that SVT prices are mainly driven by changing wholesale costs, but the large energy suppliers take account of each other’s tariff changes when choosing the size and timing of their own. Bad publicity from being the first to increase charges or make bigger increases means more of their customers switch away. The CMA therefore carefully considered whether a reduction in the number of large suppliers would encourage larger or earlier tariff changes.

It found that in this case SSE and Npower do not pay special attention to each other, consistent with the evidence that they are not close rivals for SVT customers, who instead prefer to move to other suppliers. Therefore, the merger is not expected to have a significant impact on SVT pricing.

Looking ahead, Ofgem’s price cap is also expected to protect people on standard variable tariffs.

As part of its assessment, the inquiry group examined evidence from the six large energy suppliers; smaller suppliers; customer groups; and regulators, before going on to consult on its provisional clearance. It received no evidence during the consultation that altered the provisional decision.

Further details are available on the investigation case page.

Notes to editor

1. This merger investigation is into the proposed deal between SSE Retail and Npower. Any future energy mergers – if they qualify for CMA investigation – will be scrutinised in relation to the specifics of the case.
2. The proposed merger primarily relates to SSE Retail and Npower’s energy supply activities to domestic customers in GB. SSE plc’s other interests (for example in generation and distribution, and supply to business customers) are not included in the proposed merger.
3. The CMA investigated the energy market in 2014-2016 and found many consumers and microbusinesses were paying more than they needed to. The CMA made recommendations to modernise and reform the market. These recommendations are being taken forward by Ofgem and will support consumers’ increasing engagement with the market.
4. The decision-maker on CMA Phase 2 inquiries like this one is the Inquiry Group. The appointed Inquiry Group is chosen from the CMA’s independent panel members who come from a variety of backgrounds, including economics, law, accountancy, business, and public/consumer policy. The membership of an inquiry group reflects a mix of expertise and experience.
5. The CMA is the UK’s primary competition and consumer authority. It is an independent non-ministerial government department with responsibility for carrying out investigations into mergers, markets and the regulated industries and enforcing competition and consumer law.
6. Media enquiries to the CMA should be directed to press@cma.gov.uk or 020 3738 6460.

Public Health England (PHE) is encouraging adults in the Midlands to look after their mental health as they do their physical health, through its new Every Mind Matters campaign.

The new campaign highlights that while we can all feel stressed, anxious, low or have trouble sleeping, there are simple actions we can take to manage these issues and prevent them from becoming more serious.

It encourages people to visit the Every Mind Matters guide, a free NHS-approved online resource which provides expert advice, practical tips, and experiences from real people to help manage these issues and those of others.

Each year, around one in four people in England experience a mental health problem, and the proportion of diagnosable common mental health conditions has increased by 20% in 20 years.

A new survey of adults in the Midlands conducted for PHE also shows nearly three quarters (71%) of people in the Midlands report experiencing one or more of low mood, anxiety, stress and trouble sleeping, frequently or occasionally.

Stress is the most common response, with over half (53%) experiencing this frequently or occasionally, compared to 51% for sleeplessness, 46% for low mood and 40% for anxiety.

The survey also found that two thirds (66%) of adults in the Midlands say they look after their physical health on a weekly basis, but less than half (46%) look after their mental health as regularly.

These figures highlight the importance of helping people to better understand and take action on their own mental health.

Having good mental health can help us feel and function better, have more positive relationships with those around us, and deal with and manage difficult times now and into the future. Over time, having good mental health may also reduce our risk of physical health problems.

Professor John Newton, Director of Health Improvement at Public Health England, said:

With the pressures of modern life, it’s normal to feel stressed, anxious, low or have trouble sleeping some of the time. But when these become overwhelming or frequent they can be signs of a more serious problem.

It’s just as important to take action to look after your mental health, as your physical health. Our campaign helps you to protect and improve your own mental health, and help others.do the same.

The Every Mind Matters guide also offers support for social anxiety, trauma, obsessions and compulsions or panic attacks and provides information for people wishing to help friends, family and colleagues experiencing mental health problems.

Every Mind Matters has been developed in conjunction with leading charities, academics and clinicians and is endorsed by leading experts in mental health.

It is being promoted to adults across the Midlands with new TV, radio and online adverts; and is being supported by a range of public sector, charity and commercial partners.

To access expert-led videos and create your own action plan to help look after your mental health, visit the Every Mind Matters guide.

Background

1. ‘Adult psychiatric morbidy in England, 2007: results of a household survey’ is available online from NHS Digital.
2. Research on ‘Trends in morbidity and risk factors’ is published as part of the Health Profile for England report 2018.