Perth-based SSE could merge with Npower

Bosses at the energy firm say it would save money and allow services to be delivered more efficiently.

Published 8th Nov 2017
Last updated 8th Nov 2017

Perth-based energy supplier, SSE has today announced proposals to merge with rival firm, Npower.

The deal will ensure cost-savings are made, although the news has sparked concerns over what it will mean for people working there.

Officials have said it is down to the need to adapt to a rapidly changing market place, and that the merger will create an efficient new energy and services business.

Chief Executive Alistair Philips-Davies said: "We are very proud of what we've delivered as a Group over many years; but we have been and remain committed to taking the right decisions in each of our businesses to secure the right outcomes for energy customers and other stakeholders.

"The scale of change in the energy market means we believe a separation of our household energy and services business and the proposed merger with Npower will enable both entities to focus more acutely on pursuing their own dedicated strategies, and will ultimately better serve customers, employees and other stakeholders.

"SSE will remain a balanced group of related businesses, specialising in the energy, infrastructure and services needed to support the transition to a lower carbon future, but continuing to serve business and Irish customers; whilst the demerged retail business will build on a history of operational excellence and first-class customer service to pursue its own dynamic strategy for GB customers.

"This process is likely to take some time and in the interim we remain absolutely focused on the critical job of delivering for customers."

Local Tory MSP Murdo Fraser is worried what the plans will mean for employees at the firm, and after getting in touch with officials, he thinks job losses would be inevitable.

He said: "To see a successful Scottish company expanding has got to be good news, but at the same time, I think there will be concerns around Perth given the number of jobs locally.

"Any merger might involve rationalisation and that is why I have been in touch with SSE expressing my concerns about what this means for jobs in the city and also Perth's location as the headquarters of SSE".

He added: "I recognise this will be a cause of some concern to many people who are employed by SSE in Perth and their families and that is why I am trying to get some clarity around these issues".