SSE (LON: SSE) has confirmed that there is some uncertainty over its merger with n-power.
The big-six firms intended to merge in order to create the UK’s second largest retail energy supply company.
The group said in a statement that the energy firms are agreeing on new terms, which means they could miss a deadline for its completion.
“There is now some uncertainty as to whether this transaction can be completed as originally contemplated,” said the energy firm when reporting half-year results.
“Nevertheless, the board believes that the best future for SSE energy services, including its customers and employees, will continue to lie outside the SSE group.”
The deal was initially approved by regulators last year but growing competition has increased fears among shareholders who may not back the deal.
In the latest annual results, the energy company reported a 41% fall in underlying pre-tax profits. The group lost £62.1 million in total compared to £409.3 million in profits a year earlier.
“The market for energy and related services in Great Britain remains intensely competitive, with over 70 suppliers competing for customers and around three million customers switching their electricity provider in the six months to 30 September,” said the group.
Npower’s owner, Innogy (ETR: IGY), reported falling customer numbers on Tuesday.
The group has lost about 500,000 accounts this year and has predicted a loss for the fourth quarter.
Rik Smith, who is an energy expert at the comparison site, said: “Npower has been pricing relatively in line with its big six counterparts and at times earlier in the year it was offering some of the cheapest deals from the big suppliers.”
“However, this hasn’t been enough to stem its customer losses as people look further afield than the big six for a good energy deal.”
