Investigation launched into Ovo and SSE retail merger

Investigation launched into Ovo and SSE retail merger

The Competition and Markets Authority (CMA) has launched an enquiry into Ovo’s £500 million purchase of the retail arm of major Perth employer SSE.

All 8,000 of SSE’s energy services staff, including the contact centre based in Perth, will transfer to Ovo as part of the process.

In 2018, the Perth company sought to cast off this division and combine it with Npower but the merger fell apart in December.

SSE has said it had previously separated its energy services business from the rest of the company so their teams are in separate parts of the SSE group.



An Ovo spokesperson told The Courier yesterday that the CMA watchdog consultation was expected for a transaction of this size.

The CMA has asked for comments on the proposed deal by November 6th.

The CMA said: “The Competition and Markets Authority (CMA) is considering whether it is or may be the case that this transaction, if carried into effect, will result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation may be expected to result, in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.”

Alistair Phillips-Davies, SSE chief executive, said: “We have long believed that a dedicated, focused and independent retailer will ultimately best serve customers, employees and other stakeholders – and this is an excellent opportunity to make that happen.

“OVO shares our relentless focus on customer service and has a bold vision for how technology can reshape the future of the industry. I’m confident that this is the best outcome for the SSE energy services business.”

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