Innogy takes £427m hit on Npower value

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German energy group Innogy has cut the value of its UK energy Npower to €480m (£427m), in the midst of a “difficult situation” in the UK market.

Last week Innogy company confirms to merge it Npower planned with SSE s UK energy supply to a new company.

Innogy announced the depreciation in the Npower value, as results for the first nine months to September, it was reported.

It said that competition in the UK retail business remained “very, very hard and the pressure on margins is very high”.

The Npower depreciation was partially said in response to the tightening regulations, Innogy,.

Draft legislation to lower the cost of energy last month was cost released by the government of the United Kingdom.

Npower made a loss before tax of €102m over the nine-month period, compared with €81m loss in the same period last tear.

However, Innogy, said the business in the UK, around 47,000 customers in the third quarter of the year.

Germany’s largest largest energy companies of the market says the value of profits for the entire group rose from 8.7% to €2 billion in the first nine months.

The Fusion between Npower and SSE reduced the number of large energy suppliers in the UK from six to five.

The new company would be about the size of the market leader British Gas and serve over 11.5 million customers.

But the plan needs the approval of competition authorities.