NO announcement has yet been made on job cuts, as Swindon-based Npower and SSE merge.

The two energy giants announced a plan on Tuesday to merge their retail businesses.

German energy company Innogy – which trades in the UK as Npower – said that they were not able to comment on whether the merger would lead to job losses.

However, sources at the firm suggest that any job losses would be unlikely to fall at Innogy’s Swindon headquarters. Instead, it is thought that the cuts would be made at the firm’s Solihull offices, where call handlers and other back office functions are based.

Peter Terium, CEO of Innogy SE, said: “We have made great progress in restructuring Npower over the past two years and have improved our performance considerably.

“However, when we look at the competitive landscape and the uncertain political environment for energy retailers in Great Britain, it is clear that Npower would be better placed to offer value to our customers and our shareholders as part of a new company.”

The merger is expected to be finalised in late 2018 or early 2019. The merger would make the company the second biggest energy provider after British Gas.

It is believed that the move has been prompted by the government’s decision to introduce a cap on energy prices.

Many energy suppliers have called for an end to standard variable tariffs, as an alternative to the price caps. Energy prices on these “default” tariffs go up and down with the market.