A new player in the UK energy market is to be created after npower agreed a deal to offload 770,000 customer accounts, according to sky.com
They form part of npower's Electricity Plus and Gas Plus subsidiaries, which were sold for £218m to Telecom Plus, a supplier of energy and telephony services trading as Utility Warehouse.
The deal, which will not result in any change to customer service and contracts, is expected to be completed by early January.
It is the result of new rules from the industry regulator Ofgem which limit the number of tariffs on offer to domestic customers to a maximum of four.
As Utility Warehouse already manages the brands on behalf of npower, the sale will allow the two companies to continue to offer their customers up to four tariffs under their respective brands.
It will also meet demands for greater competition in the industry at a time of rising energy prices - a situation that has resulted in fierce debate in recent weeks over political intervention to ensure a fair marketplace for consumers.