Power company TXU is to be bought up by Powergen after the plans were officially approved on Thursday.

Powergen has received clearance from the European Commission for its acquisition of Ipswich-based TXU's retail business and certain other assets.

The decision means Powergen will be the largest electricity supplier in the UK with six million customers.

Dr Paul Golby, chief executive of Powergen UK, welcomed the decision.

'Good value'

"We are delighted to have received EC approval for our acquisition," he said.

"Although we completed the acquisition on 21 October, we've been running the former TXU retail and generation assets as a stand-alone operation since that date.

"Our priority is centred on energy, where we can deliver excellent service and good value to customers.

"We want to give customers every reason to stay with Powergen and believe they recognise they are in good hands."