Perth-based SSE has revealed it has been hit by widened losses for its household gas and electricity supplier. Energy firm SSE has admitted there is “some uncertainty” that its merger with rival Npower will go ahead. The announcement comes after the companies delayed the tie-up due to the incoming energy bill price cap of £1,137 a year for “typical usage”. It means suppliers will have to cut the price of their default tariffs to the level of the cap or below it. The SSE-Npower merger, which has been cleared by the regulator, would create the UK’s second-biggest energy company. However, Perth-based SSE has revealed it has been hit by widened losses for its household gas and electricity supplier. It has also reported the loss of another 460,000 SSE customer accounts as competition takes its toll. In its half-year results, SSE said: “There is now some uncertainty as to whether this transaction can be completed as originally contemplated.
BBC 14th Nov 2018 read more »
Energy giant SSE is pinning its growth hopes on wind turbines after its profits for the first half of this year tumbled and its mega-merger with Npower was thrown into doubt. The FTSE 100 energy company told investors that it would set up a new division, SSE Renewables, as it laid bare the full extent of rising costs and falling customer numbers. The renewables spin-off will stand alongside SSE’s networks business as two divisions that are supposed to provide predictable earnings over the next few years as it seeks to maintain its dividend. SSE’s share price jumped by more than 6pc to £12 despite the company’s “disappointing and regrettable” first-half results. Profits for the six months fell to £246.4m, just over 40pc lower than in the same months last year, due to surging gas prices and an exodus of customers. Around 320,000 of its household energy customers turned their backs on the supplier in the first six months, deepening its losses in the unit from £7m this time last year to £62m in its latest results. SSE had hoped to shield itself from falling customer numbers in its retail arm by siphoning it off in a deal with Npower, but that is in now doubt due to the worsening market conditions. The company hopes to complete negotiations over the deal by mid-December but admitted that “there is now some uncertainty as to whether this transaction can be completed, as originally contemplated”.
Telegraph 14th Nov 2018 read more »
SSE aiming for further renewables market domination with new business. Named SSE Renewables, the wholly-owned entity will see the firm consolidate its current renewable energy assets in the UK and Ireland under a single banner. SSE said the company will integrate existing assets and projects under development in onshore and offshore wind, hydro and pumped storage. With 4 gigawatts (GW) of power generation under its belt, SSE Renewables will be led by managing director of green energy, Jim Smith.
Energy Voice 15th Nov 2018 read more »
Spark Energy could face a fine after it missed a deadline to make a £14.4 million renewables obligation payment. The energy supplier, which was founded in 2007 and has a turnover of more than £200 million, said it was in talks with regulators over what happens next. Spark has 297,000 customers in the UK and employs 400 people at its headquarters in Selkirk in the Scottish Borders. It specialises in working with landlords, letting agents and property managers to provide tariffs to rental tenants. While its main work is supplying energy, it also has 15,000 broadband and telecom customers. Chris Gauld, chief executive, and Hamish Osborn, chief financial officer, led a buyout of the company in 2016 that was backed by Limerston Capital Partners and Railway Pension Investments. Ofgem, the energy su pply regulator, said it had appointed an external party to audit payments, which have been received in the renewables obligation fund. The obligation means energy suppliers have to take an increasing proportion of their generation from renewable sources and make payments commensurate with targets set by Ofgem. Spark is understood to have missed the initial deadline of September 1 and the late payment on October 31.
Times 15th Nov 2018 read more »