SSE to sell stake in £2bn Scotland Gas Networks

Perth-based energy and networks giant SSE plc said on Tuesday it is “progressing options for divestment of all its equity stake” in Scotland Gas Networks (SGN) as part of its plan to focus on renewable generation.

SSE had said in February it appointed banks to review options for a possible divestment of all or part of its roughly 33% stake stake in SGN — formerly Scotia Gas Networks.

Bloomberg reported that SGN is valued at £2.1 billion, citing Barclays Bank data.

SSE also published a trading update saying it “now expects the impact of coronavirus on adjusted operating profit to be around £180m for the full year, compared to the previously forecast £150m – £250m range.”

Separately, the Competition and Markets Authority (CMA) said it has dismissed an appeal brought by SSE against Ofgem’s decisions “to accept code modifications on charges to generators for the electricity transmission system.”

The CMA said: “SSE has lost its appeal to the CMA against Ofgem decisions to approve proposals to modify industry charging rules.

“The appeal related to changes to the calculation of charges paid by electricity generators, including SSE, for use of the electricity transmission system.”

SSE finance director Gregor Alexander said: “It has been a uniquely challenging year for us all, but, thanks to strong operational performance and delivery against our net-zero strategy throughout 2020/21, we are on course to meet our financial objectives for the year.

“We are making good progress in renewables with our flagship projects on track and we are also generating further growth options internationally to complement our enviable pipeline, which had its value underlined in the recent seabed auction process.

“We are also seeing encouraging progress in the Government’s process for carbon capture and storage projects, where we have options at Peterhead and Keadby.”