SSE to bolster electricity networks in £33bn investment plan
SSE Plc is to spend billions on the UK's electricity network, the FTSE 100 firm announced on Wednesday, as it unveiled a "transformational" five-year investment plan alongside interim results.
The power generator said the £33bn investment would increase its exposure to UK electricity networks and drive earnings growth.
Around £27bn will be invested in regulated UK electricity networks, with the rest in renewables and system flexibility.
The bulk of the funds - £21bn - will come from operational cashflow generation, while £14bn will be raised through an increase in adjusted net debt and hybrid capital. Another £2bn will be funded by an equity placing.
Martin Pibworth, chief executive, said: "[This] transformational investment plan will help build a clear, more secure and more affordable energy system.
"Upgrading the UK electricity network offers a once in a generation opportunity for accelerated investment that is underpinned by secure UK government regulatory frameworks.
"It will unlock much-needed growth across the wider economy, and support thousands of jobs."
The update came as SSE - which has been expanding rapidly into renewable energy generation - posted a 29% fall in interim adjusted earnings per share, to 36.1p. Reported pre-tax profits slid 30% to £634.2m.
SSE said the decline was in line with expectations and consistent with typical seasonality.
Looking to the full-year, the Perth-based group said it expected profits in both transmission and renewables to be higher year-on-year.
But adjusted operating profits were forecast to fall sharply in distribution, "as allowed revenue is expected to decrease by around £400m following a one-off inflation cost recovery in 2024/25".
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