The Lemon Fool

SALE OF STAKE IN STRONELAIRG AND DUNMAGLASS WINDFARMS TO GREENCOAT

SSE has entered into an agreement to sell a 49.9% stake in its Stronelairg and Dunmaglass wind farms to Greencoat UK Wind Plc ("UKW") in partnership with a major UK pension fund whose investment is managed by Greencoat Capital. The stakes equate to 160.6MW (megawatts) of capacity and the total consideration is £635m, which implies an average valuation for the two wind farms of around £4m/MW. SSE will continue to operate both assets while future development rights are in line with equity share. SSE announced in November 2018 its intention to create value through disposals of stakes in its growing portfolio of onshore and offshore wind farms, in line with its strategy to create value from development and operation, as well as ownership, of assets.
https://www.investegate.co.uk/sse-plc-- ... 10228013O/

SSE have been naughty and misreported FIT payments to OFGEM and have had to repay £4.07m, plus interest of £455,705 and a "fine" (sorry voluntary redress payment) of £250,000.

www.investegate.co.uk/article.aspx?id=2 ... 1863R&fe=1

and they've updated the reporting procedures so it doesn't happen again.

SSE appointed by Ofgem to take on 17,000 Brilliant Energy customers:

https://af.reuters.com/article/commodit ... FL8N21163X

Cheers, OLTB.

Ofgem is minded to approve a proposal by Scottish and Southern Energy Networks (SSEN) to build a 600MW subsea electricity transmission link from Shetland to mainland Scotlan
https://www.investegate.co.uk/ofgem/rns ... 00041998T/

But not the Western Isles link unless SSE modify their proposal to give better value for customers.

daveh wrote:But not the Western Isles link unless SSE modify their proposal to give better value for customers.

There's all sorts of skullduggery associated with that Western Isles link ...... and almost as much associated with not having it !

- dspp

I've posted SSE's notice of Closed Period on the HYP board.

viewtopic.php?f=15&t=16979


It also contains a trading statement and information on this years dividend and next years dividend. Which is basically unchanged form what they said in the February trading statement (97.5p this year and 80p next year).

daveh wrote: Which is basically unchanged form what they said in the February trading statement (97.5p this year and 80p next year).

They are looking to sell off the retail distribution part of their business. Even if they cannot do this, they are looking to ring fence it. It remains to be seen whether the retail business is profitable and if it is, or even if it isn't, whether they will make any dividend distributions financed by it. "Special" dividends may be an option.

Alaric wrote:

daveh wrote: Which is basically unchanged form what they said in the February trading statement (97.5p this year and 80p next year).

They are looking to sell off the retail distribution part of their business. Even if they cannot do this, they are looking to ring fence it. It remains to be seen whether the retail business is profitable and if it is, or even if it isn't, whether they will make any dividend distributions financed by it. "Special" dividends may be an option.

They say:

SSE Energy Services is expected to be profitable and cash flow positive (excluding working capital movements) in 2018/19 and 2019/20. Within this, in FY18/19 its household Energy Supply Business is still expected to report an adjusted operating margin of 2-3% compared to 6.8% in the previous year, reflecting the introduction of the Default Tariff Cap and lower customer numbers.

Whether they will pay any extra dividend from the Energy services division is unclear - with the dividend so uncovered it might be a good idea not to.

SSE fined £700k for failing to meet targets for installing smart gas meters:
www.investegate.co.uk/article.aspx?id=2 ... 9554U&fe=1

However I think this is more than a little unfair, as an SSE customer they are continually getting in touch with me to try and get me to fit a smart meter so they are trying very hard to meet the targets. I almost got one fitted when my old electricity meter died, but I wanted a type II meter (one that you can easily change supplier without having to change the meter) and the installer was unable to fit one when he called, so I got him to fit a dumb meter instead.

daveh wrote:
SSE fined £700k for failing to meet targets for installing smart gas meters:

http://www.investegate.co.uk/article.as ... 9554U&fe=1

However I think this is more than a little unfair, as an SSE customer they are continually getting in touch with me to try and get me to fit a smart meter so they are trying very hard to meet the targets.

I'd be fining them for trying too hard....

I had a call from them recently, telling me that I 'need to book an appointment to get my smart-meter installed', upon which I asked them what was wrong with my current electronic meter, and they couldn't answer the question beyond there being a 'need' to fit a new smart meter.

I asked them if it was somehow compulsory, and they agreed that it was not.

I then asked them why they used the word 'need' twice to me in our conversation, when it was clear that there was no 'need' at all for me to do anything of the sort, and doing nothing of the sort was exactly what I was going to do....

I imagine that many SSE customers might not feel able to challenge such a hard approach from their electricity supplier, and that's why I'd be fining them for trying a little too hard....

Cheers,

Itsallaguess (owns SSE....)

Itsallaguess wrote:

daveh wrote:
SSE fined £700k for failing to meet targets for installing smart gas meters:

http://www.investegate.co.uk/article.as ... 9554U&fe=1

However I think this is more than a little unfair, as an SSE customer they are continually getting in touch with me to try and get me to fit a smart meter so they are trying very hard to meet the targets.

I'd be fining them for trying too hard....

I had a call from them recently, telling me that I 'need to book an appointment to get my smart-meter installed', upon which I asked them what was wrong with my current electronic meter, and they couldn't answer the question beyond there being a 'need' to fit a new smart meter.

I asked them if it was somehow compulsory, and they agreed that it was not.

I then asked them why they used the word 'need' twice to me in our conversation, when it was clear that there was no 'need' at all for me to do anything of the sort, and doing nothing of the sort was exactly what I was going to do....

I imagine that many SSE customers might not feel able to challenge such a hard approach from their electricity supplier, and that's why I'd be fining them for trying a little too hard....

Cheers,

Itsallaguess (owns SSE....)

Its a problem that is the fault of the regulator. If the regulator is going to fine you £700k for not meeting targets for installing smart meters then you are going to push your customers very hard to have a smart meter installed.

When my meter failed I phoned and asked for a Smart meter as I assumed they would not fit an old meter. I was down to get a Type II meter but when the fitter arrived he said he could only fit a Type I meter (if you move supplier they have to replace the meter) and did I still want to go ahead? I asked if he could fit an old style meter and he said no problems and went with that. I did get ~400kwH of free electricity out of them as they haven't estimated usage for the 2 months when the meter wasn't working, which is what both myself and the fitter were expecting they would do (an estimate for the missing two months).


SSE owner and customer

I too was pressured to take a Smart Meter and point blank refused. I have no faith in them and certainly didn't want to be faced with getting another one if I move supplier - which after the latest price hike I'm very likely to do.

Once I'm no longer a customer it's very likely I'll sell the shares at the first decent opportunity - still 24% down on capital and the total dividends won't cover the loss until the end of this year (assuming no further sp drop).

Still, it coud be worse, they could be Centrica.

"A 'Big Six' energy giant has been forced to pay out almost £230,000 to a worker who was unfairly sacked."

https://www.heraldscotland.com/news/175 ... r-sacking/

This from TMF, written by Kevin Godbold;

Is SSE’s 7% dividend yield safe?

When I last wrote about SSE (LSE: SSE) in October 2018, the firm was planning the demerger of its household energy business, which it proposed to merge with Innogy SE’s retail energy business npower Ltd. I thought it was a good idea for SSE to get shot of its troublesome retail business because it often seemed ‘hit and miss’ whether the division would make enough money from year to year.

But the deal is off. In December, SSE announced the directors had realised the spin-off and merger would likely struggle as an independent enterprise and it was not, therefore, “in the best interests of customers, employees or shareholders to proceed with the transaction.” Indeed, SSE and Innogy SE were unable to reach agreement on revised commercial terms anyway, so that’s that.

https://www.fool.co.uk/investing/2019/0 ... ield-safe/

Prelims here- viewtopic.php?f=15&t=17769

SSE has published for consultation its first draft Business Plan for the transmission price control period between April 2021 and March 2026 (RIIO-T2) entitled 'A Network for Net Zero'.
See here:

A Network for Net Zero
www.investegate.co.uk/article.aspx?id=2 ... 6505D&fe=1

'A Network for Net Zero' aims to support both Governments' targets and meet the needs and expectations expressed by stakeholders through five clear, ambitious goals:
· Transport the renewable electricity that powers 10 million homes (circa 10 GW)
· 100% network reliability for homes and businesses
· Every connection delivered on time
· One third reduction in SSEN Transmission's greenhouse gas emissions
· £100m in efficiency savings from innovation

A Network for Net Zero' includes details of SSEN Transmission's 'Certain View' of the next price control period which sets out that a minimum total expenditure (Totex) of £2.2bn is required over the five years to maintain and grow the north of Scotland transmission network to meet the certain needs of current and future electricity generators and customers. This could see the regulatory asset value (RAV) of SSEN Transmission increase to over £5bn by the end of the RIIO-T2 price control period in 2026.

and

To deliver its plans, SSEN Transmission estimates its average cost to the GB consumer over the RIIO-T2 period will be around £7 a year.

So does that mean £7 on average to every UK customer or just those in its distribution area?

TRADING STATEMENT

SSE plc's Annual General Meeting takes place today, Thursday 18 July in Perth. This trading statement:

· Provides an overview of the performance of SSE's businesses in the first quarter of this financial year;

· States that SSE's outlook for the financial year 2019/20 remains unchanged from the outlook given in May 2019, despite lower than forecast renewable energy output in the first three months; and

· Re-iterates SSE's intention to recommend a full-year dividend of 80 pence per share for 2019/20, in line with the five-year dividend plan set out in May 2018.

https://www.investegate.co.uk/sse-plc-- ... 00048842F/

daveh wrote:SSE has published for consultation its first draft Business Plan for the transmission price control period between April 2021 and March 2026 (RIIO-T2) entitled 'A Network for Net Zero'.
See here:

A Network for Net Zero
http://www.investegate.co.uk/article.as ... 6505D&fe=1

'A Network for Net Zero' aims to support both Governments' targets and meet the needs and expectations expressed by stakeholders through five clear, ambitious goals:
· Transport the renewable electricity that powers 10 million homes (circa 10 GW)
· 100% network reliability for homes and businesses
· Every connection delivered on time
· One third reduction in SSEN Transmission's greenhouse gas emissions
· £100m in efficiency savings from innovation

The red bit may allude to plans to reduce the amount of gas insulated HV equipment. The gasses - typically SF6 - are extremely potent greenhouse gases. Fortunately gas insulated is on the decrease and is a minority of kit. Anyway this is just a quick observation based on what is typically going on in industry at present.

regards, dspp