SSE will demonstrate an “appetite for reform” to investigators who are probing competition issues in the UK energy market.
The firm, based at Inveralmond in Perth, told shareholders yesterday that Ofgem’s decision last month to refer the market for a full Competition and Markets Authority probe was an “important” step in restoring public trust to the sector.
The CMA investigation will look at the relationship between the supply and generation arms of SSE and the UK’s five other major utility companies, in order to determine whether there is sufficient competition in the sector.
Ofgem said it hoped the CMA probe, which will report its provisional findings early next summer, would provide the confidence required to bring forward investment and ensure consumers were getting the best possible deal.
SSE which has seen its retail customer base fall to below nine million after more than 100,000 households switched away in the three months to June 30 said it would demonstrate to CMA investigators its willingness to bring forward reforms that benefit both customers and competition in the marketplace.
“SSE believes this reference will be an important opportunity to demonstrate the competitiveness of the energy market in Great Britain, address any issues of public concern and deliver good outcomes for consumers and a stable framework for investors,” the company said in a market update ahead of its annual meeting at Perth Concert Hall yesterday.
Around 150 shareholders attended the event, at which chief executive Alistair Phillips-Davies was quizzed on a range of issues from the litigation arising out of the tunnel collapse that led to the Glendoe hydro scheme being mothballed, to the roll-out of smart meters.
He was also asked about why SSE was not investing heavily into wave and tidal power, and replied that such forms of electricity generation were currently more than three times more expensive than alternative forms of renewable power such as onshore wind.
However, the first question he faced was about reputation, public trust and standards: three key themes to emerge from the event.
Prior to the event, Mr Phillips-Davies told investors that SSE was leading the way in building trust through initiatives such as its current price freeze.
“Our customers are benefiting from the longest-ever household energy price freeze in the Great Britain market, and good progress is being made in our programme of investment to build, upgrade and maintain the electricity assets customers rely on,” he said.
“Although energy market conditions are challenging, we are on course to give shareholders a return on their investment through a dividend increase that at least keeps pace with inflation.”
SSE which is currently streamlining its operations into three distinct businesses also used the meeting to reiterate its plans to invest £5.5 billion over the next four years, including £1.6bn in the current financial year.