SSE is optimistic that the UK’s four regional governments, Ireland and EU institutions will work together to ensure a “carefully-considered and responsible approach” to the issues arising from the Brexit result.
The company said in its results for the first quarter of the 2016–2017 financial year that much of the agreed agenda for the UK energy market is progressing, despite the uncertainty arising from the result of the EU referendum.
For example, the government has agreed the fifth carbon budget setting emission reduction targets between 2028 and 2032 at 57% below 1990 levels and parliament has approved the planned reforms of the functioning of the capacity market, SSE said.
SSE chief executive Alistair Phillips-Davies said: “The outcome of the referendum on membership of the EU could lead to aspects of the financial, regulatory and political environment becoming more uncertain in the years ahead.
“Nonetheless, SSE’s balanced range of energy businesses and strategic focus on the delivery of efficient operations and investments, and meeting the needs of our customers, means that we remain well placed to fulfil both our core purpose, of providing energy people need in a reliable and sustainable way, and our financial objectives in the years ahead.”
He said the company had made a solid start to the financial year with continued focus on operational efficiency.
SSE said output from renewables generation was down to 1.51TWh in the period compared with 2.20TWh in the first quarter of last year.
This reflected “differences in weather between the two periods”, the company said.
It said it continues to expect capital expenditures of around £1.75bn this year and £5.5bn–£6.0bn across the four years to March 2020.
The utility is also targeting a return to growth and adjusted earnings per share of at least £1.20 in 2016–2017.
Image: SSE
