Possible Electricity Networks

RNS Number : 8004M

Scottish & Southern Energy PLC

01 June 2010

 



SCOTTISH AND SOUTHERN ENERGY PLC

POSSIBLE ELECTRICITY NETWORKS INVESTMENT

SSE (Scottish and Southern Energy plc) has decided it will not seek to acquire an ownership interest in the electricity distribution networks currently owned by EDF Energy Networks on a scale that would need to be funded by issuing new shares.  It will, however, continue to work with Borealis Infrastructure (Borealis) in the current sale process being run by EDF, the outcome of which could, potentially, result in SSE having a small ownership interest in the networks.

Gregor Alexander, Finance Director of SSE, said:

"We have always maintained a highly disciplined approach to acquisitions, investment and to financial management generally, and that will continue.  The new dividend targets we announced on 19 May are based on our existing operational plans and on the earnings that will arise from our investment programme, which is already well-financed.  We do not need to make any acquisitions and do not need to, or plan to, issue equity to help meet these dividend targets."

Ian Marchant, Chief Executive of SSE, said:

"We have a proven track record in the management and operation of energy networks and other utility infrastructure, and a long-standing and strong partnership with Borealis.  We will, therefore, continue to work in partnership with Borealis for the remainder of the EDF sale process.  We would like the opportunity to apply SSE's management and operational capability to the EDF networks, but only on a basis that represents good value for both partners."

 

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