SSE holds talks over sale of energy business

Perth-based energy giant SSE has confirmed it is in discussions to sell off its domestic energy business.

SSE is in talks with rival energy firm Ovo Group about the sale of its energy services arm, which has 5.7 million customers.

Should this go ahead, the impact it will have on its Perth workforce is as yet unknown.

The energy giant employs around 2000 people at its base in Inveralmond on the outskirts of the city.

This comes after SSE looked to merge its energy services with npower, however the merger collapsed in December.

And earlier this year SSE said it plans to offload its energy supply business by mid-2020, after losing more than half a million accounts, and in May the energy giant said it was to axe 444 jobs nationwide.

A spokesperson for SSE said: “As it said in its preliminary results statement in May, and reiterated in its Q1 trading statement in July, SSE is actively progressing a number of options for the future of SSE Energy Services, having determined that its best future lies outside the SSE group.

“In line with this, and noting recent media speculation, SSE plc can confirm it is in discussions with Ovo Group over the possible sale of the SSE Energy Services business, which supplies energy and related services to around 5.7 million household customers across Great Britain.

“These discussions are continuing, however no final decisions have been taken and no agreements regarding the terms of any transaction have been entered into.

“The board remains focused on securing the best long-term future for the business, its customers and employees, and for shareholders.

“SSE will provide no further comment on the discussions until a conclusion to them has been reached.

“In the meantime, it remains focused on the important work of delivering sector-leading service for its customers.”

Ovo Energy was founded in 2009 and quickly became a popular supplier, having a five per cent share in the market.

According to Ofgem, this makes Ovo the seventh largest supplier, after attracting a number of customers away from the ‘big six’.