When SSE faced calls from the activist investor Elliott Management for a break-up, the energy group argued there was strength in its diversity. The outbreak of the Ukraine war just months later helped vindicate the energy group, as prices soared and provided a windfall for its thermal power business. Flakey energy policies have highlighted the worth of SSE’s disparate businesses once again.
SSE has increased its capital expenditure target by £2.5 billion to around £20.5 billion until 2027. Projects in its regulated electricity transmission networks business have been approved by Ofgem. About £7.5 billion, or a third of the planned spending over the five-year period, will be put towards new transmission projects.
That investment is expected to increase the gross value of its regulated asset
