SSE shares slide on capacity standstill

Shares in FTSE 100 power outfit SSE (LON:SSE) dropped by 1.28% to 1,158.50p (as of 14:30 GMT) after the company said it would be unable to contract or receive revenues from the capacity market which has entered a standstill period. The company did reiterate its dividend plans, but said the state of the capacity market would negatively impact EPS by around 6p.

Chief Executive Alistair Phillips-Davies commented: “We continue to make good progress in our core businesses of regulated energy networks and renewable energy, complemented by flexible thermal generation and business energy sales. We have also demonstrated our ability to create value for shareholders through the recent sales of stakes in our telecoms business and selected onshore wind farms with expected proceeds of over £1bn. We are also making progress in assessing the options for the future of the Energy Services business.

“SSE has a clear strategy and good long-term prospects for its high-quality core businesses and assets that contribute to the transition to a low carbon economy and will support the creation of value and delivery of our dividend plan in the years to come“.