Energy giant in £1.5bn deal

SSE has agreed an almost £1.5bn deal to sell a quarter of its power transmission network business to a Canadian pension fund.

The UK power company said it will see the 25% stake in SSEN Transmission to Ontario Teachers’ Pension Plan Board.

The transmission arm operates under its licenced entity Scottish Hydro Electric Transmission.

SSE told shareholders the deal will “help unlock significant growth” in the transmission business and SSE as a whole.

It also confirmed a new £750m credit facility has been put in place to help the firm’s long-term funding requirements.

Gregor Alexander, finance director of SSE, will chair the business, with Ontaio Teachers’ getting a proportional representation on the board. He said: “As we set out in our Net Zero Acceleration Programme last year, due to the scale of potential growth and the associated investment required across SSE’s businesses, including in electricity networks, bringing in minority partners will balance capital allocation and support further growth, creating greater long-term value for all our stakeholders.

“In Ontario Teachers’ we have a strong long-term partner who we have worked with successfully over the past 18 years.”

CREDIT: Jenness Mitchell