SSE sees 50,000 customers leave in 3 months to June, Brexit uncertainty

SSE said it lost 50,000 gas and electricity customers in Great Britain and Ireland in the three months to 31 March.

The energy company said the it now had 8.16m customers compared with 8.21m in the previous quarter, adding that the external operating environment continues to have an impact on the company, calling recent reforms imposed by the regulator as “considerable” that had to be implemented into a “fast changing energy supply market”.

SSE is targeting a return to growth and adjusted earnings per share of at least 120p in 2016/17.

It added that the outcome of the UK's referendum to leave the European Union “could lead to aspects of the financial, regulatory and political environment becoming more uncertain in the years ahead”.

“Energy flows across geographical borders and SSE believes that the UK's focus should be on competitively and cost-effectively maintaining security of supply and decarbonising the economy, supported by progressive market harmonisation,” SSE said.

“In its representations to governments, SSE will therefore make the case in this period for stability, market harmonisation and effective carbon pricing.”

SSE continues to expect that its capital and investment expenditure will total around £1.75bn in 2016/17 and be in the range of £5.5 - £6.0bn across the four years to March 2020.

SSE has signed a sale and purchase agreement with DIF Infrastructure IV for its equity interest in its three remaining UK PFI street lighting special purpose entities.

The sale is expected to reduce SSE's net debt by around £130m on completion through the removal of project-related senior debt together with the cash consideration, although the exact amount will not be finalised until after completion, which is expected later this financial year.