Outlook for 2011/12 and beyond
The economic outlook for the UK and Ireland in 2011/12 continues to be uncertain. In this context our core operational priorities are to:
carry out all work in a safe and responsible manner, with a lower Total Recordable Injury Rate and fewer road traffic accidents;
maintain strong cost control throughout all business activities;
distribute electricity and gas (through Scotia Gas Networks) with the fewest possible interruptions to supplies;
demonstrate innovation in the management of electricity and gas networks; optimise the management of its portfolio of energy assets and contracts;
ensure power stations maintain a high level of availability to generate electricity in the coming winter in response to customers’ needs and market conditions;
improve the standards of service delivered to energy supply customers and build on its sector-leading performance to achieve greater trust in its operations;
develop and sustain long-term relationships and contracts with key customers of its other energy and utility services; and
work with the UK government, other administrations, Ofgem and other regulators to secure a stable and competitive framework for electricity generation and energy supply.
Our investment priorities are to support sustainable earnings and dividend growth by:
commissioning new assets in renewable energy, electricity networks and gas storage which contribute to the balanced nature of its business;
meeting other development and construction milestones in its investment programme;
taking forward the wide range of additional options that it has identified for investment from the middle of this decade onwards, especially in electricity generation; and
preparing for the transformation of energy supply, characterised by the forthcoming roll-out of smart meters in Great Britain and the launch of the ‘Green Deal’ to encourage energy efficiency.
The delivery of a strong operational performance and the achievement of its investment priorities should enable SSE to discharge its first financial responsibility to shareholders: to deliver its targets for annual dividend growth.