SSE has today published its Annual Report and Accounts for the financial year ending 31 March 2013.
The report sets out details of an expanding networks asset base, the energy supply industry’s first customer service guarantee, new generation assets in Ireland and another above inflation dividend increase, as announced at the full-year results on May 22.
In the report SSE’s Chairman, Lord Smith of Kelvin, talks about the past year, some of the challenges faced and the job that outgoing Chief Executive, Ian Marchant, has done:
“In consecutive weeks in the early spring of 2013, SSE confronted two of the biggest issues it has had to face since it was formed in 1998. The last week of March saw extreme snow falls and ice in the west of Scotland which inflicted unprecedented damage on the electricity network on Arran and Kintyre. Over 500 engineers and other employees from the company were deployed to help restore electricity supplies to households, businesses and other premises, working closely with a wide range of authorities and agencies. This was SSE at its best.
“The first week of April saw the Gas and Electricity Markets Authority announce a £10.5m penalty on SSE for breaches of licence conditions in relation to sales of electricity and gas, mainly between 2009 and 2011. Like everyone else associated with SSE I have no hesitation in apologising unequivocally for the breaches that occurred; but while the breaches were clearly wrong, the response has been absolutely right. SSE has undertaken major reform of its Retail operations since 2011, including introducing a sales guarantee to make good any financial loss experienced by customers joining SSE, and launching in 2013 the industry’s first-ever customer service guarantee, backed by a financial commitment. This is now SSE at its best, too”.
A generally good performance in 2012/13 enabled SSE to extend its unbroken record of annual increases in the full-year dividend and in adjusted profit before tax*. This ability to deliver consistently increases in the full-year dividend and in adjusted profit before tax shows the resilience inherent in its balanced model of economically-regulated and market-based energy businesses and the robustness of its strategy of focusing on operations and investments in each of those businesses.
A carefully-maintained balanced business model and a clear strategic emphasis on operations and investments, including learning lessons from the past to improve performance in the future, have been consistent features of SSE since the company was formed in 1998. The other consistent feature of the company has been the first financial objective of its business model and strategy: to deliver sustained real growth in the dividend payable to shareholders.
Ian Marchant will stand down on June 30 after ten years as Chief Executive. Deputy Chief Executive Alistair Phillips-Davies has been appointed to the role.
Lord Smith added: “Throughout this time, Ian Marchant has been a remarkably successful finance director and then chief executive of SSE. He is the first to acknowledge, however, how much he owes to Alistair Phillips-Davies and Gregor Alexander and SSE is fortunate indeed to have these two very able and experienced executives, and a very strong management team generally, to take forward the business after Ian, having completed an exceptional decade as chief executive, steps down at the end of next month.
“While there will be a change of Chief Executive in the company, and while the energy sector is subject to change driven by regulation, legislation, technology, demand for natural resources and the needs of customers, there are four things at SSE that won’t change: the balanced business model; the focus on operations and investment; the dedication to customer service; and the commitment to sustained real growth in the dividend in the years ahead”.
SSE’s AGM will take place on Thursday, 25 July, in Perth. The AGM documents will be mailed to shareholders. Online copies of the Annual Report are available to download on the corporate website.