SSE Group is being advised by Katie Bickerstaffe on the future options of its retail arm after the proposed merger with Npower was called off.
Bickerstaffe was announced as chief executive designate for the new retailer, which would have created the UK’s second largest energy supplier had the deal gone ahead.
Options on the table previously announced by SSE include a “sale” or an “alternative transaction”.
A spokesperson for SSE told Utility Week: “Katie Bickerstaffe has no involvement in the day-to-day running of SSE Energy Services but has been engaged by the SSE Group on a short-term basis to explore and advise on the future options for SSE Energy Services, including a potential standalone demerger and listing, a sale or an alternative transaction.
“All options are being assessed with the interests of customers, employees and shareholders being given full consideration. SSE intends to provide an assessment of the preferred option by the end of May 2019.”
Last week SSE said it was considering “potential external collateral arrangements” outside the group for SSE Energy Services.
According to SSE’s latest financial statement its retail arm is expected to be profitable and cash flow positive (excluding working capital movements) in 2018/19 and 2019/20.
For the full year 2018/19 its household energy supply business is anticipated to report an adjusted operating margin of 2-3 per cent, compared to 6.8 per cent in the previous year, reflecting the introduction of the tariff cap and lower customer numbers.
SSE said that should the proposed options “not be viable” the company would expect to retain Energy Services as a separate entity within the SSE Group.
The planned merger between SSE and Innogy’s retail arm Npower collapsed in December last year after the two companies were unable to reach an agreement on the terms of the deal.
Last month, Innogy revealed it is considering “alternative options” for its subsidiary Npower.
Katie Bickerstaffe was named as chief executive designate for the planned combined enterprise in April 2018 and took up the role on 24 September last year.
“Appropriate arrangements” were agreed at the time of her appointment to compensate her in the event of the transaction not going ahead.
Under the terms of her appointment, she was due to receive a basic annual salary of £650,000, as well as health insurance for her and her spouse and dependent children and a car allowance of £15,000 per annum.
Bickerstaffe was formerly chief executive of the UK and Ireland division of multinational electrical and telecommunications retailer Dixons Carphone – a role she held since 2015.
Other people appointed to the board for the new retail company included Gordon Boyd as designate chief financial officer and Dr Martin Read as designate chair.
SSE will publish its full year results on Wednesday 22 May.