SSE has admitted there is “some uncertainty” over whether the proposed merger with fellow big six supplier Npower can be completed as planned.
An announcement was made by Npower’s parent company Innogy earlier this month that adjustments were being made to the merger due to “adverse developments in the UK market”.
A statement accompanying SSE’s latest financial results said discussions between itself and Innogy are expected to take place over several weeks and that there was uncertainty over the proposed deal.
It did however confirm that the creation of an independent energy supplier remained its objective.
It said: “SSE does not intend to provide further comment on the discussions until such an update, but creating a new independent energy supplier remains its objective.
“There is now some uncertainty as to whether this transaction can be completed, as originally contemplated; nevertheless, the board believes that the best future for SSE Energy Services, including its customers and employees, will continue to lie outside the SSE group.”
An update on the progress of the discussions is expected soon and “certainly by mid-December”, according to SSE.
The company posted its interim results on Wednesday (14 November) for the six months to 30 September, which include a 40.9 per cent fall in underlying pre-tax profits to £246.4 million.
The firm also posted a reported pre-tax loss of £265.3 million for the same time period.
The new company, which is yet to be named, already has several board members in place.
Martin Read was appointed as chairman designate in October while Katie Bickerstaffe was earlier named as chief executive.
Gordon Boyd meanwhile was appointed as chief financial officer in June.
In addition, SSE has also revealed plans to consolidate the development, operation and ownership of its renewable energy assets within a new dedicated company called SSE Renewables.