If it goes ahead with the sale, SGN will join National Grid’s four gas distribution businesses on the open market, making 2016 a potentially transformative year for the ownership profile of the UK’s gas network.
SSE, which reported a fall in annual profits today, said it would return the value of any sale to shareholders.
In its annual statement, the company said: “Against background of a transformed portfolio of energy networks businesses, SSE has decided to consider options to crystallise some value for shareholders from its long-term investment in SGN and is considering the sale of up to one third of its 50 per cent equity stake in SGN Limited.
“In considering whether to take forward the disposal of part of its equity in SGN, SSE will be very mindful of the need to ensure that SGN itself is in a good position build to on its track record of success in the future.
“Should a sale be completed, SSE would expect to use the proceeds to return value to its shareholders, or to invest to create value for shareholders should there be the right opportunity, in a way that would be determined at the time.”
Read Utility Week’s analysis ‘Below the radar – gas distribution companies’ here