Sse Share Discussion Threads

[wad collector] 15/12/2022 10:26

Yes Gas is providing us with about 50% this year. Today when it seems to me that the whole country is becalmed, wind is still pushing out 24% of our needs this week. Though maybe it is windy offshore somewhere.
The trouble with those figures is that they don't describe the intermittency.
Good to see that we have been net exporters for the last 24 hrs too.

But SSE share price is now more about politics than balance sheets again.

[marktime1231] 08/12/2022 13:45

I noticed yesterday quietly after about 18 months of final consideration the govt announced it has approved Keadby 3, a new 910MW gas power station with CCS near Hull which SSE is to develop with Equinor.

In the transition and in the absence of zero-carbon alternatives gas power is crucial. Over the last decade our gas power capacity has dwindled from 32GW to a nominal 28GW but the reality is we are down to an effective capacity today of around 24GW. Maxxed out during cold winter weather so we are having to add coal power back in to the mix.

And with prices making CCS viable, and a vision to transition from natural gas to hydrogen, our consciences can be clear. A shame that until hydrogen is in mass production we will mostly be burning natural gas from Norway, Qatar and the USA instead of our own.

We need to continue to invest in efficient and cleaner gas power, and nuclear, and storage to get us through to 2050. Expect more of the same, near to hubs which have a hydrogen vision.

[tuftymatt] 08/12/2022 10:58

I have a stop loss in to protect profit at 1682 which recently I didn't think would be required.

Looks like it's about to trigger as the Santa rally looks like it's been delayed due to the strikes!!

[peterangler] 30/11/2022 09:48

Yet more interference from OFGEM today, a populace move to deflect attention from the enept way it has failed throughout its original conception to benefit the consumer and protect the network.

[alphorn] 28/11/2022 10:15

Probably bid at the same time as UU. ;)

[wad collector] 28/11/2022 09:29

Yes I have also been anticipating a bid for at least the last 20 yrs...still waiting!

[bountyhunter] 27/11/2022 18:36

"Elliott has publicly gone quiet over its stake, but SSE may yet well find itself a prime bid target at a time of huge flux in the energy system. Oil giants such as BP and Shell are both pushing into wind farms, and may find they’d like some electricity networks to go with it as well."

I've been here for years anticipating a bid, maybe finally there will be one ironically catalysed by the Government's latest ill-thought out harsh taxation policy.

[jrphoenixw2] 27/11/2022 18:30

SSE now playing hard-ball re: windfall taxes...

Telegraph 26/11 9pm: 'Windfall tax means less certain energy supply, warns SSE chief
Energy giant may need to reduce output of hydroelectric plants to avoid 45pc levy

The Government's windfall tax has placed the UK’s energy supply at risk this winter, according to the boss of energy giant SSE.

Alistair Phillips-Davies says SSE may need to reduce the output of its hydroelectric plants in January and February to avoid the tax.

“That will mean there's probably less certainty of supply over the absolute peak,” he warns.
[edit...]
Months of speculation about introduction of the tax weighed on SSE’s share price, but there is now some relief in certainty. SSE’s stock is up 4.18pc year to date, valuing the company at around £18bn.
[edit...]
Elliott has publicly gone quiet over its stake, but SSE may yet well find itself a prime bid target at a time of huge flux in the energy system. Oil giants such as BP and Shell are both pushing into wind farms, and may find they’d like some electricity networks to go with it as well.
[edit...]
Opportunities are also opening up further afield. In the US, Joe Biden’s administration is luring billions of pounds of investment in renewables with a massive package of tax credits and incentives, sparking concern the US will suck investment out of the UK and Europe.

SSE has opened an office there and will go for good opportunities, says Phillips-Davies. But he notes Europe is “really committed to the path of renewables and clean green flexible energy … [which is] absolutely in our sweet spot”.

“America could be good,” he adds. “Why not. But I think equally America, ultimately, if it needs to have cheaper energy, it'll continue to frack and and indeed, if it has to, dig coal as well.”
[These are just extracts of a looong article, the bits relative to investors here. The full article can be found here:

[wad collector] 24/11/2022 15:40

Oh good, I will stop worrying then.

[kennewil] 22/11/2022 13:09

They are not going to privatise energy.They are going to create and energy company like EDF.https://www.theguardian.com/politics/2022/sep/27/labour-will-launch-publicly-owned-energy-firm-keir-starmer-vows

[bountyhunter] 18/11/2022 17:36

Of course Labour politicians are on protected final salary pension schemes so despite their pretence they don't give a damn about the market schemes that most people are now on.

[yump] 18/11/2022 17:28

Labour seem very confused about their own policy on energy. On the one had they're going to make investment in renewables easier, while on the other hand they're going to nationalise energy.

They talk as if there hasn't been any progress towards renewables using capitalism and profit, but in the UK there has been a huge amount of progress.

One thing is for sure, if there's any sign that they are going to mix actual public owned energy with private, private will leg it and find something else to invest in.

Then the greedy rich dividend thieves that Labour bang on about (ie. the pension funds that rely on profit for dividends, to pay out our pensions), will have to find something else, or our pensions will drop.

(That means "ordinary hard working peoples' pensions" to quote Labour on other occasions)

They're also banging on about lack of infrastructure spending by the Tories and yet a simple chart shows it subdued under Blair and taking off when the Tories came to power.

I remember voting for Blair and then watching while the NHS assets got sold off, under the promise of being rebuilt in nice new facilities using PFI.

[jrphoenixw2] 18/11/2022 17:06

I'd also found the energy sector share price reaction to the budget unclear. I found this article in passing and it seems to shed light on it.

TL/DR: they were pretty much expecting a hit, and the removal of the uncertainty brought some relief.

[bountyhunter] 18/11/2022 17:06

If Starmer gets in it will be burnt toast! ;)
I may need to reconsider my holding here in 18 mths time depending on the political landscape at that time.

[pierre oreilly] 18/11/2022 11:15

Not bizarre at all. They throw oodles of cash at windmills, then they take a little back - certainly less than i was expecting.

While the windmill gravy train gets thrown your and my money in such vast gratuitous quantities, then sse will go higher. It'll come to an end one day, probably a few years out now. If Truss were still pm, this share would be toast now - a very close shave.

[wad collector] 17/11/2022 21:25

It amuses me that the Governement is talking about the tax levels in 2028. Do they think they will still be in power?

It seems bizarre how little effect the statement has had on the share price here. On a one month chart there is no deflection. Or putting it another way, the market had expected it.

[jrphoenixw2] 17/11/2022 20:21

[Imagining] The levy will result in:
a) Slashed investment in domestic energy production
b) Greater dependency on the likes of Russia, Qatar + other charming states (who are unspoken foes and risks). Oh and the US, who under the current President acts like one.
c) Greater risk, higher bills, more eco-harm. Loss of adaptable and sane voters, a collapsing government and political chaos. [/just Imagining]

Sound about right?

[18bt] 17/11/2022 17:18

How the levy works from Deloitte

There will be a new Electricity Generator Levy from January 2023. A temporary 45% tax will be levied on extraordinary returns from certain low carbon UK electricity generation. Extraordinary returns will be defined as the aggregate revenue that generators make in a period from in-scope generation at an average output price above £75/MWh. The tax will be limited to generators whose in-scope generation output exceeds 100GWh across a period and will only then apply to extraordinary returns exceeding £10 million. The Levy is expected to raise £14 billion over the next six years.

[tuftymatt] 17/11/2022 15:25

Thanks very much 👍🏻
So a 10% increase from January and for a a fair bit longer too then. Could have been far worse I guess is how the market views it.

[jrphoenixw2] 17/11/2022 15:21

Nice one Tufty! I found this article surprisingly insightful into all the detail of todays budget impacts on energy cos.


'What is the windfall tax on oil and gas companies?'

[tuftymatt] 17/11/2022 14:32

Wow I had a buy order in for a top up at 1595 and when I saw it got hit I expected the worse!! Come back from lunch to see it spin up to over 1700!!

I better read the budget details as it must have caused that right?

[pierre oreilly] 17/11/2022 13:52

Looks like a weak attempt to get cash from generators via increased windfall tax.

Weak because the esi is now a smokestack industry, with suppliers owning generators - and their separation was the whole idea of the deregulated industry a few decades ago.

Ok, so nobble generators, so the company can easily shift profits from the generation arm to the supplier arm. Simples.

[gilesy911] 17/11/2022 13:46

What a rise