SSE Cuts Spending Plan by £3 Billion Amid Slowing Growth
(Bloomberg) -- SSE Plc cut its five-year spending plan by £3 billion ($4 billion) as projects slow amid planning delays.
The program now totals about £17.5 billion, the UK utility said Wednesday. The company booked a £249.5 million impairment on its investment in renewables projects in southern Europe, reflecting a build-out that’s slower than planned because of sector-wide delays to permitting and grid connections.
“In response to the impact on growth rates from factors like a changing macro environment and delays to policy and planning, we are reducing spending,” SSE said in a statement. The utility will be focusing on “controllable costs and efficiencies,” it said.
Across Europe, power projects face long queues to connect to the grid as networks struggle to keep pace with the expansion of renewable energy. Companies are coming under pressure from rising supply-chain costs as competition grows for the same resources.
Around 90% of SSE’s investment plan through March 2027 is currently committed, with the remainder subject to delay or potentially even cancellation if the right investment conditions don’t emerge, the company said.
In offshore wind, progress continues at the Dogger Bank A project, with £176 million of equity and shareholder loans drawn to support construction ahead of completion expected in the second half of this year.
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