(Updates throughout, adds CEO comment)
By Susanna Twidale
LONDON, Nov 13 (Reuters) - British utility SSE on
Wednesday warned of challenges for energy firms due to the
election next month and opposition Labour Party plans to
nationalise some energy infrastructure, as it reported a higher
first-half adjusted pretax profit.
Labour has pledged to nationalise energy networks and also
set up a state-owned company to develop and own stakes in the
country's offshore wind farms if it wins power in the Dec. 12
election, plans that SSE says could make it more difficult to
develop new projects.
Labour's plans would be hugely disruptive for the industry
and could risk the UK's leadership position in offshore wind,
Alistair Phillips-Davies, SSE CEO said in a telephone call with
journalists.
Britain is the world's largest offshore wind market
accounting for 40% of global capacity and plans to generate a
third of its electricity from the technology by 2030 in a bid to
achieve net zero carbon emissions by 2050.
"The best people to achieve net zero are the private
companies that are currently performing and delivering well,"
Phillips-Davies said.
The company, which plans to shut its last coal-fired power
plant by the end of March 2020, also called on the government to
increase offshore wind targets and back new onshore development.
SSE reported an adjusted pretax profit of 263.4 million
pounds ($337 million) for the six months ended Sept. 30, up from
229.4 million pounds a year earlier.
The profit did not include figures from its British retail
arm, which SSE in September agreed to sell to OVO Energy for 500
million pounds.
SSE booked a 489.1 million exceptional charge against the
household energy supply business which is reflective of the
transaction price agreed with OVO, it said.
The deal, which is being scrutinised by Britain's
Competition and Markets Authority (CMA), is on track for
completion in early 2020 subject to gaining regulatory approval,
SSE said.
SSE's half-year profit was buoyed by the inclusion of around
110 million pounds of payments from Britain's capacity market,
which pays power producers to be available during times of high
demand.
The European Commission last month approved reinstatement of
the scheme, which had been on hold since last November after a
European court ordered the Commission to secure more details on
certain elements of the scheme, such as information on energy
consumers willing to reduce their consumption when needed.
($1 = 0.7815 pounds)
(Reporting by Susanna Twidale in London, additional reporting
by Muvija M in Bengaluru; Editing by Susan Fenton and David
Evans)
SSE (SSE)
