SSE plc Annual Report 2025
At the heart of
the clean energy
transition

STRATEGIC REPORT 183
Our story 2
Energy market review 4
Our strategy 6
Our business model 7
Our stakeholders 8
Chair’s statement 10
Chief Executive’s Q&A 12
Our KPIs 14
Review of the year 16
Chief Financial Officer’s review 17
Financial review 19
Business Unit operating review 28
–SSE Renewables 30
–SSE Thermal 32
–SSEN Transmission 35
–SSEN Distribution 37
– SSE Energy Markets 39
– Energy Customer Solutions 40
Sustainability 42
Chief Sustainability Officer’s review 43
– How we approach sustainability 44
– Taking stock on the pathway to 2030 45
– Driving climate action 46
– Providing affordable and clean energy 49
– Investing in industry, innovation and
infrastructure 51
– Committed to decent work and
economic growth 53
– Protecting and restoring the natural
environment 58
Risk 60
Introduction to risk 61
How we manage risk 62
Group Principal Risks 64
Disclosure statements 70
Climate-related financial disclosures 71
Carbon performance disclosures 79
EU Taxonomy assessment 80
Non-financial and sustainability
information statement 81
Viability statement 82
Going Concern 83
GOVERNANCE REPORT 84160
Chair’s introduction 85
Board of Directors 87
Group Executive Committee 91
Governance at a glance 92
The Board’s year 94
Our stakeholders and Section 172 Statement 102
Assessing Board performance 105
Nomination Committee Report 107
Audit Committee Report 113
Energy Markets Risk Committee Report 120
Safety, Sustainability, Health and
Environment Advisory Committee Report 122
Remuneration Committee Report 126
Directors’ Remuneration Policy review 129
Directors’ Remuneration Policy 131
Remuneration at a glance 139
Annual report on Remuneration 140
Compliance with the UK Corporate
Governance Code 2018 154
Other statutory information 157
Statement of Directors’ responsibilities 160
FINANCIAL STATEMENTS 161282
Glossary 283
Shareholder information 284
Discover our wider suite of reports at sse.com
About our reporting
The Annual Report is the centrepiece of SSE’s
communications to shareholders and wider
stakeholders. It aims to give a fair, balanced and
understandable overview of progress during
theyear,meeting the spirit as well as the letter
ofallreportingrequirements.
SSE supports the evolving sustainability reporting
standards, which aim to ensure companies tell an
integrated story, and the Company’s sustainability
disclosures are based on the ‘double materiality’
principle. SSE’s required sustainability disclosures are
included here, with additional detail in the separate
Sustainability Report, published at the same time.
APM
Alternative Performance Measures
SSE assesses the performance of the Group using a
variety ofperformance measures. These measures are
not all defined under IFRS and are therefore termed
‘non-GAAP’ measures.
A reconciliation from these non-GAAP measures to
thenearestprepared measure in accordance with
IFRSis presentedand described from page 162
.
TheAlternative Performance Measures SSE uses
mightnot be directly comparable with similarly titled
measures used by othercompanies.
Scan to visit
sse.com
Sustainability
Report
Annual Report Net Zero
Transition Report
Inclusion and
Diversity Report
A bird’s-eye view
across SSE’s
Bhlaraidh wind
farm. Located in
the Great Glen
north west of
Invermoriston,
Bhlaraidh’s 32
turbines have an
installed capacity
of 108MW.
Strategic Report Financial StatementsGovernance

Martin Pibworth
appointed SSE’s
new Chief Executive
Yellow River drives
Ireland’s green
transition
CFO Barry O’Regan
on meeting our
financial objectives
Slough Multifuel
powers energy
fromwaste
Connecting
Shetland for the
first time
Exceptional storm
draws exceptional
response
Page 12
Page 31 Page 38
Page 17 Page 36
Page 33
Adjusted investment
and capex
Safety (TRIR) per
100,000 hours worked
Economic
contribution UK/ROI
£2.9bn 0.16 £7.88bn/
€0.95bn
Group operating profit Earnings Per Share Dividend
£2,419.2m
Adjusted
£1,962.2m
Reported
160.9p
Adjusted
108.2p
Reported
64.2p
Who we are
We are a leading UK-listed energy company that invests in,
develops, builds and operates electricity infrastructure and
businesses needed for a clean, secure and affordable energy
system. Our diversified portfolio includes onshore and offshore
wind farms, hydro-electric power, solar and batteries, flexible
thermal generation and electricity transmission and distribution
networks. We also provide energy products and services for
businesses and other customers.
Our year at a glance
Thanks to the resilience of our business mix, we met our financial
objectives in2024/25 andinvested in the critical national
infrastructure needed for the future energy system.
Read more on pages 14 and 17
Highlights of the year
Strategic Report Financial StatementsGovernance
SSE plc Annual Report 20251

Our story
SSE’s role at the heart
of the energy transition
In the transition to a cleaner, more secure and more affordable energy system, SSE is
leading the way through the work it does in renewables, networks and system flexibility.
To provide energy needed today while building
a better world of energy for tomorrow.
Our purpose
To be a leading energy company
in a net zero world.
Our vision
Our values
A low-carbon economy
needs clean, renewable energy
that is supported by electricity
networks to bring power to where
it’s needed and backed up by
flexible generation.
We develop, build and operate all three
pillars of the energy transition, while
contributing to society through low-
carbon jobs, community investment,
critical services and taxes.
This provides balanced exposure across
the energy value chain that generates
returns, so the Group cancontinue to
invest at scale in infrastructure that’s vital
to both net zero and an affordable,
resilient energy system.
SSE is a clean energy pioneer, with roots
that go back to large hydro-electric and
transmission projects in the earliest days
of electrification. We continue to bring
investment and innovation to assets that
are revolutionising the energy system.
As the climate emergency intensifies,
policymakers in our primary UK and
Ireland markets are working to meet
stretching clean energy targets.
SSE is ideally placed to make these
ambitions a reality, both as a critical
partner to governments in delivering
low-carbon growth and as a national
clean energy champion.
We have a highly attractive opportunity
to create more value for our stakeholders
and society, while benefiting the planet.
Although we’re clear about therisks and
challenges of delivering infrastructure at
this scale, we remain uniquely placed to
contribute to a sustainable, responsible
pathway to clean energy that leaves no
one behind.
While SSE is dedicated to providing
energy for our customers today, we also
expect to invest significantly over the five
years to 2027 through our Net Zero
Acceleration Programme Plus – a plan
that’s building the clean, secure and
affordable energy system of the future.
Our approach
SSE defines a healthy business culture as “doing the right thing”,
which is underpinned by the “SSE SET” of six core values:
Safety
If it’s not safe,
we don’t do it.
Service
We can be relied
upon to deliver.
Efficiency
We focus on
adding value.
Sustainability
We do the right
thing for people
and the planet.
Excellence
We innovate to
improve the way
we do things.
Teamwork
We work together
in an inclusive and
collaborative way.
2
SSE plc Annual Report 2025
Strategic Report Financial StatementsGovernance
SSE plc Annual Report 20252

SSE’s place in the future energy system
How our balanced portfolio
is powering change
SSE is helping to create a new type
ofpower system driven by clean
renewable energy, flexible
generationand grids which enable
decarbonisation.
We have a unique portfolio that
rewards shareholders with both
index-linked earnings from our
economically regulated networks
andincreased market exposure from
our renewables and flexible assets.
Our customer-facing businesses give
us further resilience and diversity as
aGroup as well as direct interaction
with the society we serve.
Wealso trade and sell energy to
maximise value for SSE’s assets, and
we support our businesses through
shared central services.
Renewables: Providing clean and
affordable home-grown energy is
mission-critical as societies phase out
fossil fuels in favour of natural sources
of power such as wind, water and
thesun.
Networks: Ensuring that we can
transport renewables generation
towhere it’s needed is another key
part of the electrification of the
economy and our net zero future.
Flexibility: Balancing the grid system
when the wind doesn’t blow is vital
tokeeping the lights on as we
decarbonise, so increasingly efficient
gas-fired stations and storage
technologies have a key role to play.
Renewables
Offshore wind
Onshore wind
Hydro
Solar
Networks
Electricity transmission
and distribution
Flexibility
Gas-fired and multifuel
power stations
Pumped storage
Battery storage
Strategic Report
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Financial StatementsGovernance

Addressing the climate emergency
In 2024, the world witnessed the hottest
year on record, and the past decade has
seen the 10 warmest years since records
began. Planet-warming gases increased
more quickly last year than ever before,
jeopardising the 2015 Paris Agreement goal
to limit climate change to 1.5 °C above
pre-industrial levels. Extreme weather also
made headline news; from wildfires in
California to flooding in Europe and severe
storms in the UK and Ireland.
These trends highlight the need for urgent
global action and reinforce SSE’s ambitions
to lead the transition to clean energy.
Windwas thelargest source of electricity
inthe UK for the first year ever in 2024,
accounting for 30% of generation, while gas
produced 26.3%. SSE is proud to be playing
its role inharnessing the natural power of
our weather. It opened its 443MW Viking
wind farm on the Shetland Islands, which
iscapable of powering nearly 500,000
homes annually.
But while SSE is at the heart of the energy
transition, its stakeholders and its
businesses also feel the effects of climate
change. Theweather affected the output
ofSSE’s generational fleet in 2024/25 see
page 30
. SSEN Distribution mobilised
1,100 engineers and community support
teams after Storm Éowyn brought 100mph
winds to parts of Scotland.
As weather patterns evolve, SSE’s networks
businesses will continue to keep the
electricity network resilient, reliable and
able to cope with increasing demand. SSE
remains committed to building clean energy
assets as the best long-term way to tackle
climate change.
Political winds of change
Politically, 2024 was a volatile year, with a
record 75 national elections held globally.
Inthe UK, the first Labour government in
14years was elected with a commitment
todecarbonise the power system and
published its Clean Power 2030 Planto
explain how to get there. The Government
has made progress to streamline planning
and support investment in renewables, grid
upgrades and flexible generation. SSE is
currently well aligned with the broad
direction of UK energy policy.
The year also saw the launch of a new body
to oversee the energy system. The National
Energy System Operator (NESO) will be
akey stakeholder for SSE, responsible
fordeveloping strategic plans for the
infrastructure that supports the UK’s clean
power ‘mission.’
In Ireland, the new government re-
committed to its 2030 renewable energy
targets and is focused on aligning project
delivery with economic growth.
SSE will continue to work with current
andfuture governments, advocating
marketdesign and streamlined planning
frameworks that support grid expansion,
and the deployment ofrenewable and
flexible generation.
Trade tariffs and conflicts in the Middle East
and Ukraine are among the factors causing
economic uncertainty. Reducing society’s
current reliance on volatile foreign gas
markets by investing in clean UKenergy
remains the best long-term solution for
billpayers and SSE’s actions will help to
improve the UK’senergy security as well
asmitigating climatechange.
Committed to our purpose
in a time of global volatility
SSE is committed to its long-term goal of building clean energy assets and networks,
butwemust navigate political and policy change, market sentiment and societal
expectations. Climate change and the weather itself also affect SSE’soperating
environment. All these challenges and opportunities influence our strategy.
Energy market review
Chief Executive Alistair Phillips-Davies at SSE’s BLET event
The new UK Government was elected in 2024 with a commitment
todeliver clean power by 2030. SSE liaises with government to
ensure policies, regulation and market design support infrastructure
investment. SSE hosted its Business of Leading the Energy Transition
(BLET) event in London attended by Energy Minister Michael Shanks
MP, and other government figures including Chris Stark, Head of UK’s
Mission for Clean Power. SSE has engaged regularly with Ofgem and
the newly created NESO, including hosting visits to SSE’s Coire Glas,
Blackhillock and Foyers sites.
SSE continues to engage with the new Irish Government,
NorthernIreland Executive and regulators to support the delivery
ofdecarbonisation goals across the island of Ireland. SSE Chief
Executive designate Martin Pibworth attended the inaugural
Ireland-UK Summit held in Liverpool, and SSE also hosted a
subsequent reception with the British Embassy in Dublin on energy
cooperation. On the global stage, SSE attended COP29 in Baku,
Azerbaijan, to help drive widespread climate action.
A critical partner in the
clean energy transition
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Uncertainty on market design
Clean power by 2030 is a bold ambition
forthe UK, so the industry and its supply
chain need the confidence to commit the
necessary long-term investment. In 2024,
the sixth CfD (Contracts for Difference)
Allocation Round drew offshore wind
project bids, when the previous year
attracted none. More participation in
theforthcoming Auction Round 7 will be
critical for the UK’s clean power targets.
The UK and Scottish governments have also
given encouraging signals of their intent to
prioritise economic growth when it comes
to unwieldy planning processes that have
hindered project development. SSE will
continue to make sure it develops the right
projects in the right places. This includes
itsproposed 4.1GW Berwick Bank offshore
wind farm in Scotland, which would be a
giant step forward on the path to net zero
but still awaits planning consent from the
Scottish Government.
SSE also welcomed the UK Government’s
signals on a ‘cap and floor’ investment
framework to aid deployment of long-
duration electricity storage projects. With
the right framework, such a mechanism
would give SSE confidence to proceed with
its Coire Glas pumped storage hydro project
inthe Scottish Highlands.
At time of writing the Review of Electricity
Market Arrangements (REMA) was ongoing,
and the public arguments for and against
zonal pricing are well known. Whatever the
outcome, SSE will continue to have natural
balance across the energy value chain with
attractive options at its disposal to navigate
any ensuing market volatility.
Managing project challenges
Global operational offshore wind capacity
exceeded 80GW in 2024, with China and
then the UK having the highest volumes
offuture pipeline projects in the world.
Butconstruction of these assets is
challenged by rising commodity costs,
scarce key components and other supply
chain issues.
SSE’s Dogger Bank A offshore wind project
has been subject to delays at the installation
stage but will open later in 2025 without
material impact on returns. Work has
continued on Dogger Bank B and C and
once fully open it will be the world’s largest
offshore wind farm.
Some international developers in the
sectorhave cancelled projects due to
poorreturns or unforeseen costs. SSE is
committed to rewarding shareholders for
their risk by investing with capital discipline.
By prioritising value over volume and
focusing on efficiency, supported by the
resilience of SSE’s diversified mix of
market-facing and regulated businesses,
theGroup continues to deliver its strategic
objectives and createvalue.
Investing in decarbonisation
Electricity demand will rise with the take-up
of electric vehicles and heat pumps, while the
proliferation of data centres will also need
accommodation on the grid. System flexibility
and careful management of network
constraints are needed to support more
solarand battery storage assets. Infact, the
National Infrastructure Commission (NIC)
outlined that £37-50bn of load investment in
the distribution network is needed to support
extra demand and generation between today
and 2050. SSEN Distribution is playing a key
role in supporting net zero planning at a local
level and providing flexibility services where
localised high demand can be offset to
extend overall network capacity.
The long-term demand for
investment in low-carbon
infrastructure remains
clearinthe UK and Ireland,
where SSE’s clean energy
ambitions align with those
setby legislators.”
In December 2024, SSEN Transmission
published its RIIO-T3 Business Plan, which
sets out a bold blueprint to deliver at least
£22bn of critical grid infrastructure in the
five years to 2031. SSE also welcomed
Ofgem’s approval of its Beyond 2030
investment programme for replacing and
upgrading transmission projects in the
north of Scotland see
page 35 .
Looking ahead
The long-term demand for investment in
low-carbon infrastructure remains clear
inthe UK and Ireland, where SSE’s clean
energy ambitions align with those set by
legislators. The UK Government is dealing
with the realities of balancing the books
while seeking to attract investment and
grow the economy. This makes delivering
clean energy projects that help drive the
economy forward ever more vital.
Energy affordability is likely to remain a key
concern for governments and households.
In the UK, there were three consecutive
energy price cap rises from Ofgem in
2024/25, driven by higher gas prices,
coldweather and low gas storage levels
inEurope.
While consumers need short-term
protection from fluctuating gas prices, these
higher energy costs also underline the need
to accelerate the expansion of home-grown
clean and reliable energy as a long-term
affordability solution.
In 2024 elected policymakers and many
otherstakeholders in our main markets
demonstrated their commitment to clean
energy. At the same time, net zero
scepticism has gained traction in
somequarters.
SSE, like all those committed to the clean
energy transition, must keep making the
case for progress. Only by engaging with
allstakeholders can SSE help achieve a fair
and just transition to a net zero world.
As a long-term business that adapts as
itgrows, SSE has acted decisively in
the past year in response to the events
andissues described on these pages.
The changing macro-economic
environment, delays to policy and
planning, and the knock-on impact on
SSE’s pipeline have led to a revision of
the Net Zero Acceleration Programme
Plus, which is now targeting
investment of around £17.5bn across
the five years of the plan to FY27.
This reflects an upweighting of
capexon regulated networks,
wheregrowth opportunities have
accelerated, and also a reduction
inspending on renewables, where
progress has slowed.
There is a knock-on effect for SSE
Renewables delivery targets, with the
business now aiming for a reduced
NZAP Plus target of c.7GW of installed
capacity by FY27, down from ~9GW.
The acceleration in networks and
slowdown in renewables is also likely
to have an impact on SSE’s 2030
Goals, which are subject to ongoing
review to ensure they support
SSE’sstrategy.
The NZAP Plus revisions are in
keepingwith a commitment to
capitaldiscipline that extends to
operational areas too. Recognising
that the timing of delivery and returns
from investment in each business
varies, the Group has conducted an
efficiency review toensure that SSE
has the rightstructures, resourcing
and accountabilities to maximise the
enormous growth opportunities that
decarbonisation offers. The review
– which is expected to result in
around£100m of annual
recurringsavings – will increase
competitiveness and rebalance
theGroup for future growth.
Responding to the world around us
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Our Net Zero Acceleration Programme Plus
is a five-year plan to 2027 currently forecast to
invest around £17.5bn inrenewables, electricity
networks and system flexibility that will be
needed to achieve clean power by 2030.
Our investment over five years to FY27
60% Regulated
networks
40% Market-
facing
businesses
Our strategy
Creating sustainable value
Our strategy is to create value for shareholders and society in a sustainable way by investing
in, developing, building and operating electricity infrastructure and businesses needed in the
transition to net zero.
Our investment plan
Targets to FY27:
– 175-200p adjusted
Earnings Per Share
– 5-10% annual
dividend growth
– Net debt in line with
strong credit ratings
We work to deliver social and environmental benefits that are recognised and supported by our
stakeholders. This is measured by four business goals aligned to UN Sustainable Development Goals.
Cut carbon
intensity by 80%
Reduce Scope 1 carbon
intensity by 80% by 2030,
compared to 2017/18 levels,
to 61gCO
2
e/kWh.
Increase renewable
energy output
fivefold
Build a renewable energy
portfolio that generates at
least 50TWh of renewable
electricity a year by 2030.
Enable low-carbon
generation and
demand
Enable at least 20GW of
renewable generation and
facilitate around 2 million
EVs and 1 million heat pumps
on SSEN’s electricity networks
by 2030.
Champion a fair
and just energy
transition
Be a global leader for the just
transition to net zero, with a
guarantee of fair work and
commitment to paying fair tax
and sharing economic value.
Our 2030 Goals
Aligns with
UNSDG 13
Aligns with
UNSDG 9
Aligns with
UNSDG 7
Aligns with
UNSDG 8
Other
~£17.5bn
to FY27
For more detail on SSE’s investment plans see Chief Financial
Officer’s review on page 17
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Strategic Report Governance Financial Statements

We rely on What we do
– Employees
– Shareholders and debt providers
– Energy customers
– Governments and regulators
– NGOs, communities and society
– Suppliers, contractors
and partners
– World-leading capability in the
provision of clean energy
– Strategic operation of a portfolio
that balances market income
with regulated earnings
– Investment that selectively
allocates capital in a disciplined
and targeted way
– A culture focused on keeping
people safe
– Effective identification and
mitigation of risk
We generate, back up and transport the electricity needed in
everyday life. We do this by investing, developing, building, and
operating in three key areas of the energy value chain, through
a balanced portfolio of regulated and market businesses:
Who we do it forHow we create value
The efficient operation of our
business model supports the
creation of a future energy system
that is cleaner, more affordable,
and more secure. Through it,
we make a significant economic
contribution to society, support
the supply chain, create quality jobs,
remunerate shareholders and
deliver positive outcomes for
energyusers.
Why it matters
Our business model
Delivering on our purpose
Aligning people, assets and capital to pursue growth
ambitions and secure long-term benefit for all stakeholders.
People
to deliver our strategy,
invest in our projects, buy
our products and provide
our licence to operate.
Assets
to generate revenue
and decarbonise the
energy system.
Pipelines
of development for
sustainable growth.
Funding
to finance our
investment plans.
Wind, water,
sunlight and gas
to produce energy.
Innovation
to drive our
business forward.
Key:
M
Market-focused
businesses
R
Economically
regulated businesses
I
N
V
E
S
T
I
N
G
D
E
V
E
L
O
P
I
N
G
B
U
I
L
D
I
N
G
O
P
E
R
A
T
I
N
G
Renewables
M
Networks
R
Flexibility
M
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Our stakeholders
Putting people and planet first
Meaningful interaction with everyone affected by SSE’s decisions and actions
is a key part of our decisionmaking and our responsibilities to society.
Our binding contract with society
SSE can’t operate in isolation from the
society it serves. That means the business
must be mindful of the impact of all that
itdoes and reflect this in its strategy.
SSE has an unwritten social contract, where
society entrusts the Company with human,
financial and natural capital and provides it
with a regulatory and policy framework in
which to work, and in return SSE provides
jobs, pays taxes and delivers energy
infrastructure. SSE’s right to operate as
aprofitable business rests on fulfilling
thisobligation.
Stakeholders are the people, communities
and organisations that have an interest in,
orare affected by, SSE’s decisions, actions
and operations. It’s a reciprocal relationship
and when it functions effectively, both
sidesbenefit. For example, the skills and
experience of SSE’s employees help the
Company thrive. In return, employees receive
a fair wage and have their rights protected.
Why we engage with our stakeholders
SSE must consider the broader views of
society in its decision making. Stakeholder
engagement makes sure the Company
considers the insights and opinions of those
affected by its operations. This makes SSE’s
decisions and strategy setting more
inclusive and robust.
SSE has divided its stakeholders into six
groups and uses a range of methods to
engage effectively with them, such as
consultations, roadshows or events. These
interactions feed directly into SSE’s decision
making on operational plans and strategic
objectives. They also reflect legal and
regulatory requirements and, as far as
possible, SSE strives to consider all
perspectives from all stakeholders.
Key:
Input
Output
Reciprocal, value-creating relationships
Shareholders
and debt
providers
Employees
Energy
customers
Suppliers,
contractors
and partners
Customer priorities,
expectations and
ultimate remuneration
Reliable and inclusive
provision of energy
and services
Quality goods and
services and investment
Sustainable relationships,
value creation and
partnership expertise
Talent, skills,
values and output
Inclusive, fulfilling
and high-performing
workplace
Public policy and
regulatory
frameworks
Investment in
critical energy
infrastructure
Provision of finance,
strategic direction
and stewardship
Return on investment
and interest
Distinctive social,
environmental and energy-
related perspectives
Robust social contract
through which value
is shared
NGOs,
communities
and civil society
Section 172 Statement on page 102
Governments
and regulators
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Employees
SSE directly employs around 15,000 people
in the UK, Ireland and selected overseas
markets.
Why we engage
Engagement helps retain and attract a
skilled workforce as the Company works
tomeet the challenge of decarbonisation.
How we engaged
– Took soundings on sentiment and
connection to strategy and culture
through annual all-employee survey
– Delivered communications that
connected employees to strategy and
provided leadership visibility
– Worked to embed safety culture through
industry-leading immersive training
programme
– Consultation with recognised trade
unions, including on the impact of
efficiency measures on employees
14,880
*
Direct SSE employees
* This excludes employee data for Enerveo Limited,
which remains under strategic review with the
Infrastructure Solutions component of Enerveo
beingheld for sale during 2024/25.
Read more on page 53
Governments
and regulators
SSE has a non-partisan Political
Engagement Policy under which it engages
and partners with the institutions of
government in a way that is consistent with
its purpose and climate-focused strategy.
Why we engage
To influence policy frameworks that support
investment in critical national infrastructure
and serve the best interests ofenergy
customers and the environment.
How we engaged
– Engaged with UK and Irish governments
on the need for homegrown energy to
support growth, deliver energy security
and meet climate goals
–Contributed to government
consultations and responded to calls for
evidence and Parliamentary enquiries
– Partnered with UK Government on
COP29 summit in Baku, Azerbaijan in
support of global climate agenda
– Co-hosted Business of Leading the
Energy Transition event attended by
senior government figures
£2.9bn
Capex invested in infrastructure in 2024/25
Read more on page 4
Shareholders
and debt providers
SSE has a large and diverse shareholder
anddebt provider base.
Why we engage
To ensure strategic decisions are properly
informed by those with a financial stake in
SSE’s long-term success.
How we engaged
– Posted regular trading updates and gave
results presentations supported by
investor roadshows
– Met regularly with investors to
understand their priorities, including
those on ESG issues
– Had face-to-face engagement with retail
shareholders at SSE’s Annual General
Meeting
– Provided written dialogue, including
responding to shareholder queries
– Undertook engagement with credit
rating agencies and debt providers
£18bn
Market cap as at 31 March 2025
Read more on page 101
NGOs, communities
and civil society
SSE works in close partnership with
numerous third party organisations.
Why we engage
SSE relies on the support of the
communities it works in and the backing
ofcivil society as it plays its part in the
transition to net zero.
How we engaged
– Held Scotland’s most extensive public
consultation exercise to give
communities a say in plans to transform
SSEN Transmission’s onshore network
– Liaised with stakeholders to ensure
effectiveness of our community
investment funds, which awarded
£16.3m in 2024/25. SSEN Transmission
introduced its first ever community fund
and SSE Airtricity a new all Ireland fund
– Outlined plans for 1,000 new homes as
part of transmission projects in the north
of Scotland
– Partnered with NGOs to deliver societal
and environmental benefits to
communities adjacent to SSE’s operations
£16.3m
Investment in communities in 2024/25
Read more on page 56
Energy
customers
SSE directly serves energy supply customers
in GB and the island of Ireland. It also
provides grid connection to networks
customers in its Distribution and
Transmission operating licence areas.
Why we engage
To understand and address expectations
andensure customers are supported in a
just transition to net zero.
How we engaged
– Engaged proactively with vulnerable
networks customers through winter
storms
– Promoted the benefits of SSE’s existing
and proposed business plans forelectricity
network price control settlements
– Engaged with home and business energy
supply customers on efficiency measures
– Ensured ready access to support
measures for energy supply customers
and liaised with consumer groups
c.5m
Networks and supply customers
Read more on pages 38 and 50
Suppliers, contractors
and partners
SSE relies on a robust supply chain and
specialist Joint Venture partners to meet
itsobjectives.
Why we engage
Fostering good relationships and
committing to measures such as the Prompt
Payment Code helps SSE secure partnership
expertise and achieve maximum value
fromitsinvestments.
How we engaged
– Facilitated industry-government
engagement on circular economy
through SSE’s Powering Net Zero Pact
– Trained 1,172 contractors through
industry-leading immersive safety
programme
– Direct interaction through SSE’s
long-running Supplier Relationship
Management initiative
– Promotion of sustainability best
practicethrough EcoVadis supply chain
management tool
c.7,390
Active suppliers
Read more on page 51
9 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Another eventful year for SSE underlines the
complexity facing our sector, as industry
and government wrestle with the task of
building the energy system on which a
low-carbon economy will depend.
Amid geopolitical unrest, political change
and shifting market dynamics, we invested
£2.9bn last year. We’ve moved past the
halfway point of the Net Zero Acceleration
Programme Plus – our five-year, c.£17.5bn
investment plan to 2027. And we’re now
preparing for growth over the remainder
ofthe decade, largely driven by demand
forthe grid infrastructure required to meet
national clean energy ambitions.
We also celebrated a number of strategic
milestones and met our financial objectives
in 2024/25, thanks to the adaptability and
optionality of our portfolio insulating us
from the worst of the disruption felt
elsewhere in the sector.
Our clean power plan
There’s no doubt the road to net zero is
becoming increasingly complex to navigate.
Governments across the world are making
trade-offs on climate commitments. And
tension persists in our home markets as
legislators try to balance longer-term green
policies with measures to address short-
term affordability issues and stubbornly
slow economic growth.
As one of the UK’s largest investors,
SSEtakes the long view. By providing the
renewables, electricity networks and system
flexibility that will form the energy system of
the future, we provide quality jobs, support
supply chains and benefit communities.
This puts us at the heart of the UK
Government’s Clean Power 2030 Plan. As a
critical partner, we’re committed to working
with government on the policy dilemmas it
faces, engaging all the while toachieve the
best possible outcomes for both climate
targets and customers. The signals from
government on easing the planning and
consenting blockages that have bedevilled
large UK infrastructure projects for too long
are welcome for our extensive development
pipeline. We continue to work with
Ofgemon an investable and financeable
regulatory price control that supports grid
transformation on a scale not seen since
the1940s.
However, greater certainty is still needed
iflow-carbon technologies like carbon
capture and storage (CCS) and hydrogen
are to play their full part in the transition to
net zero. And we look forward to a more
stable environment for much-needed
private investment once we have clarity
over the energy pricing model under
imminent reforms to the UK energy market.
Alistair passes on to
Martin a great platform
to build on and a tried
and tested strategy
New leadership, new impetus
Our standing as a national clean energy
champion is testament to the inspirational
leadership of our outgoing Chief Executive,
Alistair Phillips-Davies. He departs with
mypersonal thanks for his 12 years of
impeccable service in the role.
We have a worthy successor in Martin
Pibworth, who was the stand-out candidate
in a highly competitive selection process,
(see page 107
). Nobody understands SSE,
or the energy sector, better than Martin and
I have no doubt that he has the expertise,
stakeholder understanding and commercial
acumen needed to drive SSE forward.
Alistair passes on to Martin a great platform
to build on and a tried and tested strategy
that flexes our diversified portfolio to adapt
to market trends across a range of clean
energy technologies. He has all the tools
athis disposal – a resilient business mix,
excellent people and assets, and balance
sheet strength – to build an agenda for
evolving SSE to meet whatever lies ahead.
Martin is also backed by a highly capable
SSE executive team and a Board further
strengthened by the addition of Hixonia
Nyasulu, who brought a wealth of
experience in international markets and
consumer, industrial and financial services
when she joined us in January 2025.
Delivering on our strategy
We’re building a better world of energy
bypursuing our purpose and the strategic
delivery described in this report. There has
been good progress right across our three
strategic pillars of renewables, networks
and flexibility. For SSE Renewables,
milestones for Viking, Yellow River and
Chaintrix onshore wind farms were
well-publicised, but so too were events
offshore at Dogger Bank, where the world’s
biggest wind farm under construction
hadto overcome delays caused by supply
chain issues. In networks we celebrated
energisation of the pioneering Shetland
HVDC link and the start of construction
onthe subsea Eastern Green Link 2 HVDC
project. At the same time our existing
thermal fleet proved its worth in system
balancing and the new Slough Multifuel
plant brought added capacity when it
entered full commercial operation.
People behind our progress
There can be no strategic progress without
talented and committed people. The
collective contribution of around 15,000
Fresh impetus in
pursuit of growth
As we continue to deliver strong financial
performance despite the complexity of the
energy sector, we look forward to the next
chapter of value creation under new
executive leadership.
Chair’s statement
10 SSE plc Annual Report 2025
Strategic Report Financial StatementsGovernance

employees, and their focus on delivery
andefficiency is reflected in the project
milestones, operational excellence and,
ultimately, the financial performance
we’veseen over the past year. Through
ourefficiency review, we are making some
hard choices internally to ensure we thrive
in the future, but we are committed to
treating people fairly throughout. On behalf
of the Board, I thank all our employees for
their ongoing cooperation and efforts.
It’s all the more pleasing that, through such
a busy year in which we’ve achieved so
much, safety has remained a priority. Safety
is the most important of six core values
(Safety, Service, Efficiency, Sustainability,
Excellence and Teamwork) that guide what
we do and how we do it. Our combined
Total Recordable Injury Rate is the lowest
we have seen in three years and, within that,
the performance among our contract
partners is particularly encouraging. This
has been an area of focus for several years
as construction has accelerated.
While keeping people safe is of paramount
importance, the Board also believes a
workplace that’s welcoming and reflects
thecommunities we operate in provides
thebest environment for optimal business
performance. We’re making good progress
on this as we strive to make sure under-
represented groups have a voice and that
we set a positive tone from the top.
A healthy business culture
The insights and opinions of our six
stakeholder groups make our decision
making more robust and our actions more
sustainable. Engagement with employees
isa particular focus and the Board meets
colleagues regularly as a check-in on
sentiment and culture. The Board also
monitors engagement with other
stakeholder groups. We appreciate the
support of shareholders who engage with
us and have voted in favour of our Net Zero
Transition Plan for the past four years. I’ve
already noted the vital dialogue we have
with legislators and regulators on energy
policy. Energy users are central to all that
SSE does, but it’s our customer-facing
businesses that engage ona daily basis
around issues such as affordability, service
and vulnerability. I’m pleased our close
relationship with Joint Venture partners and
suppliers has led to the improved contractor
safety performance outlined earlier.
Finally, given the licence requirement to
rewire much of the transmission network,
there’s been close engagement with
communities in the north of Scotland.
I’vealready mentioned that the transition
tonet zero will require trade-offs. Here, too,
we recognise that local communities are
hosting critical infrastructure in the service
of a wider national imperative. With this in
mind, before seeking planning approval we
carried out what we believe is the biggest
and most impactful public consultation
exercise seen in Scotland. We’ve also
provided tangible support through £2.3m
ofcommunity benefit funding and our
contribution to building at least 1,000
much-needed homes.
Listening to stakeholders in this way is
important for a healthy business culture,
and so too is transparency about our impact
on the world around us. This report is part
of that: tracking progress against our 2030
Goals and their associated science-based
targets (see page 45
), setting out our
Principal Risks (see page 64 ) and also
disclosing our scenario analysis of the
climate-related financial risks and
opportunities we face (see
page 75
).
Balancing long-term targets with
environmental, social and governance
considerations is becoming increasingly
complicated. Even so, the Board and the
executive team still believe that there need
be no tension between creating sustainable
value and fulfilling our social contract.
2030 and beyond
With the completion of our five-year plan to
2027 now within touching distance, we’re
already planning for a ramping up of our
growth ambition to 2030 and beyond. We
have theassets and development pipeline
to accelerate renewables, we already know
the large-scale investment required to
reinforce the grid, and we’re ready to back
itall up with the flexible generation needed
by the future energy system.
The Board is proud of what SSE’s employees
have achieved in 2024/25, and excited
about the opportunities that working with a
new Chief Executive might bring. We’re also
extremely optimistic about the Company’s
growth prospects. And, as we consider
what’s to come over the rest of the decade,
we remain focused on our responsibilities
as Directors to consider the interests of all
stakeholders while promoting SSE’s
long-term success.
Sir John Manzoni
Chair, SSE plc
20 May 2025
2021 202620252022 202720242023
NZAP launches
November 2021
Plan unveiled to
invest £12.5bn by
2027 – around £7m
a day on low-carbon
infrastructure
NZAP Plus
launches
March 2023
Plan upgraded to
invest £20.5bn to
2027 – around
£10m a day on
nationally critical
clean energy assets
Keadby 2 opens
March 2023
Europe’s most
efficient gas-fired
power station enters
commercial
operation in north
Lincolnshire
Seagreen
completed
October 2023
Scotland’s largest
offshore wind farm,
capable of powering
1.6m homes
annually, is fully
operational
Work continues to
complete all
phases of Dogger
Bank wind farm
SSE aims to start
building Berwick
Bank offshore wind
farm – pending
consent approval
Capex plan pivots
further to
networks and
revised to ~£17.5bn
May 2025
Ofgem’s final
determination of
RII0-T3
December 2025
Milestones on the road to net zero
Future milestones:
– ~£17.5bn invested
in clean energy
– Further spending
anticipated on net
zero beyond 2030
Viking wind farm
Viking wind farm
and Shetland HVDC
link completed
August 2024
Subsea transmission
link connects
Shetland to GB energy
grid for the first time
11 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Let’s start, as we always do at SSE,
with safety. What was our
performance like last year?
Alistair: Safety is our number one priority
– always has been, always will be – and I’m
pleased that it’s been a good year on that
front, with a Total Recordable Injury Rate
of0.16. As we build and operate ever more
sizable projects it’s vital that everyone gets
home safe. It’s particularly pleasing that,
after a challenging few years, we’re now
seeing a marked improvement in safety
performance among contractors. The
significant investment we’ve made in an
industry-leading immersive training centre
has played a big part in this. Having received
the training myself, I can say that it’s a
powerful experience that has a big impact
on the way people think about their
personal safety and the wellbeing of those
around them.
How do you reflect on
the past financial year?
Alistair: We’ve delivered on our financial
targets, which is always important. More
broadly, it’s very gratifying to see how
aligned our clean energy plan now is
withthat of the current UK Government.
That means the opportunities in our home
markets are as strong as they’ve ever been
and when it comes to our international
pipeline we’ve tried to maintain our value
over volume approach. The diversity of our
Group business model meant we could
channel investment to the transmission
network that will be so critical to getting
tonet zero. I’d like to thank colleagues
acrossSSE who are ultimately the ones who
execute and deliver on our strategy. It’s
been another outstanding year of delivery
for SSE and a lot of hard work goes into
that, which I never take for granted.
Martin: I’d point to the safety performance
that Alistair has already mentioned. The
improvement we’ve seen is down to a
relentless focus on getting people home
safe – and that’s something that will
continue. I’d also call out a few specifics
ondelivery: connecting up Shetland to the
GB electricity grid for the first time thanks
toa 260km subsea transmission link was
phenomenal, as was the opening of the
443MW Viking wind farm. I thought our
response to Storm Éowyn was heroic: we
mobilised a team of 1,100 to support and
reconnect our customers in Scotland who
were hit by ferocious winter storms. Let’s
not forget Slough Multifuel opening as part
of our commitment to flexibility, and I’d also
mention our colleagues in customer-facing
roles who are such an important shop
window for SSE.
Guiding SSE to
2030and beyond
After 12 years as Chief Executive, Alistair
Phillips-Davies is retiring from SSE and handing
over to Martin Pibworth. Here, Alistair and
Martin reflect on SSE’s progress over the past
year and consider how SSEwill continue its
clean energy mission.
Chief Executive’s Q&A
Alistair Phillips-Davies Martin Pibworth
12 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

What role do you see for SSE
inafuture energy system built
onrenewables, networks
andflexibility?
Martin: From a renewables perspective
we’ve faced headwinds that are hampering
our ability to develop and build projects as
quickly as we’d like. Dogger Bank will be the
world’s largest wind farm when we finish
construction, and while supply chain issues
haven’t helped us, the first phase is on track
for completion in the coming months. We
have constructed Yellow River onshore in
Ireland and our first European wind farm
innorthern France over the past year, so
we’ve made good progress. But there is no
doubt that the pace will pick up again for
Renewables because with net zero, it’s a
case of “when”, not “if” – especially in the
UK. The future for SSE Renewables is bright
andit will continue to be a key strength
inour portfolio.
Alistair: When it comes to networks,
Transmission is a huge growth opportunity
for us, with our five-year £22bn plan for
RIIO-T3 price control to build critical
infrastructure in Scotland. The challenge for
SSE will be delivering the transformational
change the grid requires whilecontinuing
tobe mindful of the impact that work has
on communities hosting infrastructure. Our
Distribution business also has a big role to
play when it comes to decarbonising the
power system and we will continue to make
the case withOfgem and others for the
need to accelerate investment.
Martin: The role of system flexibility in
backing up intermittent renewables should
never be undervalued when it comes to
theclean energy transition. This year for
example, we took a final investment
decision to build the 300MW Tarbert Next
Generation power station in Ireland,
whichwill run on 100% sustainable biofuels
with the potential to convert to hydrogen.
That’s a major boost to the electricity
system in Ireland and reflects how we’re
adapting our thermal fleet for the future.
We’d like to see quicker progress on
hydrogen and carbon capture and storage,
but these technologies of tomorrow are
definitely coming, and we’re ready to invest
in them.
What has SSE been doing to
navigateheadwinds in the
energysector?
Martin: First and foremost, doing what
we’ve always done – delivering on our
plansand running our assets as effectively
as possible. We’ve also continued to
engageconstructively with politicians and
regulators, acting as a critical partner to the
UK’s Clean Power 2030 Plan and making
the case for policy and market frameworks
that best serve the needs of customers,
investors and society more broadly. And
yes, SSE, like many other companies, has
had to respond directly to the realities of the
world around it, which means making sure
our business is the size and shape we need
it to be. We’ve conducted an efficiency
review and taken measures to make sure
wecontinue operating in the most
cost-effective waypossible.
How well placed is SSE in terms
ofthe current policy and market
environment?
Alistair: If you look at our domestic
markets, we’ve never been more aligned
toUK Government policy. This gives us
confidence to invest in the renewable
generation and massive grid upgrades we
need to make clean energy a reality. But if
I’ve learnt one thing in my time as CEO it’s
that you can never get complacent. We
can’t ever take our mandate to build net
zero assets as a given – we’ve seen the
cross-party consensus unwind with the
Conservatives describing 2050 net zero
goals as unrealistic. If you look at the US,
there has been a marked shift in green
policy and that creates uncertainty which
investors clearly don’t like. SSE will need to
keep making the case for decarbonisation
while being transparent about the costs
andinvestment needed to get there.
Martin: SSE is a long-term business, and
ourgoals and targets will always ultimately
depend on building assets that are part of
multi-year capital programmes. We are
particularly well-placed to pivot capital
around the renewables, networks and
flexibility assets that will be the backbone
ofa future energy system. But we must
manage supply chain issues, cost pressures
and general market volatility as part and
parcel of what we do. On Dogger Bank,
there’s been significant progress this year
and, importantly, the delays have had no
material impact on returns. We must keep
applying capital discipline so we can
optimise future growth opportunities, and
that approach won’t change on my watch.
Looking to 2030 and beyond, what
is going to be most important?
Martin: We’re beyond the midway point
ofour c.£17.5bn five-year Net Zero
Acceleration Programme Plus, so it’s crucial
that we deliver the growth we promised.
I’mconfident that a renewed focus on
commerciality and efficiency will enable us
to work through some of the pressures that
are affecting us and others in the sector.
The diversity and resilience of our business
mix, the quality of our people and assets,
and the strength of our balance sheet give
us cause for real optimism. I’d love for us to
get Berwick Bank offshore wind farm under
way, as this is aproject that could deliver a
sizable contribution to the UK Government’s
clean energy mission. And if last year was
the ‘year of networks’ then we could now
be looking at the ‘decade of networks’ –
they’re going to be critical enablers of clean
energy. There will also be technologies and
projects that we haven’t even thought about
yet, which is the exciting part for me.
There’s a lot for us to aim at.
What are your main reflections on
your time as Chief Executive?
Alistair: It’s been an immense privilege and
I’m extremely proud of how far we’ve come
as a company. I actually joined SSE in the
last century when wind was barely in our
portfolio. Now we’re at the vanguard of
theclean energy revolution, building the
biggest wind farms in the world, providing
flexible generation to the system and
investing heavily in the electricity networks
we need to connect people to sources of
clean power. All of this is made possible by
the brilliant people I have had the privilege
of working with over many years at SSE.
Martin, what will be your immediate
priorities?
Martin: Well, I’d start by paying tribute to
Alistair, who has led SSE brilliantly over the
past 12 years and transformed it into aclean
energy champion. My job is to continue,
and build on, his good work. My first priority
is to spend time with our key stakeholders
for meaningful conversations which will
help shape how we go forward. Of course,
safety is paramount. I’ll be working hard to
make sure all those operating our assets
orbuilding future projects get the support
they need as they do an amazing job every
day. Alistair leaves me with a platform to
seethrough the NZAP Plus investment
programme and to set us up for an exciting
period of growth out to 2030 and beyond.
Net zero is coming. At SSE we need to be
agile enough strategically to deliver that
inthe best waypossible.
And a final word from you, Alistair?
Alistair: I can walk away knowing that SSE
isin a very safe pair of hands. I’ve really
enjoyed my time with SSE and I’m proud
ofthe transformation the Company has
made in recent years and the strategic
roleit’s now playing in our energy future.
My heartfelt thanks go to so many people
– bethey colleagues, investors,
policymakers, community leaders or
customers – who have helped me make
adifference along the way.
Alistair Phillips-Davies
Chief Executive, SSE plc
Martin Pibworth
Chief Executive designate, SSE plc
20 May 2025
Martin succeeds Alistair as Chief Executive
following SSE’s AGM on 17 July 2025.
13 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Our KPIs
How we performed
We use a number of key measures to track our financial, non-financial and operational
performance, and we keep them under review to ensure they align with our strategy.
Dividend per share
(pence)
64.2
2025 64.2
60.0
96.7
2024
2023
The recommended full year dividend, rebased in
2023/24, is in line with SSE’s growth-enabling,
five-year dividend plan to 2027.
Earnings Per Share
(pence)
APM
R
160.9
Adjusted
108.2
Reported
2025
2024
2023
Adjusted Reported
167.5
(14.7)
160.9
156.7
160.9
108.2
Strong results in against a challenging
macroeconomic backdrop in 2024/25
wereattributable to the resilience of SSE’s
balanced business mix. APMs have been
simplified to no longer adjust for interest on
net pension assets, resulting in adjusted EPS
increasing by 1.9p in 2024/25, 2.4p in
2023/24 and 1.5p in 2022/23.
Profit before tax
(£m)
APM
2,138.2
Adjusted
1,850.9
Reported
2025
2024
2023
Adjusted Reported
2,199.8
(205.6)
2,200.9
2,495.1
2,138.2
1,850.9
The reported figure for 2024/25 reflects
exceptional charges including an impairment
on SSE’s investment in its Southern European
renewables development pipeline. APMs have
been simplified to no longer adjust for interest
on net pension assets, resulting in adjusted
profit before tax increasing by £20.7m in
2024/25 and £26.2m in 2023/24.
Adjusted EBITDA
(£m)
APM
R
3,349.3
3,382.1
3,295.6
3,349.3
2025
2024
2023
Performance reflects continued strong levels
ofcashflow generation across the diverse and
resilient business mix despite the challenging
macroeconomic backdrop.
Adjusted net debt
and hybrid capital*
(£bn)
APM
R
10.2
2025 10.2
9.4
8.9
2024
2023
Increased over the year to fund a rising level
oflong-term investments in clean energy
infrastructure across the Group.
Combined
networks Regulated
Asset Value (RAV)
(£bn)
R
12.9
2025 12.9
10.9
9.6
2024
2023
Accelerated build-out and reinforcement of SSE’s
three economically-regulated electricity networks
contributed to higher RAV values in the year.
Adjusted
investment, capital
and acquisitions
(£m)
2,910.4
2025 2,910.4
2,476.7
2,803.3
2024
2023
SSE invested a record amount in 2024/25 in
critical national infrastructure. The five-year plan
continues to evolve, with a reduction in spend
overall to FY27 and an upweighting of capital
allocation within that to networks.
Financial performance
Key
R
KPI linked to remuneration
Linking performance to pay
SSE’s Remuneration Policy is linked to both operational and financial performance. The individual targets and measures
used by the Remuneration Committee to inform decisions on Directors’ pay have been indicated on these pages with
the symbol shown here on the right. See the Remuneration Report in full from page 126
.
*Evolving KPIs to align with strategy
SSE annually reviews its KPIs and while the majority are expected to be consistent over a number of years, changes may
occur where they are deemed to better track strategic and operational performance of the Group. As a debt measure,
adjusted net debt and hybrid capital allows management to record and monitor both operating cash generation and the
Group’s ongoing financing and liquidity position. The ratio of adjusted net debt and hybrid capital to adjusted EBITDA in
any one period also helps inform decisions around remuneration.
14 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Safety performance
Total Recordable
Injury Rate per
100,000 hours
worked (employees
and contractors)
R
0.16
2025 0.16
0.20
0.19
2024
2023
Following a period of sustained focus on the
safety of SSE’s partners, the TRIR for both
employees and contractors combined in
2024/25 was at its lowest level in three years.
Performance against 2030 Goals
Cut carbon intensity by 80%
UNSDG 13
Scope 1 GHG intensity
(gCO
2
e/kWh)
R
218
2025 218
205
254
2024
2023
SSE saw a 6% increase in Scope 1 GHG intensity
due to a rise in thermal generation output
andconstrained capacity on the grid for
renewable energy.
This KPI is on target but with risk – see page 47
Increase renewable energy output fivefold
UNSDG 7
Renewable
generation output
(TWh)*
R
13.3
2025 13.3
11.2
10.2
2024
2023
Renewables output was up 19%, largely due
todelivery of Viking wind farm and a full year
contribution from Seagreen wind farm.
This KPI is behind target – see page 49
* Includes pumped storage, battery energy storage
systems, biomass andconstrained-off wind in GB.
Enable low-carbon generation and demand
UNSDG 9
Renewable capacity
connected within
SSENTransmission
network area
(GW)
R
10.9
2025 10.9
9.3
9.2
2024
2023
Connection of several large renewables
schemes saw SSEN Transmission exceed its
goal to deliver a network with the capacity and
flexibility to accommodate 10GW of renewable
generation by 2026.
This KPI is on target – see page 51
Pure electric or plug-in
hybrid vehicles
registered in SSEN
Distribution’s licence
areas
R
c.336,000
2025 c.336,000
c.284,000
c.208,500
2024
2023
SSEN Distribution is progressing key
innovation projects with partners
to support flexible markets and future
infrastructure provision for the mass adoption
of electric vehicles.
Champion a fair and just energy transition
UNSDG 8
Contribution to
UK/Ireland GDP
(£bn/€bn)
7.88/0.95
2025
2024
2023
UK Ireland
6.04
0.43
5.86
1.04
7.88
0.95
SSE saw an increase in total GDP contribution
across the UK and Ireland, in part due to higher
spending and investment compared to the
previous year.
See page 56
Jobs supported
in UK and Ireland
67,190
2025 67,190
54,830
42,370
2024
2023
SSE saw an increase in total jobs supported in
2024/25, with 62,000 and 5,190 jobs supported
in the UK and Ireland respectively.
See page 56
15 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Chief Financial Officer’s review 17
Financial review 19
Business Unit operating review 28
SSE Renewables 30
SSE Thermal 32
SSEN Transmission 35
SSEN Distribution 37
SSE Energy Markets 39
Energy Customer Solutions 40
Review
of the year
16 SSE plc Annual Report 2025
Strategic Report Financial StatementsGovernance

Delivering on
ourfinancial
commitments
Capital and operational discipline dominated in
a year of solid financial performance featuring
higher regulated and index-linked earnings.
Chief Financial Officer’s review
The defining quality of SSE’s financial
performance in recent years has been
thesteady increase in value derived
fromdependable, index-linked earnings.
That trend continued in 2024/25, with
morethan 60% of Group operating profit
coming through regulated electricity
networks and contracted renewables assets.
This meant we met our financial
commitments and delivered 160.9p adjusted
Earnings Per Share. This was despite an
expected fall in the profitability of our
flexible thermal portfolio as we returned
tomore normalised market conditions,
proving once again the benefits of a
balanced and diverse business mix. The
combination of our Business Units forms
astrategically coherent SSE Group that is
designed to weather uncertainty and risk in
a highly dynamic sector – the whole SSE
being greater than the sum of its parts.
Financial and operational performance for
each of our Business Units is set out in detail
on
pages 30 to 41
.
We pride ourselves on the
strict capital discipline that we
apply to all our investment
decisions – always favouring
value over volume.”
An evolving plan
Our capital investment in the year topped
previous records, with over £2.9bn invested
in the infrastructure that puts SSE at the
heart of the clean energy transition. Back in
2021, at the outset of the initial NZAP plan,
we were clear that as opportunities evolved
our investment plans would evolve with
them – and we would exercise both agility
and capital discipline along the way.
The initial plan anticipated around 40% of
capital would be allocated to electricity
networks. The growth opportunities
forSSEN Transmission have increased
significantly in the intervening years. So
weare working to a revised £17.5bn plan
with an upweighted 60% of that figure
allocated to networks. And we now plan
fora corresponding reduction in spending
on renewables and flexibility, reflecting
slower-than-expected progress on energy
policy and planning. Within this, in SSE
Renewables we have reduced both our
capital and our capacity expectations
andwe’re now targeting around 7GW
ofinstalled capacity by 2027.
While our performance in FY25 reflects
theresilience of SSE’s business mix and the
success of our strategy, it also shows how
we’re prepared to adapt in order to succeed.
The pivot of capital to regulated networks,
the redoubling of discipline around
investments in our energy businesses,
andasharpening focus on controllable
costs and efficiencies are all responses
tothe current operating environment.
Stability amid uncertainty
The long-term drivers of growth in our
business are very clear. Electrification is
central to a decarbonised economy, and
that means an energy system based on
renewables, networks and flexibility.
Our shift of emphasis towards electricity
networks increases our upside exposure
toa strong, predictable regulatory
environment that offers stable equity
returns and inflation protection. At the
sametime, an increasing proportion of
ourrenewables and flexibility assets also
benefits from inflation protection through
government-backed contracts such
asContracts for Difference and the
Capacity Market.
This means that – despite the risk
andcomplexity we see in the macro
environment – we offer strong earnings
protection and stability with index-linked
earnings expected to account for around
70% of Group EBITDA by 2027 and 94%
ofdebt held at fixed rates.
Value and efficiency over volume
We pride ourselves on the strict capital
discipline we apply to all our investment
decisions – always favouring value over
sheer volume of projects. That discipline
has helped us respond to market conditions
that have forced changes across the energy
sector. We are prioritising spending on
regulated networks growth while applying
an even stricter returns criteria in
renewables – specifically in offshore wind.
17 SSE plc Annual Report 2025
Strategic Report Financial StatementsGovernance

Investments, whether in networks or
generation, can only fully maximise
shareholder value when they are executed
with a relentless focus on efficiency and
competitiveness. With this in mind, we
haveembarked on an efficiency review and
we are making some difficult decisions
internally to ensure we are the right size
andshape for the future. We are simplifying
our organisation, removing resource
duplication across the business and
enhancing efficiency in operating expenses.
We expect this to deliver ongoing
operational efficiencies of £100m per year,
and an even higher degree of focus on the
most value-accretive projects.
A strong balance sheet
Alongside the quality of our assets and
pipeline, and the talents of our people, the
strength of our balance sheet has played
alarge part in our continuing success.
Significant energy market and interest rate
volatility have been features of the firsthalf
of our five-year NZAP Plus plan. Throughout,
our solid investment grade credit ratings
have remained above or in line with peers.
As we have moved through the investment
plan, net debt to EBITDA has drifted
upwards. As at 31 March it was 3.2x, in line
with our expectation that it will reach
around 4x by FY27. Ours is a fully-funded
plan with half of the investment already
made, and we have headroom to
accommodate the additional spending
thatwe anticipate out to FY27 and beyond.
Over and above this balance sheet strength
we have various sources of near-term
funding open tous should value-adding
investment opportunities emerge between
now and 2030. These potential funding
sources include, but are not limited to, arich
portfolio of stake sale options in world-class
assets, additional debt capacity, access to
extra hybrid funding, and uncommitted
capex that could be reallocated if required.
Growth-focused dividends
Dividends have always been an important
part of delivering value to our investors,
andwe remain committed to delivering on
a five-year dividend plan that supports the
growth of the Group while offering an
attractive total return to shareholders
overthe long term.
Given the strong set of sustainable
earningsreported for 2024/25, we are
recommending a final dividend of 43.0 pence,
taking the full year dividend to 64.2 pence,
an increase of 7% on the prior year.
Clarity on FY27 delivery
While we have revised our spending plan
out to FY27, this doesn’t change our
earnings expectations for the Group.
Weremain confident about meeting our
FY27 target of 175-200p adjusted Earnings
Per Share, underpinned by anticipated
growth across businesses and assets which
are at the heart of an energy transition built
on renewables, networks and flexibility.
Barry O’Regan
Chief Financial Officer, SSE plc
20 May 2025
Financial performance
Adjusted
Reported
Mar 2025 Mar 2024*
Mar 2025 Mar 2024
Operating profit (£m) 2,419.2 2,426.4 1,962.2 2,608.2
EBITDA £m 3,349.3 3,295.6 2,738.3 3,333.1
Profit before tax (£m) 2,138.2 2,200.9 1,850.9 2,495.1
Earnings Per Share (EPS) pence 160.9 160.9 108.2 156.7
Net debt and hybrid capital £ 10,186.7 9,435.7 9,513.9 8,097.8
Full year dividend per share pence 64.2 60.0 64.2 60.0
Investment, capital & acquisitions £m 2,910.4 2,476.7 3,837.0 3,285.6
SSEN Transmission RAV – £m
(100% basis) – – 7,171 5,676
SSEN Distribution RAV – £m – – 5,737 5,301
SSE Total Electricity Networks RAV
– £m (100% basis) ––12,908 10,977
* Comparative financial information has been restated, please see note 1.2 to the Financial Statements.
Chief Financial Officer’s review continued
Barry O’Regan addresses colleagues from SSE Renewables at a conference in Glasgow
18 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Year ended 31 March 2025
In order to present the financial results
andperformance of the Group in a
consistent and meaningful way, SSE applies
a number of adjusted accounting measures
throughout this financial report. These
adjusted measures are used for internal
management reporting purposes and
arebelieved to present the underlying
performance of the Group in the most
useful manner for shareholders and other
stakeholders. The definitions SSE uses for
adjusted measures provide a consistent
basis to assess performance and
areexplained – including a detailed
reconciliation to reported measures – in
theAlternative Performance Measures
section of this document.
Group operating profit
The Group’s balanced business mix
delivered another strong financial
performance in the year, despite continued
wider economic turbulence and the
expected normalisation of commodity
pricevolatility.
Within this, the adjusted operating profit
contribution from Networks and
Renewables increased on prior year,
contributing a combined 87% of the total
adjusted operating profit compared to 63%
in the prior year. This increase reflects
thestrong operating performance and
continued investment in both businesses
this year, in addition to one-off cost
recoveries in networks through the
regulatory price control. As expected at the
start of the year, the significant decrease in
market spark spread price volatility meant
that adjusted operating profits from the
flexible Thermal business declined 75%
onthe prior year. Finally, Energy Customer
Solutions continued to see supply margins
return to more sustainable levels whilst
delivering tariff reductions to customers
asenergy prices stabilised.
Reported operating profit, in addition
tothemovements above, includes both
thenet re-measurement on forward
contractderivatives under IFRS 9 as well as
exceptional items and other financial items
which are excluded from adjusted results on
the basis they are materially non-recurring,
uncontrollable or exceptional. Reported
operating profitability decreased by (25)%,
mainly as a large net-remeasurement
gainon forward contract derivatives in
theprior year moved to a small net-
remeasurement loss in the current year.
These remeasurements are unrelated to
underlying operating performance. In
Operating profit performance for the Year to 31 March 2025
Key Financial Metrics (£m)
Adjusted
Reported
Mar 2025
£m
Mar 2024
1
£m
Mar 2025
£m
Mar 2024
1
£m
Segmental operating profit/(loss)
SSEN Transmission 322.5 419.3 430.0 559.1
SSEN Distribution 736.0 272.1 736.0 272.1
Electricity networks total 1,058.5 691.4 1,166.0 831.2
SSE Renewables 1,038.8 833.1 617.6 630.3
SSE Thermal 248.5 752.5 240.8 660.8
Gas Storage (37.1) 82.8 (45.5) (42.2)
Thermal Total 211.4 835.3 195.3 618.6
SSE Business Energy 32.7 55.2 32.2 55.2
SSE Airtricity (NI and ROI) 159.4 95.0 157.0 94.5
Energy Customer Solutions Total 192.1 150.2 189.2 149.7
SSE Energy Markets 30.0 37.5 (42.9) 588.6
Neos Networks (22.2) (32.3) (33.3) (116.1)
Corporate unallocated (89.4) (88.8) (129.7) (94.1)
Total operating profit 2,419.2 2,426.4 1,962.2 2,608.2
Net finance (costs)/income (281.0) (225.5) (111.3) (113.1)
Profit before tax 2,138.2 2,200.9 1,850.9 2,495.1
Tax charge (296.4) (371.0) (518.0) (610.7)
Effective tax rate (%) 13.9 16.9 29.4 25.6
Profit after tax 1,841.8 1,829.9 1,332.9 1,884.4
Less: hybrid equity coupon payments (73.7) (73.1) (73.7) (73.1)
Less: profits attributable to non-
controlling interests
––(69.8)(100.8)
Profit after tax attributable to
ordinary shareholders
1,768.1 1,756.8 1,189.4 1,710.5
Earnings Per Share (pence) 160.9 160.9 108.2 156.7
Number of shares for basic/reported
and adjusted EPS (million)
1,099.2 1,091.8 1,099.2 1,091.8
Shares in issue at 31 March (million)
2
1,106.3 1,093.4 1,106.3 1,093.4
1 Comparative financial information has been restated, please see note 1.2 to the Financial Statements.
2 Excludes Treasury shares of 4.9m in March 2025 and 2.8m in March 2024.
Segmental EBITDA results are included in note 5 to the Financial Statements.
Further detail on certain key financial metrics is included within the Supplemental
Financial Information. For detailed Business Unit financial performance commentary,
please refer to the Business Operating Review.
addition, the current year result reflected
exceptional charges totalling £(309.7)m,
mainly comprising a £(249.5)m non-cash
impairment of the Group’s investment in
theSouthern Europe Renewables pipeline.
This impairment reflects sector-wide
delaysimpacting permitting and grid
connections, which has meant the
build-out of this platform has been
slowerthan originally planned.
Financial review
19 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Financial review continued
Profit after tax and
Earnings PerShare
Adjusted profit after tax was broadly flat
year on year, reflecting an increase in net
finance costs of 25% which was offset by a
decrease in taxation of 20%. Adjusted net
finance costs increased over the course of
the year reflecting the generally higher level
of adjusted net debt in the year, combined
with a full year’s interest charge on the
non-recourse project financing relating to
Seagreen offshore wind farm which was
commissioned mid-way through the prior
year. The decrease in the adjusted taxation
charge was driven by “full expensing”
capital allowance tax relief available on
SSE’s record levels of capital investment
which reached £2.9bn this financial year.
Reported profit after tax includes the tax
effect from the adjustments made to profit
metrics as detailed in the previous section,
as well as deferred tax arising as a result
ofdifferences in accounting and tax bases
that give rise to potential future accounting
credits or charges. Deferred tax for the
Group increased by 39% on prior year,
mainly due to the increase in the Group’s
capital investment programme.
Reflecting the movements above, adjusted
Earnings Per Share was flat year on year at
160.9 pence with reported EPS decreasing
by 31% to 108.2 pence.
Final dividend
SSE believes that dividends should be
sustainable and based on earnings
performance, while also enabling the
longer-term growth prospects of its assets
and operations. To that end, the existing
dividend plan to 2026/27 is designed to
balance income to shareholders with the
appropriate funding for an accelerated
growth plan that will ultimately create
greater value and total return for
shareholders over the long term.
In line with that dividend plan and reflecting
financial performance in the year, SSE has
announced a final dividend of 43.0 pence
for payment on 18 September 2025. This
amounts to a 2024/25 full year dividend of
64.2 pence, representing an increase of 7%
on the prior year.
Capital expenditure programme
During the year ended 31 March 2025,
SSE’sadjusted investment, capital and
acquisitions expenditure totalled £2,910.4m,
compared to £2,476.7m in the prior year.
Investment in the reporting year was driven
mainly by SSE’s renewables and electricity
networks divisions, with limited deployment
of capital in thermal and other businesses,
and no acquisitions expenditure.
In SSEN Transmission, £953.5m net capex
was delivered including £103m on the EGL2
subsea HVDC being jointly delivered with
National Grid, as onshore works get under
way, and £85m on the Skye reinforcement
as substation enabling works commence
ahead of the overhead line consent
decision. Construction has also
commenced on the Orkney High Voltage
Alternating Current system where £77m net
capex was delivered and £86m was invested
in Argyll and Kintyre after final planning
approvals for the 275kV upgrade were
granted in the year.
In SSEN Distribution, capital investment
of£635.8m marks an increase of over 26%
compared to the prior year as the business
advances into year two of its ambitious
RIIO-ED2 plan and local transformation
programme. In the north, £221m was
invested, with delivery of subsea cable
projects from Orkney to Shapinsay and
Jurato Islay continuing, alongside ongoing
programmes to replace aging assets across
the region. In the south, expenditure of
£415m included ongoing works at Iver in
West London and the Bramley–Thatcham
reinforcement near Reading, in addition to
the Leamington Park Network Upgrade and
again alongside ongoing programmes to
replace aging assets.
SSE Renewables invested a total of
£1,001.8m during the year. In onshore wind
this included £56m at Viking wind farm on
Shetland which was completed during
August 2024 and £47m at Yellow River
windfarm in Ireland which is approaching
completion. In offshore wind, progress has
continued at Dogger Bank A, with £176m
ofequity and shareholder loans drawn to
support construction ahead of completion
expected in the second half of 2025.
Acrossthe battery and energy storage
system (BESS) portfolio, £81m was invested
at Ferrybridge (West Yorkshire) where
completion is expected in 2025, and £132m
and £44m invested at the Monk Fryston
andFiddlers Ferry projects respectively
withcompletion expected at both sites
during 2026.
Dividend per Share (pence)
Mar 2025 Mar 2024
Interim Dividend 21.2 20.0
Final Dividend 43.0 40.0
Full Year Dividend 64.2 60.0
Capital expenditure programme
Adjusted Investment and Capex Summary
Mar 2025
Share %
Mar 2025
£m
Mar 2024
£m
SSEN Transmission (net of 25%
non-controlling interest) 33% 953.5 595.6
SSEN Distribution 22% 635.8 505.1
Regulated networks total 55% 1,589.3 1,100.7
SSE Renewables 34% 1,001.8 1,097.1
SSE Thermal 6% 183.1 109.2
Gas Storage – 0.7 0.8
Thermal Energy Total 6% 183.8 110.0
Energy Customer Solutions 3% 80.0 99.4
SSE Energy Markets – 8.7 9.1
Corporate unallocated 2% 46.8 60.4
Adjusted investment and capital expenditure 100% 2,910.4 2,476.7
Adjusted investment, capital and
acquisitions expenditure 100% 2,910.4 2,476.7
1 Comparative financial information has been restated, please see note 1.2 to the Financial Statements.
20 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Financial outlook
Financial outlook for 2025/26
SSE’s balanced portfolio of assets across
electricity networks, renewables and flexible
thermal generation provides a diverse and
resilient business mix, with a high level of
exposure to a strong, predictable regulatory
environment that continues to create
sustainable value despite a changing
macroenvironment.
Reflecting this, the Group has set out the
following expectations for the forthcoming
year:
– SSEN Transmission – it is expected that
adjusted operating profit will be more
than 1.5 times higher than 2024/25,
reflecting increased allowed revenue
generated by continued investment
growth in this business.
– SSEN Distribution – anticipates that
adjusted operating profit will be less than
half of 2024/25, as allowed revenue is
expected to decrease by around £400m
with the reversal of one-off inflationary
cost recoveries.
– SSE Renewables – is expected to
deliverhigher adjusted operating profit
than 2024/25, as increased capacity
additions such as Dogger Bank A and a
full year contribution from Viking more
than offset the impact from lower
powerprices.
– SSE Thermal and Gas Storage – with
the step up in contracted Capacity
Market payments starting in financial
year 2026/27, it is expected that the
adjusted operating profit for these
businesses will be similar to 2024/25,
assuming similar market conditions.
– Energy Customer Solutions – as
income from legacy wind farms starts to
unwind, it is expected that the adjusted
operating profit for these businesses
willbe lower than 2024/25.
These expectations are subject to normal
weather conditions, current market
conditions and plant availability.
Consistent with the approach taken in prior
years, SSE will look to give specific adjusted
Earnings Per Share guidance later in the
financial year.
In line with SSE’s existing dividend plan to
2026/27, it is expected that the dividend will
increase by between 5 – 10% this financial
year. However, in order to simplify the
application of this commitment, the Group
will move to a more formulaic approach
tocalculating interim dividends. Reflecting
the inherent seasonality of the business,
theinterim dividend will be calculated as
one-third of the prior year full dividend.
Therefore, for 2025/26, the interim dividend
is expected to be 21.4 pence, being
one-third of the 2024/25 full year dividend
of 64.2 pence. The Board will continue to
recommend the final dividend in May, as part
of the Full-year Results Statement, which will
reflect an increase of between 5 – 10%.
Capital expenditure and investment
continues to increase, as more projects
enter construction. Full year capex is
expected to continue to increase to over
£3.0bn, with the net debt to EBITDA ratio
expected to be towards the middle of the
3.5 – 4.0x targeted range across the
five-year investment plan and well within
astrong investment grade.
Net Zero Acceleration
Programme Plus
An evolving investment programme
When SSE set out its first “Net Zero
Acceleration Programme” in November
2021, it recognised the significant
optionality the Group had within its
business mix across the value chain and the
need to flex investment as opportunities
evolved. This evolution has been evident
throughout each iteration of that
investment plan, as the Group has steadily
upweighted its investment in regulated
electricity networks to reflect the growing
opportunities there.
However, the Group’s investment plans
have not been immune to the changing
macroeconomic environment and wider
delays to the planning processes which
have been seen over the last twelve months.
Reflecting this investment landscape, the
Group today announces a reduction in the
overall size of the capital investment plan
toaround £17.5bn over the five years to
31March 2027. Around 90% of this
investment plan is currently committed,
with the remainder subject to delay or
potentially even cancellation if the right
investment conditions do not emerge.
As noted above, the majority of this
reduction is in our energy markets focused
businesses with the overall investment
plancontinuing to reflect an upweighting
towards regulated electricity networks:
– SSEN Transmission (~40% or ~£7.0bn)
to deliver the RIIO-T2 baseline
investment programme in addition to
part of the eleven LOTI and ASTI projects
which have regulatory approval and are
critical to removing existing constraints
within the electricity transmission
network. This investment is expected to
increase gross RAV to between £12 –
13bn by the end of 2026/27.
– SSEN Distribution (~20% or ~£3.5bn)
in delivery of its RIIO-ED2 investment
programme which continues to progress
at pace. This business expects RAV to
increase to around £7bn by the end
of2026/27.
– SSE Renewables (~30% or ~£5.5bn)
todeliver its existing construction
programme. With the business
continuing to focus on financial
discipline and selective renewables
growth only where it is value accretive,
itis reducing its capacity targets to
~7GWinstalled capacity by the end of
2026/27 with ~1GW under construction
at that time.
– SSE Thermal and other businesses
(~10% or ~£1.5bn) of which around 70%
has been invested to date on projects
such as Keadby 2 and Slough Multifuel,
with the remainder largely comprising
maintenance capex and technological
investment.
In conjunction with this reduction in
investment, and in line with SSE’s
commitment to capital and operational
discipline, the Group commenced an
operating and efficiency review, intended
toensure that SSE has the right structures,
resourcing and accountabilities to maximise
the growth opportunities ahead.
With over 90% of the revised investment
plan expected to be invested in electricity
networks and renewables, the substantial
majority is focused on projects that support
SSE’s 2030 Goals which are linked to its
most highly-material UN Sustainable
Development Goals (SDGs) and aligned
tothe Technical Screening Criteria of the
EUTaxonomy.
Balance sheet strength and stability
A core part of SSE’s success has been its
ability to realise value from disposals, create
sustainable earnings growth and raise
capital at highly attractive terms. Over the
plan to date, more than £4bn of long-term
debt has been issued at attractive, fixed
coupons despite volatile market conditions.
The Group continues to target a range
ofbetween 3.5 – 4.0x net debt / EBITDA
over the course of the investment plan to
2026/27, reaching around the top end of
that range in the final year.
Significant additional funding optionality
remains available to the Group out to FY27,
with strong investment grade credit ratings
providing further significant net debt
capacity, access to around £2bn of
additional hybrid borrowing which
continues to increase over time, a portfolio
of capital recycling options and partnering
opportunities which include the option for
aminority stake sale in SSEN Distribution
and finally the ability to continually
flexinvestment across businesses.
Updated plan Prior plan Reduction
SSEN Transmission £7.0bn £7.5bn (£0.5bn)
SSEN Distribution £3.5bn £3.5bn –
SSE Renewables £5.5bn £7.0bn (£1.5bn)
SSE Thermal & Other £1.5bn £2.5bn (£1.0bn)
Total £17.5bn £20.5bn (£3.0bn)
21 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Whilefulloptionality on sources of funding
remains, any future funding decision will be
based on the option that creates maximum
value for shareholders.
Commitment to delivering earnings
growth and dividend plan
After considering the Group’s reduced
investment plan to 2026/27, in addition
tothe current and forecasted market
conditions, SSE continues to be highly
confident about reaching its 175 – 200p
adjusted EPS guidance range for 2026/27.
This confidence reflects an increased level
of clarity on revenue growth including:
– Electricity networks, where in flight
investments are expected to grow the
regulatory asset base by ~50% over the
next two years to around £20bn gross,
driving increasing allowed revenues
under the regulatory price controls;
– Renewables capacity, where output is
expected to grow by ~40% or around
6TWh through delivery of under
construction projects such as Dogger
Bank phases A and B in addition to full
year contributions from other projects
such as Viking and Yellow River. The
Group’s hedging approach has already
locked in over two-thirds of the
expected merchant exposure in that
financial year; and
– Secured capacity market payments
across flexible thermal and hydro
renewables are due to increase by
around £150m in 2026/27 from 2025/26
– equivalent to an increase of adjusted
EPS of around 10 pence with a further
c.£150m increase secured for 2027/28.
Reflecting the continued confidence in
delivering this sustainable earnings growth,
the Group continues to target dividend
increases of between 5 to 10% per year
across 2025/26 and 2026/27. This dividend
plan retains the scrip dividend option for
shareholders, with a 25% cap on take-up
implemented (if necessary) by means of a
share buy-back.
Supplemental financial
information
Changes to presentation
and prior year adjustments
During the year, the Group has restated
prior year segmental disclosures as
previously announced and simplified
adjusted profit metrics as set out below.
Restructuring of SSE Enterprise
SSE Enterprise has long been the incubator
of new propositions for SSE, unlocking a
number of new commercial opportunities
including behind-the-meter solar and
battery and energy optimisation services.
SSE commenced a restructuring of this
business in September 2024 to build an
enhanced platform for growth and,
following completion of this process,
Certain re-measurements
Certain re-measurements within continuing operations
Total
£m
Operating derivatives (including share from jointly controlled entities
net of tax) (70.1)
Commodity stocks held at fair value (8.4)
Financing derivatives 12.8
Total net re-measurement charge (65.7)
Financial review continued
structural changes have now been made
toincorporate the constituent parts of the
business into other areas of the SSE Group
as follows:
– SSE Thermal has taken responsibility for
the Slough, Heat and Power business;
– SSE Business Energy has taken
responsibility for private electric
networks and businesses aligned with
the provision of low carbon energy
solutions to customers; and
– SSE Energy Markets has taken
responsibility for energy optimisation
services.
Comparative segmental financial
information has been restated to reflect
thisrestructuring, with the impact detailed
in
note 1.2
of the Financial Statements.
Alternative Performance Measures –
interest on net pension assets/liabilities
In prior years, the Group’s Alternative
Performance Measures (APMs) excluded the
non-cash interest credit or charge relating
to defined benefit pension schemes valued
under IAS 19 “Employee Benefits”. This
adjustment is now deemed unnecessary
since the pension interest adjustment is
lessvolatile and immaterial to the Group.
Comparative APMs have been restated to
remove this adjustment, which increases
adjusted profit before tax by £26.2m and
adjusted Earnings Per Share by 2.4 pence in
the year ended 31 March 2024. For the year
ended 31 March 2025, the equivalent
interest on net pension assets was £20.7m
and increased adjusted EPS by 1.9 pence.
There have been no other changes to the
way the Group calculates its APMs in the
current year.
Exceptional items and certain re-measurements
Exceptional items
In the year ended 31 March 2025, SSE recognised a net exceptional charge within
continuing operations of £(309.4)m before tax. The following table provides a summary
ofthe key components included in the net charge:
Exceptional (charges)/credits within continuing operations
Total
£m
Southern Europe renewables pipeline impairment (249.5)
Enerveo impairment (13.5)
Restructuring costs (46.7)
Other 0.3
Total exceptional charge (309.4)
Note: The definition of exceptional items can be found in note 3.2 of the Financial Statements.
The detail behind the exceptional items noted above is contained within note 7.1
ofthe Financial Statements.
Group-wide operating model
andefficiency review
During the year, in line with SSE’s
commitment to capital and operational
discipline, the Group commenced an
operating model and efficiency review,
intended toensure that SSE has the right
structures, resourcing and accountabilities
to maximise the growth opportunities
ahead. This review recognises that the
timing, pace and returns from investment
ineach business will be different, reflecting
both the changing macroeconomic
environment as well as other external
factors such as policy development,
regulatory reform and consenting delays.
Whilst the first phase of this review is
expected to complete by the end of June
2025, a number of efficiency and cost
control measures have already been taken
across the Group and most notably within
the Corporate, Energy Customer Solutions
and SSE Renewables businesses.
These measures have been taken to
improve operational efficiency, increase
organisational competitiveness and
rebalance those businesses for future
growth. At present, we anticipate that
targeted measures could result in around
£100m of annual recurring efficiencies
across the Group.
22 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Operating derivatives
SSE enters into forward purchase
contracts(for power, gas and other
commodities) to meet the future demands
of its energy supply businesses and to
optimise the valueof its generation assets.
Some of these contracts are determined to
be derivative financial instruments under
IFRS 9 and as such are required to be
recorded attheir fair value as at the date
ofthe financial statements.
SSE shows the change in the fair value of
these forward contracts separately as this
mark-to-market movement does not reflect
the realised operating performance of the
businesses. The underlying value of these
contracts is recognised as the relevant
commodity is delivered, which for the large
majority of the position at 31 March 2025
isexpected to be within the next 6 – 18
months.
The change in the operating derivative
mark-to-market valuation was a £(70.1)m
negative movement from the start of the
year, reflecting a £(49.0)m negative
movement on fully consolidated operating
derivatives combined with a £(21.1)m
negative share of movement on derivatives
in jointly controlled entities, net of tax.
The negative movement of £(49.0)m on
fully consolidated operating derivatives
includes:
– Settlement during the year of £(141.9)m
of previously net “in-the-money”
contracts in line with the contracted
delivery periods; and
– A net mark-to-market re-measurement
of £92.9m on unsettled contracts
including affiliate CfDs, entered into in
line with the Group’s stated approach
tohedging. This mark-to-market
re-measurement reflects the reduced
volatility seen in commodity markets
during the year.
As in prior years, the reported result does
not include re-measurement of ‘own use’
hedging agreements which do not meet the
definition of a derivative financial instrument
under IFRS 9 “Financial Instruments”.
Commodity stocks held at fair value
Gas inventory purchased by the Gas Storage
business for secondary trading
opportunities is held at fair value with
reference to the forward month market
price. As trading churn towards the financial
year end has combined with relative stability
in gas prices, the book value is broadly
aligned with the fair value.
However, whilst this assessment considers
the net change in fair value of physical gas
inventory held at the year end, it does not
take into account any positive or negative
mark-to-market movement on forward
contracted sales. Therefore, similar to
derivative contracts held at fair value,
SSEdoes not expect that any valuation
movement will reflect the final result
realised by the business.
– Gas equivalents only – recognising that
carbon and spark spread exposures
remain.
This approach reflects that certain energy
products have lower available forward
market depth and liquidity. Whilst some
basis risk or commodity exposure will
remain, it facilitates the reduction of SSE
Renewables’ overall exposure to potentially
volatile spot market outcomes.
The table below notes both the proportion
of hedges and prices of those hedges for
electricity and for gas alone. Due to market
liquidity in later periods, there are no gas
and carbon equivalent hedges in place.
The table below excludes any volumes
andincome under separate contracts such
as CfDs, ROCs and Balancing Mechanism
activity.
No hedging activity is undertaken for
assetsin early-stage construction, with
hedging activity gradually built up over the
construction period as greater certainty
over operational dates is received.
SSE’s established approach seeks to
minimise the volumetric downside risk for
renewable energy output by targeting a
hedge of less than 100% of its anticipated
wind energy output for the coming
12months. The targeted hedge percentage
is reviewed and adjusted as necessary to
reflect any changes in market and wind
capture insights.
Forward hedges for both wind and hydro
are progressively established over a
36-month period, although the extent of
hedging activity will depend on the available
market depth and liquidity. Target hedge
levels are achieved through the forward sale
of either electricity or a combination of gas
or carbon equivalents as outlined above.
Financing derivatives
In addition to the movements above,
apositive movement of £12.8m was
recognised on financing derivatives in the
year, including mark-to-market movements
on cross-currency swaps and floating rate
swaps that are classed as hedges under
IAS39. These hedges ensure that any
fairvalue movement in net debt is
predominantly offset by a movement in the
derivative position. The positive movement
was primarily driven by a Sterling strength
on non-hedge FX and cross currency
swapcontracts.
These re-measurements are presented
separately as they do not represent
underlying business performance in the
year. The result on financing derivatives will
be recognised in adjusted profit before tax
when the derivatives are settled.
Hedging position
The long-established approach to hedging
followed by SSE looks to generally reduce
its broad exposure to commodity price
variation in advance of delivery. SSE
continues to monitor market developments
and conditions and periodically alters its
hedging approach in response to changes
in its exposure profile.
A summary of the hedging position for each
of SSE’s market-based businesses is set
outbelow.
SSE Renewables – GB wind and hydro:
Energy output hedges are progressively
established through the forward sale of
either:
– Electricity – where market depth and
liquidity allow;
– Gas and carbon equivalents –
recognising that spark spread exposures
remain; or
2024/25 2025/26 2026/27 2027/28
Wind
Total energy output volumes hedged – TWh 6.4 8.6 8.2 1.7
– Hedge in electricity & equivalents – TWh 4.1 4.6 3.1 1.2
– Electricity hedge price – £MWh £91 £87 £75 £68
– Hedge in Gas – TWh 2.3 4.0 5.1 0.5
– Gas hedge price – £MWh £122 £77 £58 £50
Hydro
Total energy output volumes hedged – TWh 2.9 3.2 2.7 0.6
– Hedge in electricity & equivalents – TWh 1.8 1.6 1.0 0.4
– Electricity hedge price – £MWh £96 £86 £74 £68
– Hedge in Gas – TWh 1.1 1.6 1.7 0.2
– Gas hedge price – £MWh £120 £82 £57 £52
Note: where gas and carbon trades have been used as a proxy for electricity, a constant 1 MWh:69.444 th and
1MWh:0.3815 te/MWh conversion ratio between commodities has been applied. These same ratios have been
used to convert underlying commodity prices into electricity £MWh and therefore no assumptions have been
made on either spark or carbon.
23 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Financial review continued
Maintaining a strong
balance sheet
A key objective of SSE’s long-term approach
to balancing capital investment, debt
issuance and securing value and proceeds
from disposals is by maintaining a strong
net debt/EBITDA ratio. SSE calculates this
ratio based on a methodology that it
believes best reflects its activities and
commercial structure, in particular its
strategy to secure value from partnering by
using Joint Ventures and non-recourse
project financing.
SSE considers it has the capacity to reach a
ratio of up to around 4.5x, whilst remaining
above the equivalent ratios required for a
strong investment grade credit rating.
Given the strength of the Group’s balance
sheet, the net debt/EBITDA ratio at 31 March
2025 was 3.2x. It is expected that this ratio
will trend upwards to around 4.0x, as the
Group delivers on its ~17.5bn investment
plan to 31 March 2027.
Adjusted net debt and hybridcapital
SSE’s adjusted net debt and hybrid capital
was £10.2bn at 31 March 2025, an increase
of £0.8bn from 31 March 2024. With no
significant acquisitions or divestments in
theyear, the debt movement predominantly
relates to capital investment expenditure,
working capital movements and dividend
payments partially offset by operating
cashflows and revaluation of foreign
currency debt.
When gas-and-carbon hedges are
converted into electricity hedges, a
“sparkspread” is realised which can lead
tochanges in the average hedge price
expected. This can increase or decrease the
previously published average hedge price or
decrease it. Likewise, when gas hedges are
subsequently converted into electricity
hedges ahead of delivery, a carbon-and-
spark spread value is realised which will
alsolead to changes in the average hedge
price expected.
SSE Thermal:
Hedging for the flexible thermal fleet is by
its nature dynamic, changing as market
values vary with a constant process of
re-optimisation to accrue future value for
the Thermal fleet. At negative spark spreads
this hedge volume is therefore likely to be
very low; and at higher prices the hedge
willbe much larger.
At all times the Thermal portfolio offers the
wider group protection from price spikes,
renewables shortfall or asset availability
issues and therefore has material risk
management value to the Group.
Gas Storage:
The assets are commercially operated to
optimise value arising from changes in the
spread between summer and winter prices,
market volatility and plant availability.
SSE Business Energy:
Sales to contract customers are hedged: at
point of sale for fixed contract customers;
upon instruction for flexi contract
customers; and on a rolling hedge basis
fortariff customers.
SSE Energy Markets:
This business provides the route to market
and manages the execution for all of SSE’s
commodity trading outlined above (spark
spread, power, gas and carbon). This
includes monitoring market conditions and
liquidity and reporting net Group exposures.
The business operates under strict position
limits and VAR controls.
There is some scope for position-taking to
permit this business to manage around
shape and liquidity and providing market
insight whilst taking optimisation
opportunities. This is contained within
atotal daily VAR limit of £9m.
Financial management and balance sheet
Debt metrics
Mar 2025
£m
Sep 2024
£m
Mar 2024
£m
Net Debt/EBITDA
1
3.2x N/A 3.0x
Adjusted net debt and hybrid capital (£m) (10,186.7) (9,843.8) (9,435.7)
Average debt maturity (years) 5.6 6.3 6.4
Adjusted interest cover
2
8.0x N/A 9.8x
Average cost of debt at year end (including all
hybrid coupon payments) 3.99% 4.04% 3.90%
1 Net debt represents the Group adjusted net debt and hybrid capital. EBITDA represents the full year Group
adjusted EBITDA, less £153.3m at March 2025 for the proportion of adjusted EBITDA from equity-accounted
Joint Ventures relating to project financed debt.
2 Comparative financial information restated to reflect change to adjusted net finance costs APM, please see
note 1.2
to the Financial Statements.
Net finance costs reconciliation
Mar 2025
£m
Mar 2024
1
£m
Adjusted net finance costs 281.0 225.5
Add/(less):
Lease interest charges (26.9) (25.8)
Notional interest arising on discounted provisions (27.2) (25.2)
Hybrid equity coupon payment 73.7 73.1
Adjusted finance costs for interest cover calculation 300.6 247.6
1 Comparative financial information has been restated, please see note 1.2 to the Financial Statements.
Principal Sources of debt funding
Mar 2025
£m
Sep 2024
£m
Mar 2024
£m
Bonds 60% 62% 58%
Hybrid debt and equity securities 16% 17% 18%
European investment bank loans 4% 4% 5%
US private placement 7% 7% 8%
Short-term funding 10% 7% 8%
Index-linked debt 3% 3% 3%
% of which has been secured at a fixed rate 91% 94% 93%
Rating Agency Rating Criteria Date of Issue
Moody’s
Baa1 ‘stable outlook’
‘Low teens’ Retained
Cash Flow/Net Debt 17 January 2025
Standard
and Poor’s BBB+ ‘stable outlook’
About 18% Funds From
Operations/Net Debt 20 December 2024
24 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Debt summary as at 31March2025
The Group and its Scottish Hydro Electric
Transmission (SHET) plc entity together
issued £1.4bn of new long-term debt in
thefinancial year whilst also continuing
toroll short-term Commercial Paper at
similar levels to March 2024. Substantial
issuances include:
– In June 2024 SHET plc issued a 1.5bn
NOK (£111m) 10-year private placement
maturing June 2034 with a coupon of
4.731% and an all-in GBP cost of 5.3315%
once swapped back to Sterling.
– In August 2024 SHET plc issued a €850m
(£715m) 8-year green bond maturing
September 2032 with a coupon of
3.375% and an all-in GBP cost of 4.9127%
once swapped back to Sterling.
– In March 2025 SSE plc issued a €600m
(£503m) 7-year green bond maturing
March 2032 with a coupon of 3.50%.
Thisbond has been predominantly left in
Euros as a netinvestment hedge against
the Group’s Euro denominated assets.
– Over the course of the year, SSE plc
rolled maturing short-term Commercial
Paper at similar levels to March 2024.
On31 March 2025, €1,075m (£891m)
Commercial Paper was in issue in Euros
and swapped back to Sterling at an
average cost of debt of 5.0%, maturing
between April and June 2025.
Medium- to long-term debt maturing in
theyear comprised $320m (£204m) of
USPrivate Placements which matured
inApril2024.
Over the next 12 months there is a further
£1.0bn of medium- to long-term debt and
£1.2bn of short-term debt maturing.
Medium-term debt is the €600m (£531m)
Eurobond maturing 16 April 2025 and
€600m (£503m) Eurobond maturing
8September 2025. Short-term debt is
£340m of facility advances on the SHET plc
£1.5bn committed facility and €1,075m
(£891m) of Commercial Paper, however
thecurrent intention is to roll this maturing
short-term debt forward throughout the
2025/26 financial year.
Hybrid bonds summary
as at 31March 2025
Hybrid bonds are a valuable part of SSE’s
capital structure, helping to diversify SSE’s
investor base and supporting credit ratings,
as their 50% equity treatment by the rating
agencies is positive for credit metrics.
A summary of SSE’s hybrid bonds as at
31March 2025 can be found below:
Issued Hybrid Bond Value
1
All-in rate
2
First Call Date Accounting Treatment
July 2020 £600m 3.74% Apr 2026 Equity accounted
July 2020 €500m (£453m) 3.68% Jul 2027 Equity accounted
April 2022 €1bn (£831m) 4.00% Apr 2028 Equity accounted
1 Sterling equivalents shown reflect the fixed exchange rate on date of receipt of proceeds and is not subsequently revalued.
2 All-in rate reflects coupon on bonds plus any cost of swap into sterling which currently only applies to July 2020 Hybrid.
Further details on each hybrid bond can be found note 22 to the Financial Statements and a table detailing coupon payments is
shownbelow:
Hybrid coupon payments
2025/26 2024/25
HYe FYe HYa FYa
Total equity (cash) accounted hybrid coupon
1
£74m £74m £74m £73m
1 Coupon payments on €1.5bn of hybrid bonds remain denominated in Euros, and are therefore subject to foreign exchange adjustments.
Managing net finance costs
SSE’s adjusted net finance costs – which
exclude equity accounted hybrid coupons
– were £(281.0)m in the year ended
31March 2025, compared to £(225.5)m
inthe previous year. The higher level of
finance costs in the year is driven by a
higher net debt position, a higher share of
Joint Venture interest costs, predominantly
due to interest charges from Seagreen
offshore wind farm project finance. This is
partially offset by higher capitalised interest
costs reflecting continued increasing
construction activity.
Reported net finance costs were £(111.3)m
compared to £(113.1)m in the previous year.
Higher interest charges incurred in Joint
Ventures combined with a £6.7m greater
beneficial movement on financing
derivatives as previously referenced, more
than offset the increase seen in adjusted
netfinance costs.
Summarising cash and
cash equivalents
At 31 March 2025, SSE’s adjusted net debt
included cash and cash equivalents of
£1.1bn, which is broadly unchanged from
March 2024.
Cash collateral is only required for forward
commodity contracts traded through
commodity exchanges, with the level of
cash collateral either provided or received
depending on the volume of trading
through the exchanges, the periods being
traded and the associated price volatility.
At 31 March 2025, £72.9m of net cash
collateral was held (2024: £353.2m net held)
consisting of £82.5m received offset by
£9.6m deposited on the commodity trading
exchanges. The decrease in cash collateral
posted reflects a decrease in the “in the
money” trading positions held by the Group.
25 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Financial review continued
The facilities can also be utilised to cover
short-term funding requirements. There
was £340m drawings on the SHET plc
facility and nodrawings on the SSE plc
facility as at 31March 2025.
Both these new facilities have two one-year
extension options and are classified as
sustainability linked with interest rate and
fees paid dependant on various ESG-related
metrics being achieved.
In addition to the above, a $300m private
placement shelf facility exists with NY Life
which can be drawn in approximately two
equal tranches 12 months apart before
February 2026. At 31 March 2025 no
drawings have been made on this facility.
The Group also has access to a £21m of
overdraft facilities.
Maintaining a prudent treasurypolicy
SSE’s treasury policy is designed to be
prudent and flexible. Cash from operations
is first used to finance regulatory and
maintenance capital expenditure and then
dividend payments, with investment and
capital expenditure for growth generally
financed by a combination of cash
fromoperations, bank borrowings and
bondissuance.
As a matter of policy, a minimum of 50%
ofSSE’s debt is subject to fixed rates of
interest. In achieving this, SSE borrows as
required on different interest bases with
financial instruments being used to achieve
the desired out-turn interest rate profile.
At31 March 2025, 91% of SSE’s borrowings
were at fixed rates (31 March 2024: 93%).
Borrowings are mainly in Sterling and
Eurosto reflect the underlying currency
denomination of assets and cash flows
within SSE. All other foreign currency
borrowings are swapped back into either
Sterling or Euros.
Transactional foreign exchange risk arises in
respect of procurement contracts, fuel and
carbon purchasing, commodity hedging and
energy portfolio management operations,
and long-term service agreements for plant.
SSE’s policy is to hedge any material
transactional foreign exchange risks using
forward currency purchases and/or financial
instruments. Translational foreign exchange
risk arises in respect of overseas investments;
hedging in respect of such exposures is
considered on a case-by-case basis.
Operating a Scrip Dividend Scheme
SSE’s Scrip Dividend Scheme was renewed
for a three-year period at the 2024 AGM.
Aspart of the Group’s dividend plan to
2026/27, take-up from the Scrip Dividend
Scheme is capped at 25%. This cap is
implemented by means of a share
repurchase programme, or ‘buyback’,
following payment of the final dividend. The
scale of any share repurchase programme
would be determined by shareholder
subscription to Scrip Dividend Scheme
across the full year, taking into account
theinterim and final dividend elections.
Overall Scrip Dividend take-up for the
2023/24 financial year was 35.7%, therefore
the Group initiated a share buy-back
programme to limit any dilutive effect back
to 25%. This share buy-back programme
commenced on 30 September 2024 and
completed on 16 October 2024, following
the repurchase of 3.8m ordinary shares.
SSE principal JVs and associates
1
Asset type SSE holding SSE share of external debt SSE Shareholder loans
Marchwood Power 920MW CCGT 50% No external debt No loans outstanding
Seabank Power 1,234MW CCGT 50% No external debt No loans outstanding
Slough Multifuel 55MW energy-from-waste facility 50% No external debt £181m
Triton Power Holdings 1,200MW CCGT & 140MW OCGT 50% No external debt No loans outstanding
Beatrice Offshore Windfarm 588MW offshore wind farm 40% £567m Project financed
Dogger Bank A Wind Farm 1,200MW offshore wind farm 40% £950m £188m
Dogger Bank B Wind Farm 1,200MW offshore wind farm 40% £941m Project financed
Dogger Bank C Wind Farm 1,200MW offshore wind farm 40% £807m Project financed
Ossian Offshore Windfarm ScotWind seabed 40% No external debt No loans outstanding
Seagreen Wind Energy 1,075MW offshore wind farm 49% £400m £961m
2
Seagreen 1A Offshore wind farm extension 49% No external debt £29m
Lenalea Wind Farm 30MW onshore wind farm 50% No external debt £14m
Lely Alpha Offshore Wind Netherlands seabed 50% No external debt £34m
Clyde Windfarm 522MW onshore wind farm 50.1% No external debt £127m
Dunmaglass Wind Farm 94MW onshore wind farm 50.1% No external debt £47m
Stronelairg Wind Farm 228MW onshore wind farm 50.1% No external debt £89m
Cloosh Valley Wind Farm 105MW onshore wind farm 25% No external debt £25m
Neos Networks Private telecoms network 50% No external debt £84m
1 Greater Gabbard, a 504MW offshore wind farm, is proportionally consolidated and reported as a Joint Operation with no loans outstanding.
2 For accounting purposes, £315m of the £961m of SSE shareholder loans advanced to Seagreen Wind Energy Limited have been classified as equity.
Short-term funding
SSE had £3.0bn (gross of the Minority Interest in SHET plc) of committed bank facilities
inplace at 31 March 2025 to ensure the Group has sufficient liquidity to allow day-to-day
operations and investment programmes can continue in the event of disruption to Capital
Markets preventing SSE from issuing new debt for a period of time. These facilities are set
out in the table below.
Date Issuer Debt type Term Value
Oct 24 SSE plc Syndicated Revolving Credit Facility
with 15 Relationship Banks
2029 £1.5bn
Oct 24 SHET plc
Syndicated Revolving Credit Facility
with 15 Relationship Banks 2029 £1.5bn
Principal Joint Ventures and Associates
SSE’s financial results include contributions from equity interests in joint ventures (“JVs”) and associates, all of which are equity accounted.
The details of the most significant of these are included in the table below. This table also highlights SSE’s share of off-balance sheet debt
associated with its equity interests in JVs which totals around £3.7bn as at 31 March 2025.
26 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Taxation
SSE is one of the UK’s biggest taxpayers,
andin the Total Tax Contribution survey
published in November 2024 was ranked
14th out of the 100 Group of Companies in
2024 in terms of taxes borne (those which
represent a cost to the company, and which
are reflected in its financial results).
SSE considers being a responsible taxpayer
to be a core element of its social contract
with the societies in which it operates and
seeks to pay the right amount of tax on
itsprofits, in the right place, at the right
time. While SSE has an obligation to its
shareholders, customers and other
stakeholders to efficiently manage its total
tax liability, it does not seek to use the tax
system in a way it is not meant to operate
oruse tax havens to reduce its tax liabilities.
SSE was the first FTSE 100 company to be
Fair Tax Mark accredited and has now been
accredited for ten years.
In November 2024, SSE published its
‘Talking Tax 2024: ten years of tax
transparency’ report. It did this because it
believes building trust with stakeholders
onissues relating to tax is important to the
long-term sustainability of the business.
SSEalso won PwC’s Building Public Trust
Award for Tax Reporting in the FTSE 350 for
the third consecutive year in November for
the quality of its tax reporting.
In the year, SSE paid £592.1m of profit taxes,
property taxes, environmental taxes, and
employment taxes in the UK, compared
with £679.2m in the previous year. The
decrease in total taxes paid was primarily
due to less corporation tax being paid on
UK profits. This was the result of higher
capital allowances on capital investment
(see below), partly offset by higher amounts
of Electricity Generator Levy due to higher
electricity generation prices.
As with other key financial indicators, SSE’s
focus is on adjusted profit before tax and,
inline with that, SSE believes that the
adjusted current tax charge on that profit
isthe tax measure that best reflects
underlying performance. SSE’s adjusted
current tax rate, based on adjusted profit
before tax, was 13.9%, compared with 16.9%
in 2023/24 on the same basis. The decrease
in rate is primarily due to higher UK
capitalallowances on the Group’s capital
investment programme under full
expensing, which was introduced by the
UKGovernment from 1 April 2023.
The UK Finance Act (No.2) 2023 introduced
legislation in respect of Multinational
Top-up Tax in line with OECD BEPS pillar 2
principles, which came into force in the
current year. Similar legislation has been
introduced in the Republic of Ireland and
other EU jurisdictions. The Group has
undertaken modelling and has found there
to be no impact arising as tax rates in the
countries in which the Group operates
exceed 15%.
In the year to 31 March 2025, the surplus
across SSE’s two pension schemes
increased by £80.2m, from £421.6m to
£501.8m, primarily due to actuarial gains of
£52.8m and contributions to the schemes.
The valuation of the SSE Southern scheme
increased by £65.8m in 2024/25 primarily
due to actuarial gains of £45.1m driven
bygains in actuarial assumptions and
contributions to the scheme of £25.5m,
offset by losses on plan assets.
The Scottish Hydro Electric Pension scheme
has partially insured against volatility in its
deferred and pensioner members through
the purchase of ‘buy-in’ contracts meaning
that the Group only retains exposure to
volatility in active employees. During the
year the scheme’s surplus increased by
£14.4m driven by actuarial gains relating to
actuarial assumptions, offset by losses on
plan assets.
Additional information on employee pension
schemes can be found in
note 23
to the
consolidated financial statements.
Pensions
Contributing to employees’ pension schemes – IAS 19
March 25
£m
March 24
£m
Net pension scheme asset recognised in the balance sheet before deferred tax £m 501.8 421.6
Employer cash contributions Scottish Hydro Electric scheme £m 0.9 1.0
Employer cash contributions SSE Southern scheme £m 25.5 27.1
Deficit repair contribution included above £m 15.5 16.3
27 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

SSEN
Transmission
R
Business Unit operating review
How our businesses fit together
SSE has a very deliberately diversified business mix that spans the clean energy value chain.
These businesses, and the world-class assets they maintain, operate alongside each other
to optimise growth and create long-term value.
SSE Renewables SSE Thermal
M M
Corporate Services
Who Corporate Services serves
The Corporate Services comprise central functions such as HR, IT, finance, legal, procurement,
corporate affairs and investor relations. These services are being further optimised through SSE’s
recent operating review to provide its businesses with efficient, continuously improving, shared
services, enabling informed decision making, and strategic delivery.
Key:
M
Market-focused businesses
R
Economically regulated businesses
Who SSEN Transmission serves
Electricity generators, large electricity
demand customers and ultimately all
electricity customers across the north of
Scotland and beyond.
How it supports SSE’s strategy
SSEN Transmission invests in critical
infrastructure needed for a network fornet zero
that connects sources of renewable electricity
to the national grid and transports it to areas of
demand. The business is 75% owned bySSE plc
and 25% by investment partner the Ontario
Teachers’ Pension Plan Board.
How it is remunerated
Through economically regulated returns and
incentives that are recovered from users of
the GB transmission system. In addition to
baseline total expenditure agreed with Ofgem
as part of the regulator’s determination of
business plans, Uncertainty Mechanisms
permit recovery of additional revenue in a
given price control period to reflect additional
investment requirements. These Uncertainty
Mechanisms fund network upgrades during
the price control period.
Who SSE Renewables serves
Electricity customers across GB, Ireland
andselected overseas markets which are
increasingly seeking lower-carbon sources
ofenergy.
How it supports SSE’s strategy
SSE Renewables is driving the net zero
transition through the development, financing,
construction and operation of world-class
renewables in domestic and selected
international markets. It also operates and
develops pumped hydro storage that provides
flexible and dispatchable electricity needed for
a smooth transition to netzero.
How it is remunerated
Through wholesale electricity markets,
ancillary services markets, capacity
markets, balancing markets, power
purchase agreements, and government
schemes for renewable energy.
Who SSE Thermal serves
Electricity suppliers, traders and other
generators through the energy market;
thenational grid, and ultimately electricity
customers.
How it supports SSE’s strategy
SSE Thermal is providing critical flexibility to
offset renewables variability as the energy
system transitions to net zero. The strategic
importance of its Gas Storage assets has
beenhighlighted by recent world events
andthe increasing focus on national energy
self-sufficiency.
How it is remunerated
The wholesale energy market,
CapacityMarket and ancillary services
market provide the core revenue streams.
The fleet also responds to forward market
volatility and within day demand, providing
flexible generation and storage.
Renewables Flexibility Networks
28 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Energy Customer
Solutions
SSE Energy
Markets
MM
SSEN
Distribution
R
How it supports SSE’s strategy
The Corporate Services functions develop and maintain SSE’s strategic
framework, set financial and ESG goals, provide capital funding, ensure
compliance with regulatory requirements and offer regulatory and policy
insight relevant to Business Unit objectives.
How it is remunerated
They are funded by the Business Units through a recharge model
andcorporate unallocated costs which are set out in the
FinancialStatements.
See Our business model on page7 for more
on how SSE creates value
Who SSEN Distribution serves
Over 3.9m homes and businesses in two large,
diverse licence areas in southern central
England, and the north of Scotland.
How it supports SSE’s strategy
SSEN Distribution drives the growth of net zero
connections for the communities it serves. It
does this through a combination of strategic
network investment and the targeted
deployment of flexible solutions. Together,
these support increased connections to the
network, and the increasing take-up of
low-carbon technologies.
How it is remunerated
Through economically regulated returns
recovered from customers and connecting
parties. Additional earnings come through
efficient delivery of investment and
performance-related incentives.
Who Energy Customer Solutions serves
770,000 domestic and business customers
in the all-island Ireland energy market, and
around 310,000 non-domestic customers
inGB.
How it supports SSE’s strategy
Energy Customer Solutions is responding to
the climate emergency as a route to market
for SSE’s low-carbon energy generation and
through the provision of a suite of energy
solutions to customers on the transition to
netzero.
How it is remunerated
By competing for customers and direct
billing them or third party intermediaries,
through state-supported schemes and
through income from legacy wind farms
contracted to SSE Airtricity.
Who SSE Energy Market serves
SSE’s individual Business Units and the
SSE Group.
How it supports SSE’s strategy
The work SSE Energy Markets does is key to
managing risk associated with the operations
behind SSE’s Net Zero Acceleration Programme
Plus. It trades the principal commodities to
which SSE’s asset portfolios are exposed, as
well as the spreads between two or more
commodity prices (e.g. spark spreads); power
(baseload and other products); gas; and carbon
(emissions allowances). Each commodity has
different risk and liquidity characteristics, which
impacts the quantum of hedging possible.
How it is remunerated
It receives fees for providing energy trading
services to the constituent parts of SSEand has
a growing portfolio of third party assets that
bring independent value to the Group.
Routes to marketNetworks
29 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Financial performance
Adjusted operating profit increased by 25%
to £1,038.8m from £833.1m in the prior
year. The increase reflected 18% higher
output driven principally by increased
operating capacity with Viking onshore
wind farm (443MW) reaching completion
inAugust 2024 and a full year contribution
from Seagreen offshore wind farm
(1,075MW, SSE share 49%). The increase in
output was delivered in a higher hedged
price environment, with 2024/25 hedge
prices around 30% higher than the prior
year, delivering value for SSE Renewables
despite a still volatile price environment.
Reported operating profit decreased to
£617.6m from £630.3m in the prior year.
This reflects the above and other
movements including a non-cash
impairment of £249.5m relating to the
Southern Europe Renewables pipeline,
reflecting delays in permitting and grid
connections resulting in a slower than
originally anticipated build of these
projects, and an increase in the Joint
Venture/associate share of interest and tax.
Operational delivery
Year-on-year onshore wind volume
increased by 31% from 4.6TWh to 6.0TWh,
primarily due to the addition of Viking.
Weather conditions were variable throughout
the year, and operational availability was
negatively impacted by the effects of Storm
Éowyn in January 2025.
In offshore wind, output increased by 22%
from 3.2TWh to 3.9TWh. The increase is
primarily driven by the first full year of
operations of Seagreen which saw a
year-on-year increase in production,
partiallyoffset by variable weather conditions
over the winter months.
In hydro, plant availability was strong but
production decreased by 4% from 3.1TWh
SSE Renewables Key Performance Indicators
March 2025 March 2024
Adjusted operating profit – £m 1,038.8 833.1
Reported operating profit – £m 617.6 630.3
Adjusted investment & capital expenditure – £m 1,001.8 1,097.1
GENERATION CAPACITY  MW
Onshore wind capacity (GB) – MW 1,728 1,285
Onshore wind capacity (NI) – MW 117 117
Onshore wind capacity (ROI) – MW 581 582
Onshore wind capacity (Europe) – MW 28 –
Total onshore wind capacity – MW 2,454 1,984
Offshore wind capacity (GB) – MW 1,014 1,014
Conventional hydro capacity (GB) – MW 1,164 1,159
Pumped storage capacity (GB) – MW 300 300
Battery capacity (GB) – MW 50 –
Total renewable generation capacity
(inc. pumped storage) – MW 4,982 4,457
Contracted capacity 3,189 2,792
GENERATION OUTPUT  GWH
INCLUDING COMPENSATED CONSTRAINTS
Onshore wind output (GB) – GWh 4,447 2,991
Onshore wind output (NI) – GWh 224 251
Onshore wind output (ROI) – GWh 1,324 1,352
Onshore wind output (Europe) – GWh 17 –
Total onshore wind output – GWh 6,012 4,594
Offshore wind output (GB) – GWh 3,878 3,178
Conventional hydro output (GB) – GWh 2,946 3,071
Pumped storage output (GB) – GWh 324 315
Battery output (GB)-GWh 46 –
Total renewable generation
(inc. pumped storage & battery) – GWh 13,206 11,158
1 Capacity and output based on 100% of wholly owned sites and share of joint ventures
2 Total renewable generation capacity is increased by 526MW. This principally reflects 443MW from Viking wind
farm, 50MW from Salisbury BESS and 28MW from Chaintrix wind farm.
3 Contracted capacity includes sites with a CfD, RESS contract, eligible for ROCs, or contracted under REFIT
(CfD contracts may be still to commence).
4 Onshore GB wind output includes 1,290GWh of compensated constrained-off generation in FY2024/25 and
530GWh in FY2023/24; Offshore GB wind output includes 1,748GWh of compensated constrained-off
generation in FY2024/25 and 701GWh in FY2023/24.
5 Biomass capacity of 15MW and output of 69GWh in FY2024/25 and 77GWh FY2023/24 is excluded, with the
associated operating profit or loss reported within SSE Thermal.
Seagreen wind farm’s first full year of production boosted SSE Renewables output
SSE Renewables
SSE Renewables is a leading developer and
operator of renewable energy generation,
focusing on onshore and offshore wind,
hydro, solar and battery storage across the
UK and Ireland, and in carefully selected
international markets.
Business Unit operating review continued
30 SSE plc Annual Report 2025
Strategic Report Financial StatementsGovernance

to2.9TWh due to the impact from highly
variable weather, ranging from extended
lower-than-average rainfall periods to
extreme storm events. Tummel Bridge
returned to service in September 2024
following refurbishment, increasing output by
6MW to 40MW during optimum conditions.
Agreements for de-rated capacity were
secured in the T-4 GB capacity auction for
1,238MW of hydro, pumped storage, onshore
wind and solar generation at a clearing price
of £60/kW. In the T-1 capacity auction, SSE
Renewables secured a one-year contract for
30MW (SSE share) of offshore generation
atSeagreen for delivery year 2025/26. In
Ireland, contracts were secured for 11MW of
onshore wind and 14MW of battery storage
(10-year agreement) in Ireland for delivery
year 2028/29.
Delivering world-class assets
Onshore, in addition to the delivery on
timeof Viking in Shetland, SSE Renewables
is approaching completion and full
commercial operations at Yellow River wind
farm (101MW) in Ireland which is contracted
under a 16.5-year RESS 3 contract with
theIrish Government.
Following a final investment decision in
December 2024, construction commenced
in May 2025 on Strathy South wind farm
(208MW) in the Scottish Highlands. The
project – fully contracted through a 15-year
Allocation Round 5 (AR5) CfD contract
withthe UK Government – is targeting
commercial operations in late 2027. At
Aberarder wind farm (50MW) in Scotland,
also fully contracted under an AR5 CfD
contract, turbine deliveries will commence
in summer 2025 ahead of commercial
operations by the end of 2026.
In England, SSE Renewables is finalising
construction of its 150MW Ferrybridge
battery energy storage system (BESS)
project, with commercial operations
expected in summer 2025. Battery
installation is ongoing at Monk Fryston
BESS(320MW) and Fiddlers Ferry (150MW)
ahead of expected operations in early
andlate 2026, respectively.
At Seagreen, an agreement was signed
inMarch 2025 to sell the Offshore
Transmission Assets as required by the
offshore transmission regime.
At Dogger Bank A (1,200MW, SSE share
40%), offshore turbine installation and
commissioning continues. In April 2025,
turbine installation passed the halfway
mark, and the project remains on track to
reach completion within the second half
of2025.
On Dogger Bank B (1,200MW, SSE share
40%), all 95 monopile foundations have
been installed while interarray cable-laying
work is expected to complete in summer
2025. On Dogger Bank C (1,200MW,
SSEshare 40%), installation of monopile
foundations has commenced and the last
ofthe foundations has been delivered
tostorage. A second jack-up vessel,
SSE’s new 101MW Yellow River Wind
Farm in Rhode, County Offaly, is
approaching completion and full
commercial operations, driving
progress towards Ireland’s 2030
renewable energy targets.
The project’s 29 turbines can power
the equivalent of 67,000 homes
annually, with all its capacity
contracted under a 16.5-year RESS 3
contract with the Irish Government.
Yellow River Wind Farm supported
up to 150 jobs during construction
and the project will leave another
positive legacy through its annual
community benefit fund.
67,000
homes powered annually by
Yellow River Wind Farm
Yellow River is set to play its part in helping to meet Ireland’s Climate Action Plan targets
Yellow River drives Ireland’s green transition
theSeaway Ventus, will join the turbine
installation campaign in the second quarter
of 2026 to support delivery of Dogger Bank
B and C.
In hydro, improvement works are continuing
on assets to maximise run-off, storage and
optimisation benefits. In February 2025, a
£70m investment to repower the 45MW
Lochay power station and ex-tend its
operational life by at least another 40 years
was announced. In March 2025, Inverawe
power station (22.75MW) secured a 15-year
refurbishment contract in the GB T-4
capacity auction.
In north-east France, Chaintrix (28MW)
entered commercial operations in February
2025. Construction is ongoing at Jubera
(64MW) in northern Spain, targeting
commissioning at the end of 2025.
Insouthern Italy, construction has
commenced at the combined Castel
Favorito and Masseria la Cattiva (together
17MW) with commercial operations
expected in 2026.
Growth opportunities
In onshore development, SSE continues to
progress Drumnahough wind farm (60MW,
SSE share 50%) in Ireland and Cloiche wind
farm (130.5MW) in Scotland, both fully
contracted in 2024 under Ireland’s RESS-4
and the UK’s AR6 auction rounds, towards
final investment decisions expected in the
second half of 2025.
In offshore development, outline planning
permission was granted in November 2024
for Berwick Bank wind farm’s (4.1GW)
remaining onshore transmission
infrastructure and grid connection in
Northumberland. SSE Renewables expects
to receive a determination by Scottish
Government ministers on its Section
36consent application for the offshore
aspects of the project by summer 2025.
The UK Government’s CfD Allocation Round
7 (AR7) is expected to open towards the end
of summer 2025. Depending on the final
auction eligibility criteria, SSE could have
onshore and offshore wind projects eligible
to participate.
In March 2025, Ofgem and DESNZ jointly
published a high-level design of the
long-duration electricity storage cap and
floor scheme. The first application window
is open with the first projects to be awarded
a cap and floor contract by Q2 2026. SSE
intends to submit its Coire Glas pumped
hydro storage project (c.1,300MW) into the
first window subject to the level of risk and
uncertainty associated with large-scale
pumped storage hydro investment being
appropriately recognised in the scheme.
31 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

SSE Thermal
Assets like Great Island power station offer back-up to intermittent renewables
Balancing Mechanism and other ancillary
contracts, and through trading the option
value of assets.
Managing availability responsibly, both
within year and taking a view of future
system needs, continues to be a priority for
SSE Thermal. As such, the fleet delivered
strong commercial availability overall
although extended outages at Great Island
limited its operation in the market at times.
Likewise, planned and unplanned outages
at Keadby 2 also reduced opportunities to
secure value during the year.
The UK Government’s recently announced
Clean Power 2030 Plan indicates a need for
around 35GW of unabated thermal plant to
be on the system into the 2030s. With older
existing assets (Keadby 1, Medway and
Peterhead) now expected to play an
important role on the system for longer
than originally anticipated, and at least to
2035, SSE Thermal is now proactively
planning investment across a number of
years to build in additional longevity and
resilience across the fleet.
Construction programme
Construction and commissioning of Slough
Multifuel (55MW) was completed in August
2024. The 50/50 joint venture energy-from-
waste plant was delivered ahead of
schedule and on budget, with its 15-year
Capacity Market agreement commencing
inOctober 2024.
In Ireland, construction of a 150MW
Temporary Emergency Generation unit at
Tarbert has completed, with some final
scopes being completed this year. Delivered
at the request of Irish authorities, the unit is
now available to the system and will only be
utilised when market-sourced generation is
insufficient to meet system needs.
SSE Thermal key performance indicators
March 2025 March 2024
Adjusted operating (loss)/profit – £m 248.5 752.5
Reported operating (loss)/profit – £m 240.8 660.8
Adjusted investment and capital expenditure – £m 183.1 109.2
GENERATION CAPACITY  MW
Gas- and oil-fired generation capacity (GB) – MW 5,538 5,538
Gas- and oil-fired generation capacity (ROI) – MW 672 672
Energy from waste capacity & Biomass (GB) – MW 43 15
Total thermal generation capacity – MW 6,252 6,225
GENERATION OUTPUT  GWH
Gas- and oil-fired output (GB) – GWh 16,237 13,597
Gas- and oil-fired output (ROI) – GWh 1,405 1,650
Energy from waste & Biomass output (GB) – GWh 182 78
Total thermal generation – GWh 17,824 15,325
1 Capacity is wholly owned and share of joint ventures, and reflects Transmission Entry Capacity.
2 Output is based on SSE 100% share of wholly owned sites and 100% share of Marchwood PPAs due to the
contractual arrangement.
3 During the year ended 31 March 2025, SSE Thermal took responsibility for the Slough Heat and Power
business from SSE Enterprise. Comparative performance has been restated.
Financial performance
Adjusted operating profit decreased by 67%
to £248.5m, compared to £752.5m in the
prior year. This decrease was in line with
expectations set out at the start of the
financial year and principally driven by
lowerspark spread prices and significantly
lower market volatility due to continued
normalisation of energy prices. The result
also reflects a fall of £38m in Capacity
Market payments compared to the previous
year, reflecting the lower T-1 auction
outturn, as well as a £38.8m one-off benefit
from the sale of land at Ferrybridge.
Reported operating profit decreased to
£240.8m, compared to £660.8m in the prior
year. In addition to the movements above,
the prior year result was impacted by
a£(63.2)m non-recurring impairment
charge on Triton Power and losses on
re-measurements of operating derivatives
inthat business.
Operational delivery
Thermal plants continue to provide back-up
reserve to the renewables-led system as
well as flexible response as overall UK
balances change. Increasingly this means
that the value of the intrinsic baseload spark
spread is less relevant to SSE Thermal
revenues, and value is accrued through the
Capacity Market, providing dispatchable
capacity during periods of tight system
margin, offering the National Energy System
Operator (NESO) services though the
SSE Thermal owns and operates conventional flexible
thermal generation in GB and Ireland, whilst actively
exploring opportunities for growth in lower-carbon
generation technologies. SSE Thermal’s flexible and
efficient fleet of gas-fired generation will continue
toplay a critical role in the transition to net zero,
providing reliable back-up power that complements
intermittent renewable energy.
Business Unit operating review continued
32 SSE plc Annual Report 2025
Strategic Report Financial StatementsGovernance

On the same site, construction will begin
this year on the 300MW Tarbert Next
Generation power station ahead of a
planned completion by the end of 2027.
Theconstruction cost is expected to total
up to €300m, and the station benefits from
a 10-year capacity agreement which has
secured a total of €335m of revenues.
Growth opportunities
SSE Thermal is committed to bringing
forward new flexible generation which can
support short-term security of supply
requirements while also delivering long-
term decarbonisation. As a pragmatic
partner to government, the business is
developing options in both GB and Ireland
which can deliver much-needed capacity
ahead of anticipated increases in electricity
demand, recognising that some new
unabated flexible power may be needed to
fill a gap if low-carbon options cannot be
delivered in time.
In December 2024, SSE Thermal launched
Mission H2 Power with Siemens Energy,
which aims to deliver gas turbine
technology capable of running on 100%
hydrogen. This will directly support the
decarbonisation of Keadby 2 as well as
thewider development of a low-carbon
power portfolio, with the UK Government
confirming its intention to develop a
Dispatchable Power Agreement to support
deployment of hydrogen-to-power.
SSE Thermal continues to progress plans
fornew ‘decarb-ready’ power stations
which would initially run on natural gas
before converting to hydrogen. Public
consultations have been completed for the
900MW Keadby Next Generation power
station in North Lincolnshire, with planning
expected to be submitted later this year.
The UK Government Comprehensive
Spending Review, expected summer 2025,
should provide an update on further
deployment of carbon capture technology
and implications for SSE Thermal’s
proposed up to 900MW Peterhead and
Keadby Carbon Capture power stations.
In April 2025, Aldbrough Hydrogen
Pathfinder was shortlisted in the UK
Government’s Hydrogen Allocation Round
2 process and received planning permission.
Subject to reaching a final investment
decision, the project could be operational
by 2029.
In Ireland, planning permission has been
granted for Platin power station in County
Meath with a final investment decision
targeted later this year, and for a
synchronous compensator at Great Island,
which could bring an additional source of
revenue if a contract for Low Carbon Inertia
Services is secured.
SSE Thermal and partners
Copenhagen Infrastructure Partners
(CIP) opened a new energy-from-
waste facility in Slough – ahead of
schedule. The 55MW facility is
expected to process around
480,000 tonnes of waste that would
otherwise go to landfill.
Slough Multifuel began a 15-year
capacity agreement for 42MW of
de-rated capacity at a price of £18/
kW on 1 October 2024. The site is
run by Hitachi Zosen Inova (HZI).
Steam produced by Slough Multifuel
is being reused by neighbouring
businesses, helping to decarbonise
its operations and contribute to the
estate’s circular economy.
480,000
tonnes of waste saved
from landfill
Slough Multifuel is the latest addition SSE Thermal’s portfolio of flexible plant
Slough Multifuel powers energy from waste
33 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

SSE Gas Storage key performance indicators
March 2025 March 2024
Adjusted operating (loss)/profit – £m (37.1) 82.8
Reported operating (loss) – £m (45.5) (42.2)
Adjusted investment and capital expenditure – £m 0.7 0.8
Gas storage level at year end – mTh 79 40
Gas storage level at year end – % 47 21
Gas Storage
SSE holds around 40% of the UK’s
conventional underground gas storage
capacity at two sites on the east Yorkshire
coast. The Atwick facility, near Hornsea, is
wholly owned by SSE, while the Aldbrough
facility is operated as a joint venture with
Equinor. These two sites support the
security of gas supply for the UK whilst
providing important liquidity to the UK
andinterconnected gas markets.
Financial performance
Adjusted operating profit decreased to a
£(37.1)m loss, compared to a profit of
£82.8m in the prior year. A typical year sees
gas injected in the summer months when
prices are low and then withdrawn and sold
in winter months when prices are higher.
The past year has seen unusual market
conditions for these assets with the impact
of mandatory gas storage filling targets in
the European Union, and proposed gas
storage support in Germany driving summer
prices higher than those in the winter,
distorting the natural functioning of the
market and limiting the assets’ ability to
trade and secure value. However, the
markets are now providing pockets of
valuable spread and summer re-injection
has commenced.
Reported operating loss increased to a
£(45.5m), compared to a loss of £(42.2)m in
the prior year. In addition to the movements
above, this mainly reflects a £(134.1)m
impairment charge in the prior year
whichwas not repeated this year.
Operational delivery
SSE’s Gas Storage business continues to
bean important risk management tool for
the Group’s generation portfolio. It offers
flexibility as a result of the assets’ technical
ability to cycle quickly and mitigate
exposures from wind speeds and demand
variability, which drives short-term gas
demand from thermal generation.
Third party contracts were secured
withthree customers for injection and
withdrawal, locking in value for the assets
while maintaining the ability to trade the
remaining capacity. However, the gas
markets demonstrated limited volatility
overthe course of the financial year, with
minimal spreads between Summer 2024
and Winter 2024 prices reducing the ability
to secure value.
Injection availability at Atwick was limited
from August, due to planned maintenance
on Cavern Three and the compressors.
AtAldbrough, all caverns provided strong
injection and withdrawal availability across
the full year. Political intervention in the
wider European gas storage market was one
of the major factors which limited and even
inverted the normal summer/winter spreads.
Work is under way to prepare Cavern Eight
at Atwick for potential rewatering in the
nextfinancial year. If a decision to rewater
istaken, it would create an opportunity to
secure value from the maintained cushion
gas, whilst leaving open the future
possibility to return to service as natural
gasor hydrogen storage, should market
conditions support this.
Growth opportunities
Ahead of the National Energy System
Operator taking on this responsibility in
2026, the UK Government is progressing
work on strategic planning of hydrogen
storage and transport infrastructure. In
November 2024, the Government began
early engagement, as a first step in a formal
procurement process for hydrogen storage.
This was followed by confirmation in
December 2024 that the Government aims
to publish details for the first allocation
during 2025, with an ambition for up to
twostorage projects to be in operation
orconstruction by 2030. To support this
ambition, a planning application for
Aldbrough Hydrogen Storage is being
targeted for late 2025.
Business Unit operating review continued
34 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

SSEN Transmission
SSEN Transmission key performance indicators
March 2025 March 2024
Adjusted operating profit
1
– £m 322.5 419.3
Reported operating profit – £m 430.0 559.1
Adjusted investment and capital expenditure
1
– £m 953.5 595.6
Gross Regulated Asset Value (RAV) – £m
2
7,171 5,676
SSE Share Regulated Asset Value (RAV)
1,2
– £m 5,378 4,257
Renewable Capacity connected within SSEN Transmission
area – GW
3
10.9 9.3
1 Excludes 25% minority interest.
2 Estimated and subject to outturn of annual regulatory process.
3 Transmission and distribution connected capacity within the SSEN Transmission Network area, includes
pumped storage and battery storage.
Following the successful energisation of
theShetland HVDC link in August 2024,
onbudget and ahead of schedule, good
progress continues to be made connecting
Shetland’s electricity distribution network to
the HVDC link. Energisation will follow the
completion of SSEN Distribution’s ‘Shetland
Standby Project’ in 2026, connecting
Shetland’s homes and businesses to the
GBelectricity network for the first time.
The East Coast 400kV upgrade continues,
with good progress being made on
replacing the existing overhead line
conductors between Kintore and Kincardine
and associated substation upgrades. This
includes the new Kintore 400kV substation,
which upon completion is expected to be
the world’s first SF
6
-free 400kV substation.
Delivering a pathway to 2030
The Pathway to 2030 programme includes
11 major projects, six onshore and five
offshore. Regulatory approvals for all these
investments have been secured through
Ofgem’s Large Onshore Transmission
Investment (LOTI) Uncertainty Mechanism
and Accelerated Strategic Transmission
Investment (ASTI) framework.
Following the granting by Scottish Ministers
of the final major overhead line consent
inSeptember 2024, the Argyll and Kintyre
275kV Reinforcement Project is progressing
with groundworks well advanced at all five
substation sites. Overhead line enabling
works continue to make good progress,
with overhead line construction set to
commence in summer 2025. The project
isdue for energisation in 2029.
In September, construction began on
theOrkney transmission link, with good
progress made with groundworks and
preparatory works for the onshore cable.
Financial performance
Adjusted operating profit, which is
presented net of the business’s 25%
non-controlling interest, decreased by 23%
to £322.5m from £419.3m in the prior year.
Despite growing expenditure and associated
underlying allowances, a true-up for benefit
received in the 2023/24 financial year in
relation to “full expensing” accelerated
capital allowances means that net allowed
revenues were lower than the prior year. In
addition, operating costs and depreciation
continue to increase as the business
growsrapidly to deliver the investment
programme agreed with the regulator.
Reported operating profit decreased to
£430.0m compared to £559.1m, as a result
of all of the movements above but reflecting
that non-controlling interests are fully
consolidated for all profit metrics
underIFRS.
All references to performance indicators
relate to 100% of the business unless
otherwise stated.
Operational delivery – RIIO-T2
SSEN Transmission continues to deliver a
sector-leading operational performance
through the safe and reliable transmission
of electricity, recognising the increasingly
important contribution its network makes
tonational security of supply.
Despite the significant impact of several
named storms, SSEN Transmission achieved
95% of the annual RIIO-T2 reward through
the ‘Energy Not Supplied Incentive’ of
£0.7m in 2018/19 prices.
Capital investment programme
SSEN Transmission’s capital investment
programme continues to make good
progress, increasing the network capacity
that will support clean power, net zero and
energy security targets.
As of 31 March 2025, the network’s total
installed capacity was 12.2GW, of which
10.9GW was renewable and other low-
carbon sources – including 0.8GW of
pumped storage and battery storage.
Assets like the Beauly-Denny line transport vital clean energy to where it’s needed
SSEN Transmission operates one of the fastest
growingregulated electricity networks in Europe.
Itowns, operates and develops the high voltage
electricity transmission system in the north of Scotland
and its islands and is owned 75% by SSE plc and 25%
byOntario Teachers’ Pension Plan Board.
35 SSE plc Annual Report 2025
Strategic Report Financial StatementsGovernance

Last year, the Shetland Islands were
connected to the GB electricity grid
for the first time by a new 260km
subsea transmission link to the
Scottish mainland. The Shetland
High Voltage Direct Current (HVDC)
Link has the capacity to transport
enough clean energy to power
500,000 homes, through the first
multi-terminal HVDC switching
station of its kind anywhere
inEurope.
The link brings clean power from
SSE Renewables’ 443MW Viking
wind farm on Shetland to the GB
transmission gridtoo, with the two
projects representing over £1bn of
combined investment, supporting
around 650 jobs during peak
construction and contributing
£125m to the Shetland economy.
Delivered on time and on budget,
this landmark project will play
akeyrole in the UK’s clean
energytransition.
AtDounreay West substation in Caithness
works were temporarily suspended in
November 2024 following the identification
of suspected radium during planned
radiation monitoring activities. In April 2025,
agreement was reached with SEPA to secure
the necessary permit to allow works to
recommence safely, with energisation still
on track for 2028.
For the Skye Reinforcement project, all
substation consents are in place, however
adecision is still awaited from Scottish
Ministers for overhead line consent, which
continues to take significantly longer than
anticipated following its submission back
inSeptember 2022. Substation enabling
works have already commenced, with main
construction works expected to start in
2026 and energisation by the end of 2029.
The Eastern Green Link (EGL) 2 project,
thefirst of a series of 2GW subsea
superhighways between Peterhead and
England, is now in construction with
groundworks progressing well at convertor
station sites at Peterhead and Drax. This
joint arrangement project with National
Grid Electricity Transmission (NGET)
remains on track for energisation in 2029.
All remaining ASTI substation and convertor
station planning applications required for
2030 delivery have now been submitted to
the relevant Local Planning Authority, with
most decisions expected throughout 2025.
Coachford substation, which was part of
theBeauly-Peterhead 400kV scheme, is
nolonger being taken forward following
engineering and construction challenges
identified through extensive site surveys and
ground investigation works at the proposed
site. A new substation site in the wider area
will still be required for delivery in the early
2030s, which will now be rescoped
andredeveloped.
In April 2025, the Fort Augustus substation
was approved by the Highland Council’s
South Planning Committee. This is the first
major ASTI planning application to be
determined and a major milestone for the
Pathway to 2030 investment programme.
All remaining Section 37 consents are due
to be submitted in summer 2025 and are
expected to be determined through the
Scottish Government’s new Priority
Applications for Transmission Infrastructure
guidance which sets out a 52-week
determination ambition, including instances
where a Local Public Inquiry is triggered.
Work to progress EGL3 continues, with
theoutcome of the supply chain tender
expected in summer 2025. Energisation
isnow expected in the early 2030s due to
delays in progressing required changes of
scope to NGET’s onshore infrastructure
inLincolnshire.
With the supply chain for the remainder of
the ASTI projects already in place and all
associated consents submitted, all other
260km
length of subsea cable
connecting Shetland to the
Scottish mainland
A new 260km subsea transmission link is unlocking Shetland’s clean energy potential
Connecting Shetland for the first time
ASTI projects remain on track for 2030
delivery, subject to timely and positive
consent decisions.
RIIO-T3 price control
In December 2024, SSEN Transmission
submitted to Ofgem its Business Plan
forthe RIIO-T3 regulatory price control,
covering the period from April 2026 to
March 2031.
The plan sets out total expenditure of at
least £22.3bn, in 2023/24 prices. This
includes around £16bn of ASTI and LOTI
investments already approved by Ofgem.
The plan also sets out the potential for an
additional £9.4bn of future Uncertainty
Mechanism expenditure, which includes the
regional and system operability investment
required to deliver Clean Power 2030.
The successful delivery of this plan requires
a financial framework that recognises
theunprecedented levels of investment
needed. Draft Determinations are expected
on 25 June 2025 ahead of Final
Determinations in December 2025.
Growth opportunities
In December 2024 Ofgem reaffirmed
theneed for several additional strategic
investments in the north of Scotland that
were set out in the National Energy System
Operator’s (NESO’s) ‘Beyond 2030’ report,
providing initial funding to take these
projects the consenting stage through the
regulator’s ‘Delivery Track’ funding route
and access to Ofgem’s new Advanced
Procurement Mechanism.
These projects include a second HVDC link
to Shetland and combined represent an
investment of over £5bn for delivery
between 2030 and 2035. Ofgem has also
exempted these projects from competition.
Further investments will also be required
todeliver the local and regional
investmentsthat are critical to support
theUK Government’s Clean Power 2030
target. This includes potential customer
connections and system operability
investments, all of which were submitted
toOfgem in February 2025 as an
addendumto the RIIO-T3 Business Plan.
A further high capacity HVDC subsea link
from the north-east of Scotland to England,
EGL5, which follows a change in scope by
the NESO from its previously proposed
coordinated offshore grid, presents
additional future growth opportunities.
These additional growth opportunities
wereincluded within the potential
£9.4bnRIIO-T3 Uncertainty Mechanism
expenditure noted above.
Business Unit operating review continued
36 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

SSEN Distribution, operating under licence as Southern Electric
Power Distribution plc (SEPD) and Scottish Hydro Electric Power
Distribution plc (SHEPD), serves more than 3.9m homes and
businesses across central southern England and the north of
Scotland. The business serves some of the most diverse and unique
geographies across the UK, spanning more than 75,000km², and
keeps customers and communities connectedwhile developing
theflexible electricity networkvitalto achieving net zero.
Following a challenging start in the first year
of the price control, IIS performance across
both measures improved in the SEPD region
in 2024/25, with a decrease in CI of 18% and
CML by 12% due to targeted improvement
work. However, an unsettled winter in the
SHEPD region adversely impacted CI and
CML performance, with small increases of
4% and 5% respectively. An overall penalty of
£9m was incurred across SEPD and SHEPD
under the scheme, reduced from £14m
in2023/24.
Cumulative investment of over £40m in
automation across both licence areas
continues to have a positive impact on
SSENDistribution’s ability to reconfigure
thesystem quickly and remotely, following
unplanned faults. This, alongside projects
toreinforce the network, aims to improve
IIS performance in future years.
SSEN Distribution’s performance in
exceptional storm events remains a
strength. In January 2025, Storm Éowyn,
which the Met Office called the ‘strongest
storm in a decade’, caused 580 faults on
SHEPD’s network. Power was restored to
95% of the 92,000 customers affected
within 48 hours and customer service
during the storm was maintained at close
toBAU levels.
Customer Satisfaction performance remains
a clear focus for the business. The Broad
Measure incentive score remained broadly
level in 2024/25 across SEPD and SHEPD
but new technology and process
improvements, including self-serve
functionality and improved channel options,
are expected to benefit future performance.
SSEN’s Distribution System Operations
(DSO) activities are estimated to have
received an around £4m reward in 2024/25
through the DSO Annual Incentive process.
SSEN Distribution
SSEN Distribution key performance indicators
March 2025 March 2024
Adjusted and reported operating profit – £m 736.0 272.1
Adjusted investment and capital expenditure – £m 635.8 505.1
Regulated Asset Value (RAV) – £m 5,737 5,301
Electricity Distributed – TWh 38 37
Customer minutes lost (SHEPD) average per customer 69 66
Customer minutes lost (SEPD) average per customer 51 58
Customer interruptions (SHEPD) per 100 customers 59 57
Customer interruptions (SEPD) per 100 customers 42 51
RAV, Customer minutes lost and Customer interruptions figures estimated and subject to outturn of annual
regulatory process
SSEN Distribution’s two networks span more than 75,000km²
Financial performance
Adjusted and reported operating profit
increased by 170% to £736.0m compared to
£272.1m in the prior year. The large increase
in price control allowed revenues in the year
reflects that 2024/25 was the earliest
financial year when unexpectedly-high cost
inflation in 2022/23 and 2023/24 could be
recovered, as tariffs are set 15 months
before the start of financial year. This
one-off cost inflation catch-up is partially
offset by increasing operating costs
associated with business transformation
andimproving network resilience, as well
ashigher depreciation on a growing
assetbase.
Operational delivery – RIIO-ED2
SSEN Distribution has completed the
second year of the five-year RIIO-ED2 price
control which runs until March 2028 and
includes £3.6bn of baseline expenditure
(2020/21 prices). It also provides the
opportunity to trigger additional funding
under Uncertainty Mechanisms (UMs) which
could add at least £0.7bn to expenditure in
the period.
During the financial year, an additional
£106m has been secured through UMs
related to investment in subsea and on
island infrastructure, storm resilience and
cyber security. An additional £236m of
UMsare currently being assessed by Ofgem,
withfurther submissions planned in the
remaining years of the price control.
Customer performance
In RIIO-ED2, the ability to secure higher
incentive performance has been tightened
compared to previous price control periods.
Within the Interruptions Incentive Scheme
(IIS), SSEN is offered an incentive on its
performance against the loss of electricity
supply through the recording of the number
of Customer Interruptions (CI) and
Customer Minutes Lost (CML). These
include planned, as well as unplanned,
interruptions.
37 SSE plc Annual Report 2025
Strategic Report Financial StatementsGovernance

Achieving upper-tier performance against
other DNOs, SSEN’s “exceptionally well-put
together” submission was praised by
Ofgem’s independent panel.
Capital investment
The second year of RIIO-ED2 has seen an
acceleration of the major capital investment
programme across both networks. This is
delivering performance improvements, an
improved service for customers, and future
earnings through RAV growth.
In the SEPD region £1bn of investment is to
be delivered under efficient Capital Delivery
Agreements with three contract partners.
A£200m, multi-year programme of
investment to transform Oxfordshire’s local
electricity system is getting under way and
work began on a £12m project to improve
Bournemouth’s local network, following
two £8m network reinforcement projects in
Portsmouth and Southampton which will be
completed later this year.
In SHEPD, similar holistic contracts worth
£450m have been signed with five contract
partners to deliver network improvements
across the north of Scotland licence area
bythe turn of the decade. During 2024/25,
the laying of a new 2km subsea cable linking
Islay with Jura was completed, ensuring a
safe, reliable supply for these communities.
Proposals for the ‘Shetland Standby Project’
were approved in December 2024, with
£93m of funding awarded over 10 years.
Abattery storage system will be built to
provide interim supply in the event of a
network fault while Lerwick power station
isbrought out of standby mode. Work will
accelerate later this year, with energisation
due in 2026.
Growth opportunities
The National Infrastructure Commission’s
recent call for greater proactive investment
in Electricity Distribution networks aligns
with SSEN Distribution’s progressive
approach to strategic development
planning. The NIC estimates between
£37-50bn of investment in the GB
distribution network is needed by 2050
which represents a doubling of current
annual allowances for load-related
expenditure, on top of ‘business as usual’
investment. This aligns with SSEN
Distribution’s work to develop Strategic
Development Plans at each Grid Supply
Point (GSP).
SSEN’s award-winning Local Energy Net
Zero Accelerator (LENZA) tool has now
been adopted by all local authorities based
wholly within its network areas. 455 local
planners – a three-fold increase in a year –
are now using LENZA to devise the
most-efficient locations for decarbonised
developments in their communities.
Engineers at work restoring supply to customers during the storms of January 2025
Storm Éowyn was described by the
Met Office as “the strongest storm
ina decade”, with winds of up to
100mph causing 92,000 of SSEN
Distribution’s customers to lose
supply in Scotland. In response the
business mobilised a 1,100-strong
team to fix faults and support
communities.
Efforts to restore supply were
hampered by fallen trees blocking
access and the sheer volume of
damage to overhead lines caused by
the destructive winds. During Storm
Éowyn SSEN’s customer service
team spoke with over 2,000
vulnerable customers on the phone
and provided over 7,000 hot meals
to people waiting to be reconnected.
SSEN Distribution continues to
prepare for increasingly severe and
frequent extreme weather events
through investment in infrastructure
resilience. It also has over one
million of its 3.9 million customers
registered on its Priority Services
Register.
1,100
strong team mobilised
by SSEN Distribution to
help customers through
Storm Éowyn
Exceptional storm draws exceptional response
This move to a strategically-planned and
long-term investment approach is also
informing SSEN Distribution’s submission
tothe RIIO-ED2 load-related Uncertainty
Mechanism later this year and emerging
thinking ahead of the ED3 price control
which begins in 2028. Further detail
isincluded in SSEN’s Empowering
Communities, Enabling Growth publication,
issued in early May 2025. In late April,
Ofgem published its Framework Decision
for ED3 which signalled a clear shift to a
more planned and proactive approach to
investment. It is expected to build on this
approach in its Sector Specific Methodology
Consultation, launching in the summer of
this year.
Business Unit operating review continued
38 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

SSE Energy Markets trades the principal commodities to which SSE’s asset portfolios are exposed
SSE Energy Markets
It also signed a number of route-to-market
PPA contracts ranging from two to 15-year
terms. In total, SSE Energy Markets now
holds route-to-market contracts with
2.75GW of assets which are backed by a
Contract for Difference, of which around
2.3GW are classed as third party.
SSE Energy Markets has also increased the
volumes it is trading in European power and
gas markets, subject to strict position limits
and Value at Risk (VAR) controls, which will
be critical as the Group seeks opportunities
in carefully selected international markets.
Ithas also continued to adapt to the shifting
energy landscape by further strengthening
its data and advanced analytics capabilities.
SSE Energy Markets key performance indicators
March 2025 March 2024
Adjusted operating profit – £m 30.0 37.5
Reported operating profit/(loss) – £m (42.9) 588.6
1 During the year ended 31 March 2025, SSE Energy Markets has taken responsibility for energy optimisation
services from SSE Enterprise. Comparative performance has been restated.
SSE Energy Markets’ operations involve
trading the principal commodities to which
SSE’s asset portfolios are exposed, as well
asthe spreads between two or more
commodity prices (e.g. spark spreads):
power (baseload and other products); gas;
and carbon (emissions allowances). Each
commodity has different risk and liquidity
characteristics, which impacts the quantum
of hedging possible.
This is supplemented by optimisation
activities and position taking – both subject
to strict position limits and value at risk
controls – and contracting for third party
Power Purchase Agreement (PPA) and
route-to-market contracts.
Financial performance
Adjusted operating profit has decreased
20% to £30.0m from a £37.5m profit in the
prior year. Energy Markets continues to
drive significant value for the energy-
exposed businesses through its trading
services and the business itself generates
arelatively low level of baseline operating
earnings from these services. The decrease
in year-on-year profitability is mainly due to
reduced margin on optimisation activities
given the continued normalisation of
volatility and price of power and gas trades
in the market.
Reported operating profitability decreased
to a loss of £(42.9)m from a profit of
£588.6m in the prior year. In addition to the
movements above, the reported operating
result includes net re-measurement losses
on forward commodity derivatives relative
to a large gain in the prior year. These
IFRS9re-measurements exclude any
re-measurement of ‘own use’ contracts
andare unrelated to underlying operating
performance.
Operational delivery
SSE Energy Markets has continued to play
apivotal role in navigating energy market
volatility, managing risk and ensuring the
Group’s market-based Business Units can
capture and maximise value. This covers all
trading periods, with decisions being made
from one centre of excellence. The value
Energy Markets secures for SSE’s asset
portfolio continues to be reported against
individual Business Units.
The business has an increasing focus on
building a portfolio of third party assets,
bringing added independent value to the
Group. In the financial year, SSE Energy
Markets signed a 10-year agreement to
optimise two major battery energy storage
systems being developed by Copenhagen
Infrastructure Partners (CIP) in Scotland
with a combined capacity of 1GW.
SSE Energy Markets commercially optimises all ofSSE’s
market-based Business Unit assets in the wholesale
energy markets, securing value on behalf of these
businesses by trading in wholesale energy markets and
managing volatility through active risk management.
39 SSE plc Annual Report 2025
Strategic Report Financial StatementsGovernance

Energy Customer Solutions
During the year, ECS has continued to focus
on serving customers; extending our service
range and expanding our product portfolio.
Tight commercial and risk controls have
enabled the business to navigate volatility
while providing a range of tariffs and low
carbon solutions to all customer segments.
In January the former SSE Enterprise
division merged with ECS to achieve
agreater range of integrated energy
solutions, including distributed energy
offerings for cities and large energy
customers. During the year the breadth
ofECS’s Corporate Power Purchase
Agreement products was extended,
securing major customers in the retail
andbanking sectors.
SSE Airtricity
Financial performance
Adjusted profitability increased 68% to
£159.4m, from £95.0m in the prior year.
Theprior year saw lower margins as the
business supported customers through the
cost-of-living crisis and by largely absorbing
the impact of higher commodity costs and
indirect costs including bad debt expenses.
The normalisation of energy prices in the
last financial year meant the business was
able to deliver tariff reductions within year
whilst also returning supply margins to
more sustainable levels. In addition, income
from legacy wind farms contracted to SSE
Airtricity remained robust, increasing by
around £10m compared to prior year.
Reported operating profit also increased
to£157.0m compared to £94.5m in the
prior year, mainly reflecting a £(2.0)m
restructuring charge relating to the Group
operating model and efficiency review in
addition to the movements above.
Operational delivery
SSE Airtricity has achieved an increase in
customer accounts to 770,000 thanks to a
market-leading fixed-price offer and strong
customer service. We aim to support
customers to understand and reduce their
energy bills and the business is pleased that
around 20% of customer acquisitions are
ona smart product.
Airtricity has a long history of financial
support for customers and in October 2024
it decided against passing through
significant increases in transmission and
distribution charges during winter, a
decision which suppressed margins in the
second half of the year. Following other
market movements, it announced in
February 2025 that it would increase tariffs
by an average of 9.5% with effect from 2
April to collect these regulated charges
from customers.
Beyond energy supply, Airtricity actively
develops propositions that will help lower
bills and move customers towards a low
carbon pathway. During the financial year,
apartnership with Activ8 Energies installed
solar on over 2,000 rooftops, lowering bills
by up to 50%. Energy Services products
were delivered to around 5,000 customers
throughout the year, ranging from Smart
home surveys and heating upgrades to
full-scale domestic retrofits.
Airtricity also supported customers to
access up to £20m in grant funding. New
partnerships have also been formed with
Ohme and Nevo to help deliver integrated
product offerings including Electric Vehicles
(EVs), home charging and a smart EV tariff.
New partnerships have been formed to develop EV related product offerings
Energy Customer Solutions (ECS) is SSE’s shop
window to the non-domestic market in GB
and the whole energy supply market on the
island of Ireland, with dedicated energy
experts as key account managers pulling
together the best of SSE into powerful
combined propositions.
SSE Airtricity key performance indicators
March 2025 March 2024
Adjusted operating profit – £m 159.4 95.0
Reported operating profit – £m 157.0 94.5
Adjusted investment and capital expenditure – £m 6.9 14.8
Aged Debt (60 days past due) – £m 19.2 18.2
Bad debt expense – £m 2.8 13.7
Airtricity Electricity Sold – GWh 6,704 6,400
Airtricity Gas Sold – mtherms 237 199
All Ireland energy market customers – m 0.77 0.75
Business Unit operating review continued
40 SSE plc Annual Report 2025
Strategic Report Financial StatementsGovernance

SSE Business Energy
Financial performance
Adjusted profitability decreased by 41% to
£32.7m compared to £55.2m in the prior
year. The focus for the business during the
past year was the stabilisation of a new
customer management and billing system
known as Evolve.
During the stabilisation period, servicing
ofexisting customers was prioritised whilst
acquisition and onboarding activity was
limited, contributing to an overall reduction
in customer numbers and volumes sold.
This was partially offset by a lower bad debt
expense as improved customer data from
the Evolve system, lower customer
tariffsand a more stable market price
environment reduced the overall level
ofprovisioning required.
Reported operating profit also decreased
to£32.2m compared to £55.2m in the prior
year, reflecting the movements above in
addition to a £(0.5)m share of interest and
tax from Joint Ventures.
Operational delivery
Over the last 12 months, Business Energy
(BE) has delivered solid performance with
afocus on billing platform stabilisation and
the extension of low-carbon and distributed
energy solutions. Evolve has been
implemented, modernising the IT estate
andproviding the basis for improved
customer experience, product delivery
andcommercial controls.
The business understands the needs of
commercial customers of all sizes and has
selected a small number of partners to
bringa range of propositions to market.
Apartnership with Ortus Energy, offering
rooftop solar installations to commercial
customers, includes the acquisition of
13MW of existing rooftop solar assets
andthe option to finance up to 130MW of
future projects over the next three years.
In July 2024 a Joint Venture was agreed
with TotalEnergies – Source – to deploy
and operate up to 3,000 high power
chargepoints, grouped in 300 EV hubs.
Thejoint venture has made a strong start
with 222 charge points at 24 EV charging
hubs completed.
The SSE Airtricity Generation
GreenCommunity Fund was
established to support communities
across the island of Ireland in the
journey towards a greener future.
Community engagement
wascrucial throughout the
establishment of this fund, with the
design of 10 focus areas, including
community climate projects and
climate education, informed by over
600 public consultation responses.
The fund is particularly aimed at
fostering local leadership and
promoting social equity, ensuring
that all communities can contribute
to Ireland’s sustainable future.
Fifty-six fully funded sustainability
projects across the island of Ireland,
have been approved for funding
include a STEM education
programme developed by students
for secondary schools in Ireland.
€5m
SSE Airtricity Generation
Green Community Fund
launched by SSE
SSE’s Klair Neenan announces the fund with Northern Ireland First Minister Michelle O’Neill
Growth opportunities
As the shop window for SSE, backed by
theGroup’s generation assets, ECS will
continue to deliver access to increasing
volumes of green energy from SSE’s wind
farms for all customer segments. With the
proven ability to innovate and create
partnerships, ECS will continue to provide
agrowing suite of energy products and
distributed energy solutions to support
customers on the journey to net zero,
including Corporate Power Purchase
Agreements.
The business aims to remove complexity
forcustomers as they reduce their carbon
emissions. In Ireland, ECS currently provides
around 85% of the energy by volume used
by data centres and will continue to target
the tech and pharma sectors where the
strongest growth is expected.
In GB, the UK Government’s focus on
growth and devolution to regions is an
opportunity to leverage strong relationships
the business has with combined authorities
and other public bodies.
SSE Airtricity’s discretionary €5m
community fund for green growth
SSE Business Energy key performance indicators
March 2025 March 2024
1
Adjusted operating profit – £m 32.7 55.2
Reported operating profit – £m 32.2 55.2
Adjusted investment and capital expenditure – £m 73.1 84.6
Electricity Sold – GWh 9,840 10,693
Gas Sold – mtherms 120 168
Aged Debt (60 days past due) – £m 279 336
Bad debt expense – £m 40 113
Energy customers’ accounts – m 0.31 0.38
1 During the year ended 31 March 2025, SSE Business Energy has taken responsibility for private electric
networks and businesses aligned with the provision of low carbon energy solutions to customers from
SSEEnterprise. Comparative performance has been restated.
41 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Sustainability
Chief Sustainability Officer’s review 43
How we approach sustainability 44
Taking stock on the pathway to 2030 45
Driving climate action 46
Providing affordable and clean energy 49
Investing in industry, innovation and infrastructure 51
Committed to decent work and economic growth 53
Protecting and restoring the natural environment 58
42 SSE plc Annual Report 2025
Strategic Report Financial StatementsGovernance

Transparency
through the
transition
A holistic view of sustainability, combined with a
pragmatic approach to goal-setting that takes
account of the changing world around us, has led
toa timely update of SSE’s Net Zero Transition Plan.
Chief Sustainability Officer’s review
43 SSE plc Annual Report 2025
Strategic Report Financial StatementsGovernance
For SSE, we have long understood that it is
impossible to be sustainable unless we are
tackling climate change. However, we also
see that it is possible to tackle climate
change in a way that is unsustainable for
people and nature. That is why a holistic
approach to sustainability is so important:
incorporating all three pillars (economic,
social, and environmental) set out in the
late1980s by the United Nations
BrundtlandCommission.
In 2024/25, SSE made a larger contribution
to social sustainability than the year before.
We made our largest-ever annual
contribution through community benefit
funds with £16.3m made in community
grant awards. The gender pay gap
narrowedfor the fifth year in a row, and
theproportion of women in senior roles
increased, despite stalled progress at the
highest executive levels.
We marked our 10th year of consecutive
FairTax Mark accreditation, and we
continued to support living wage
movements in the UK and beyond. And
while recruitment has since slowed in parts
of the Group, we attracted more people
into SSE across 2024/25 and continued to
attract workers from former high-carbon
industries. Over a third of respondents to
our new joiners survey had transitioned
toalow-carbon role with SSE – thereby
demonstrating a sense of a ‘just’ transition.
Environmentally, there were fewer
damaging incidents, and thedelivery of
‘biodiversity net gain’ across our portfolio
ofonshore projects is picking up pace.
However, the year was mixed in relation
toclimate action. At a time when ambition
from the UK Government has never
beensoclear, planning and policy delays
mean progress is not accelerating to the
extent to which climate science demands,
and this is having an impact on SSE’s
business objectives.
SSE remains as committed
asever to playing its part in
decarbonising the power
system in a way that’s good
forpeople and nature too.”
SSE’s response is a downwards revision
ofcapital and renewables capacity
expectations within the five-year investment
plan to FY27. We expect that this updated
five-year plan will have a knock-on impact
on our medium-term sustainability targets,
including the likelihood that our 2030 Goal
on renewable generation is unlikely to be
met in time. This is on top of anticipated
year-to-year fluctuations in greenhouse gas
emissions, and it will, inevitably, result in
diminished socio-economic gains too.
The update of SSE’s Net Zero Transition
Planis therefore timely. It is striking how
little the fundamentals of the plan have
changed since it was first published in 2022.
Arenewables-led power system, backed up
by decarbonised flexible generation and
connected by low-carbon grids, is both the
most effective way to tackle climate change
and the most affordable. This year, in the
interests of complete transparency, we have
included two scenarios within that Plan to
demonstrate the variables that affect it.
While this level of transparency is important
to build trust with stakeholders, the purpose
of these disclosures is to support the policy
and wider environment in establishing the
conditions under which it is possible to get
back on track. SSE remains as committed as
ever to playing its part in decarbonising the
power system in a way that’s good for
people and nature too.
Rachel McEwen
Chief Sustainability Officer, SSE plc
20 May 2025

How we approach sustainability
Our sustainability reporting
SSE provides comprehensive sustainability
disclosures within this Annual Report, as
well as in a number of other publications
which make up its reporting suite.
In this report, the Sustainability section
explains SSE’s impact on society and the
environment, and performance against
goals and targets. Detailed disclosures
thatsupport this narrative can be found
inthe Disclosures Statements section.
Sustainability section
This section (pages 42 to 59 ) is
structured around five key areas, aligned
to the UN SDGs most material to SSE
andwhere the Company can make the
biggest impact.
Disclosure statements
The Disclosure Statements section on
pages 70 to 83 includes the following
sustainability information:
– Climate-related financial disclosures
– Carbon performance disclosures
– EU Taxonomy assessment
– Non-financial and sustainability
information statement
Additional sustainability
disclosures
SSE provides enhanced disclosure of
itspolicies, practice and performance
against its key economic, social and
environmental impacts and goals in
itSustainability Report 2025. It also
publishes a number of topic specific
reports. These publications can be found
at sse.com/sustainability .
Monitoring developments in
disclosure requirements
In the coming years, SSE will be affected
by new sustainability disclosure
requirements, including from the UK
Sustainability Disclosure Requirements
and the EU Corporate Sustainability
Reporting Directive. See the Audit
Committee Report on pages 113 to 119
for more on how the Company is
monitoring changes in the sustainability
disclosure landscape to ensure it complies
with the latest requirements.
Focusing on the sustainability
topics that matter most
SSE’s approach to sustainability is informed
by its stakeholders and four core 2030
Goals (see page 45 ). These 2030 Goals
are aligned to the UN’s Sustainable
Development Goals (SDGs) that are
mostmaterial to SSE’s business. SSE’s
commitment to minimising its impact on
the natural world is guided bya further
three environmental-related SDGs (see
page 58 ).
SSE prioritises the topics that matter most
tothe business and its stakeholders through
a double materiality assessment. This
determines the actual or potential impacts
of SSE’s operations on society and the
environment, as well as how sustainability
issues might affect the Company’s financial
performance. In 2024/25, SSE carried out a
‘pulse check’, which confirmed that the
Company remains focused on the most
material topics. Find more detail in SSE’s
Sustainability Report 2025.
SSE’s main stakeholder groups are
described on pages 8 and 9
.
Building lasting partnerships
to achieve more
One of the best ways that SSE can address
sustainability topics is by working in
partnership with others. Some partnerships
have lasted over a decade and focus on
sharing value with society, such as SSE’s work
with the Living Wage Foundation and Fair Tax
Foundation. Others focus on driving positive
change more quickly. For example, SSE is
involved in several industry collaborations
that focus on key decarbonisation challenges
facing the energy sector. This includes
SSERenewables being a founding partner
ofSustainability Joint Industry Partnership
(SusJIP). SusJIP brings together global
offshore wind developers and aims to
develop the first standardised approach for
calculating lifecycle emissions of offshore
wind farms.
How we govern sustainability
Responsibility for ensuring that sustainability
is embedded in everything SSE does starts
at the top of the Company. SSE’s Board,
Chair, Chief Executive, Group Executive
Committee and sub-committees are all
accountable for the most material
sustainability impacts. To drive accountability,
SSE links a portion of executive pay to
Group performance against independent
ESG ratings, as well as to longer-term
progress towards the 2030 Goals.
The Board is advised on matters relating
tosafety, sustainability, health and the
environment by the Safety, Sustainability,
Health and Environment Advisory
Committee. SSE also has issue-specific
steering groups and sub-committees and
some of SSE’s Business Units have their own
sustainability committees, which report to
their Business Unit Executive Committees.
In 2024/25, SSE’s Audit Committee
approved a new Sustainability-related
Financial Disclosures Committee, reporting
to the Group Risk Committee.
See more in the Governance Report,
pages84 to 160
.
SSE’s most material
sustainabilitytopics
1
Carbon emissions
2
Sustainable energy generation
3
Affordable and reliable energy
4
Supply chain management
5
Skilled workforce
Opportunities for enhanced impact
1
Just transition
2
Circularity
3
Nature and biodiversity
Sustainability continued
SSE aims to share the benefits of climate action as widely as possible, while leaving no one
behind. This ambition is enshrined in our purpose, guides our business strategy, informs
our 2030 Goals and is underpinned by a robust governance structure. We also work
collaboratively tohelp deliver a just transition.
44 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Taking stock on the pathway to 2030
Since first establishing the Goals in 2019, SSE has made considerable progress. There is good progress towards its ambition to connect
renewable energy to the electricity transmission network in the north of Scotland. However, in the context of the current market and policy
environment, there are increasing challenges in meeting SSE’s carbon intensity goal and SSE does not expect it will meet its ambitious goal
to increase renewables output fivefold by 2030.
More detailed discussion on SSE’s progress in these areas is outlined in the following pages.
2030 Goals provide a framework to ensure SSE plays a meaningful role in addressing
the challenge of climate change in ways that are fair to working people, consumers
and communities.
Reduce scope 1 carbon intensity by 80% by 2030 to 61gCO
2
e/kWh, compared to 2017/18 base year of 307gCO
2
e/kWh.
Build a renewable energy portfolio that generates at least 50TWh of renewable electricity a year by 2030.
Be a global leader for the just transition to net zero, with a guarantee of fair work and commitment to
paying fair tax and sharing economic value.
Enable the connection of at least 20GW of renewable generation capacity within SSEN Transmission’s licence area.
Cut carbon intensity by 80%
Increase renewable energy output fivefold
Champion a fair and just energy transition
Enable low-carbon generation and demand
Progressing towards 2030 Goals
Behind target
On target
On target but with risk
218gCO
2
e/kWh
13.3TWh*
10.9GW
£8.68bn 67,190
contribution to UK and Irish GDP jobs supported in the UK and Ireland
61gCO
2
e/kWh
See page47
50TWh
See page49
20GW
See page51
See page56
* Includes pumped storage, battery energy storage systems, biomass and constrained-off wind in GB.
45 SSE plc Annual Report 2025
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A strategy for net zero
SSE’s strategy is tackling climate change
head-on supporting the energy transition
and achieving clean power. SSE’s Net Zero
Transition Plan, 2030 Goals and
accompanying science-based targets
setout how the Company intends to
achieve this.
Our Net Zero Transition Plan
To demonstrate its commitment to the
energy transition, SSE aims to reach net
zero across scope 1 and 2 greenhouse gas
(GHG) emissions by 2040 at the latest
(subject to security of supply requirements),
and across scope 3 GHG emissions by 2050
at the latest.
These are long-term ambitions, so to make
meaningful progress, SSE has set four
near-term targets verified by the Science
Based Targets initiative (SBTi) and aligned
toa 1.5°C pathway. See the graphic below.
These targets form the basis of SSE’s Net
Zero Transition Plan which sets out the
tangible actions to remove GHG emissions
from SSE’s electricity generation, operations
and value chain. The plan makes clear that,
while the transition may not be linear, over
time, the power system as a whole needs
todecarbonise completely. This means
deploying renewables at scale while
transitioning away from unabated gas
generation to new low-carbon flexible
generation. SSE’s role in the transition also
goes beyond its own targets, with the
Company’s investment in decarbonised
electricity helping other key sectors to
remove carbon from their operations too.
Updating SSE’s Net Zero
TransitionPlan
In 2024/25, SSE updated its Net Zero
Transition Plan, consistent with the
Transition Plan Taskforce (TPT)
recommendation to update standalone
plans every three years. SSE’s refreshed
Planis structured around three core
themes: generation, operations and value
chain. This structure helps stakeholders
better understand SSE’s actions to
reduceemissions.
The Plan also includes action to protect
andrestore nature, and new emissions
scenarios against SSE’s scope 1 and 2 2030
science-based targets. In light of the UK
Government’s Clean Power 2030 Action
Plan, these scenarios are based on the
timing of the phased reduction in unabated
gas generation and its shift to a back-up
role to balance the system and ensure
security of supply.
Sustainability continued
Driving
climate action
With the case for climate action more pressing than ever,
SSE is at the forefront of the energy transition, providing
practical solutions needed for a clean power system.
Atthe same time, we’re increasing focus on climate
adaptation to ensure our operations and assets are
resilient to climate change.
Amendment to SSE’s
shareholder ‘say on climate’
resolution
The Board plans to table a resolution
at the 2025 Annual General Meeting
(AGM) that will reset the framework
and establish a three-year cycle for
voting on SSE’s Net Zero Transition
Report. Progress against SSE’s carbon
targets and Net Zero Transition Plan
will continue to be published yearly
inSSE’s Annual and Sustainability
Reports. SSEintroduced the
framework for the advisory vote in
2021, and shareholders last voted at
the 2024 AGM, with 98.2% voting
inits favour.
This graphic shows SSE’s near- and long-term carbon targets.
SSE’s Net Zero Transition Plan pathway
S1
Scope 1
S2
Scope 2
S3
Scope 3
Near term (2025 – 2035) Long term (2035 – 2050)
TARGETS
Carbon intensity
Reduce the carbon
intensity of scope 1
GHG emissions by
80%by 2030, from
a 2017/18 base year.
Absolute emissions
Reduce absolute
scope 1 and 2 GHG
emissions by 72.5%
by 2030 from a
2017/18 base year.
Supplier
engagement
Engage with 90% of
suppliers by spend
to set science-
based targets
by2030.
Gas sold
Reduce absolute
GHG emissions
from use of
products sold by
50% by2034 from
a2017/18 baseyear.
Scope 1 and 2
Net zero for SSE’s
scope 1 and 2
emissions by 2040.
Scope 3
Net zero for all
SSE’s remaining
scope 3 emissions
by 2050.
S1 S1 S2 S3 S3 S1 S2 S3
Note: for definitions of scopes 1, 2 and 3 SSE follows the GHG Protocol.
For further information on SSE's Sustainability Reporting Criteria 2025 see sse.com/sustainability
46 SSE plc Annual Report 2025
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Reduce the carbon intensity of scope 1 GHG emissions
Scopes 1 and 2
Scope 3
36% progress
67% progress
46% progress
51% engaged
Reduce absolute scope 1 and2 GHG emissions
Reduce absolute GHG emissions from use of products sold by 50% by2034
by 80% by2030
by 2030
by 72.5% by2030
Engage with 90% of suppliers by spend to set science-based targets
2024/25: 218gCO
2
e/kWh (29% reduction from base year)
2024/25: 5.70MtCO
2
e (48% reduction from base year)
2024/25: 1.95MtCO
2
e (23% reduction from base year)
2024/25: 51% by spend engaged
Performance against SSE’s
Net Zero Transition Plan
This year marks an important halfway point
towards two of SSE’s key science-based
targets that are focused on carbon intensity
and absolute emissions. The Company has
made progress against each of the four
near-term targets, as outlined in Figure 2.
SSE is now one-third of the way towards its
scope 1 carbon intensity reduction target and
two-thirds of the way towards its absolute
scope 1 and 2reduction target. SSE is nearly
halfway towards meeting its scope 3 gas sold
target. Last year it also metits supplier target
to engage with 50% of suppliers by spend to
help them set science-based targets by 2024.
The updated Net Zero Transition Plan
includes a revised supplier target, to
engage90% of suppliers by spend by 2030.
Scope 1 and 2 emissions performance
This year, SSE’s scope 1 GHG intensity of
electricity generated was 218gCO
2
e/kWh
(2023/24: 205gCO
2
e/kWh). This represents
a 29% reduction against the 2017/18
baseyear. Meanwhile, SSE’s scope 1 and
2absolute emissions were 5.70MtCO
2
e
(2023/24: 4.81MtCO
2
e), representing a
48%reduction against the 2017/18
baseyear.
Both SSE’s scope 1 carbon intensity and
absolute scope 1 and 2 emissions increased
compared to last year due to a 24% rise in
thermal generation output and constrained
capacity onthe grid for renewable energy.
This year’s rise in thermal generation output
was caused by changes in market demand
and increased running of SSE’s most
efficient assets.
SSE’s Scope 2 GHG emissions were
0.48MtCO
2
e in 2024/25. This represents
a2% increase from the previous year
(2023/24: 0.47MtCO
2
e). This was due to
amarginal increase in emissions from
distribution losses from more power being
transported across the distribution networks.
With thermal electricity generation
accounting for 99% of SSE’s scope 1
emissions in 2024/25, both its thermal and
renewables businesses have an important
role to play in reducing SSE’s carbon
intensity of generation. This year, that
included new investment in a power station
in Ireland that will run on 100% sustainable
biofuels, the start of operations at Viking
onshore wind farm in Shetland and near
completion and commercial operations
atYellow River Wind Farm in Ireland.
Scope 3: Gas sold (Category 11), Joint Venture investments (Category 15), well-to-tank
emissions from raw fuels purchased (excluding gas sold) and transmission and distribution
emissions from electricity used in non-operational and operational buildings (Category 3),
SSEN Transmission network losses (Category 9), contractor vessels (Category 4), and
business travel (Category 6)
Scope 2: Electricity consumption in operational and non-operational buildings and SSEN
Distribution network losses
Other scope 1: Operational vehicles and fixed generation, sulphur hexafluoride and gas
consumption in buildings
Scope 1: Electricity generation carbon emissions
2024/252023/242022/232021/222020/212019/202018/192017/18
4.1
0.9
10.1
3.9
0.7
8.8
3.6
0.6
8.2
3.4
0.5
7.1
3.7
0.5
5.7
4.8
0.4
6.0
4.5
0.5
4.3
4.5
0.5
5.2
SSE’s total reported emissions
SSE’s total reported emissions increased by 10% between 2023/24 and 2024/25,
mainly due to an increase in scope 1 emissions from thermal generation. Overall,
SSE’s reported emissions have decreased by 32% versus the 2017/18 base year, falling
from 15.1MtCO
2
e to 10.2MtCO
2
e in 2024/25. SSE’s total reported emissions in
2024/25 consisted of 51% scope 1 emissions, 5% scope 2 emissions and 44% scope 3
emissions. For more detail see Carbon performance disclosures page 79 .
Figure 1: SSE’s GHG emissions by scopes between 2017/18 and 2024/25 (million
tonnes CO
2
e)
Figure 2: 2024/25 progress against SSE’s science-based targets from
a2017/18 base year
47 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

SSE’s other operational emissions
accounted for 9% of scope 1 and 2
emissions in 2024/25, and the Company is
involved in a range of activities to reduce
them. These include trialling hydrotreated
vegetable oil (HVO) as an alternative to
standby diesel generation for remote
electricity distribution customers, switching
SSE’s car fleet to electric models and
tackling sulphur hexafluoride (SF) leaks.
Formore information see
page 59
Scope 3 emissions performance
SSE’s largest scope 3 emissions categories
are gas sold to customers (43%), emissions
from joint venture thermal generation (35%)
and upstream well-to-tank emissions
fromfuels purchased for thermal
generation (19%).
SSE’s total scope 3 emissions in 2024/25
increased slightly by 2% to 4.54MtCO
2
e
(2023/24: 4.46MtCO
2
e). This was due to
higher upstream well-to-tank emissions
from increased fuel use in the thermal
power stations.
Scope 3 emissions from gas sold to
customers in 2024/25 were 1.95MtCO
2
e
(2023/24: 2.01MtCO
2
e). This represents a
23% reduction against the 2017/18 base
year. Emissions associated with joint venture
thermal generation remained consistent at
1.60MtCO
2
e in 2024/25.
Sustainability continued
Figure 3: Summary of SSE’s key climate-related opportunities and risks
As part of meeting its climate-related financial disclosure requirements set out by the Financial Conduct Authority, SSE has identified
the material climate-related opportunities and risks related to the Company’s strategy. The Company reviews these every two years
and this year updated them as shown here.
This table provides a summary of SSE’s material climate-related opportunities and risks, alongside time horizon assessed and the
scenario sensitivity. For more detail on the opportunities, risks, time horizons and scenario sensitivities see
pages 71 to 78
.
Time horizon of opportunity or risk:
SSE considered different warming scenarios over three time
horizons to assess the financial impact in each time period.
Scenario sensitivity:
Scenario sensitivity indicates the financial significance of different
warming scenarios as indicated by the scenario modelling.
Period of opportunity or risk Most material impact
High
sensitivity
Low
sensitivity
Warming scenario
not assessed
SSE is working with customers to help
themreduce gas consumption and with
joint venture partners to develop their
transition plans.
SSE has also been working towards better
understanding the scope 3 emissions
embedded in the goods and services it
buysto help estimate its purchased
goodsemissions using a spend-based
methodology. In future, SSE is aiming to
move towards a hybrid reporting method
that combines supplier and spend data.
Adapting to climate change
The physical impacts of climate change
have the potential to adversely affect SSE’s
operations and interrupt energy supply to
homes and businesses. So it’s more
important than ever that the Company
ensures its operations and networks are
both prepared and resilient.
A key climate risk is the impact from
extreme weather events, such as high
windsor intense storms. SSE has made
investments to manage this risk and help
teams respond to problems as quickly
aspossible. For example, SSE monitors
short- and long-term weather patterns,
hasrobust business continuity plans and
isinvesting to improve the resilience of
itsinfrastructure.
SSE’s work was put to the test in
January2025, when 1,100 engineers
andcommunity support teams were
mobilised to respond to Storm Éowyn,
which brought 100mph winds to parts
ofScotland. During this storm, SSEN
Distribution quickly restored power
toapproximately 92,000 affected
customers. See case study on page 38
formore detail.
Meanwhile, SSE’s Business Units are
preparing their climate risk assessments
andadaptation plans. In 2024/25, SSEN
Transmission published a new climate
resilience strategy, while SSEN Distribution
published its fourth standalone report in
response to UK Government requirements
on power companies. SSE also participates
in national adaptation frameworks, which
this year included contributing to the fourth
round of voluntary, industry-level Climate
Adaptation Power reporting (APR4).
Time horizon Scenario sensitivity
2035 2050 2080 1.5°C 2.5°C 4°C
Transition
opportunities
Accelerated transmission growth
Accelerated wind investment
Valuable flexible hydro
Valuable flexible thermal
Driving distribution transformation
Transition risk Wind generation price
Physical
risks
Variable renewable generation risk
Extreme weather network damage
48 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Our 2030 Goal: increasing
renewable output
SSE’s 2030 Goal to increase renewable
energy fivefold to 50TWh a year, while
established in 2021, is critical support
toclean power ambitions in the UK
andIreland.
During 2024/25, renewables output
increased by 19% to 13.3TWh* (2023/24:
11.2TWh), meaning that SSE is now just over
a quarter of the way towards its 2030 Goal.
This was due to the addition of Viking
onshore wind farm and the first full year of
operation of Seagreen offshore wind farm.
Average wind speeds modestly improved
relative to last year, but operational
production was negatively affected
byStorm Éowyn in early 2025.
Generation capacity across SSE
Renewables’ portfolio increased to
4,983MW at 31 March 2025 (2023/24:
4,457MW). As well as Viking in the Shetland
Islands, SSE’s Chaintrix-Bierges and Vélye
Wind Farm entered commercial operations
– SSE’s first operational asset in mainland
Europe. SSE Renewables’ first battery
storage project is also now fully operational.
The delivery of the Dogger Bank A offshore
wind farm has been subject to delays as
outlined on page 31
, with work continuing
at Dogger Bank B and C.
SSE Renewables has seen a significant
growth in installed capacity and output over
the last few years, however the changing
macroeconomic environment and wider
delays to planning processes mean the
Group has reduced its near-term capital
investment expectations. As a result, it is
unlikely to meet its ambitious goal of
50TWh Renewable generation output by
2030. More information can be found in
theSSE Renewables business operating
review on
pages 30 to 31
.
* Includes pumped storage, battery energy storage
systems, biomass and constrained-off wind in GB.
Financing the net
zero transition
Green- and sustainability-linked finance
arean important part of how SSE can help
accelerate the transition to net zero. In
March 2025, SSE plc issued its ninth Green
Bond – a €600m, seven-year Green Bond
to support investment in critical national
infrastructure.
The proceeds will help finance and/or
refinance SSE Renewables projects that are
under construction or recently completed.
At the time of issuing, this Green Bond
reaffirmed SSE’s position as the largest UK
corporate issuer of Green Bonds, with the
total outstanding Green Bonds issued by
SSE plc and its subsidiaries now standing
at£4.9bn.
Meanwhile, in October 2024, SSE plc
andSSEN Transmission signed new
sustainability-linked revolving credit
facilities (RCFs) totalling £3bn.** Both RCFs
include sustainability-related, business-
specific key performance indicators that
focus on priority elements of each
business’s sustainability strategy.
Measuring green economic activity
Green taxonomy frameworks are useful
tools for helping stakeholders understand
the scale of a company’s green economic
activities. With the UK’s Green Taxonomy
framework still in development, SSE
voluntarily aligns its reporting with the
EUTaxonomy. The high-level results of
thisassessment are outlined in Figure 4.
In 2024/25, 89% of SSE’s adjusted
investment and capital expenditure was
aligned with the EU Taxonomy. This
demonstrates progress against SSE’s NZAP
Plus investment plan to accelerate the
build-out of the renewables, electricity
networks and system flexibility that will
beneeded to reach net zero.
A full breakdown of SSE’s taxonomy eligible
activities and the assumptions used can
befound in the Disclosure Statement on
page 80
.
** Of which £1.5bn relates to SSEN Transmission,
whichis75% owned by SSE plc.
Providing affordable
and clean energy
The best way we can make energy more affordable for
consumers is by developing new sources of renewable
generation supported by transition finance to unlock
investment. As we do so, we continue to ensure our own
customers have access to secure, reliable energy, helping
those in vulnerable circumstances stay connected.
Figure 4: Taxonomy-aligned
activities 2024/25
Revenue £10,131.9m
Adjusted operating profit
£2,419.2m
Adjusted investment and capital
expenditure £2,910.4m
Taxonomy-eligible aligned
Taxonomy-eligible not aligned
Taxonomy-non-eligible
34%
18%
48%
89%
8%
3%
89%
6%
5%
49 SSE plc Annual Report 2025
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Helping customers with
a just energy transition
SSE’s purpose is to provide energy needed
today while building a better world of
energy for tomorrow. It does that in the
most direct way by supplying electricity and
gas to households on the island of Ireland,
and to businesses in both GB and Ireland.
SSE energises homes with a market-leading
range of energy plans designed around
customers’ lifestyles and budgeting
preferences and, supports business
customers on their own low-carbon
journey with tools and support to monitor
and track energy use.
The following examples outline a snapshot
of the different ways that SSE has helped
customers during the year.
Managing Irish price increases
SSE Airtricity has worked hard to shield
customers in Ireland from the impact
ofincreased network prices and other
charges. The business has reduced prices
three times since the peak of the energy
crisis in 2022 and forewent profit in 2023
inorder to return funds to customers.
However, rising external costs, including
network charges and wholesale energy
costs, means that in February 2025, SSE
Airtricity announced increases to standard
variable household electricity and gas prices
in Ireland.
Increasing prices is always a last resort
andas part of its commitment to working
with customers, SSE Airtricity is a member
of the voluntary Energy Engage Code.
Following this code is one of the ways SSE
Airtricity supports customers concerned
about paying their bills.
Prioritising vulnerablecustomers
Anyone can find themselves in vulnerable
situations, and SSE is committed to ensuring
people in particular need have access to
energy, whatever their circumstances. For
example, SSEN Distribution’s Priority Service
Register (PSR) identifies customers who are
in potentially vulnerable situations, and who
may be particularly affected in the event of
supply interruptions. The case study on this
page outlines the SSEN Distribution’s work
in 2024/25 to raise awareness of the PSR.
SSEN Distribution also supports community
warm hubs through its partnership with the
Warm Welcome Campaign. Started as a
crisis response to keep people warm
through the winter, the charity helps people
find a place of connection and warmth
close to home. 550 warm hubs are provided
across SSEN Distribution’s licence areas,
creating warm, safe and welcoming spaces
run by and for the community.
Supporting households with
energyefficiency
SSE Airtricity actively develops propositions
that will help customers lower bills and
move towards a low-carbon pathway.
In Ireland, progressive government policies
are in place to support energy efficiency
measures for domestic customers. In
support of this, SSE Airtricity delivered
over2,000 rooftop solar installations in
partnership with Activ8 Energies in 2024/25,
lowering bills by up to 50%.
In addition, to support vulnerable
households in Northern Ireland, SSE
Airtricity provided Bryson Charitable Group
with a donation of £250,000 in 2024/25.
This is in addition to £2m previously
donated and will help provide practical
support to homes at risk of energy poverty
and long term winter invention measures
for service users.
See more information on
page 40
.
Advising on energy affordability
Through a number of strategic partnerships,
SSEN Distribution supports customers with
the cost of energy, largely through energy
efficiency advice and services. During
2024/25, this included providing energy
efficiency advice to more than 1,000
households and more than 50 households
receiving support to install energy efficiency
measures. In addition, SSEN’s partnership
with Maggie’s cancer charity, supported
over 1,800 households with advice and
signposting around benefits, maximising
income, grants and household bills.
Sustainability continued
Vulnerable customers are a priority – particularly in severe weather
SSEN Distribution’s Priority Services
Register (PSR) identifies customers
who are in potentially vulnerable
situations,and who may be
particularly affected in the event
ofsupply interruptions, providing
them with adapted services and
additional support
SSEN Distribution ensures that it
continually raises awareness around
its PSR to ensure it captures as many
people in need as possible, as
people’s situations change over
time. In 2024/25, the number of
customers signed up to SSEN
Distribution’s PSR reached over
onemillion.
This milestone was reached through
enhanced engagement by SSEN
Distribution with community
organisation and customers
duringthe year. This included
improvements to SSEN’s
Community Toolkit, which helps
charities, vulnerable customer
representatives and other local
organisations promote the PSR
withmembers of their community.
Supporting energy customers in times of need
1 million
customers now signed up to
SSEN Distribution’s Priority
Services Register
50 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Sustainability continued
Investing in industry,
innovation and
infrastructure
SSE is working to deliver the new infrastructure needed for
the just transition to net zero, with targets for low-carbon
generation and demand. Delivering at pace and scale
means investing innew technologies while working with
our suppliers tocreate a more sustainable supply chain.
Our 2030 Goal: enabling
low-carbon generation and
demand
Delivering the transition to net zero
requiresthe rapid roll out of new low-
carbon infrastructure. That’s why SSE has
a2030 Goal to connect at least 20GW
ofrenewable generation capacity and
facilitate around two million electric
vehicles and one million heat pumps
onSSEN’s electricity networks by 2030.
At 31 March 2025, SSEN Transmission had
10.9GW of renewable capacity connected
within its network area. This is a 17%
increase compared to the previous year.
This strong progress means that SSEN
Transmission has exceeded its RIIO-T2
target to deliver an electricity network in
thenorth of Scotland with the capacity
andflexibility to accommodate 10GW of
renewable generation by 2026. It means
SSE is also on track to meet its 2030 Goal
of20GW.
SSEN Distribution had around 336,000 pure
electric vehicles or plug-in hybrid vehicles
registered in its licence areas at 31 March
2025, and around 56,400 heat pumps
connected to its networks. It continued to
progress several key innovation projects
tosupport flexible markets and future
infrastructure provision for the adoption of
low-carbon technologies. This included
further roll-out of its LENZA tool for local
authorities (see page 38
) and being
awarded £450,000 of funding from Ofgem
for ‘EqualLCT’ – a project aiming to support
wider uptake of heat pumps by coordinating
roll-outs with energy efficiency measures to
reduce demand for electricity at peak times.
Unlocking net zero
throughinnovation
SSE was founded on innovation – driving
the hydro-electric revolution in the north
ofScotland in the 1940s and building the
electricity networks needed to transport
that clean power. Today, SSE invests in
innovation to accelerate the availability of
low-carbon technologies and demonstrate
their practical application, guided by three
strategic areas: innovation that helps make
the world safer, greener and smarter.
SSE’s Innovation Advisory Council (IAC)
oversees the Group-wide vision for
innovation, identifying promising low-
carbon technologies and providing a forum
to drive a structured approach to innovation
and technology horizon scanning.
Guidedby this vision, SSE’s Business Units
set their own innovation priorities and
areaccountable for delivering them.
Theyare supported by a central Partnership
Funding team, which works with them to
access government grants to test new
technologies and market models.
SSE also works collaboratively with peers,
suppliers and academia to make faster
progress through shared learning and
knowledge. For example, SSE is a founding
member of two National Demonstration
Research Centres and has enduring
partnerships with Imperial College London,
the University of Strathclyde, the University
of Highlands and Islands and University
College Dublin.
Delivering net zero requires a
transformation in the way that local
electricity networks operate. SSEN
Distribution is focused on building a
smarter and more flexible network
that enables the connection of
morelow-carbon technologies.
As uptake of these technologies
increases, the demand for electricity
will go up. SSEN Distribution has
begun testing innovative solutions and
services to find new ways of managing
peak electricity demand in the north
of Scotland. The new approach, which
the business is calling ‘Demand
Diversification’ will involve conducting
real-world trials to manage electricity
demand. These will be augmented by
simulations run with the teams at the
University of Strathclyde’s Power
Network Demonstration Centre and
the Energy Systems Catapult, to model
how this new solution would work
atscale.
Electricity networks are designed to
meet peak demands, which means
much of their capacity is underused
for most of the day. Demand
Diversification will give customers
incentives to spread their demand
toless busy times, tapping into the
ability of technologies, like EVs, heat
pumps, and electric storage heaters,
to be scheduled to periods when
network demand is lower. Solutions
such as Demand Diversification could
have an important role both in helping
to save consumers money and
reducing waiting times for some
newnetwork connections.
An innovative approach to local networks
51 SSE plc Annual Report 2025
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Sustainability continued
SSE Chief Executive Alistair Phillips-Davies speaks at the PNZP workshop in Reading
Critical minerals such as lithium,
silicon and copper are essential
forbuilding the green technology
components that power wind
turbines, solar panels and batteries.
But these minerals are often located
in parts of the world that are at
higher risk of human rights abuses
and conflict. So understanding and
tracing their origin are vital for a
justtransition. However it can be
challenging for companies to
accesstransparent mineral data.
To support greater transparency,
thePowering Net Zero Pact (PNZP),
which brings together SSE’s
suppliers, partners and peers,
heldaworkshop in November 2024,
focused on these critical and
conflict minerals. The workshop
included guest speakers from the
UK’s Foreign, Commonwealth
andDevelopment Office, the
Department for Business and Trade,
and the Initiative for Responsible
Mining Assurance (IRMA).
The day highlighted the need
tobuild awareness across the
industry on this challenging subject
matter and for internationally
recognised standards on social
andenvironmental performance
atmining sites.
Working with partners on
critical and conflict minerals
Supporting a more
sustainable supply chain
Building the clean power infrastructure
needed to deliver SSE’s strategy and NZAP
Plus investment plan requires key goods
and services, such as steel, concrete, cables
and maritime vessels, which relies on a
resilient, sustainable supply chain. As SSE
ramps up its growth ambitions, it will need
more of these goods and services. So it is
committed to carefully managing the
impact of its investment activities, while
working collaboratively with suppliers to
achieve shared sustainability ambitions.
In 2024/25, SSE spent £5.6bn with its supply
chain partners, remaining consistent with
the previous year. This follows a significant
increase in supply chain spend between
2022/23 and 2023/24, from £3.7bn to £5.5bn.
Sustainable procurement
SSE works in partnership with suppliers to
help them understand its ambitions and
expectations, guided by several Group-level
frameworks. These include a Sustainable
Procurement Code, Sustainable
Procurement Plan and a new Supplier
Diversity Strategy, launched in September
2024. SSE and its Business Units hold
sustainability-related supplier engagement
sessions to promote these frameworks
andencourage greater collaboration.
Forexample, SSEN Distribution hosted two
sessions in 2024/25 to encourage climate
and social action across the supply chain.
SSE uses EcoVadis – a globally recognised
sustainability assessment platform – to
assess supplier performance against key
environmental, social and governance
areas. At 31 March 2025, 46% of SSE’s
suppliers by spend had a valid score
through the EcoVadis platform. SSE itself
has been awarded EcoVadis’s top rating,
Platinum, putting the Company in the top
1% of all companies assessed by EcoVadis.
Working with suppliers to
set science-based targets
In 2024, SSE reached its target to
engage with 50% of suppliers by
spend to help them set science-based
targets. It has now expanded the
target to engage 90% of suppliers by
spend by 2030. To date, 51% of SSE’s
suppliers by spend have set, or
committed to set, verified science-
based targets (2023/24: 51%).
52 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Committed to decent
work and economic
growth
Providing decent work and stimulating economic growth
are essential for us to achieve our strategic objective
related to creating and sharing value. This means helping
to develop the workforce of the future and creating a safe
and ethical workplace, while ensuring we support the
wider economy, society and local communities.
Our Just Transition Strategy
inaction
Tackling climate change requires big
changes in how society produces,
transports and uses energy. SSE aims to
influence those changes in ways that create
shared value. This includes setting a 2030
Goal to be a global leader for the just
transition to net zero, with a guarantee of
fair work and commitment to fair tax and
sharing economic value.
SSE’s work is guided by its Just Transition
Strategy. The strategy takes a ‘place-based’
approach, recognising how important it
isthat the energy transition is grounded
where it will happen, informed by the views
of the people who will be most affected.
The work highlighted in the rest of this
section are all examples of SSE’s Just
Transition Strategy in action.
Building a workforce
for a net zero future
SSE needs to have the right people with the
right skills in place to deliver a clean power
system. This includes helping people switch
from high-carbon to low-carbon jobs and
offering opportunities that will suit people
from diverse backgrounds.
As of 31 March 2025, SSE’s total headcount
was 14,880, reflecting a net increase of 989
– a 7% rise on the previous year (2023/24:
13,891). Most of this growth occurred within
SSEN Transmission and Distribution, which
together accounted for 788 of the new
roles, in line with their regulated business
plans. This expansion means SSE has
exceeded its estimate of creating 1,000 new
jobs per year from 2021/22 to 2024/25 to
support its investment strategy (2021/22
headcount: 9,942).
Following this period of accelerated growth,
the speed of that growth is temporarily
slowing in some areas.
SSE has commenced an operating and
efficiency review, intended to ensure that it
has the right structures, resourcing and
accountabilities to maximise the growth
opportunities ahead. The review will involve
measures to improve operational efficiency,
increase organisational competitiveness and
rebalance businesses for future growth.
SSEwill ensure that any changes made that
impact employees are concluded in a fair
and transparent manner.
SSE’s focus this year therefore has been on
embedding new talent, as well as helping
employees make the most of career
development opportunities, and encouraging
internal job moves to ensure teams are set
up effectively to deliver the NZAP Plus.
This year, SSE’s employee retention rate was
91.1% (2023/24: 91.3%), while voluntary
turnover was 5.2% (2023/24: 5.5%).
SSE continues to invest in employee training
and development, which this year included
new mandatory onboarding for new
managers and piloting a new ‘Leading
Leaders’ programme for senior employees.
The Company continues to support early
careers and encourage social mobility and
diversity through its talent development
pipeline. For example, in 2024/25 SSE
invested £11.4m in its graduate development
programme (2023/24: £11.2m). Its ongoing
partnership with Enable helps people with
adisability or long-term health condition
into work.
To help develop a robust talent pipeline,
SSEparticipates in science, technology,
engineering and maths (STEM) programmes
for young people, including a new
partnership with STEM Learning, through
which 172 employees have now registered
as ‘STEM Ambassadors’.
Supporting an ethical workplace
Supporting a just transition starts with SSE
and the way it interacts with the people who
work for and with the Company – from
employees to supply chain partners. It means
keeping people safe, acting responsibly,
listening to people’s views, guaranteeing
fairwork, and creating a culture of respect.
Our workforce in 2024/25
Total headcount at 31 March
14,880
(2023/24: 13,891)
Retention rate
91.1%
(2023/24: 91.3%)
34%
(2023/24: 35%)
of new joiners have transitioned
from high- to low-carbon roles*
Developing our people
96.3%
(2023/24: 89.4%)
of employees received training
or development
£41.0m
(2023/24: £34.2m)
invested by SSE in training
and development
27.5
(2023/24: 21.1)
average number of full-time
equivalent employee training hours
* Data covers employees who reached six
months’ service within 2024/25 and who
completed SSE’s new joiner survey.
Data in this section excludes employee data for Enerveo Limited, which remains under strategic review with the
Infrastructure Solutions component of Enerveo being held for sale during 2024/25.
53 SSE plc Annual Report 2025
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Sustainability continued
Better safety performance
Safety is SSE’s number one value and
everyone’s responsibility. The Company’s
priority that everyone gets home safe is
enshrined in SSE’s Safety value: ‘ifit’s not
safe, we don’t do it.’
During 2024/25, overall safety performance
in SSE’s direct workforce improved – with
alower workforce incident rate, fewer
potentially life-changing injuries, and a
reduction in the rate of more serious
incidents. The Total Recordable Injury Rate
(TRIR) for employees and contractors
combined was the lowest in three years
at0.16 (2023/24: 0.20).
To stay focused on safety in 2024/25,
SSEset a performance expectation for the
TRIR of 0.09 for employees, and 0.40 for
contract partners.
SSE did not meet this expectation for
employees, with the 2024/25 TRIR
increasing to 0.11 (2023/24: 0.07). It did
however see a significant improvement in
its contract partner performance, exceeding
the expectation at 0.25 (2023/24: 0.41).
Contractor safety has been a particular
focus for SSE in recent years, given that
theincreased investment and construction
work needed to achieve SSE’s business
goals has naturally led to an increase in
thenumber of hours worked by contract
partners. During 2024/25, SSE’s dedicated
Contractor Safety Team continued
implementing a targeted improvement
programme, while the Company launched
new Safety Health and Environment (SHE)
specifications at its annual contract
partnerconference.
Meanwhile over 7,000 employees and
around 900 contract partners took part
inSSE’s unique immersive safety training
in2024/25.
Figure 5: SSE’s total recordable
injury rates
(per 100,000 hours worked)
2024/25
20
23/24
0.20
0.07
0.41
0.16
0.11
0.25
Employees and contract partners
Employees
Contract partners
Encouraging people to ‘Speak Up’
SSE is committed to doing business in the
right way and creating a culture where
people feel comfortable raising concerns,
knowing that they will be dealt with quickly
and fairly.
SSE sets out its expectations for anyone
working for or with the Company in its
publication, Doing the Right Thing: SSE’s
guide to good business ethics. Theguide
covers a range of topics, from safety to
preventing financial crime and corruption,
and outlines SSE’s relevant training and
resources. SSE promotes the guide to all
employees and makes suppliers aware of
itthrough SSE’s Sustainable Procurement
Code. Doing the Right Thing is available at
sse.com/about-us/our-culture
.
SSE also encourages everyone who works
for or with the Company to report concerns
via its ‘Speak Up’ programme, which
includes an independent anonymous
whistleblowing service called Safecall.
In2024/25, SSE received 62 reports of
suspected wrongdoing via the Company’s
Speak Up channels, including Safecall
(2023/24: 73).
While this marks a slight reduction, the
overall volume remains consistent with
historical patterns, reflecting the natural
ebband flow of reporting. A breakdown of
the categories of reported incidents and
outcomes of investigations, alongside how
SSE supports employees who speak up, can
be found in the Sustainability Report 2025
at sse.com/sustainability
.
Engaging with our employees
In September 2024, SSE ran its annual
all-employee engagement survey. In all,
84% of employees responded with a strong
sustainable engagement score of 86%
(2023: 85%). Safety, doing the right thing
and inclusion all continued to exceed
external benchmarks. However, while the
number of people who feel engaged with
SSE’s strategy improved, it lagged behind
very high industry benchmarks. Strategy
willtherefore be a focus of employee
engagement in future.
SSE’s Board also directly engages with
employees throughout the year. See more
on pages 99 to 100
.
Guaranteeing fair work
One of the best ways that SSE can support a
just transition is by ensuring that the people
who work for and with it are paid fairly,
properly supported with appropriate
training, policies and processes, and
treatedwith respect. This includes actively
promoting the principles of fair pay through
a longstanding commitment to paying the
voluntary Living Wage in the UK and Ireland.
In early 2025, SSE updated its UK ‘service
and works’ Living Wage supplier clause to
clarify real Living Wage requirements for
workers on vessels and set out a defined
process for audit, escalation and
remediation.
Everyone in SSE has the right to freedom of
association and to join a trade union. SSE
has four recognised trade union partners,
which it works with through the Joint
Negotiating and Consultative Committee
and regular ongoing dialogue. In 2024/25,
46.4% of SSE’s total direct workforce
wascovered by collective bargaining
agreements (2023/24: 47.6%).
Protecting human rights across
ourvalue chain
Human rights abuses and modern slavery
inall its forms are unacceptable, and SSE
has a responsibility to understand and
reduce the human rights risks within its
businesses and supply chain.
In 2024/25, as part of its Human Rights
Strategy and Action Plan, SSE formalised
itsapproach to responding to potential
human rights incidents. This includes a
newprocedure, aligned to the UN Guiding
Principles, that details SSE’s approach to
escalating, investigating, and – where
appropriate – remediating human rights-
related issues.
SSE also became the first UK-headquartered
energy company to join the Initiative for
Responsible Mining Assurance (IRMA). While
SSE doesn’t source directly from mining
companies, joining IRMA enables SSE to
advocate for responsible mining in key
minerals and metals that the energy
transition relies on.
SSE has a Group Human Rights Policy that
includes its commitment to upholding key
international frameworks. More information
can be found in SSE’s Human Rights Report
and Modern Slavery Statement. Both are
available at sse.com
.
Highlights from our 2024
employee engagement survey
Sustainable engagement score
86%
(2023: 85%)
90%
(2023: 91%)
feel SSE has an inclusive culture
91%
(2023: 92%)
feel SSE promotes a safe
workplaceculture
86%
(2023: 81%)
feel engaged with SSE’s strategy
54 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Building an inclusive team
As SSE navigates ongoing change in the
external environment, its commitment to
inclusion and diversity remains resolute.
Underpinned by a robust Inclusion and
Diversity Strategy, SSE’s approach is
focusedon integrating inclusion into
everyday activities such as decision making,
process improvements, workplace design
and innovation.
Performance in diversity
SSE measures progress against stretching
diversity ambitions that are aligned with
best practice and ensure that the Company
ismonitoring a wide range of diversity
metrics. Progress against these ambitions
for all employees and for senior leadership
is outlined in Tables 1 and 2 respectively.
SSE’s workforce diversity
Representation in SSE’s workforce as a
wholeincreased in the key diversity metrics
measured in 2024/25. SSE continues to
embed its inclusion and diversity initiatives to
drive progress in representation, as outlined
in SSE’s Inclusion and Diversity Report 2025.
Diversity in senior leadership
In 2024/25, all cohorts of SSE’s senior
leadership, except the GEC, saw increases
inthe proportion of women represented.
While the number of women in the GEC
remained the same, the number of men
increased when Finlay McCutcheon joined
the cohort as Managing Director of SSE
Thermal in September 2024. This change
resulted in a reduction in the percentage of
women in the GEC to 9.1% (2023/24: 10%).
In 2023, SSE established a new ambition
inline with the Parker Review
recommendations, to achieve 6% ethnic
minority representation within its GEC and
direct reports by 2027. At31 March 2025,
ethnic minority representation was 2.4%,
upfrom 1.2% in December 2023, when the
ambition was set, but a slight decrease from
2.5% in March 2024. This change is the
result of a small increase in the overall
number of employees in the GEC and direct
reports cohort, while the number of ethnic
minority employees remained the same.
Full details of membership changes of the
Board and GEC, how SSE determines its
senior leadership ambitions and the
Nomination Committee’s focus this year
areon pages 107 to 111
.
Increasing data disclosure
The process of setting ambitions, tracking
progress and shaping priorities relies on
insights provided by employee diversity
data. Through targeted communication
campaigns and offering more accessible
ways for employees to share their
information, SSE’s overall employee
diversity data disclosure rates increased
to77% in 2024/25 (2023/24: 65%).
SSE’s pay gaps*
Between 2024 and 2025, SSE saw both its
UK median and mean gender pay gaps
continue to narrow. The median UK gender
pay gap was 11.5% (2024: 12.0%) and the
mean UK gender pay gap reduced to 8.7%
(2024: 10.5%). This was largely driven by
increases in the proportion of women
intheupper pay quartile and in SSE’s
Leadership Group.
SSE’s UK gender pay gap
performance 2025
UK median gender pay gap
11.5%
(2024: 12.0%)
UK mean gender pay gap
8.7%
(2024: 10.5%)
Table 1: Performance against SSE’s all-workforce diversity ambitions
1
Employee representation Ambition year Ambition 31 March 2025 31 March 2024
Women
2
2030 33% 31.6%
10,185 men/
4,695 women
31.0%
9,586 men/
4,305 women
Disability
3
2030 8% 14.5% 11.6%
Ethnic minority
3
2030 15% 11.2% 10.1%
LGBTQIA+
3
2030 8% 4.3% 4.1%
1 Data is collected on SSE’s HR data reporting system.
2 Gender information is captured from legal documentation at employee onboarding and recorded in SSE’s HR
data system, which maintains a 100% completion rate. In instances where employees transitioned after joining,
the gender field on the HR data system is changed, upon receipt of a formal employee request.
3 Disability, ethnic minority, and LGBTQIA+ (lesbian, gay, bisexual, transgender, queer or questioning, intersex,
asexual and any others that don’t identify under any of the terms listed) data listed is based on the following
disclosure rates as at 31 March 2025, recognising that employees share this data voluntarily: disability (including
neurodiversity) 77%, ethnicity 77%, LGBTQIA+ 76%. The overall employee diversity disclosure rate is 77%.
Table 2: Progress against SSE’s senior leadership diversity ambitions
Diversity category Ambition year Ambition 31 March 2025 31 March 2024
Proportion of women represented on:
Board Group Ongoing 50% with no
less than 40%
46.2%
(7 men/
6women)
41.7%
(7 men/
5women)
Group Executive
Committee (GEC)
1
–– 9.1%
(10 men/
1woman)
10.0%
(9 men/
1woman)
GEC and direct reports
(excl. administrative
roles)
2
2025 40% 38.6%
(51 men/
32women)
37.5%
(50 men/
30 women)
Leadership Group
3
2030 40% 27.7%
(a)
(1,002 men/
383 women)
26.4%
(948 men/
340 women)
Proportion of ethnic minorities represented on:
GEC and direct reports
(excl. administrative roles)
4
2027 6% 2.4% 2.5%
(a) This data is subject to external independent limited assurance by Ernst & Young Global Limited (‘EY’). For the
results of that assurance, see EY’s assurance report and SSE’s Sustainability Reporting Criteria 2025 on
sse.com/sustainability
.
1 The GEC comprises all Committee members and the Committee secretary.
2 In line with FTSE Women Leaders review recommendations, SSE’s ambition for this cohort includes direct reports.
3 Employees in SSE’s senior level pay grades.
4 Based on GEC and direct reports ethnicity disclosure rates of 93% in March 2025, 88% in March 2024.
* Figures for both gender and ethnicity pay gaps represent SSE’s UK operations as a whole, rather than individual legal entities. Data excludes Enerveo Limited, which remains under
strategic review with the Infrastructure Solutions component of Enerveo being held for sale during 2024/25. A breakdown of gender pay gap data for all eligible legal entities under
the UK Government’s gender pay gap reporting requirements can be found at gender-pay-gap.service.gov.uk
. Data for previous years was calculated using the methodology in
place at that time.
SSE’s Inclusion and Diversity
Report 2025
SSE’s Inclusion and Diversity Report
provides further information on SSE’s
strategy, action plans, key performance
indicators (KPIs) and initiatives
throughout 2024/25. The report can
befound alongside more information
at sse.com .
55 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Sustainability continued
Narrowing pay gaps requires sustained
effort over time. SSE’s approach is
underpinned by a robust Inclusion and
Diversity Strategy, with action plans that
evolve to reflect what works best for
thebusiness.
Through this approach SSE’s UK gender pay
gap has fallen consistently and substantially
over the last five years, from a median of
18.3% in 2021 to 11.5% in 2025. Over the
same period, the mean gender pay gap
hasfallen from 16.5.% to 8.7%.
Factors that have contributed to the
reduction in the median pay gap over this
time include: greater representation of
women in the overall workforce and in
thehigher pay quartiles; an increased
proportion of women in the Leadership
Group; and the impact of SSE’s joint
agreement pay progression model, which
was introduced in 2021. A targeted inclusive
recruitment strategy with a focus on senior
roles and broader inclusion policies has
helped to bring about these changes.
In line with its commitment to the Change
The Race Ratio, SSE has voluntarily
disclosed its second set of UK ethnicity pay
gap data in its Inclusion and Diversity Report
2025. It provides detail and discussion on
SSE’s gender and ethnicity pay gap statistics,
including additional data, analysis, and
disclosure of the wide range of actions
taken to address pay gaps.
SSE will publish its Ireland Gender Pay Gap
Report 2025 later in the year, in line with
theIrish Government’s requirements.
Creating value for the
economy and society
SSE’s investment in low-carbon
infrastructure and associated activities make
a significant contribution to the economies
of the UK and Ireland. Much of the work
that drives SSE’s commercial performance
also delivers long-term positive benefits far
beyond the Company.
SSE’s economic impact in 2024/25
Every year, SSE tracks its economic impact
by commissioning professional services firm
PwC UK to estimate the annual overall
contribution to GDP and number of jobs
supported. In 2024/25 SSE is estimated to
have contributed £8.68bn to UK and Irish
GDP (2023/24: £6.75bn). Meanwhile, the
number of jobs SSE supported in these
countries increased to 67,190 (2023/24:
54,830¹).
The increase in contribution to GDP and
jobs supported since last year can be
primarily attributed to higher spending and
investment in areas of SSE and as result of
updated national accounts data published
by the Office for National Statistics (ONS)
which is used in the analysis. In 2025, PwC
UK also made some revisions to their
methodology to increase alignment with
published government data sources
whereavailable.
SSE is one of the UK’s largest taxpayers.
Over 2024/25, SSE’s total tax contribution
was £1.3bn. This consisted of £658m in
taxes paid and £651m in taxes collected. SSE
was ranked the 17th highest taxpayer, out of
100 companies, in the 2024 PwC Total Tax
1 Figures for 2023/24 have been restated to reflect post year-end adjustments to data.
2 The methodology updates to align to published government multipliers and savings rates where available also had a small impact on the results.
Contribution survey, and won PwC’s
Building Public Trust Award for tax reporting
for UK-focused companies for the third
consecutive year. Paying fair tax is an
essential part of SSE’s commitment to
sharing value, and the Company has been
Fair Tax Mark certified for the past 11 years.
More information on SSE’s taxes is available
on
pages 194 to 195 .
Supporting social infrastructure
As part of its ‘place-based’ approach to the
just transition, SSE contributes to essential
services and infrastructure that support
local communities and the economy.
Forexample, in an industry first, SSEN
Transmission has pledged to support the
delivery of more than 1,000 homes across
the north of Scotland, see case study on
page 57 . This work builds on the post-war
legacy of building housing in the areas
where SSE operates. Meanwhile, SSEN is
working withlocal authorities to support
them in adopting a tool designed to enable
better, more efficient decisions on new net
zero developments.
Supporting local communities
As well as contributing to important social
infrastructure, SSE is building long-term
partnerships with the communities who live
near its operations, ensuring they have the
opportunity to shape, and benefit from,
theenergy transition.
During 2024/25, SSE’s community
investment funds across the UK and Ireland
awarded £16.3m to support local projects.
This is the highest value awarded in a single
year since the funds were introduced.
A number of key milestones were reached
during the year, including:
– July 2024: SSE Thermal launched a
community investment fund worth up
to£150,000.
– September 2024: SSEN Transmission
introduced its first ever community
investment fund, allowing organisations
across the north of Scotland to apply for
an initial share of £2m.
– December 2024: SSE Airtricity rolled
outits first all-Ireland community fund
worth €5m.
– March 2025: SSE Renewables’ community
grants award programme reached £100m.
SSE’s approach focuses on delivering
long-term, sustainable benefits through
targeted funding, partnerships and
engagement, and is guided by a set of
principles, including sharing value, co-
creation of funds and maximising impact.
In2024, the principles were updated to
ensure they focused on lasting legacy,
measurable social impact and helping
communities to develop the skills and
resources they need to deliver local projects.
UK Ireland
Contribution to
GDP
£7.88bn
(2023/24: £5.86bn)
€0.95bn
(2023/24: €1.04bn)
Jobs
supported
62,000
(2023/24: 50,380)
5,190
(2023/24: 4,450)
Taxes paid
£592.1m
(2023/24: £679.2m)
€75.0m
(2023/24: €68.0m)
Investment in
communities
£15.1m
(2023/24: £11.5m)
€1.5m
(2023/24: €0.9m)
SSE’s economic contribution
in the UK and Ireland 2024/25
56 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

A narrower definition of community
investment has been externally assured
forthe purposes of sustainable finance.
In2024/25, SSE awarded £13.0m
(a)
through
its voluntary community investment funds.
This excludes community investment
fundsrequired by regulation or in SSE’s
regulated businesses.
A ‘place-based’ approach
As well as informing how SSE supports
keysocial infrastructure, the Company’s
place-based approach to a just transition
helps frame the way it engages with local
communities and designs community funds.
For example, SSEN Transmission is adapting
substation locations and designs as a direct
result of community feedback on its £22bn
programme of investment over the five
years to 2031, to upgrade the network in
thenorth of Scotland. Meanwhile it has
launched its first regional community
investment fund, which is based on three
core principles – people, place and
reducing fuel poverty – that were
developed following extensive public
consultation in 2023.
In 2024, SSE also established the Viking
Community Fund – the largest renewable
community fund in the UK, designed to
benefit people across Shetland. Guided by
local stakeholder engagement, the fund has
six priorities, including supporting young
people to stay in Shetland, improved
transport and housing, and looking after
thenatural environment.
(a) This data is subject to external independent limited
assurance by Ernst & Young Global Limited (‘EY’).
Forthe results of that assurance, see EY’s assurance
report and SSE’s Sustainability Reporting Criteria 2025
on sse.com/sustainability
.
Leaving a lasting positive legacy for
the communities where it builds
major infrastructure is a key part
ofSSE’s stakeholder engagement. In
an industry first, SSEN Transmission
is supporting the building of more
than 1,000 new homes across the
north of Scotland to help alleviate
the region’s housing challenges.
This includes around 400 homes
inthe Highlands and a similar
number in Aberdeenshire, with
other potential housing activity
elsewhere across SSEN
Transmission’s networkarea.
The Company is working with
councils, registered social landlords
and other housing organisations to
support the new homes as part of
the delivery of upgrades to the
transmission network inthe north
ofScotland in support of energy
security and national netzero
ambitions.
Supporting communities with new homes
The SSEN Transmission homes scheme is an industry first
1,000
new homes to be built across
the north of Scotland with
SSEN Transmission’s support
External recognition for SSE’s
community investment
In 2024, the World Bank Group’s
Offshore Wind Development
Programme published a report,
TheStrategic Value of Community
Benefits in Offshore Wind
Development, to guide offshore
winddevelopers and governments
ondelivering meaningful, lasting
community benefits. SSE contributed
expert insights to the report, drawn
from its experience with major
offshore projects such as Beatrice
and Dogger Bank Wind Farms. SSE
was recognised in the report as
abest-practice example for its
specialist community investment
team, robust impact evaluation and
strong stakeholder engagement.
Thereport highlighted the social
return generated by SSE’s Sustainable
Development Fund and its effective
support for local education and skills.
57 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Our nature-related targets
The planet’s health and resilience relies on
nature and the delicate ecosystems that
support biodiversity. And yet, nature is in
serious decline. The UK is considered one
of the world’s most nature-depleted
countries with almost one in six species
now under threat of extinction. So while
SSEis committed to lowering its own
environmental impact, it has also set three
ambitious, Group-wide nature-related
targets to protect biodiversity and native
woodland when working on large capital
projects onshore in the UK and Ireland. The
pace and scale of transformation in the
energy system and the size and value of
these projects, means that setting these
targets is the best way for SSE to make a
meaningful difference to nature.
Protecting and restoring
the natural environment
SSE has a long history of working in remote, sensitive
landscapes and is committed to minimising its impact.
Thatmeans lowering carbon emissions, limiting water
use, minimising other air emissions and reducing
waste. SSE hasset nature-related targets to help
restore the natural habitats around its operations.
For all UK and Ireland onshore
large capital projects, SSE has
committed todelivering:
no ‘net loss’
in biodiversity
on those consented from
April 2023 onwards
no ‘net loss’ of
native woodland
on those consented from
April 2024 onwards
‘net gain’ in biodiversity
on those consented from April
2025onwards
SSE’s Environment Strategy
Managing environmental
impacts
While greenhouse gas (GHG) emissions
represent SSE’s most material impact on
theenvironment, its activities also require
water – a precious natural resource – and
produce waste and other air emissions.
There is also a risk that its work can
negatively affect the environment through
incidents such as oil-related leaks.
SSE follows the principles of the widely
recognised ‘mitigation hierarchy’ to manage
its environmental impact, along with a
Group-wide Environment Strategy. Aligned
to the UNSustainable Development Goals,
the strategy provides a consistent structure
for each Business Unit to manage their own
environmental impacts and support SSE’s
Group targets.
Continuing to develop our
nature-related disclosures
SSE is committed, over time, to enhancing
its nature-related reporting, using the
Taskforce on Nature-related Financial
Disclosures (TNFD) recommendations as
aguide. In 2024, SSE piloted the first two
phases of ‘LEAP’ – ‘Locate’ and ‘Evaluate’
– at several assets, and this year expanded
that to include ‘Assess’ and ‘Prepare’ to
drawout SSE’s nature-related risks and
opportunities at pilot assets. This phase
included onshore and offshore wind, hydro,
thermal and networks, as well as a more
holistic Group-wide view.
Reporting on our impacts
SSE reports performance by impact area:
nature-related targets, water use, other
airemissions, waste generation, energy
consumption along with data on the year’s
environmental incidents. More information
can be found in SSE’s Sustainability Report
2025 available at sse.com/sustainability
Progress against our nature-related
targets
This year, SSE made good progress against
its nature-related targets.
While all 53 of its in-scope large capital
projects in the UK and Ireland consented
since April 2023 met the target of
incorporating ‘no net loss’ in biodiversity,
47of them actually exceeded the target
byincorporating biodiversity ‘net gain’
intoproject design.
SSE met its ‘no net loss’ of native woodland
policy commitment on all in-scope onshore
large capital projects consented from
April2024.
Responsible consumption
and production
Working towards more
sustainable patterns of resource
consumption; reducing reliance
on non-renewable and single-
useproducts
Natural environment
Supporting the conservation,
restoration and sustainable
use of land and water
resources
Sustainability continued
Environmental management and governance
Providing a framework for the careful risk management ofenvironmental impacts
58 SSE plc Annual Report 2025
Strategic Report Financial StatementsGovernance

Managing our water use
SSE relies on a dependable supply of water
for generating power in its hydro and
thermal power stations, none of which are
in water-stressed areas.
1
Water is a shared
resource, so must be used carefully and in
away that is sustainable for SSE’s business,
local communities and ecosystems. This
use is guided by specific policies and
processes, as well as close collaboration
with environmental regulators.
Figure 6: Water performance
(in million cubic metres)
2024/25
2023/24
23,135
(b)
23,133
(b)
2.44
(b)
22,795
(a)
22,793
(a)
2.37
(a)
Total water abstracted
Total water returned
Total water consumed
In 2024/25, total water abstracted by SSE
slightly decreased to 22,795
(a)
million m
3
(2023/24: 23,135
(b)
million m
3
). The vast
majority (98%) of water abstracted this
yearwas used in SSE’s hydro generation
operations, and a similar volume of water
passed through the hydro plant compared
to the previous year. This water is technically
recorded as abstracted, but it passes
through turbines to generate electricity
andis returned to the environment almost
immediately, and therefore has minimal
environmental impact. SSE’s total water
abstracted excluding hydro operations
decreased by 9% and its water consumed
decreased by 3%.
Managing our other air emissions
Nitrogen oxides (NOx) and sulphur dioxide
(SO
2
) are both significant byproducts of
SSE’s thermal generation activities.
Environmental teams carefully manage
these emissions to air, working closely
withrelevant environmental regulators to
meet their strict licence conditions.
Figure 7: Air emissions
performance
(in tonnes)
2024/25
20
23/24
440
3,646
303
(a)
3,299
(a)
Sulphur dioxide
Nitrogen oxides
In 2024/25, emissions of NOx and SO
2
both
reduced compared to the previous year.
This was predominantly due to a change in
operating patterns across generation assets.
Sulphur hexafluoride (SF₆) is vital in the
electrical industry for insulation and safety,
but it’s a powerful greenhouse gas—23,500
times more harmful than CO₂—remaining in
the atmosphere for 3,000 years.
Figure 8: SF₆ emissions
performance
(in kgs)
2024/25
20
23/24 265
281
(a)
Sulphur hexafluoride
In 2024/25, SSE’s reported SF₆ emissions
rose to 281kg
(a)
(2023/24: 265kg). Efforts
continue to reduce leaks through
monitoring, maintenance, asset
replacement, and supplier engagement
totrial SF₆-free alternatives.
In previous years, SSE would disclose data
for particulate matter (PM10) and mercury
emissions from thermal generation plant,
above a de-minimis threshold of 10 tonnes
and 1kg respectively. In 2024/25, no
plantproduced emissions above those
thresholds, and therefore were considered
immaterial in terms of impact.
Managing our waste
SSE’s operations produce several types of
waste, such as metal, cable, wood and
general office waste. The Company reports
on the solid operational waste it directly
manages, but not on waste generated
through construction projects and
contractor activities.
Guided by the waste hierarchy framework
– prevent, reuse, recycle, recover, disposal
– to minimise waste, the Company also
aims to improve operational efficiency and
promote better recycling practices, and
works with supply chain partners to do the
same. SSE has set two annual waste targets
– to divert 95% of waste by volume from
landfill and recycle or reuse 55% of waste
byvolume. SSE exceeded both targets this
year, reaching 99% and 71% respectively.
Our energy consumption
Between 2023/24 and 2024/25, the energy
SSE purchased for use in its assets (offices,
depots, thermal power stations, gas storage
facilities, and data centres) increased by 7%.
Electricity consumption in SSE’s gas storage
assets increased by 13% and made up 75%
of the total electricity used from renewable
sources. Energy consumed in SSE’s offices,
depots and data centres reduced by 6% this
year, reflecting efficiency measures being
put in place.
In 2024/25, around 48% of the electricity
that SSE purchased for its assets (offices,
depots, thermal power stations, gas storage
facilities, and data centres) was from
renewable sources, consistent from the
previous year. Within this SSE purchased
100% of its electricity for use in its directly
managed offices from renewable sources,
backed by renewable guarantees.
SSE is a member of the Climate Group’s
EP100 initiative to encourage businesses to
double energy productivity associated with
office and depot buildings by 2030 from a
2011 base year.
Environmental incident
performance
To ensure effective environmental
management, SSE operates an
environmental management system which
sets controls, processes and procedures.
Allof SSE’s businesses are certified to
ISO14001:2015.
While SSE’s processes are designed to
reduce the risk of environmental incidents
happening, sometimes they do occur.
Forexample oil loss from transformers,
effluent or silt releases. This year,
environmental incidents have decreased to
115 (2023/24: 143). There were no major
incidents, and most incidents were minor.
There was a 32% drop in serious incidents
to27 (2023/24: 40). The number of
environmental permit / licence breaches
significantly decreased to nine (2023/24: 19).
1 As defined by the relevant environmental regulators in the jurisdictions where SSE’s assets are located.
(a) This data is subject to external independent limited assurance by Ernst & Young Global Limited (‘EY’). For the results of that assurance, see EY’s assurance report and SSE’s
Sustainability Reporting Criteria 2025 on sse.com/sustainability
.
(b) This data was previously reported in the SSE plc Annual Report 2024 where it was subject to external independent limited assurance by PricewaterhouseCoopers LLP (‘PwC’).
For the results of that assurance, see PwC’s assurance report and SSE’s GHG and Environmental Reporting Criteria 2024 on sse.com/sustainability
.
Table 3: Energy use* (in GWh):
2024/25 2023/24
Purchased heat from non-renewable sources UK/Ire 4.8/0.06 4.8/0.06
Purchased electricity from renewable sources UK/Ire 103.5/0.9 96.1/0.9
Purchased electricity from non-renewable sources UK/Ire 112.1/0 105.3/0
* This table, in combination with the carbon performance information in Table 2 on page 79 , represents SSE’s
disclosures in line with the UK Government Streamlined Energy and Carbon Reporting requirements.
59 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Risk
Introduction to risk 61
How we manage risk 62
Group Principal Risks 64
60 SSE plc Annual Report 2025
Strategic Report Financial StatementsGovernance

Managing risk in a
changing environment
SSE is well placed to manage the impacts of the complexity the energy market has seen this
year. Our balanced portfolio of renewables, electricity networks and system flexibility allows
us to adapt to changing markets while maintaining long-term stakeholder value.
Introduction to Risk
Robust risk management enables an
efficient approach to decision making that
can adapt to suit the changing nature of
thesector and the operating environment.
At the core of SSE’s risk management is a
strong culture. Everyone in the Company is
empowered to make considered decisions
when realising opportunities or minimising
risk exposures. For more about SSE’s risk
management framework, see
pages 62
to63
.
Assessing principal risks
The current operating environment has seen
SSE face more challenges this year with
many factors outside its direct control.
Formore about this, see the Energy Market
Review on
pages 4 and 5 . As SSE’s
principal risks are highly interconnected,
multiple external factors have the potential
to affect several risks at once.
The direction of UK policy has been high
onthe agenda of SSE’s risk oversight
committees in determining the pace of
transition to meet clean energy ambitions.
This has a potential impact on energy
markets, timescales for large capital
projects or investments, which in turn
islinked to supply chain availability.
Thecommittees also considered SSE’s
preparedness to manage these factors.
To reflect this, the Group Executive
Committee and related sub-committees
have increased the materiality of four of
SSE’s 12 principal risks (see page 64
).
Responding to a fast-changing market
SSE is in a strong position with its balanced
mix of businesses and capital investment
plans to proactively manage market changes
and meet its ambitious growth targets. To
continue to capitalise on its opportunities
SSE responds quickly to the market and
deploys resources effectively. To ensure
clarity, the Speed of Change risk has been
redefined to more clearly articulate that
SSEmust be able to respond with agility to
increasingly technology-dominated energy
markets. SSE has undertaken an operating
model and efficiency review of its operations
and taken measures to ensure it continues
to operate in the most cost-effective way
possible. This will set the Company up well
for the next phase of growth.
Responding to the geopolitical
environment and climate change
Although SSE’s level of Portfolio Exposure
risk didn’t materially change during the year,
ongoing global conflicts continue to affect
commodity prices, though they were less
volatile than in 2023/24. An increase in
exposure to weather events also impacts
this risk. SSE’s control environment has
adapted to manage these fluctuations and
explore alternative value opportunities.
Sustaining the right culture
SSE’s people and culture are central to
enabling its growth. Maintaining the core
values and culture that underpin SSE is
critical when expanding the workforce in
any of the businesses. The appointment
ofMartin Pibworth as incoming Chief
Executive will mean a short-term adjustment
for the Group following an 12-year tenure
for the current Chief Executive, Alistair
Phillips-Davies. Embedding the measures
from the operating model and efficiency
review means SSE will be well placed to
realise future opportunities. Reflecting
this,the People and Culture risk has
increased slightly.
Weighing the risks and opportunities
ofdigitisation
Cyber Security and Resilience remains one
of SSE’s top risks due to the continued
malicious cyber threat. While modernising
IT was a priority in previous years, continued
digitisation of the business brings a shift
inrisk exposures. The global move to cloud-
based services requires a different approach
to manage the risk. Digitising the business
also brings opportunities. Embracing
technology (including AI) will create
opportunities for workforce efficiencies
inthe short term. Medium- to long-term
opportunities will depend on what
technology advances and legislation allow.
Understanding emerging risks
One of the most important items on the
horizon for SSE will be understanding the
application of the REMA outcome and its
implications. The pace of the energy
transition was also a factor considered
aspart of the longer-term future risk
discussions. SSE continues to monitor
long-term changing energy demand
profiles so it can adapt to future market
opportunities. No new emerging Principal
Risks have been identified this year.
Responding to political and regulatory
change and supply chain disruption
The UK Government’s Review of Electricity
Market Arrangements (REMA), more
specifically decisions on zonal pricing, is
due to complete mid 2025. Throughout
theyear, SSE maintained that zonal pricing
would deter investment and be unfair to
customers, and that the constraints on the
energy system it sought to address would
be remedied by extensive efforts already
under way to rewire the grid.
The UK Government Clean Power Plan
iswelcome and SSE is well aligned with
thedirection of UK policies. The UK
Government has announced plans to
streamline planning and consenting
timelines, while clarity is still needed on
policy related to low-carbon technologies
to enable the future energy system.
Thisyear, policy implementation and
subsequent planning delays have been
thesubject of discussion for oversight
committees across multiple risks. This has
been a driving factor behind increasing the
materiality of the Large Capital Projects
(LCP) Management risk as SSE looks for
clarity for its project pipelines.
Securing suitable supply chains also remains
paramount to enable SSE to transition to
clean power. Inflation, cost pressures and
ashift in supplier commercial risk appetite
due to higher industry demand are reasons
why Supply Chain also remains one of SSE’s
top risks.
At SSE, we manage our risks
tomake sure we continue to
protect our stakeholder value.
Doing so also allows us to
explore the promising
opportunities available tous
aswe transition to aclean,
affordable and secure
energysystem.”
Barry O’Regan
Chief Financial Officer
and Chair ofGroup Risk Committee
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How we manage risk
At the heart of SSE’s risk management framework is a strong risk culture.
Everyone at SSE is responsible for managing risk.
The overarching risk management
framework gives Business Units the
abilitytomanage risk exposures against
their individual strategic objectives and
operations. It also enables SSE to maintain
aholistic view of the Group risk profile
andmanage it appropriately.
The risk management framework is part
ofSSE’s system of internal control (for
moredetails, see
page 119
) and sets the
standard for how risks are managed across
the Group. The framework provides a
consistent approach embedded in each of
the Business Units and Corporate functions.
Risk management at SSE follows a four-
stage process:
– Identify potential risks that could
threaten the Group and/or Business Unit
in achieving their objectives.
– Assess risks by analysing and evaluating
each one. The likelihood and impact of
the risk occurring is considered against
financial and non-financial criteria, both
before and after applying mitigations.
– Respond by deciding on the most
appropriate risk treatment plans, making
sure the relevant processes and controls
are in place to manage the risks.
– Monitor the risks through ongoing
evaluations and frequent reporting
through the Group Governance
Framework.
The table overleaf shows in more detail
howthis applies for the principal risks.
Assessing Principal Risks
It’s vital for SSE to continue to evolve the
risk management framework. This year, a
change to the method for assessing the
Principal Risks enabled more risk-based
discussions across the oversight
committees and senior management.
Thisinvolved dedicated risk workshops and
one-to-one stakeholder interviews. While
our Principal Risks themselves have not
changed, this collaborative way of working
led to more valuable input and diversity
ofthought, and to an improved, holistic
output. The Board-approved outcome of
the principal risk assessment is on
pages 64
to 69
.
Identifying emerging risks
To maintain a dynamic risk profile,
emergingrisks are considered continuously
in response to changes in the operating
environment or events that could affect
SSE. Teams consider emerging risks which
have the potential tobecome principal risks
in the medium to long term. Common
themes that emerge are presented as part
of the assessment of the Group principal
risks. Complementing this, in 2024 a
horizon scanning exercise enabled a more
forward-looking view of risk trends and an
assessment of their potential impact, both
positive and negative, on SSE’s strategy.
While the horizon scanning exercise
provided insight, no new emerging principal
risks were identified this year.
Climate-related risks and opportunities
A climate assessment, in line with the
TaskForce on Climate-related Financial
Disclosures (TCFD) framework, identifies
and assesses climate-related opportunities
and risks relevant to SSE. For details of the
process, see the table overleaf. This year,
the assessment resulted in a minor update
to the material climate-related opportunities
and risks (see pages 75 to 78 ) relevant
toSSE.
Maturing risk management
A newly adopted enterprise risk
management framework is expected to
provide rich information and expand SSE’s
holistic oversight as the year progresses.
Embedding this further is a priority
for2025/26.
Work to articulate the Group’s risk
appetitemore clearly continues. This
willhelp to further embed and mature
themanagement of both risks and
opportunities. Engagement with the Board,
Group Executive Committees and Group
Risk Committee willcontinue over the
coming year.
The updated Corporate Governance Code
comes into effect after 1 January 2025,
apart from Provision 29, which comes into
effect in 2026. Provision 29 requires a
formal declaration by the Directors that the
Group has appropriate systems to monitor
and review the effectiveness of internal
controls and risk management frameworks,
alongside confirming the effectiveness of
material controls.
This change will only apply to SSE’s financial
year 2026/27. To begin preparing for this,
the principal risk assessment process was
updated, implementing improvements
tothe internal controls governance
framework. This will begin to align SSE with
the latest Code amendments, reinforcing
itscommitment to transparent corporate
reporting. Details of each principal risk and
key mitigations for this year are on pages 65
to 69
.
Risk Appetite Statement
The Group’s risk appetite is aligned
withachieving SSE’s strategic objectives.
SSE will only accept risk where it can be
managed effectively, and where it’s well
understood and consistent with SSE’s
purpose, strategy and values. Risk
shouldalso be in line with stakeholders’
expectations, as well asoffering
commensurate reward.
The basis for setting the risk appetite
isthat SSE has:
– a clear strategy to create value for
shareholders and society in a
sustainable way. This consists of
developing, building, operating and
investing in the electricity
infrastructure and businesses needed
in the transition to net zero.
– a good understanding of the risks and
opportunities in the Great Britain and
Ireland energy markets and, through
its acquisitions, extensive knowledge
of European and other international
markets. SSE scrutinises any
opportunity to expand into new
international markets to make sure it’s
consistent with the Group’s values and
strategic goals.
– no appetite for risks that could
undermine safety or security, including
cyber security. In areas where SSE is
exposed to risks for which it has little
or no appetite, the nature of these risks
means even the most effective
controls and mitigations won’t
eliminate them completely.
Three principles guide the Board in
deciding its appetite for specific risks:
1. Risks should be consistent with
SSE’score purpose, financial
objectives, strategy and values.
2. Risks are only acceptable if SSE can
achieve the right reward, based on
objective evidence, and in a way
that’sconsistent with SSE’s purpose,
strategy and values.
3. Risks should be controlled and
monitored by allocating the right level
of management and other resources,
and maintaining a healthy business
culture.
The Board sets the tone for determining
the nature and extent of the risk it’s willing
to take to achieve strategic objectives,
and for making sure risks are managed
effectively across the Group.
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Risk management process
Stage Principal Risk assessment Climate-related risk and opportunities
Identify
SSE considers risks over three time horizons: 1, 3 and 10 years.
Bottom-up risk data from Business Units is combined with
top-down analysis from oversight forums which considers both
risks and opportunities. This analysis is then complemented by
relevant external information.
A specialist TCFD climate assessment identifies risks and
opportunities over the short (to 2035), medium (to 2050) and long
term (to 2080). This involves senior business leader interviews,
Business Unit risk assessments and a materiality test tocapture
climate-related opportunities and risks.
Assess
For each principal risk, risk workshops and interviews provide
aforum to discuss the risk environment, ultimately informing
updated risk assessments for approval. The committee members
and subject matter experts provide commentary on:
– the adequacy of the risk description;
– contextual changes to the risks;
– whether the risks have increased or decreased in materiality
during the year; and,
– the adequacy of the control environment.
The outputs of these risk discussions are then collated into
assessment reports and presented back to each oversight forum.
SSE assesses the climate impact on its operations over the:
– short and medium term from the perspective of market, policy
or regulatory transition opportunities and risks; and,
– over the medium and long term from the perspective of the
physical risks of climate change.
Materiality is tested for each climate-related opportunity or risk,
based on its:
– ability to have a substantive potential financial impact on SSE’s
strategy; or,
– its significant impact on SSE’s stakeholders.
Respond
Following completion of the assessment activities the oversight
forums confirm:
– the risk trend (more, less or equally material);
– overall effectiveness of the risk control and monitoring
environment; and,
– whether further actions are required to improve the control
environment.
The Group Executive Committee approves the assessments,
with final endorsement from the Board.
Critical controls are in place to manage risk including climate-
related risk, these include:
– business continuity plans;
– crisis management and incident response, large capital project
governance; and,
– internal and external assurance.
The climate-related opportunities and risks (
pages 75 to 78
),
combined with SSE’s Sustainability Report 2025 and CDP Climate
Change response, provides further information on these actions
and controls.
Monitor
Risks are reviewed quarterly within the Business Units and
Corporate functions, with clear pathways in place for escalation.
The Group Risk Committee receive regular bottom-up risk
reporting information and frequently reviews and monitors the
Group Principal Risks ensuring appropriate actions are taken to
manage changes in risk exposures.
Climate Change is a Group Principal Risk to SSE and has the
abilityto affect the achievement of its strategic objectives
andlong-term success (see page 65
). Scenarios related to
thephysical risks associated with climate change form part of
SSE’s viability assessment (page 82
). Climate-related key
developments are also considered against all relevant Group
Principal Risks.
Planning delays on transmission and other projects have been a key factor in increasing the materiality of Large Capital Projects Management risk
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Group Principal Risks
A robust review process involving collaboration across risk workshops and interviews
has led to an improved holistic assessment of this year’s Principal Risks.
This year, four Principal Risks have
increased in materiality. The Speed of
Change risk has been redefined and has
increased in materiality. The business
acknowledges that the Group will need
torespond with agility as the pace of the
net zero transition becomes clearer. The
business’s unique market position, with its
balanced portfolio, remains a strength here.
A higher Large Capital Projects
Management risk exposure reflects the
increased external variables that could
affect the risk this year. These include
accessibility of the supply chain when an
opportunity appears, and the long lead
times for planning and consenting. The
People and Culture risk has also increased
slightly this year. A key reason is SSE’s
change of Chief Executive, though the
business expects that after a short-term
adjustment this will quickly become
anopportunity.
After the large number of elections globally
in 2024, the context of the Political and
Regulatory Change risk has changed.
Whilepolicy change is one driving factor,
decisions are due this year on REMA, and
more specifically zonal pricing, which may
have implications for SSE’s Business Units.
SSElooks forward to a more stable
investment environment once REMA’s
market reforms provide clarity on the future
energy pricing model.
As highlighted in the Energy Market Review
on pages 4 to 5
, SSE is at the heart of the
energy transition in addressing climate
change. This year, the Climate Change risk
description has been redefined to better
reflect the Group’s exposure and the
evolving policy to support the transition to
clean energy. SSE is well aligned with the
direction of UK policies and therefore the
risk has not materially changed. Closely
linked is the Energy Affordability Principal
Risk. While consumers need protection
from fluctuating energy prices in the
shortterm, in the long term, accelerating
affordable, clean and reliable energy will
likely remain a key concern for governments
and households.
The Principal Risks are mapped below
providing insight to the relative impacts
andlikelihoods of each. For detail of SSE’s
Principal Risks including the developments
throughout this year that have driven risk
materiality and their key mitigations see
pages65 to 69 .
Risk trend key
Increased in materiality
Not changed significantly
Reduced in materiality
1. Climate Change
2. Cyber Security and Resilience
3. Energy Affordability
4. Energy Infrastructure Failure
5. Financial Liabilities
6. Large Capital Projects Management
7. People and Culture
8. Political and Regulatory Change
9. Portfolio Exposure
10. Safety and the Environment
11. Speed of Change
12. Supply Chain
Principal Risks
Low
Medium High
HighLIKELIHOOD
4 107
1 3
6
12
2
8
9
11
5
Low
Less IMPACT More
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Reduced in materialityIncreased in materiality Not changed significantlyRisk trend key:
Climate Change
Developments this year
The risk description has been updated to better reflect the Group’s exposure and the evolving policy to
support the transition to clean energy. SSE is well aligned with the direction of UK policies, therefore the risk
has not changed materially. Other developments include:
– UK Labour Government is committed to decarbonising the power system with the Clean Power Plan 2030.
– Policy implementation timelines require further clarity.
– Frequent extreme weather events including named storms and dunkelflaute days (with minimal wind
orsunshine).
– Continued advocacy for a policy environment encouraging investment in low-carbon generation.
– NZAP Plus five-year investment plan to 2027 investing around £17.5bn in renewables, electricity networks
and system flexibility.
For more about our climate opportunity and risk management, see pages 75 to 78
Oversight: Group Executive
Committee
The risk that SSE’s strategy is
misaligned to national and
international decarbonisation
pathways and is insufficiently
resilient to a climate-changed
world.
Key mitigations
– Leadership, governance and oversight through multiple forums including Safety, Sustainability, Health and
Environment Advisory Committee (SSHEAC) and the Group Executive Committee (GEC).
– Group Climate Change policy and Group Sustainability policy. For details of all SSE policies, see
sse.com
.
– Monitoring of NZAP Plus targets and UN Sustainable Development Goals (UNSDG) impacts.
– Lobbying and stakeholder engagement.
– External reporting around compliance with submissions such as sustainability reporting and TCFD.
– Large Capital Projects Framework.
Cyber Security
and Resilience
Developments this year
This risk remains one of the most material, due to the continued threat of malicious cyber-attack, stemming
primarily from ongoing geopolitical conflicts. The level of risk exposure remains unchanged however, as the
control environment is keeping pace with the external threat. Other developments include:
– Geopolitical unrest resulting in continued heightened threat level.
– Ongoing significant longer-term Security Programme investment to strengthen the resilience of SSE systems.
– Continued modernisation of the IT estate.
– Increased third party reliance and enhancing controls to manage this.
– Increasing the awareness of the risk among teams to strengthen our cyber-secure culture.
Oversight: Group Risk Committee
The risk that key infrastructure,
networks or core systems are
compromised or are otherwise
rendered unavailable.
Key mitigations
– Group Cyber Security Policy and Group Data and Information Management Policy.
– Incorporating key technology and infrastructure risks into system design.
– Regular internal and third party testing of information security and operational technology networks and
systems.
– Continued strengthening and embedding of the cyber risks and controls framework to identify threats
and reduce exposures.
– Service level agreements for business-critical IT services.
– Reviewing and testing business continuity plans in response to changes in the threat to the Group.
Energy
Affordability
Developments this year
The risk remains unchanged although a shift in risk context considers consumer energy costs associated
with the transition to the future energy system and increased cost of living. Other developments include:
– Continued pressure on consumers from high interest rates and inflation.
– Consumer energy costs and value for money modelled in SSEN Transmission’s business plan for the
RIIO-T3 period.
– The UK Labour Government’s Clean Power plan includes a pledge to bring bills down by £300.
– Removal of the Winter Fuel Payment.
Oversight: Group Executive
Committee
The risk that energy customers’
ability to meet the costs of
providing energy, or their ability to
access energy services, is limited,
giving rise to negative political or
regulatory intervention that has
animpact on SSE’s regulated
networks and energy businesses.
Key mitigations
– Affordability schemes to support financially vulnerable customers.
– Engaging with governments, regulators, customers and relevant counterparties.
– Regular review of aged debt and bad debt management.
– Long-term price forecasting.
– Operational processes for pricing, billing and collections.
– Adopting and implementing government support mechanisms across multiple jurisdictions.
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Group Principal Risks continued
Energy
Infrastructure
Failure
Developments this year
While this risk has not materially changed this year there has been an increase in the threat of malicious
physical damage linked to ongoing geopolitical conflicts. The control environment is keeping pace with the
increase in risk exposure. Other developments include:
– Continuing geopolitical unrest potentially leading to global security threats, cyber threats and supply
chain challenges.
– Continued strategic investment to ensure capacity and resilience in the energy system.
– Strong, regular engagement with the public during weather-related events.
– Increasingly volatile weather affecting asset maintenance regimes.
– Advancing technology such as artificial intelligence and machine learning.
– Improving cyber controls in line with regulatory compliance.
– Responding to a number of named storms including Storm Éowyn.
Oversight: Group Executive
Committee
The risk of national energy
infrastructure failure, whether in
respect of assets owned by SSE or
those owned by others which SSE
relies on, that prevents the Group
from meeting its obligations.
Key mitigations
– Asset management policies and frameworks.
– Engineering Centres of Excellence review and develop plans to ensure the ongoing integrity of generation
assets including crisis management and business continuity plans.
– Capital investment plans to ensure the ongoing health and integrity of network assets.
– Stakeholder engagement strategies.
– Dedicated cyber security programmes.
– Maintaining physical security of critical national infrastructure and key assets.
Financial
Liabilities
Developments this year
The risk remains unchanged, as the nature of SSE’s portfolio and an adapted control environment has
mitigated the impacts from an increase in macroeconomic volatility. Other developments include:
– Short-and longer-term funding supported by existing facilities and forecasts.
– Refinancing of the committed facility, extended to 2029 to support financing of growth.
– Reduction in UK interest rate.
– Continuation of strong ESG credentials.
– Geopolitical developments and commodity price volatility attributed to foreign policy and continued
global conflicts.
– Increase in gilt rates following autumn Budget increasing UK borrowing costs.
Oversight: Group Risk Committee
The risk that funding is not
available to meet SSE’s financial
liabilities, including those relating
to its defined benefit pension
schemes, as these fall due under
both normal and stressed
conditions without incurring
unacceptable costs or risking
damage to its reputation.
Key mitigations
– Financial management policies and frameworks.
– Regular oversight and governance through Board and committees.
– Committed borrowings and facilities always available, equal to at least 105% of forecast borrowings over
arolling six-month period.
– Approval of all material counterparty credit limits is a matter reserved for the Board.
– Detailed and continuous financial modelling and forecasting on a Group and Business Unit basis.
– A Board of Trustees for each of SSE’s defined benefit pension schemes, acting independently of the Group.
Large Capital
Projects
Management
Developments this year
The risk’s materiality has increased, driven by the overall size and growing complexity of the Large Capital
Projects portfolio, the inclusion of new technologies and international expansion. This is compounded by
the impacts of continued supply chain constraints and slower-than-anticipated planning and consenting
decisions. Other developments include:
– SSE opened its 443MW Viking wind farm on the Shetland Islands, which is capable of powering nearly
500,000 homes annually.
– SSE’s first onshore wind farm in mainland Europe is now fully operational at Chaintrix-Bierges and Vélye
innorth-east France.
– The opening of SSE’s Dogger Bank A offshore wind project has been subject to delays at the installation
stage but will open later in 2025 without material impact on returns.
– Unpredictable planning and consenting decisions causing delays and cost implications for both grid
connection and non-regulated projects.
– Increases in project costs due to inflationary pressures.
Oversight: Large Capital Projects
Committee
The risk that SSE develops and
builds major assets that do not
realise intended benefits or meet
the quality standards required to
support long-term sustainable
economic lives within forecast
timescales and budgets.
Key mitigations
– Large Capital Projects Governance Framework to govern, develop, approve and execute major capital
investment projects consistently and effectively.
– In-depth quality reviews by Large Capital Project quality and assurance teams.
– Ongoing interaction with key suppliers through SSE’s supplier relationship management programme.
– SSE generally manages insurance placement by organising owner-controlled insurance for major
projects, allowing greater control over, and flexibility of, the provisions in place.
– Appropriate governance arrangements, including those for joint venture (JV) and partner management.
Group Principal Risks continued
Reduced in materialityIncreased in materiality Not changed significantlyRisk trend key:
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People
and Culture
Developments this year
The risk description has been updated to reflect the ongoing significance of SSE’s values and commitment
to doing the right thing. The risk’s materiality has increased slightly, reflecting potential short-term disruption
from a change of Chief Executive. Other developments include:
– The Group has undertaken an operating model and efficiency review to ensure that SSE has the right
structures, resourcing and accountabilities to maximise the enormous growth opportunities that
decarbonisation offers.
– Ongoing reviews to understand whether onboarding new recruits is consistent and not negatively
affecting culture.
– Ongoing technological changes, such as the introduction of AI, and the impact on ways of working.
– Positive employee engagement results (see page 54
).
– Continuing international expansion and integration with SSE workforce and culture.
Oversight: Group Executive
Committee
The risk that SSE is unable to
attract, develop and retain an
appropriately skilled, diverse and
responsible workforce to deliver
strategic objectives, and maintain
a healthy business culture which
encourages and supports SSE
values and doing the right thing.
Key mitigations
– Employment Policy and Whistleblowing Policy.
– Inclusion and Diversity plan, see
page 55
.
– SSE governance arrangements, including those relating to JV and partner management.
– ‘Doing the right thing, SSE’s guide to good business ethics’, outlines steps for employees to make sure
their day-to-day actions and decisions are consistent with SSE’s values and ethical business principles.
– Internal and external mechanisms, including the independent Speak Up service, for employees to report
wrongdoing.
– Regular succession planning reviews by SSE’s business leaders.
– Continued development of the Group’s approach to managing talent.
– Performance Edge, an evolved approach to leading and managing performance.
– £41.0m total investment in training and development.
Political and
Regulatory
Change
Developments this year
Materiality increased slightly as the risk context changed significantly following the a large number of
elections globally in 2024. Slower-than-anticipated UK policy implementation and a high degree of
uncertainty relating to REMA (specifically, zonal pricing) also contributed to this risk increase. Other
developments include:
– The introduction of the National Energy System Operator (NESO) and the UK Government review of
Ofgem.
– Clean Power 2030 brought forward the target for a clean power system.
– New coalition Government in Ireland with extensive plans for the energy sector including reforming the
Commission for Regulation of Utilities (CRU).
– New Transmission Constraint Licence Condition guidance from Ofgem.
– SSE’s international exposure, such as Netherlands and Spanish assets, increasing the breadth of risk.
– Ongoing conflicts in Europe and the Middle East.
Oversight: Group Executive
Committee
The risk associated with operating
in a fast-paced, highly regulated
environment which is subject to
constantly changing political,
regulatory and legislative
expectations and interventions.
Key mitigations
– Political and Regulatory Engagement Policy.
– Advice, guidance and assurance for business areas from Corporate Affairs, Regulation, Legal and
Compliance teams on interpreting political, regulatory and legislative change.
– Engagement with regulators, politicians, officials and other stakeholders, led by the Corporate Affairs
andRegulation teams. For details of SSE’s Stakeholder Engagement, see
pages 8 and 9
.
– SSE Governance arrangements including regular engagement with the Board and Group Executive
Committee on political and regulatory developments which may affect SSE’s operations or strategy.
– Change management processes to manage all aspects of significant regulatory and legislative change.
Reduced in materiality
Increased in materiality Not changed significantlyRisk trend key:
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Portfolio
Exposure
Developments this year
This has not changed significantly during the year. Amendments to the control environment have enabled
SSE to keep pace with the inherent exposures, including continued volatility caused by geopolitical events.
Other developments include:
– Increased exposure to weather events (for example, higher numbers of dunkelflaute days impacting
consistency of Renewables output).
– Exploration of new market value opportunities.
– Continued uncertainty around REMA, specifically zonal pricing.
– Continued geopolitical unrest causing fluctuations in commodity prices.
Oversight: Group Risk Committee
The risk to the Group’s portfolio
value associated with fluctuations
in both the price and physical
liquidity of key energy market
indices or drivers – primarily gas,
carbon and electricity.
Key mitigations
– Operational oversight of commodity positions by the Group Energy Markets Exposure Risk Committee
(GEMRC), and monitoring Group hedging arrangements by the Board Energy Markets Risk Committee
(EMRC). For more details see
page 120
.
– Trading controls including VaR and PaR measures to monitor and control exposures. Trading limits are
reviewed regularly by the Energy Markets Risk Committee and approved by the Board.
– Asset-by-asset approach to hedging strategy so that trading positions don’t have a material impact on
Group earnings.
– Energy Markets can maximise and mitigate risks across the Group through leveraging the portfolio of
Business Units.
– Using hedging instruments to minimise exposure to fluctuations in foreign exchange markets. For details
see Financial Statements page 161
.
– Commodity price forecasting from SSE’s Energy Economics team to inform decisions on trading strategy
and asset investment.
Safety and the
Environment
Developments this year
Safety is SSE’s number one core value. While this risk has not materially changed, SSE continues to adapt
itscontrol environment to keep pace with inherent exposures. An increase in competition for preferred
contractors and the high pace of change underline the importance of SSE’s strong safety culture.
Otherdevelopments include:
– Total Recordable Injury Rate (TRIR) among direct employees of 0.11.
– The immersive safety training experience has been has been very successful since its launch with over
8,750 colleagues and around 1,170 contract partners having taken part so far.
– More volatile and extreme weather, such as the risk of wildfires and an increase in named storms, affected
sites and working conditions.
– Increased awareness of health and wellbeing issues.
– Increase in marine-based activity.
Oversight: Safety, Health &
Environment Committee
The risk of harm to people,
property or the environment from
SSE’s operations.
Key mitigations
– Group Safety and Health Policy and Group Environment Policy.
– Safety, Health and Environment (SHE) management standards and frameworks.
– Safety is the Group’s number one value, with Board oversight provided by the SSHEAC.
– Regular SHE assurance reviews by each business of risks, controls and monitoring.
– Regular testing of Group crisis management and business continuity plans to manage and recover from
significant safety and environmental events.
Group Principal Risks continued
Reduced in materialityIncreased in materiality Not changed significantlyRisk trend key:
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Speed of
Change
Developments this year
The risk description has been revised to better reflect SSE’s exposures in its current operating environment.
The materiality of this risk has increased because of factors including the rate of policy implementation and
changes to the macroeconomic environment. The Group responds to manage the impacts of changes in
the operating environment at pace, as required. Other developments include:
– The Group has undertaken an operating model and efficiency review to ensure that SSE has the right
structures, resourcing and accountabilities to ensure it is well placed for the next phase of growth.
– SSEN Transmission set out a blueprint to deliver at least £22bn of critical grid infrastructure in the five
years to 2031 For more details see pages 35 to 36
.
– Implementing a new customer billing system in the Energy Customer Solutions Business Unit.
– Evolving digitisation of the SSE IT estate including more use of AI and emerging technologies.
– SSE and Siemens partnership to accelerate hydrogen power.
Oversight: Group Executive
Committee
The risk that SSE is not able to
respond with agility to the
evolving systems and energy
markets within which it operates,
in a fast-paced, ever-growing
technological world.
Key mitigations
– Group Operating Model Policy setting out how SSE’s business strategy is executed through the
accountabilities of the Board, Executive, corporate centre, Business Units and supporting governance
model.
– The Board ensures alignment of risk appetite and strategic objectives by regularly reviewing the Group’s
commercial strategy, business development initiatives and long-term options.
– The Group Executive Committee is responsible for making sure that Business Unit strategies are
consistent and compatible with the overarching Group strategy and its vision to be a leading energy
company in a net zero world.
– Continued investment in technology advancements to build SSE’s ability to make proactive decisions in
response to rapid change.
– Regular analysis of the energy sector, current market and opportunities to anticipate potential change
affecting SSE.
Supply Chain
Developments this year
While the context of this risk has evolved during the year, there has been no increase in materiality.
Securingsupply chains remains a priority where demand is high for resource and materials across the sector.
Other developments include:
– The UK Government’s Clean Power Plan 2030 looks to maximise opportunities for clean energy supply
chains.
– SSE is managing the effects of delays in planning and consenting to minimise potential disruption to
supply chain placement.
– Increasing international activities including Southern Europe, Japan and the Netherlands.
– Ongoing conflicts in Europe and the Middle East continue to constrain supply chains.
Oversight: Group Risk Committee
The risk that SSE is unable to
secure a viable, competent and
sustainable supply chain to meet
the growth required to deliver the
strategy and NZAP Plus
programme.
Key mitigations
– Group Procurement Policy sets out to maximise value throughout project lifecycles, and competitively
and ethically procure goods, works and services as appropriate.
– Strategic supplier relationship management tailored for each Business Unit.
– Robust commercial terms in place and ongoing contract management.
– Procurement and Commercial teams ensure effective demand management via dedicated business
partners.
– Third party due diligence.
– Category management surveillance of markets and environments to anticipate and develop proactive
response to constraints.
– Large Capital Projects Framework.
Reduced in materiality
Increased in materiality Not changed significantlyRisk trend key:
69 SSE plc Annual Report 2025
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Disclosure
statements
Climate-related financial disclosures 71
Carbon performance disclosures 79
EU Taxonomy assessment 80
Non-financial and sustainability information statement 81
Viability statement 82
Going Concern 83
70 SSE plc Annual Report 2025
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Climate-related financial disclosures
An integrated approach
todisclosures
This statement summarises how SSE fulfils
its requirements under relevant mandatory
climate-related financial disclosures. SSE is
at the heart of the energy transition and its
business strategy is tackling climate change
head-on, by focusing on building a clean
energy system. The consideration of
climate-related opportunities and risks is,
therefore, naturally embedded into its
policies and practices. Considering this,
SSEhas integrated its climate-related
disclosures throughout this Annual Report
providing a holistic understanding of how
climate-related impacts are managed.
Mandated climate-related financial disclosures in the UK
SSE is compliant with the Financial
Conduct Authority (FCA) listing rule LR
6.6.6 R(8)(a). This requires organisations
to report against the Task Force on
Climate-related Financial Disclosures
(TCFD) recommendations, recommended
disclosures and the Annex and guidance
(published 2021) in annual reports. These
disclosures also satisfy UK Mandatory
Climate-related Financial Disclosure
requirements under the Companies Act
2006 sections 414CA and 414CB.
Climate change has been considered
inpreparing the Group’s consolidated
financial statements for the year ended
31March 2025 on pages 169 to 262 .
Further information has been included
innote 4.1(v) ‘Impact of climate change
and the transition to netzero – financial
judgement and estimation uncertainty’
on pages177 to 178 .
Navigating SSE’s climate-related disclosures
TCFD recommendations SSE’s summary position Additional information
Governance
a) Describe the Board’s oversight
ofclimate-related risks and
opportunities
Responding to the challenge of climate
change is central to SSE’s strategy and,
as a result, the SSE Board considers
climate change as it establishes SSE’s
purpose, vision and strategy.
Governance
– Governance of climate-related matters
page 93
– More on climate-related work in the year page 93
b) Describe management’s role in
assessing and managing climate-
related risks and opportunities.
There are clearly defined climate-related
responsibilities assigned to SSE
committees and key individuals,
includingthe Chief Executive and
ChiefSustainability Officer.
Governance
– Governance of climate-related matters page 93
– More on climate-related work in the year page 93
Strategic Report
– How we govern sustainability page 44
Strategy
a) Describe the climate-related
risks and opportunities the
organisation has identified over
theshort, medium, and long term.
Opportunities relate to the role that
SSEN Transmission, SSEN Distribution,
SSE Renewables and SSE Thermal play
insupporting the transition to net zero.
Material risks are associated with
thephysical impacts of extreme or
changingweather conditions on
renewable and network operations,
alongside transition risk related to
renewable wholesale prices.
SSE assesses the risks and opportunities
over time horizons to 2035, 2050
and2080.
Disclosure statement
– Assessing SSE’s climate-related opportunities and risks pages 73 to 74
– Detailed climate-related opportunities and risks tables pages 75 to 78
b) Describe the impact of
climate-related risks and
opportunities on the
organisation’sbusinesses,
strategy,and financial planning.
SSE’s net zero ambitions place climate
action front and centre of its strategy.
SSE’s climate-related risks and
opportunities are directly linked to
itsbusiness goals and capital plans.
Strategic Report
– Our strategy, investment plan, 2030 Goals and business model
pages6 to 7
– Performance against 2030 Goals page 45
Disclosure statement
– Assessing SSE’s climate-related opportunities and risks
pages 73 to 74
– Detailed climate-related opportunities and risks tables pages 75 to 78
– EU Taxonomy assessment page 80
Financial review
– Note 4.1(v) Impact of climate change and the transition to net zero –
financial judgement and estimation uncertainty pages 177 to 178
c) Describe the resilience of the
organisation’s strategy, taking into
consideration different climate-
related scenarios, including a 2°C
or lower scenario.
SSE has undertaken scenario analysis
toassess the resilience of its strategy
and financial plans under a range of
climate-related scenarios, including a
1.5°C, 2.5°C and 4°C temperature
pathway.
Disclosure statement
– SSE’s approach to climate scenario analysis
page 73
– Detailed climate-related opportunities and risks tables pages 75 to 78
– Viability statement page 82
71 SSE plc Annual Report 2025
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TCFD recommendations SSE’s summary position Additional information
Risk management
a) Describe the organisation’s
processes for identifying and
assessing climate-related risks.
To identify and assess climate-related
opportunities and risks, SSE conducts
aspecialist TCFD assessment that
complements its Group Risk
Management Framework.
Strategic Report
– Summary of SSE’s key climate-related opportunities and risks page 48
– Climate-related risks and opportunities page 62
– Risk management process page 63
Governance
– Governance of climate-related matters page 93
Disclosure statement
– Assessing SSE’s climate-related opportunities and risks
pages 73 to 74
b) Describe the organisation’s
processes for managing
climate-related risks.
SSE’s system of internal control defines
the policy, standards and governance
forthe management of all risks,
including those relating to climate.
Strategic Report
– How we manage risk page 62
– System of internal control page 125
Disclosure statement
– Assessing SSE’s climate-related opportunities and risks pages 75 to 78
Governance
– Governance of climate-related matters page 93
c) Describe how processes for
identifying, assessing, and
managing climate-related risks are
integrated into the organisation’s
overall risk management.
Climate change is a Group Principal Risk.
Scenarios on physical climate risks form
part of SSE’s Viability statement and
climate-related influencing factors are
considered across all relevant Group
Principal Risks.
Strategic Report
– How we manage risk page 62
Disclosure statement
– Viability statement page 82
Governance
– Governance of climate-related matters
page 93
Metrics and targets
a) Disclose the metrics used by the
organisation to assess climate-
related risks and opportunities in
line with its strategy and risk
management process.
SSE uses its 2030 Goals, Net Zero
Transition Plan, science-based carbon
targets and other metrics to measure
and manage climate-related
opportunities and risks.
Strategic Report
– Progressing towards 2030 Goals
page 45
– SSE’s Net Zero Transition Plan pathway page 46
– Performance against SSE’s Net Zero Transition Plan pages 47 to 48
– Reporting on our impacts pages 58 to 59
– Carbon pricing page 73
Governance
– Annual report on remuneration pages 142 to 147
b) Disclose Scope 1, Scope 2, and,
if appropriate, Scope 3 greenhouse
gas (GHG) emissions, and the
related risks.
SSE measures and discloses year-on-
year carbon performance and progress
against targets.
Strategic Report
– Performance against SSE’s Net Zero Transition Plan pages 47 to 48
Disclosure statement
– Carbon performance disclosures
page 79
c) Describe the targets used by the
organisation to manage climate-
related risks and opportunities and
performance against targets.
SSE has long-term net zero ambitions
that are supported by near-term
science-based targets on a 1.5°C
pathway.
Strategic report
– Progressing towards 2030 Goals
page 45
– Figure 2: Science-based targets: performance 2017/18 – 2024/25
page47
Useful information
– Further information is presented in SSE’s Net Zero Transition Plan, SSE’s Net Zero Transition Report and SSE’s Sustainability Report
– Information on SSE’s GHG emissions data and how it is produced is available in SSE’s Sustainability Reporting Criteria 2025
– Detailed information can be found in SSE’s CDP submission
All of this information
can be found at sse.com/sustainability .
Climate-related financial disclosures continued
72 SSE plc Annual Report 2025
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Assessing SSE’s climate-
related opportunities and risks
SSE has a well-established approach to
identifying material climate-related
opportunities and risks, which is informed
by climate-scenario analysis. The results of
this exercise are provided in the detailed
opportunities and risks tables on
pages 75
to 78
.
SSE’s approach to climate scenario
analysis
SSE conducts an exercise to identify
material opportunities and risks biennially,
or sooner if a material business change
occurs. SSE carries out scenario analysis on
the outcome of that assessment every year.
During 2024/25, SSE completed the process
to confirm its material climate-related
opportunities and risks. SSE pioritised those
opportunities and risks based on both
internal and external developments since
the previous assessment.
As a result of the review, the ‘short term’
TCFD scenario time horizon has been
extended from 2030 to 2035. This change
reflects realignment with internal business
time horizons where business plans are
reviewed over a ten-year period, and the
longer-term strategic nature of this climate
scenario analysis.
The biennial review of risks and
opportunities confirmed that each of the
climate-related opportunities remained
material to SSE.
However, management assessed that the
‘Accelerated Gas Closure’ transition risk
thatSSE reported on last year has become
less material to SSEand has been removed
from this year’s analysis. SSE reached
thisdecision having considered the UK
Government’s ‘Clean Power 2030 Action
Plan’, published in December 2024, and the
UK Climate Change Committee’s (UK CCC)
Seventh Carbon Budget, published in
February 2025. These publications set out
the strategic importance of unabated
gas-fired electricity generation providing
aback-up role in the UK’s transition to
netzero. On 31 March 2025, SSE reassessed
the useful economic life of threeof its
CCGT assets, extending the closure date
from 2030 to 2035 (see Group Consolidated
Financial Statements
note 4.1
on pages
177 to 178 ).
As a result, the perceived risk of mandated
early closure of these CCGT assets
hasmaterially decreased in the year.
The remaining three transition and physical
risks reported last year remain relevant and
continue to be assessed.
Each year, SSE reviews its scenario process,
updating it with information from external
scenario providers and considering
relevanteconomic and political factors
tooperations. SSE currently assesses
How SSE conducts its
scenarioanalysis
different scenarios with temperature
outcomes of 1.5°C, 2.5°C and4°C over
timehorizons to 2035, 2050 and 2080.
By updating the scenario analysis annually,
this can provide an indication of the
potential financial impact to SSE.
This allows SSE to assess and manage
potential emerging risks as part of the
integrated Group Risk Management
Framework and to provide strategic insights
into potential changes in climate-related
opportunities.
Time horizons for scenario analysis
SSE has defined time horizons for assessing
climate-related opportunities and risks as
follows:
– Short term – aligned to SSE’s financial,
operational, capital investment plans and
to SSE’s Net Zero Transition Plan;
– Medium and long term – aligned to
when climate-related impacts are more
likely to emerge.
Figure 1 sets out the relationship between
Climate-related financial disclosures time
horizons and SSE’s Going Concern and
Viability statements’ time horizons.
Assessing financial impacts of climate-
related opportunities and risks
SSE assesses climate-related opportunities
and risks relative to an operating profit
measure. The scenario analysis used the
financial quantification pathways (see panel)
along with internal and external data
sources to quantify each of the material
opportunities and risks under the different
scenarios. Additional sensitivity analysis is
also used to provide further insights into the
impact of climate-related opportunities and
risks on the Group’s business operations.
Carbon pricing
As a generator of electricity, SSE is subject
to policies that affect the price of carbon,
and takes that price into consideration in
many of its investment decisions.
SSE’s generation activities in Great Britain
are subject to the UK Emissions Trading
Scheme (UK ETS), which is a cap-and-trade
programme. In addition, SSE’s generation
assets in GB are subject to the Carbon Price
Support mechanism, which sets a price per
tonne of carbon emitted.
This, combined with the UK ETS allowance
price, makes up the Total Carbon Price paid
by electricity generators. In Ireland, SSE’s
generation assets are subject to the EU
Emissions Trading Scheme (EU ETS). As part
of SSE’s capital investment plans a range
ofcarbon prices are considered, £52 to
£140/tCO
2
in GB and €66 to €155/tCO
2
inthe EU. SSE’s future plans include
assumptions on low, central and high
carbon range forecasts.
Material opportunities
andrisks
Identified and prioritised through
an assessment process
Impact pathways
Developed for each opportunity
andrisk, considering the
business and financial impacts of
possible climate-related events
Financial quantification
pathways
Developed for each opportunity
and risk, including identifying
data points and external
scenarios
Scenario selection
Relevant scenarios selected
foreach opportunity and risk,
considering a range of factors
like temperature outcomes
andtime horizons
Quantification
Using internal data and publicly
available data from TCFD
recommended providers
Assessment
Quantification output assessed,
considering resilience of
business model and strategy
tothe opportunities and risks
across the time horizons and
warming scenarios
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Scenario selection and assumptions
Climate scenarios help assess how the
impact of the opportunities and risks
identified may change in different warming
scenarios; however they are only scenarios
and not forecasts. The scenario analysis SSE
performs extends beyond normal business
forecasting cycles and in some cases
beyond the operating life of the majority
ofthe Group’sassets.
SSE selects external scenario datasets
according to relevant characteristics of each
material opportunity or risk.
SSE uses the following external scenarios
inits analysis:
– International Energy Agency (IEA)
WorldEnergy Outlook 2024,
– National Grid Future Energy Scenario
(FES) Pathways framework 2024,
– International Panel on Climate Change
(IPCC) models and Met Office UK
Climate projections
The specific scenarios within these models
and the warming scenarios they relate to
are outlined in Table 1.
These scenarios were consistent with those
used last year and data was updated by the
relevant external provider.
Climate-related financial disclosures continued
Assessment of impacts
This year’s analysis indicates continued
growth across all material climate-related
opportunities, while climate-related risks
remain stable. Extending the short-term
time horizon to 2035 has resulted in
increased annualised growth and the
inclusion of additional pipeline assets within
the 2035 scenario scope. These were not
considered in the prior year’s assessment.
SSE’s material climate-related opportunities
Figure 1: SSE’s Going Concern Statement, Viability Statement
and Climate-related financial disclosures time horizons
20292026 2035 2050 2080
Going Concern Statement
Time horizon to
December 2026
Climate-related financial disclosures
Time horizons:
– Short term to March 2035
– Medium term to March 2050
– Long term to March 2080
Viability Statement
Four-year time horizon toMarch 2029
and risks are considered in SSE’s Net Zero
Transition Plan, which sets the key actions
todrive progress towards its near-term
science-based targets, and net zero
ambitions. The detailed assessment of
impacts relating to climate-related
opportunities and risks are provided in the
following tables on pages 75 to 78
.
Table 1: External models and scenarios used in SSE’s climate scenario
analysis 2024/25
Warming
scenario Transition scenarios Physical scenarios
1.5°C – IEA World Energy Outlook 2024 –
NetZero Emissions (NZE) by 2050
– National Grid FES Pathways framework
2024 – Holistic Transformation and
Electric Engagement
– IPCC Representative Concentration
Pathway – RCP 2.6
– UK Met Office Climate projections
(UKCP18) tool
2.5°C – IEA World Energy Outlook 2024 –
StatedPolicies (STEPS)
– National Grid FES Pathways framework
2024 – Counterfactual
4°C

– IPCC Representative Concentration
Pathway – RCP 8.5
– UK Met Office Climate projections
(UKCP18) tool
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Detailed climate-related opportunities and risks tables
The following tables describe: the key scenario and assumptions applied; the potential financial impact; the geographical and asset impact
within SSE’s own operations; the impact on the business strategy and mitigation; and the related 2030 Goal for each of the material
climate-related opportunities and risks.
Transition opportunities
The potential financial impact of all scenarios for transition opportunities is stated in GBP billion (£bn), based on one-year annualised
earnings before interest and tax (EBIT), and presented as a range to reflect the sensitivities applied to each scenario.
Financial impact change from prior period:
Growth
Stable
Decline
Accelerated
transmission growth
Scenario inputs
– 2024 FES Holistic
Transition and
Counterfactual pathways.
– The projected share of
renewable capacity
connected to SSEN’s
network.
Financial impact
Based on scenarios, the opportunity to invest in an
accelerated expansion of SSEN’s transmission network
presents a potentially significant increase to EBIT.
The outcomes continue to indicate a growth opportunity
in connected renewable capacity, which is more
considerable in the 1.5°C scenarios.
Scenario
2035
(£bn)
2050
(£bn)
1.5°C 0.9 to 1.2 1.4 to 1.9
2.5°C 0.4 to 0.6 0.7 to 1.0
Electrification of the UK economy presents
anopportunity to accelerate returns from
required investment in SSEN’s electricity
transmission network.
Geographical and asset impact
SSEN Transmission network assets in the
north of Scotland.
Strategy
SSEN Transmission owns, operates and develops the transmission network in the north
of Scotland. In December 2024, the business submitted its Business Plan to Ofgem for
the RIIO-T3 price control period, from 2026 to 2031. This plan sets out £22bn of
known certain expenditure to 2031 and the potential for an additional £9bn of
potential future expenditure.
Related 2030 Goal
Enable low-carbon generation and demand.
Accelerated wind
investment
Scenario inputs
– 2024 IEA NZE and STEPS
scenarios for wind
capacity.
– SSE’s electricity capacity
projections for existing
and pipeline wind
portfolio.
– Internal projections of
price adjustments arising
in a renewables-
dominated electricity
system.
Financial impact
Based on the scenarios, investment in wind assets at scale
could result in significant increases to EBIT under both
warming scenarios and timeframes.
The outcomes continue to indicate the growth
opportunity from SSE’s strong pipeline of options focused
on offshore and onshore wind.
Scenario
2035
(£bn)
2050
(£bn)
1.5°C 0.9 to 1.2 1.5 to 2.0
2.5°C 0.5 to 0.7 0.9 to 1.2
The transition to clean power presents an
opportunity to accelerate investment in
installed onshore andoffshore wind
generation capacity.
Geographical and asset impact
UK, Irish, European and Japanese wind farm
portfolios.
Strategy
SSE Renewables has a strong pipeline of development options focused on offshore
and onshore wind. The business is targeting an increase in installed capacity to 7GW
by 2027, with ~1GW under construction at that point in time.
Related 2030 Goal
Increase renewable energy output fivefold.
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Valuable flexible hydro
Scenario inputs
– 2024 IEA NZE and STEPS
scenarios for hydro
generation.
– SSE’s projected output
from existing and pipeline
hydro portfolio.
– Internal projections of
price adjustments arising
in a renewables-
dominated electricity
system.
Financial impact
Based on scenarios, the opportunity to provide flexible
low-carbon hydro generation that balances intermittent
electricity generation from wind assets has the potential
toincrease EBIT in the longer term.
The outcomes indicate a similar level of growth in both
temperature scenarios as modelling shows new assets
being operational in both the 2035 and 2050 time horizons.
Scenario
2035
(£bn)
2050
(£bn)
1.5°C up to 0.1 0.2 to 0.3
2.5°C up to 0.1 up to 0.2
An increasing reliance on intermittent
electricity generation sources presents an
opportunity to invest in new low-carbon
hydro assets thatearn returns from flexible
balancing oftheelectricity system.
Geographical and asset impact
Hydro assets in the north of Scotland.
Strategy
SSE Renewables operates and develops conventional hydro and pumped storage that
provides flexible and dispatchable electricity. SSE continues to develop opportunities
to expand its flexible low-carbon hydro generation, which could include new assets
such as Coire Glas.
Related 2030 Goal
Increase renewable energy output fivefold.
Valuable flexible thermal
Scenario inputs
– 2024 IEA NZE and STEPS
scenarios for CCUS and
Bioenergy generation.
– SSE’s projected output
from pipeline low-carbon
thermal generation assets.
Financial impact
The opportunity to invest in new low-carbon thermal
generation assets has the potential to increase EBIT in the
longer term.
The outcomes continue to indicate more growth in
low-carbon thermal generation in the 1.5°C scenarios.
Scenario
2035
(£bn)
2050
(£bn)
1.5°C 0.3 to 0.4 0.6 to 0.8
2.5°C up to 0.1 up to 0.2
Intermittent weather patterns present an
opportunity to invest in low-carbon thermal
assets that will generate returns from
providing flexible capacity, security of supply,
and price stability to the electricity system.
Geographical and asset impact
GB carbon capture and storage (CCS) power
stations (including investments in joint
ventures), and sustainable biofuel power
stations in Ireland.
Strategy
SSE Thermal is continuing to develop a pipeline of options for new low-carbon
thermal assets across a range of technologies from CCS to biofuels and hydrogen.
Related 2030 Goal
Cut carbon intensity by 80%.
Driving distribution
transformation
Scenario inputs
– 2024 FES Electric
Engagement and
Counterfactual pathways
for electricity consumer
demand.
– SSE’s projected electricity
distributed on the existing
and pipeline network.
Financial impact
Increased expansion of SSEN Distribution’s network has
the potential to increase EBIT in the longer term.
The outcomes continue to indicate considerable growth
inconsumer demand in the UK as consumers adopt
low-carbon technologies and energy efficiency measures.
More significant growth is projected in the 1.5°C scenarios.
Scenario
2035
(£bn)
2050
(£bn)
1.5°C up to 0.2 0.4 to 0.6
2.5°C up to 0.1 0.3 to 0.4
UK climate policy presents an opportunity to
transform SSEN Distribution’s networks to
meet the potential five- to ten-fold increase
inconsumer demand.
Geographical and asset impact
SSEN Distribution network assets in the north
of Scotland and central southern England.
Strategy
SSEN Distribution is the distribution network operator for central southern England
and the north of Scotland. Its RIIO-ED2 Business Plan 2023 to 2028 sets out the
flexibility and network investment required to accelerate net zero. SSEN Distribution is
now preparing its next Business Plan for the price control period from 2028 to 2033.
Related 2030 Goal
Enable low-carbon generation
anddemand.
Climate-related financial disclosures continued
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Transition risk
The potential financial impact of the wind generation price transition risk is stated in GBP billion (£bn), based on one-year annualised
earnings before interest and tax (EBIT), and presented as a range to reflect the sensitivities applied to the scenario.
Financial impact change from prior period:
Growth
Stable
Decline
Wind generation price
Scenario inputs
– 2024 IEA NZE and STEPS
scenarios for wind
generation.
– SSE’s projected merchant
wind output from existing
and pipeline wind
portfolio.
– Internal projections of
price adjustments arising
in a renewables-
dominated electricity
system.
Financial impact
Increased wind generation capacity and changing
consumer demand may result in power prices being lower
for non-contracted wind assets.
The outcomes of both scenarios continue to indicate
considerable growth intotal wind generation and a
subsequent impact on the achievable price for wind assets.
This is most evident in the 1.5°C 2050 scenario, where
total wind generation growth isforecast to be greatest.
Scenario
2035
(£bn)
2050
(£bn)
1.5°C up to (0.2) (0.7) to (0.9)
2.5°C up to (0.1) (0.2) to (0.3)
As wind generation capacity increases, the
average market electricity price for wind power
is expected to be lower than the average price
for electricity.
Geographical and asset impact
UK, Irish, European and Japanese wind farm
assets with no revenue support contracts
(e.g.Contracts for Difference).
Mitigations
SSE’s balanced portfolio of generation capacity (across wind, hydro, solar, battery and
thermal), power hedging strategies, revenue stabilisation agreements and long-term
offtake agreements are key to mitigating future low wind prices.
Related 2030 Goal
Increase renewable energy output fivefold.
Physical risks
The potential financial impact of all scenarios for physical risks stated in GBP billion (£bn), based on one-year annualised earnings before
interest and tax (EBIT), and presented as a range to reflect the sensitivities applied to each scenario.
Financial impact change from prior period:
Growth
Stable
Decline
Variable renewable
generation
Scenario inputs
– 2024 IEA NZE scenario
forwind generation.
– UK Met Office climate
projections (UKCP18) tool
aligned to IPCC RCPs 2.6
and 8.5 for average wind
speeds.
– Projected output of SSE’s
existing and pipeline wind
portfolio.
Financial impact
Predicted lower wind speeds and variable rainfall levels
have the potential to reduce renewable electricity
generation and related EBIT.
The outcomes of both scenarios continue to indicate a
marginal decline in wind speeds, offset by significant
growth in wind generation.
Scenario
2050
(£bn)
2080
(£bn)
1.5°C up to (0.2) (0.2) to (0.3)
4°C (0.2) to (0.3) (0.3) to (0.4)
Climate change models predict sustained
higher temperatures that cause greater
extremes in weather patterns, including
variable wind and rainfall patterns. These
scenarios could result in reduced renewable
electricity generation and a fall in earnings.
Geographical and asset impact
Wind farm portfolios in the UK, Ireland,
Europe and Japan, and hydro assets in the
north of Scotland.
Mitigations
SSE continues to review climate projections using the Met Office UK Climate
Projection (UKCP18) to understand the potential impact on renewable generation
assets and infrastructure. The technical and geographical nature of SSE’s renewable
capacity, alongside meteorological monitoring, crisis management and business
continuity plans are some of the ways that SSE manages and mitigates this risk.
Related 2030 Goal
Increase renewable energy output fivefold.
77 SSE plc Annual Report 2025
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Extreme weather
network damage
Scenario inputs
– 2024 FES Electric
Engagement and
Counterfactual
pathways for
consumer demand.
– UK Met Office climate
projections (UK CP18)
tool aligned to IPCC
RCPs 2.6 and 8.5 for
average winter wind
speeds and mean
summer temperatures
– Storm and heat costs
to SSE’s existing and
pipeline network
assets.
Financial impact
This risk has the potential to cause physical damage to
network assets, increasing repair and maintenance costs,
and to disrupt supply to customers, increasing exposure
toregulator penalties and reputational issues, negatively
affecting EBIT.
The outcomes of both scenarios continue to indicate a
marginal decline in wind speeds and an increase in average
temperatures. However there could be more frequent and
intense extreme weather events in the future.
Storms continue to pose a material risk to SSE, particularly
in relation to customers. In the financial year to 31 March
2025, SSE experienced seven UK Met Office-named storms
that had an impact on customers and network assets.
Scenario
2050
(£bn)
2080
(£bn)
1.5°C up to (0.1) up to (0.2)
4°C up to (0.1) up to (0.2)
More extreme weather events, including
disruptive flooding events, heat waves and
extreme winds, may cause greater damage
toelectricity distribution network assets,
resulting in faults and outages.
Geographical and asset impact
SSEN Distribution network assets in the north
of Scotland and central southern England.
Mitigations
SSE has mitigation methods in place, such as monitoring short- and long-term
weather patterns, crisis management and business continuity plans and investment
programmes to improve infrastructure resilience. SSEN Distribution has set out a
resilience strategy with climate adaptation actions, including flood risk mitigation,
initscurrent price control Business Plan.
Related 2030 Goal
Enable low-carbon generation and
demand.
Climate-related financial disclosures continued
SSEN Distribution climate resilience strategy mitigates the risk from extreme weather on distribution network assets
78 SSE plc Annual Report 2025
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The table on this page, in combination with the energy use information in Table 3 on page 59 , represents SSE’s disclosures in line with
theUK Government Streamlined Energy and Carbon Reporting requirements. SSE takes an operational control consolidation approach
todefine its organisational boundary for GHG emissions.
SSE’s inventory details its direct and indirect GHG emissions performance (scopes 1, 2 and 3). This is shown as total emissions, as well as
split out by UK and Irish activity. It also provides a carbon intensity measure based on scope 1 GHG emissions released for each unit of
electricity generated by SSE.
SSE’s GHG inventory is prepared in accordance with the UK Government’s environmental reporting guidelines (BEIS, March 2019); aligned
to the Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (revised edition) developed by the World Resources
Institute and the World Business Council for Sustainable Development (2004); and ISO 14064-1:2018 Specification with Guidance at the
Organization Level for Quantification and Reporting of Greenhouse Gas Emissions and Removals.
For more information on SSE’s GHG emissions data and how it is produced, see SSE’s Sustainability Reporting Criteria 2025 available at
sse.com/sustainability
.
Table 2: SSE’s carbon performance
Unit 2024/25 2023/24
Total reported GHG emissions MtCO
2
e10.24
(a)
9.27
Scope 1 GHG emissions Total MtCO
2
e5.22
(a)
4.34
(b)
UK/Ireland MtCO
2
e (4.58/0.64) (3.64/0.70)
Scope 2 GHG emissions
1
Total MtCO
2
e 0.48
(a)
0.47
(b)
UK/Ireland MtCO
2
e (0.48/<0.01) (0.47/<0.01)
Scope 3 GHG emissions
2
(Categories 3, 4, 9, 11 and 15 only)
Total MtCO
2
e4.54
(a)
4.46
(b)
UK/Ireland MtCO
2
e(3.65/0.89) (3.73/0.73)
Scope 1 GHG emissions intensity Total gCO
2
e/kWh 218
(a)
205
(b)
Renewable generation output
3
Total GWh 10,237 10,004
UK/Ireland GWh (8,897/1,324) (8,652/1,352)
Non-renewable generation output
4
Total GWh 13,740 11,159
UK/Ireland GWh (12,335/1,405) (9,509/1,650)
Generation output Total GWh 23,977 21,164
UK/Ireland GWh (21,231/2,729) (18,162/3,002)
(a) This data is subject to external independent limited assurance by Ernst & Young Global Limited (‘EY’). For the results of that assurance, see EY’s assurance report and SSE’s
Sustainability Reporting Criteria 2025 on
sse.com/sustainability
.
(b) This data was previously reported in the SSE plc Annual Report 2024 where it was subject to external independent limited assurance by PricewaterhouseCoopers LLP (‘PwC’).
Forthe results of that assurance, see PwC’s assurance report and SSE’s GHG and Environmental Reporting Criteria 2024 on sse.com/sustainability
.
1 SSE Scope 2 emissions are calculated using the location-based method described in the Greenhouse Gas Protocol.
2 SSE Scope 3 GHG emissions reported consist of Category 11 – Use of Sold Products (Gas Sold) of 1.95 MtCO
2
e
(a)
; Category 15 – Investments (Joint Venture investments); Category
3 – Fuel- and Energy-Related Activities (excluding upstream emissions associated with gas sold); Category 9 – Downstream Transportation and Distribution; Category 4 –
Upstream Transportation and Distribution; and Category 6 – Business Travel. Category 1 – Purchased Goods & Services and Category 2 – Capital Goods are excluded as SSE
continues to develop and refine its accounting approach to calculate these figures to an acceptable level of accuracy. The upstream emissions associated with gas products sold is
also excluded from Category 3.
3 Total includes pumped storage, battery energy storage systems and biomass output and excludes constrained-off wind.
4 Total excludes output from joint venture power stations where SSE does not have operational control (Seabank Power Limited, Triton Power Limited and Slough Multi-Fuel
Limited), and includes 100% of output from joint venture power stations where SSE has full operational control under Power Purchase Agreements (Marchwood Power Limited).
Carbon performance disclosures
79 SSE plc Annual Report 2025
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EU Taxonomy assessment
SSE voluntarily aligns its reporting with the EU Taxonomy regulation to provide stakeholders
with an understanding of its green economic activities.
SSE’s key strategic activities (i.e. onshore wind, offshore wind, transmission, distribution) from its Reported Segments were voluntarily
assessed against the EU Taxonomy criteria for climate change mitigation. While SSE conducted an internal assessment against the technical
screening, do no significant harm, and minimum safeguards criteria, a second-party opinion has not yet been sought.
The financial metrics disclosed continue to be classified based on SSE’s Reported Segments. Table 3 provides the output from this
principle-based assessment of SSE’s ‘taxonomy-aligned’ activities.
‘Taxonomy-eligible and aligned’ activities in 2024/25 are from SSE’s transmission and distribution networks, as well as onshore and offshore
wind generation and hydro (run-of-river and pumped storage) activities. The ‘taxonomy-eligible not aligned’ activities are associated with
SSE’s Thermal generation and Gas Storage businesses. As these businesses continue on their decarbonisation pathways, it is expected that
emerging activities such as low-carbon flexible generation or hydrogen storage will qualify in the future as eligible and aligned activities.
Some activities are considered ‘taxonomy-non-eligible’ because they have not been identified in the taxonomy. This is because they either
do not significantly contribute to climate change mitigation or could be integrated into the taxonomy at a laterdate. These activities
comprise SSE’s Business Energy, Airtricity, Energy Markets and Corporate businesses because they either operate ascustomer-focused
businesses, a route to market forgeneration, or do not contain material activities at this time.
Assumptions
SSE’s accounting policies for these calculations are based on the current EU Taxonomy Regulation 2020/852, and delegated acts.
Linkage principle
SSE has applied a ‘linkage principle’ while calculating ‘taxonomy-eligible aligned’ activities. This stipulates that any revenue, operating
profit/loss or capital expenditure that can be justifiably linked to an identified taxonomy economic activity can be classified as ‘taxonomy-
eligible aligned’. Using this principle, revenue and operating profits from SSE’s balancing activities, hedging and trading can be included in
the calculation when they directly support ‘taxonomy-eligible aligned’ activities.
Proxies
Where financial results are not appropriately split into taxonomy-eligible activities (namely Energy Markets trading and power sale
activities), revenue has been allocated based on purchased power volumes from renewable versus non-renewable assets. Operating profit/
loss has been apportioned based on internal contractual trading agreements.
Materiality
In preparing its analysis, SSE has applied a top-down review to understand how existing segmental reporting aligns with taxonomy-aligned
activities. There are some activities that fall below specified thresholds that are not taxonomy eligible. As SSE’sreporting processes and
controls will be refined ahead of any proposed implementation of the UK Green Taxonomy, it is expected that some reclassification of
activities may occur, due to changes in materiality thresholds or clarification on eligible activity criteria.
Table 3: Assessment of SSE’s activities against the EU Taxonomy
SSE’s Reported Segments (a) ‘Taxonomy-eligible’ activity (a)
Revenue (b)
Adjusted operating profit /
(loss) (c)
Adjusted
investment and
capital expenditure (d)
£m % £m % £m %
SSEN Transmission Transmission of electricity 807.0 8.0 322.5 13.3 953.5 32.8
SSEN Distribution Distribution of electricity 1,513.6 14.9 736.0 30.4 635.8 21.8
SSE Renewables Electricity generation 354.9 3.5 1,038.8 42.9 1,001.8 34.4
SSE Energy Markets As route-to-market for SSE Renewables 803.9 7.9 59.4 2.5 2.2 0.1
Total ‘taxonomy-eligible aligned’ activities 3,479.4 34.3 2,156.7 89.1 2,593.3 89.1
SSE Thermal
Electricity generation from fossil
gaseousfuels 633.0 6.2 248.5 10.3 183.1 6.3
Gas Storage Storage of hydrogen 17.6 0.2 (37.1) (1.5) 0.7 –
SSE Energy Markets As route-to-market for SSE Thermal 1,191.5 11.8 (11.4) (0.5) 2.2 0.1
Total ‘taxonomy-eligible not aligned’ activities 1,842.1 18.2 200.0 8.3 186.0 6.4
SSE Business Energy 2,692.4 26.6 32.7 1.4 73.1 2.6
SSE Airtricity 1,909.1 18.8 159.4 6.6 6.9 0.2
SSE Energy Markets – – (18.0) (0.7) 4.3 0.1
Corporate unallocated 208.9 2.1 (111.6) (4.7) 46.8 1.6
Total ‘taxonomy-non-eligible’ activities 4,810.4 47.5 62.5 2.6 131.1 4.5
Total continuing operations 10,131.9 100.0 2,419.2 100.0 2,910.4 100.0
Notes:
(a) Alignment is based on segmental reporting in SSE’s financial year end statements. (see note 1.2 Basis of preparation for segmental changes in the year to 31 March 2025).
(b) Revenue: derived from the disaggregation of revenue from contracts by customers, in line with the requirements of IFRS 15 ‘Revenue from Contracts with Customers’ (see note 5.1.(i)).
(c) Adjusted operating profit/(loss): calculated as adjusted operating profit/loss related to the businesses aligned with the taxonomy categories (see note 5.1.(ii)).
(d) Adjusted investment and capital expenditure: calculated as adjusted capital expenditure related to assets or processes associated with taxonomy-eligible economic activities that
is accounted for based on IAS 16, IAS 38 and IFRS 16 and thereby included within adjusted capital expenditure (see note 5.1.(iii)).
80 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Non-financial and sustainability information statement
SSE reports extensively on its non-financial impacts within its Annual Report and welcomes
continued and increasing focus from regulators, shareholders and other stakeholders.
This table outlines how SSE meets the Non-financial Information and Sustainability reporting requirements contained within the
Companies Act 2006. For more information on SSE’s business model in Section 414CB (2)(a) see page 7 . Further disclosure can also be
found in SSE’s Sustainability Report 2025.
Reporting requirement and SSE’s
material areas of impact
Relevant Group Principal
Risks, pages 64 to 69
Relevant Group Policies
on sse.com
Policy embedding, due
diligence, outcomes and key
performance indicators
Climate matters
– Delivering net zero
– Managing climate-related issues
– Carbon performance, metricsand
targets
–Climate-related financial
disclosures
Climate Change Group Climate Change Policy Performance against 2030 Goals,
page 15
Our strategy, page 6
Driving climate action,
pages 46 to 48
Climate-related financial
disclosures, pages 71 to 78
Environmental matters
– Responsible resource use – water
and energy use, airemissions
– Managing impacts on the natural
environment and biodiversity
Safety and the Environment Group Environment Policy Protecting and restoring the natural
environment,
pages 58 to 59
Safety, Sustainability, Health and
Environment Advisory Committee
Report,
pages 122 to 125
Employees
– Protecting health, safety
andwellbeing
– Investing in training andlearning
– Culture and ethics
– Reward and benefits
– Employee voice
– Promoting inclusion anddiversity
People and Culture
Safety and the Environment
Group Employment Policy
Group Safety and Health Policy
Performance against 2030 Goals,
page 15
Committed to decent work and
economic growth,
pages 53 to 57
Safety, Sustainability, Health and
Environment Advisory Committee
Report, pages 122 to 125
Social matters
– Ensuring a just transition
– Contributing to jobs and GDP
– Sustainable procurement and
supporting local supply chains
– Paying a fair share of tax
– Supporting customers through
thecost-of-living crisis
– Sharing value with local
communities
People and Culture
Speed of Change
Energy Affordability
Group Sustainability Policy
Group Taxation Policy Group
Procurement Policy
Performance against 2030 Goals,
page 15
Committed to decent work and
economic growth, pages 53 to 57
Human rights, anti-corruption
andanti-bribery
– Reinforcing an ethical
businessculture
– Speaking up against wrongdoing
– Prevention of bribery
andcorruption
– Approach to human rights
People and Culture
Large Capital Projects
Management
Group Human Rights Policy
Group Corruption and Financial
Crime Prevention Policy
Group Whistleblowing Policy
Committed to decent work and
economic growth, pages 53 to 57
81 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Viability statement
SSE provides energy needed today
whilebuilding a better world of energy
fortomorrow through creating value for
shareholders and society in a sustainable
way by developing, building, operating and
investing in the electricity infrastructure and
businesses needed in the transition to net
zero. The delivery of SSE’s purpose and
execution of its strategy depends on the
skills and talent of a diverse workforce,
thequality of its assets and the effective
identification, understanding and mitigation
of risk.
As required within provision 31 of the UK
Corporate Governance Code, the Board
hasformally assessed the prospects of the
Company over the next four financial years
to the period ending March 2029. The
Directors have determined that as this time
horizon aligns with the financial planning
period, a greater degree of confidence over
the forecasting assumptions modelled can
be established.
In making this statement the Directors
haveconsidered the resilience of the Group
taking into account its current position,
thePrincipal Risks facing the Group and
thecontrol measures in place to mitigate
each of them. The Directors recognise the
significance of the strong balance sheet
with committed lending facilities as
shownbelow:
£bn Matures Comment
SSE plc 1.50 October
2029
2 1-year
extension
options
available (in
favour of
the Group)
SSEN
Transmission
1
1.50 October
2029
2 1-year
extension
options
available (in
favour of
the Group)
3.00
1 The Transmission facility is available to that Business
Unit only.
The Group is an owner and operator of
critical national infrastructure and has
aproven ability to maintain access to
capitalmarkets during stressed economic
conditions. The Group continued to
demonstrate this through the recent
issuance of a €600m 7-year green bond in
March 2025, taking the total the Group has
issued in the Debt Capital markets to £6.8bn
over the past 5 financial years. Further detail
relating to planned funding is available in
A6.3 . Accompanying Information to the
Financial Statements in the Annual Report
and Accounts and the adjoining Going
Concern statement.
The Group has a number of highly attractive
and relatively liquid assets – including a
regulated asset base which benefits from a
strong regulated revenue stream as well as
the operational wind portfolio – which
provide flexibility of options. This has been
demonstrated through the success of
recent disposals including the sale of a
25%stake in the Transmission business
inFY2022/23.
To help support this Statement, over the
course of the year a suite of severe but
plausible scenarios has been developed
foreach of SSE’s Principal Risks. These
scenarios are based on relevant real life
events that have been observed either in the
markets within which the Group operates or
related markets globally. Examples include
critical asset failure impacting generation
assets (for Energy Infrastructure Failure);
significant project delays (for Large Capital
Projects Management) and the physical
impacts of climate change on distribution
assets through more frequent and
increasingly severe storm events
(forClimate Change).
Scenarios are stress tested against forecast
available financial headroom and in addition
to considering these in isolation, the
Directors also consider the cumulative
impact of different combinations of
scenarios, including those that individually
have the highest impact.
Upon the basis of the analysis undertaken,
and on the assumption that the
fundamental regulatory and statutory
framework of the markets in which the
Group operates does not substantively
change, and the Group continues to be able
to refund its debt at maturity, the Directors
have a reasonable expectation that the
Group will be able to continue to meet its
liabilities as they fall due in the period to
March 2029.
82 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Going Concern
Given the committed bank facilities of
£3.0bn (£1.5bn excluding Scottish Hydro
Electric Transmission plc facilities)
maintained by the Group and the current
commercial paper market conditions, the
Directors have concluded that both the
Group and SSE plc as parent company
havesufficient headroom to continue as
aGoing Concern.
In coming to this conclusion, the Directors
have taken into account the Group’s credit
rating and the successful issuance of
£16.9bn of medium- to long-term debt and
hybrid equity since February 2012, including
£1.4bn of long-term funding in the current
financial year.
The Group’s period of Going Concern
assessment is performed to 31 December
2026, 21 months from the balance sheet
date, which is at least 12 months from the
filing deadline of its subsidiary companies.
While the formal assessment period was
tothe period ending 31 December 2026,
aperiod of three months beyond this date
was reviewed for significant events that may
result in a change to the conclusion of the
assessment. No events or circumstances
were identified in that period beyond the
formal assessment.
As well as taking account of the factors
noted, the Going Concern conclusion is
arrived at after applying stress testing
sensitivities to the Group’s cash flow and
funding projections including removal
ofproceeds from unconfirmed future
divestments, negative and positive
sensitivities on operating cash flows and
uncommitted capex and other adjustments.
The Group has also considered its
obligations under its debt covenants.
Therehave been no breaches of covenants
in the year and the Group’s projections
support the expectation that there will be
no breach of covenants over the period
to31December 2026.
The Directors consider that the Group
hasadequate resources to continue in
operational existence for the period
to31December 2026. The Financial
Statements are therefore prepared on
aGoing Concern basis.
The Group uses cash flow forecasts
tomonitor its ongoing borrowing
requirements. Typically, the Group will fund
any short-term borrowing positions by
issuing commercial paper or borrowing
from committed and uncommitted bank
lines and will invest in money market funds
when it has a cash surplus.
Details of the Group’s borrowings are
disclosed at note 21 of the Financial
Statements. In addition to the borrowing
facilities listed, the Group has a £21m
overdraft facility.
The refinancing requirement in the 2025/26
financial year is £1.9bn, being the £0.9m of
short-term commercial paper that matures
between April and June, and £1.0bn of
medium- to long-term debt maturing being
the €600m (£503m) Eurobond maturing
16April 2025 and €600m (£499m)
Eurobond maturing 8 September 2025.
The Directors are confident in the ability of
the Group to maintain a funding level above
105% for the Going Concern assessment
period based on the strong credit standing
and borrowing history of the Group for
bothfixed debt and commercial paper,
asdiscussed more fully below.
83 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Governance
Chair’s introduction 85
Board of Directors 87
Group Executive Committee 91
Governance at a glance 92
The Board’s year 94
Our stakeholders and Section 172 Statement 102
Assessing Board performance 105
Nomination Committee Report 107
Audit Committee Report 113
Energy Markets Risk Committee Report 120
Safety, Sustainability, Health and
Environment Advisory Committee Report 122
Remuneration Committee Report 126
Directors’ Remuneration Policy review 129
Directors’ Remuneration Policy 131
Remuneration at a glance 139
Annual report on Remuneration 140
Compliance with the UK Corporate
Governance Code 2018 154
Other statutory information 157
Statement of Directors’ responsibilities in respect
of the Annual Report and the Financial Statements 160
84 SSE plc Annual Report 2025
Governance Financial StatementsStrategic Report

In 2024/25, SSE continued to play an
integral role in meeting the climate
emergency head on. We have developed
our portfolio of assets, projects and
opportunities in line with our commitment
to delivering our five-year, c.£17.5bn clean
energy investment plan by 2027: the Net
Zero Acceleration Programme (NZAP) Plus.
And we’re preparing for another significant
growth phase across the Group to 2030 and
beyond. Our diverse portfolio has given us
options and resilience in what has been a
highly complex operating environment.
We’re also moving towards a new era of
leadership as we welcome Martin Pibworth
as our new Chief Executive and Hixonia
Nyasulu as Senior Independent Director.
I’mconfident that, with these appointments
and the guidance of the Board, we will
continue to deliver on our strategic and
financial objectives as we prepare to
accelerate towards our net zero ambition.
Ensuring strategic progress
The Board’s work this year has been
focused on the NZAP Plus and planning
forthe growth that will follow to 2030 and
beyond. We receive regular updates on
progress against NZAP Plus targets and
engage extensively with teams across
theGroup. This ensures we maintain an
understanding of all aspects of delivering
and operating energy infrastructure
projects. These insights inform our
decisions on how best to allocate capital to
support the energy transition for the benefit
of society, while also creating a return on
investment for our shareholders.
This year, in response to a dynamic and
complex macro environment, we have
made the decision to revise our NZAP Plus
plan to around £17.5bn. An overview of our
work during the year is on pages 94 to 101
.
For updates on the work of our Board
Committees, see the Committee Reports
on
pages 107 to 153
.
Engaging with our stakeholders
To support our work in building a better
world of energy that’s clean, affordable
andsecure for our society, we continued
tolook for opportunities to connect with
our stakeholders during the year.
As in previous years, I met with investors
andengaged on a range of matters – from
strategy and performance to sustainability
and governance. And with our Remuneration
Policy up for shareholder approval at
theupcoming Annual General Meeting
(AGM)inJuly 2025, we offered our top
30shareholders the opportunity to discuss
and give feedback onthe proposed changes.
We were encouraged by the clear
statementof intent in the UK Government’s
Clean Power 2030 Action Plan. The Board
has overseen an extensive programme
ofengagement with government,
policymakers and regulators to continue to
position SSE as a critical delivery partner in
achieving that aim. We also oversaw the
submission of SSEN Transmission’s RIIO-T3
Business Plan, which will be key in
delivering national climate and energy
security targets over the longer term.
SSEN Transmission’s Pathway to 2030
investment programme signals an
acceleration in the delivery of critical
infrastructure. We’re keenly aware of the
lasting impact this can have on local
communities and the need to provide
customerswith affordable and efficient
energy. As we work to balance these needs
with the demand for essential infrastructure
for the UK’s net zero ambitions, we’re
staying updated on the results of extensive
consultations being carried out on
theseprojects.
SSE’s supply chain is an important enabler
to delivering the NZAP Plus and securing
future growth. So we continue to find
newways to work with and learn from our
business partners. At our annual strategy
day, we examined supply chain dynamics
and heard directly from external speakers,
including our suppliers.
It’s more important than
everthat we reaffirm our
commitment to doing the
right thing and fostering a
culture that celebrates our
differences and amplifies
under-represented voices.”
Connecting with our people
One of our most important stakeholders
are, of course, our people. The Board
hascontinued to engage directly with
employees across SSE to create a richer
range of discussions and learning
opportunities. Our activities are enhanced
by the work done by Lady Elish Angiolini,
our Non-Executive Director for Employee
Engagement – see
page 100 for more.
Along with many of my fellow Board
members, I’ve been fortunate to spend time
with field-based colleagues immersing
ourselves in safety at SSE’s industry-leading
training centre in Perth. It was clear to me
how deeply the value of safety resonates
with colleagues across the Group, as part
ofour wider business culture.
Leading through
change
The Board’s commitment to careful stewardship
and good governance continues as SSE
embarks on a new chapter of opportunity
andgrowth.
Chair’s introduction
85 SSE plc Annual Report 2025
Governance Financial StatementsStrategic Report

As we navigate an evolving political
landscape, it’s more important than ever
that we reaffirm our commitment to doing
the right thing and fostering a culture that
celebrates our differences and amplifies
under-represented voices.
We resolutely believe this commitment is
crucial to our strategic progress. It should
be reflected notonly across our workplace
but also exemplified by our senior
leadership and the Board.
Strengthening our leadership
2025 will see significant changes on our
Board, with our Nomination Committee
having successfully overseen two key
succession processes.
As announced in March 2025, Martin
Pibworth will succeed Alistair Phillips-Davies
as Chief Executive after the July AGM.
Having spent 28 years with SSE and 12 years
as ChiefExecutive, Alistair leaves behind
anexceptional legacy and a diversified
portfolio that positions SSE well for
long-term growth. Under Alistair’s
leadership, SSE has become a clean energy
champion in the UK and Ireland, delivering
true and lasting value for all stakeholders.
On behalf of the Board, I want to thank
himfor his inspirational leadership and
impeccable service in this role.
Martin Pibworth is a well-known figure at
SSE, having been with the Company for
nearly three decades. He held several key
commercial roles at SSE and joined the
Board in 2017. AsChief Commercial Officer,
Martin has overseen SSE’s Renewables,
Thermal, Energy Markets and Energy
Chair’s introduction continued
Customer Solutions businesses. His deep
understanding of energy markets and large
capital projects has been at the heart of our
strategy and delivery – and his industry
experience, stakeholder insight and
commercial acumen are second to none.
Martin was appointed after a robust and
highly competitive recruitment process,
supported by independent recruitment
specialists Korn Ferry and involving both
internal and external candidates. He was
thestand-out candidate, and I’m excited
tobeby his side as he leads SSE through
thenext phase of opportunity and growth.
Helen Mahy, our current Senior
Independent Director (SID) and Chair
oftheSafety, Sustainability, Health and
Environment Advisory Committee
(SSHEAC), will not stand for re-election
atour upcoming AGM. I’d like to thank
Helen for her invaluable commitment
andexperience over the last nine years.
Dame Angela Strank will become Chair
ofthe SSHEAC after the AGM.
We’re delighted to welcome Hixonia
Nyasulu, who joined the Board in January.
She adds a depth of experience in
international markets across the energy
sector, as well as industrial and financial
services. Hixonia will step into the role of
SID and join the Audit Committee and
SSHEAC after the AGM.
We believe these changes reflect our
ongoing commitment to a Board culture
that welcomes a wide range of views,
perspectives and experiences. For more,
see the Nomination Committee Report on
pages 107 to 112
.
Assessing our performance
In line with the three-yearly cycle, we
conducted an externally-facilitated Board
performance review with the support of
independent reviewer Heidrick & Struggles.
I was pleased to note that the 2024/25
performance report confirmed that we
operate at a high standard. We’ve now
integrated all actions proposed into our
workplan for the year ahead. For more
onthe performance review process,
see
pages 105 to 106 .
I hope this Governance Report provides a
clear and meaningful account of the Board’s
work during the year and our efforts in
underpinning SSE’s long-term success.
Sir John Manzoni
Chair, SSE plc
20 May 2025
Sir John learns more about safety processes on a visit to the Ryde depot on the Isle of Wight
86 SSE plc Annual Report 2025
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Board of Directors
Sir John Manzoni
Chair
Alistair Phillips-Davies CBE
Chief Executive
Martin Pibworth
Chief Commercial Officer and
Chief Executive designate
Barry O’Regan
Chief Financial Officer
Committee membership
S
R
N
E
Committee membership Committee membership
SE
Committee membership
E
Date of appointment
Non-Executive Director since
September 2020 and Chair from
April 2021
Career and experience
Sir John brings to SSE wide-
ranging executive and non-
executive experience across the
energy industry and government.
Over 24 years at BP, he held a
number of senior roles including
Chief Executive of Refining &
Marketing, and was a member of
the main Board. He then became
President and CEO at Talisman
Energy Inc before moving to the
UK Government, where he was
Chief Executive of the Civil Service
and Permanent Secretary of the
Cabinet Office.
Skills relevant to the SSE Board
– A dynamic and engaging leader
with diverse perspectives from
multiple sectors, organisational
settings and geographies.
– Experienced in governing
large-scale business
operations, leading reform,
managing complex projects
and driving business
performance.
– A strong communicator who
understands how to
successfully develop and
manage stakeholder relations.
– Working knowledge of the
energy regulation, government
and policy considerations
underpinning net zero.
– A sharp focus on SSE
leadership, succession
planning, and inclusion and
diversity
Key external appointments
– Non-Executive Director and
Chair of Diageo plc.
– Non-Executive Director of
KBRInc.
Date of appointment
Executive Director since January
2002 and Chief Executive from
July2013
Career and experience
A chartered accountant, Alistair
joined SSE in 1997. Before joining
the Board in 2002 as Energy
Supply Director, he was Director
of Corporate Finance and Business
Development. In 2010, he became
Generation and Supply Director,
before moving to Deputy Chief
Executive in 2012 and Chief
Executive in 2013.
Skills relevant to the SSE Board
– Contributes sound executive
leadership and a considered
approach to strategy, central
tothe Net Zero Acceleration
Programme Plus and
sustainability plans and targets.
– Broad knowledge of British and
European energy markets.
– Committed to engaging with
and understanding our
stakeholders’ priorities.
– Detailed knowledge of policy,
politics and regulation which
helps SSE engage constructively
in these areas.
– Very engaged with developing
SSE’s people to enhance the
culture and grow the business.
Key external appointments
– Non-Executive Director of
Anglian Water Services Limited.
– Member of the Scottish Energy
Advisory Board.
– Member of the UK
Government’s Hydrogen
Delivery Council.
– Member of the Net Zero
Council.
Date of appointment
Executive Director since
September 2017 and Chief
Commercial Officer from
November 2020
Career and experience
Martin joined SSE in 1998 as an
energy trader. He held a series
ofcommercial roles before
becoming a Managing Director
in2012 and a member of SSE’s
Group Executive Committee in
2014. In2017, he joined the Board
as Group Energy Director. His role
expanded to Group Energy and
Commercial Director in
November2020 and was re-titled
to ChiefCommercial Officer in
March 2022.
Skills relevant to the SSE Board
– Literate in complex energy and
commodity markets with strong
technical and operational
expertise.
– End-to-end experience in large
capital projects including joint
venture engagement and
governance, supporting the
development of SSE’s diverse
and flexible generation
portfolio.
– Commercially minded in
seeking growth for SSE’s
market-based businesses,
including internationally, having
supported key capital recycling
opportunities and transactions.
– Sound understanding of
change management and
sources of commercial risk.
Key external appointments
– Member of the Energy UK
Board.
– Chair of the CBI Scottish
Council.
Date of appointment
Executive Director and Chief
Financial Officer since
December2023
Career and experience
A chartered accountant, Barry
joined SSE in 2008. He was
Finance Director for SSE
Renewables, as well as having
responsibility for corporate
finance across the Group.
Beforethis, Barry oversaw Group
funding and treasury operations
asDirector of Treasury and
Corporate Finance. He became
Chief Financial Officer in
December 2023.
Skills relevant to the SSE Board
– Financial expertise and 20 years
of energy value chain
experience driving the
disciplined delivery of SSE’s
capital investment and growth
plans.
– Skilled in developing the
financial strategy integral to
reshaping SSE over the last
decade.
– Experienced in leading
corporate financial projects
andteams covering corporate
modelling, funding strategy
anddebt issuance.
– Active understanding of
investment community views.
– Supports SSE’s approach to
partnering, having served on
joint venture boards.
Key external appointments
–None.
Key for Board
Committees
N
Nomination Committee
A
Audit Committee
E
Energy Markets Risk Committee
S
Safety, Sustainability, Health and
Environment Advisory Committee
R
Remuneration Committee Committee Chair
For full Board biographies,
see sse.com
87 SSE plc Annual Report 2025
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Board changes 2024/25 and 2025/26
– Hixonia Nyasulu joined as non-Executive Director on 1 January 2025.
– Helen Mahy will step down at the end of the 2025 AGM and be succeeded as Senior Independent Director by Hixonia Nyasulu.
– Alistair Phillips-Davies will step down at the end of the AGM and be succeeded as Chief Executive by Martin Pibworth.
Helen Mahy CBE
Senior Independent Director
Hixonia Nyasulu
Independent non-Executive
Director and Senior Independent
Director designate
Rt. Hon. Lady Elish Angiolini
LT DBE KC
Independent non-Executive
Director of the Board and for
Employee Engagement
John Bason
Independent non-Executive
Director
Committee membership
SN A
Committee membership
N
Committee membership
RN S
Committee membership
RN
A
Date of appointment
Non-Executive Director since
March 2016 and Senior
Independent Director from
November 2023
Career and experience
Helen is a former Company
Secretary and General Counsel
ofNational Grid plc. She has held
non-executive directorships at
anumber of listed companies.
Helen was a member of the Parker
Review steering committee and is
apatron of the Social Mobility
Business Partnership.
Skills relevant to the SSE Board
– Long-standing energy and
regulatory expertise spanning
legal, compliance, governance
and risk frameworks, with
overa decade of experience
overseeing renewables
infrastructure investment.
– Extensive insight into investor
and stakeholder perspectives
and trends from cross-sectoral,
international and external
boards, enabling wider
discussion and debate.
– A balanced sounding-board
and advocate of employee
safety and wellbeing, extensive
knowledge of sustainability, and
a strong focus on social equity,
inclusion and diversity.
Key external appointments
– Non-Executive Director of
Gowling WLG (UK) LLP.
Date of appointment
Non-Executive Director since
January 2025
Career and experience
Hixonia brings significant
international experience at Board
level, with a diverse and global
perspective. She has served as
Chair of Sasol, an integrated
chemicals and energy company
operating in many countries,
andheld the role of Senior
Independent Director at Vivo
Energy plc. Before this, Hixonia
held an executive position at
Unilever in South Africa, where
she was responsible for
developing the brand, marketing
strategies and communications.
Skills relevant to the SSE Board
– Extensive experience in shaping
corporate strategy and ensuring
strong governance frameworks
focused on long-term value
creation and stakeholder
engagement.
– Expertise in identifying and
managing risks, particularly
ESGconsiderations, to drive
sustainable growth and mitigate
challenges.
– Proven commitment to
fostering diverse and inclusive
leadership teams, enhancing
organisational culture, and
promoting equitable business
practices across sectors.
Key external appointments
– Non-Executive Director of
Anglo American plc.
– Non-Executive Director of
Olam Agri Holdings.
Date of appointment
Non-Executive Director since
September2021
Career and experience
Lady Elish has had a distinguished
public sector legal career. She
served as Lord Advocate of
Scotland from 2006 to 2011
across two government
administrations and was
previously Solicitor General for
Scotland. She has carried out
independent public inquiries and
reviews for the UK and Scottish
Governments and has held various
academic positions.
Skills relevant to the SSE Board
– Significant understanding of UK
and Scottish governance and
experience of working with
government on independent
public reviews while staying
politically neutral.
– Strong ambassadorial skills
acquired through international
work in judicial, governmental,
diplomatic and academic fields.
– A strong sense of social
purpose and depth of
perspective to Board
considerations, including as an
advocate for employee views.
Key external appointments
– Principal of St Hugh’s College
Oxford.
– Chair of the Angiolini Inquiry.
– Chair of Board of Trustees of
Reprieve.
Date of appointment
Non-Executive Director since
June2022
Career and experience
A chartered accountant, John
brings significant listed company
and international experience
through his career in global
business. He was Finance Director
of Associated British Foods plc
between 1999 and 2023, when
itsdiverse businesses employed
128,000 people and operated in
53 countries worldwide. In 2023,
he became Chair of Primark’s
Strategic Advisory Board and
Senior Advisor to the retail
business.
Skills relevant to the SSE Board
– Recent and relevant financial
experience, with a track record
in developing financial and
commercial strategy including
M&A, corporate transactions
and large capital projects.
– Extensive leadership experience
and an international perspective
gained from global companies
and complex operations.
– Understanding of the listed
company context and practical
experience of investor relations
and ESG strategy, particularly
the role of sustainability.
Key external appointments
– Non-Executive Director and
Chair of Bloomsbury Publishing
plc.
– Primark Strategic Advisory
Board Chair.
– Trustee of the charity FareShare.
Board of Directors continued
For full Board biographies,
see sse.com
88 SSE plc Annual Report 2025
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Tony Cocker
Independent non-Executive
Director
Debbie Crosbie
Independent non-Executive
Director
Melanie Smith CBE
Independent non-Executive
Director
Dame Angela Strank DBE
Independent non-Executive
Director
Committee membership
E
A SN
Committee membership
EAN
Committee membership
RN E
Committee membership
RN S
Date of appointment
Non-Executive Director since
May2018
Career and experience
Tony brings a detailed knowledge
of the energy sector to the Board.
He worked with E.ON SE and
Powergen plc for more than
20years, holding responsibilities
for thermal generation, onshore
and offshore wind, commodity
trading and risk management,
andretail. He was also CEO and
Chair of E.ON UK plc.
Skills relevant to the SSE Board
– Extensive CEO and
management experience across
renewables, generation,
commodity portfolio
management, and energy
trading.
– Wide-ranging technical and
operational insight related to
energy infrastructure and
assets, having delivered major
thermal and renewable energy
projects.
– Strong UK and European energy
industry and non-Executive
experience and understanding
of utilities regulation and the
trends relevant to SSE’s
operations.
– Experience in strategic
consultancy and managing
energy and utility stakeholders.
Key external appointments
– Chair of Infinis Energy
Management Limited.
– Chair of Future Biogas Holdco
Limited.
– Chair of Energy Systems
Catapult.
Date of appointment
Non-Executive Director since
September 2021
Career and experience
A fellow of the Chartered Institute
of Bankers, Debbie brings to the
Board more than 25 years of
leadership in the UK banking
industry. Debbie became the
firstfemale CEO of Nationwide
Building Society in 2022. She
waspreviously CEO of TSB and
Executive Director and COO of
Clydesdale Bank, where she led
preparations for its successful
demerger from National Australia
Bank and subsequent IPO.
Skills relevant to the SSE Board
– Extensive experience in
implementing strategy,
including transformation
projects in large consumer-
facing organisations, and
managing the critical role of
digital and data.
– Deep understanding of capital
allocation and optimisation,
andinvestment appraisal.
– Proficiency in IT and cyber
security, risk management
andinternal controls from
overseeing efficient and
effective operations in a
compliance-driven, heavily
regulated sector.
– A leader with deep
understanding of organisational
responsibilities to employees
and society.
Key external appointments
– Group Chief Executive Officer
of Nationwide Building Society.
– Member of the FCA Practitioner
Panel.
Date of appointment
Non-Executive Director since
January 2019
Career and experience
Melanie is CEO of the NEC Group
and a leading UK consumer retail
executive. She brings over
20years of strategy and
transformation experience to the
Board. Her previous roles include
CEO of Ocado Retail and Strategy
Director for Marks & Spencer,
where she had responsibility for
Group strategy, M&S Bank and
M&S Services.
Skills relevant to the SSE Board
– Skilled at appraising the
development and execution of
strategy, having advised and led
growth, brand and business
transformation in consumer
and retail sectors worldwide.
– Deep commercial and digital
experience across multiple
goods and services categories,
including insurance, telco and
energy.
– A people-centric style, with
wide-ranging global experience
and a strong appreciation of
company culture.
– An entrepreneurial
organisational leader, actively
engaging with stakeholder
views to create high performing
organisations.
Key external appointments
– Chief Executive Officer of the
NEC Group.
– Deputy Chair of Sadler’s Wells.
– Founder of Mokaraka Trust.
Date of appointment
Non-Executive Director since
May2020
Career and experience
Dame Angela has had a long-
standing international career in
energy, including 38 years’ service
at BP. As Group Chief Scientist and
Head of Downstream Technology,
she was a member of BP’s
Executive Management team. This
was preceded by international
business and technical leadership
roles spanning R&D, engineering,
digital, product development and
innovation, business development,
finance, and renewable energy.
Skills relevant to the SSE Board
– Expert in technology and
science within the broader
energy and manufacturing
industries.
– Has led and collaborated on
large and complex projects
andin culturally diverse
environments.
– Strong corporate social
responsibility and sustainability
experience through
involvement in climate science
research, the energy transition,
reputation and safety
management, and inclusion
anddiversity  having chaired
the Corporate Sustainability
Committee and Safety, Ethics
and Sustainability Committee
oftwo FTSE 100 companies.
Key external appointments
– Non-Executive Director of
Rolls-Royce plc.
– Non-Executive Director of
Mondi plc.
– Member of Rio Tinto’s
Innovation Advisory Council.
Key for Board
Committees
N
Nomination Committee
A
Audit Committee
E
Energy Markets Risk Committee
S
Safety, Sustainability, Health and
Environment Advisory Committee
R
Remuneration Committee Committee Chair
For full Board biographies,
see sse.com
89 SSE plc Annual Report 2025
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Maarten Wetselaar
Independent non-Executive
Director
Committee membership
EAN
Date of appointment
Non-Executive Director since
September 2023
Career and experience
Maarten brings over 29 years of
experience in the energy sector
and is CEO of Moeve (formerly
CEPSA), the Spanish multinational
energy company involved in oil,
chemicals, biofuels and green
hydrogen. Before this role, he
spent over 26 years at Shell, where
he held positions in general
management, finance, strategy,
and business development and
ledthe establishment of the
company’s renewables activities.
Skills relevant to the SSE Board
– Wide-ranging experience in
theenergy industry in South
America, Africa, Asia, the
MiddleEast and Europe.
– Energy transition leadership,
supported by experience in
renewable, low-carbon, and
green hydrogen capital projects
and in developing,
communicating and engaging
in energy transition strategies.
– Extensive experience in
commodity markets,
particularly relating to
liquefiednatural gas.
– Listed company expertise,
including capital markets and
investor relations, through
previous executive and
financeroles.
Key external appointments
– Chief Executive Officer of
Moeve (formerly CEPSA).
Sir John Manzoni Helen Mahy Hixonia Nyasulu Lady Elish Angiolini John Bason Tony Cocker Debbie Crosbie Melanie Smith Dame Angela Strank Maarten Wetselaar
Experience of operating context and disruptive trends
Energy sector, energy regulation
and energy markets
Government and public policy
Clean energy, renewables and climate science
Global business, scale and complexity
Digital and data
Stakeholders and social impact
Skills to challenge and set a sustainable strategy
Large capital project management
Financing, economics and capital markets
Partnering, M&A and transactions
Risk management
Consumer insight
Responsible leadership of a large organisation
Corporate governance and leadership
Culture, safe working and people development
Skills to support long-term success
This matrix shows how the skills and expertise of the
non-Executive Directors enable the Board to support
SSE’s long-term success. The Board is strengthened
by the diverse approaches, thinking styles,
background and experience of its members, as
described in the biographies on previous pages.
Board gender balance Board independence Board ethnicity
46% women 75% independent
excluding the Chair
2 Directors from ethnic
minority backgrounds
6
7
9
3
1
11
1
1
Women
Men
Independent non-Executive
Directors
Executive Directors
Non-Executive Chair
White British or other White
Māori
Black/African/Caribbean/
BlackBritish
Rolling three-year women’s
representation Non-Executive Director tenure
44% women 4 years 5 months average tenure
43%
45%
44%
31 March
2023
31 March
2024
31 March
2025
0–3 years 3–6 years 6 years+
3
John Bason,
Hixonia Nyasulu,
Maarten Wetselaar
4
Lady Elish Angiolini,
DebbieCrosbie,
Sir John Manzoni,
DameAngela Strank
3
Tony Cocker,
HelenMahy,
MelanieSmith
Board Composition
As at 20 May 2025
Board of Directors continued
For full Board biographies,
see sse.com
90 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Group Executive Committee
Stephen Wheeler
Managing Director,
SSERenewables
Finlay McCutcheon
Managing Director,
SSE Thermal
Rob McDonald
Managing Director,
SSENTransmission
Chris Burchell
Managing Director,
SSENDistribution
Stephen has been MD of SSE
Renewables since January 2022.
He was previously MD of SSE
Thermal and MD of SSE Ireland.
He was part of the management
team that grew the Airtricity
renewable energy platform before
SSE acquired it in 2008. Before
joining Airtricity, he spent over
10years working internationally
with ABB and Siemens.
Finlay has been MD of SSE
Thermal since May 2024. He
previously held various senior
roles within SSE across
Renewables, Energy Markets,
andEnergy Customer Solutions.
Before joining SSE in 2010,
Finlayworked for many years as a
corporate and commercial lawyer.
Rob has been MD of SSEN
Transmission since January 2019.
He joined SSE in 1997 and held
anumber of senior roles within
theGroup Regulation function.
Before his current position, he was
MD of Corporate and Business
Services covering legal, regulation,
compliance, safety and large
capital projects services
acrossSSE.
Chris has been MD of SSEN
Distribution since November
2020. His prior career in transport
was extensive, including several
MD and Group level operational
and commercial leadership
positions with Arriva, The
Go-Ahead Group and Railtrack.
Chris also brings wider sector
experience as a previous
non-Executive Director with
Ofwat and Chair of the Rail
Delivery Group trade body.
Liz Tanner
Group General Counsel and
Company Secretary
Sam Peacock
Managing Director, Corporate
Affairs, Regulation and Strategy
John Stewart
Director of HR
Peter Lawns
Deputy Company Secretary,
Secretary to the Committee
A barrister, Liz joined SSE in 2002
with the acquisition of Neos
Networks. Since then, she has
held a variety of legal and
commercial roles and was
appointed to the Group Executive
Committee as Group General
Counsel in March 2019. She
became Group General Counsel
and Company Secretary in August
2023. Liz leads SSE’s Company
Secretariat and the corporate
functions of Legal, Ethics and
Compliance, Data Protection, and
Large Capital Project Services.
She’s also a member of the GC100
Executive Committee.
Sam oversees corporate strategy,
government and regulatory affairs,
communications, brand, and local
project communications at SSE.
Before joining the Company in
2011, he directed government
affairs at Ofgem and worked at
leading communications agency
Edelman, as well as in Parliament
and the Government.
John has been in this role since
joining SSE in July 2009. Before
this, he held a broad range of
senior management roles in the
energy and water sectors and
hasworked in both the UK and in
the US. He oversees all areas in
relation to SSE’s people including
talent andcapability, training
anddevelopment, employee
engagement, and inclusion
anddiversity.
Peter joined SSE in 2005 and held
various finance and company
secretarial roles before becoming
Deputy Company Secretary in
2013. Heoversees the delivery of
the Group company secretarial
service with responsibility for
corporate governance, entity
management, corporate
reporting, and share registration
and share plans. Peter is a fellow
of the Chartered Governance
Institute.
This Committee oversees SSE’s performance and day-to-day operations and ensures the
implementation of Group strategy. It’salso responsible for the executive management
ofBusiness Units and corporate support services.
The Committee is led by Alistair Phillips-Davies. In addition to Barry O’Regan and Martin Pibworth, who have already been introduced,
members are as follows.
91 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Promotes the long-term sustainable success of SSE. It establishes SSE’s purpose, vision, and strategy, which centre on creating value for
shareholders and society in the transition to net zero. It sets and fosters a healthy and ethical business culture across SSE.
Governance at a glance
The diagram below illustrates how the Board delegates authority and accountability for aspects of SSE’s operations. Agreed roles and
responsibilities of each Committee are formally set out in Terms of Reference and support decision making and oversight across SSE.
The Board has a separate Schedule of Reserved Matters – see sse.com .
SSEN
Transmission
Energy
Customer
Solutions
SSE
Renewables
SSE Energy
Markets
SSE
Thermal
Business Unit Executive Committees
SSEN
Distribution
More on SSE’s Governance Framework and supporting governance practices can be found in the Compliance with the UK Corporate
Governance Code statement on
pages 154 to 156
.
Lead the delivery of Business Unit strategy, performance, and targets
aligned with Board-set objectives. See pages 28 to 41
for more
on each Business Unit.
Safety, Sustainability,
Health and Environment
Advisory Committee
(SSHEAC)
See pages 122 to 125
Remuneration
Committee
See pages 126 to 153 See pages 120 to 121
Energy Markets
Risk Committee
(EMRC)
See pages 113 to 119
Audit Committee
See pages 107 to 112
Nomination
Committee
The Board is directly supported by five Board Committees – see pages 107 to 153
for separate reports. Two of these Committees are
unique to SSE. The EMRC reviews the governance to support SSE’s energy market trading activities and associated risk exposures. And the
SSHEAC supports and challenges SSE’s strategy, initiatives and performance on safety, sustainability, health, and environment matters.
SSEN Distribution Board
These Boards oversee strategy, performance and regulatory
approvals required under network licences. The Transmission and
Distribution Executive Committees report directly to dedicated
oversight Boards and refer to the Group Executive Committee
where appropriate, and when business separation rules allow.
SSE’s Governance Framework
Approach to reporting
This report explains the Board’s approach to corporate governance within SSE, which is underpinned by continued reporting against the UK
Corporate Governance Code 2018. The Compliance Statement, set out on
pages154 to 156 , confirms how the Code’s Principles have
been applied and details adherence to the Code Provisions. Disclosures outside of the Compliance Statement outline Board and Board
Committee work during the year and the outcomes of decisions. The report is structured around the thematic areas the Board reviewed
inthe year and the material stakeholder factors integrated into discussions.
Group Executive Committee
Oversees SSE’s performance and day-to-day operations,
andensures the implementation of Group strategy. It’s also
responsible for the executive management of Business Units and
corporate support services. See page 91
for more on the role
and membership of this Committee.
Group Safety,
Health and
Environment
Group Risk
Group
Disclosure
Group Energy
Markets
Exposure Risk
Group Large
Capital Projects
Group Committees
Develop and recommend policy, controls and
frameworks for material areas across SSE. They work
with SSE’s Business Units and report to the Group
Executive Committee.
SSEN Transmission Board
75%
SSE PLC BOARD
92 SSE plc Annual Report 2025
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Meetings and attendance
Board
Nomination
Committee
Audit
Committee EMRC SSHEAC
Remuneration
Committee
No. of meetings held 7 9 4 4 4 3
Sir John Manzoni 7/7 9/9 – 4/4 4/4 3/3
Alistair Phillips-Davies 7/7 – – – – –
Barry O’Regan 7/7 – – 4/4 – –
Martin Pibworth 7/7 – – 4/4 4/4 –
Helen Mahy 7/7 9/9 4/4 – 4/4 –
Lady Elish Angiolini 7/7 9/9 – – 4/4 3/3
John Bason 7/7 9/9 4/4 – – 3/3
Tony Cocker 7/7 9/9 4/4 4/4 4/4 –
Debbie Crosbie
1
7/7 9/9 4/4 3/4 – –
Hixonia Nyasulu
2
3/32/2 ––– –
Melanie Smith 7/7 9/9 – 4/4 – 3/3
Dame Angela Strank 7/7 9/9 – – 4/4 3/3
Maarten Wetselaar 7/7 9/9 4/4 4/4 – –
1 Debbie Crosbie gave prior notification that the meeting of the EMRC in May 2024 conflicted with an external
executive Board meeting.
2 Hixonia Nyasulu joined the Board and Nomination Committee on 1 January 2025.
In each instance of non-attendance, papers were shared before the meeting and comments given to the Chair
whereappropriate.
Governance of
climate-related matters
Given its strategic importance to SSE,
oversight of climate-related risks and
opportunities is embedded across Board,
Committee and senior leadership duties.
Climate considerations are firmly integrated
within SSE’s Governance Framework, with
agreed roles and responsibilities set out in
the Board’s Schedule of Reserved Matters,
Committee Terms of Reference, and
thedivision of responsibilities across
Boardroles.
With climate-related governance a key
focus of regulators and wider stakeholders,
detail is provided here around climate-
related roles and responsibilities within SSE.
How the Board oversees climate-related
risks and opportunities is explained
throughout thisreport.
The Board reviews and approves SSE’s
material sustainability and climate change
impacts. It considers climate change
through its work on strategy, operations
andrisk. It also sets the Group Sustainability
and Climate Change Policies and approves
climate-related financial disclosures.
The Audit Committee, Group Risk
Committee, Sustainability-related
Financial Disclosures Committee and TCFD
Working Group all govern the development,
review and assurance of SSE’s climate-
related disclosures. The Audit Committee
recommends to the Board whether these
are fair, balanced and understandable and
reviews the impact of climate change on
SSE’s financial statements.
Annual General Meeting 2025
The AGM will take place on 17 July
2025 in Perth.
Shareholders can participate online or
in person – see the Notice of AGM for
joining options.
The Nomination Committee considers the
skills and experience the Board needs to
support the assessment of SSE’s operating
context, including the impact of climate
change on the current and future position
of the business.
The SSHEAC oversees how key Group
policies are implemented, including
environmental and climate adaptation
matters.
The Remuneration Committee agrees
howclimate factors are integrated within
SSE’s executive remuneration policy.
The Group Executive Committee identifies
SSE’s material sustainability impacts and
oversees the management of climate
interventions, targets and plans set by
Business Units and corporate functions.
SSE’s Chief Sustainability Officer reports
tothe Chief Executive and advises senior
management and relevant Committees on
climate-related matters.
More on climate-related work
intheyear
– Climate expertise within Board skills on
page 90 .
– Board work on setting and reviewing
strategic priorities on pages 94 to 96 .
– Leading on sustainability on page 97 .
– Audit Committee work on climate-
related financial disclosures on
page 115 .
– SSHEAC work on sustainability and ESG
matters on page 124 .
– Remuneration Committee approach to
executive pay on pages 144 to 147 .
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The Board’s year
Every year the Board reviews and agrees SSE’s strategic direction. This helps the Board
identify priorities and design a dedicated plan of work for the upcoming year. This section
gives an overview of this work for 2024/25.
The Board considers strategy throughout the year, supported by strategic updates from Business Units, reviews and approvals of
project pipelines, reviews of progress against NZAP Plus targets, and deep dives into key areas to inform future strategic priorities.
Strengthening this ongoing focus on strategic priorities, the annual strategy review day is an important event in the Board’s
calendar. To generate informed and productive discussions, the Board invited internal subject matter experts and external guests
to contribute on the day.
Here are the main themes explored by the Board during the year.
Market developments
The Board explored key changes in the
external environment and emerging
market trends, including:
Reviewing the NZAP Plus
The Board reviewed the NZAP Plus and
considered enablers for its delivery,
including:
Opportunities for growth
The Board explored future strategic
levers to create value for stakeholders,
including:
– A changing global landscape,
including political uncertainty and
the impact of geopolitical volatility
on the energy transition.
– The growth of emerging
technologies and impact on the
speed of transition.
– The prospective growth of AI and
impact on the power demand for
data centres.
– The impact of future macro
scenarios on SSE’s long-term
delivery plan.
– The external operating environment.
– Stakeholder perspectives on current
strategy and targets.
– Business Unit progress against NZAP
Plus targets and key risks and
dependencies in the plan.
– Progress against the Group’s
sustainability targets.
– Supply chain challenges due to cost
pressures and higher industry
demand.
– Changes in the external environment
and the impact on future growth.
– The evolution of SSE’s integrated
portfolio in a challenging and
dynamic macroeconomic and
political landscape.
– Capital allocation and funding
options that balance near- and
long-term strategic goals.
– Delivery and growth options across
different technologies and
geographies.
– Optimal risk exposure to growth
opportunities.
Outcomes
The Board confirmed that SSE’s diversified portfolio and NZAP Plus strategy continue to serve the Group well. As well as the
opportunities the SSE portfolio brings, there are some challenges and uncertainties. Maintaining financial discipline, delivery
and execution while maximising Group efficiency are increasingly crucial in a dynamic external environment. In order to
adapt to these challenges, in May 2025, the Board approved a revised investment programme that will see around £17.5bn
invested in SSE’s businesses out to FY27.
The Board approved priorities and growth opportunities for each Business Unit. It also agreed a strategic agenda for the year
ahead based on key market factors and levers for growth.
SSE’s people, talent and organisational skills were confirmed as key enablers of growth. Deepening supply chain
relationships, promoting collaboration, and enabling investment in priority areas were confirmed as key pathways to
efficiently delivering the NZAP Plus.
Setting strategy
Delivering with financial discipline
Each year, the Board balances strategic
delivery with a disciplined approach to
investment decisions, to allow SSE to
execute its growth plans over the long term.
The Board’s work this year has included:
– Setting the annual budget considering
the NZAP Plus investment needs, new
projects across Business Units, and
meeting existingproject needs.
– Reviewing and agreeing investment
criteria in light of market factors and the
cost of financing.
– Alongside the Audit Committee,
assessing funding requirements and
liquidity to support SSE’s investment-
grade credit rating.
Monitoring policy developments
In executing SSE’s strategy, it’s crucial
towork with policymakers to enable the
delivery of critical electricity infrastructure.
This year, the Board oversaw extensive
engagement with policymakers and
regulators on developments needed to
achieve the UK Government’s Clean Power
2030 Action Plan. Topics included:
– Review of Electricity Market
Arrangements (REMA)  zonal pricing.
– Submission to Ofgem of a price control
business plan for SSEN Transmission.
– Planning and consents with the
Department for Energy Security and
NetZero.
– Connections reform with the National
Energy System Operator (NESO).
The evolving shape of the Group
The Board had oversight of SSE’s ongoing
evolution in response to the opportunities
and risks presented by an increasingly
complex operating environment.
Thisincluded:
– A further pivot of capital allocation
toregulated networks.
– Greater discipline in areas affected
byslowing of policy and planning
processes.
– The strategic absorption of the former
SSE Enterprise into other areas of the
business.
– Renewed focus on efficiency and
controllable costs.
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Creating value through clean
energy investments in renewables
Powering accelerated growth
in networks
The Board remained committed to developing the renewable
projects needed to create a low-carbon energy system.
Theseincluded offshore and onshore wind farm projects in
development and construction such as Berwick Bank and
Doggerbank A, B and C, as well as projects that have entered
commercial operations such as the onshore wind farm Viking.
Projects like these will support long-term renewable energy
security and affordability for consumers, and help reach NZAP
Plus targets.
Investing in the transmission network is critical for the Scottish
and UK Governments to reach their renewable energy targets
for 2030 andbeyond. The Board recognised the need to work
closely withOfgem, governments and local communities to
make sure all stakeholder interests are considered when
accelerating the delivery of critical infrastructure. During the
year, the Board was informed of progress on the NZAP Plus
commitments and SSEN Distribution’s RIIO-ED2 Business Plan.
It also oversaw the submission of SSEN Transmission’s RIIO-T3
Business Plan, which outlines the investments needed to meet
the UK and Scotland’s net zero and energy security targets.
Balancing stakeholder interests
– Supply chain security. The Board stayed informed about
ongoing industry-wide supply chain constraints and
received updates on supplier engagement on large
capitalprojects.
– Fostering community engagement. The Board recognises
the importance of SSE engaging with local communities
while developing and delivering projects. Itsupported the
final investment decision to construct the208MW Strathy
South wind farm, which will establish acommunity
investment fund valued at £1m per year for the lifetime
ofthe wind farm.
– Maintaining financial discipline. To ensure shareholder
value, the Board considered the importance of financial
discipline, the optionality provided by SSE’s portfolio, and
the growth pipeline.
– Employee impact of efficiency measures. The Board was
kept informed of the impact on people of organisational
changes to ensure SSE Renewables is best placed for
long-term growth. This included considering the effect of a
sharpening focus on controllable costs and efficiencies on
jobs, with a particular focus on ensuring employees were
fully consulted and treated with fairness and respect.
Balancing stakeholder interests
– Investing in local economies. As part of the Pathway
to2030 programme, the Board was updated on SSEN
Transmission’s pledge to support the delivery of 1,000 new
homes across the north of Scotland. The houses will initially
host the people needed to deliver proposed projects and
will remain in place as a legacy after projects have
completed. This shows SSEN Transmission’s commitment
to supporting and investing in local communities.
– Community-led changes. The Board was updated on
theprogramme of engagement with local communities
affected by the development of critical infrastructure.
Thisprogramme provided valuable feedback, which was
considered in project design where possible.
– Collaborating with the supply chain. The Board considered
the importance of securing supply chain capacity to deliver
growth for SSEN Transmission. Thisincludes oversight of
supply agreements with the manufacturer of subseacables.
– Improving customer performance and efficiency.
TheBoard reviewed SSEN Distribution’s Transformation
Programme, which isupgrading IT systems to enhance
customer experience and strengthen IT resilience. It also
evaluated progress against SSEN Distribution’s RIIO-ED2
Business Plan, an important means of improving customer
services and accelerating investment in localnetwork
infrastructure.
Potential future opportunities
– Development in selected markets. The Board will continue
to consider SSE Renewables’ approach to developing
expertise and expanding into carefully selected markets,
ensuring that focus remains on securing route to market
for key projects and that financial returns exceed the cost
of capital.
– Delivering NZAP Plus. The Board will stay informed of the
engagement with policymakers and regulators necessary
for delivering renewable generation on the journey to
NZAP Plus.
Potential future opportunities
– A network for net zero. One of the Board’s key priorities
continues to be monitoring the delivery of price control
business plans in SSEN Transmission and SSEN Distribution.
These aim toprotect customers’ interests, support the
building of national critical infrastructure, and deliver
fairreturns.
– Beyond 2030. The Board will stay up to date on upcoming
projects and stakeholder engagement across industry,
governments and communities to support the delivery of
RIIO-ED2 and RIIO-T3 Business Plans.
Reviewing strategic priorities
The Board recognises the importance of engaging constructively with SSE’s key stakeholder groups. This engagement has been
integral to broader discussions around strategic opportunities and delivering NZAP Plus. Here are some examples of how
stakeholders were considered for some of the key developments on the Board’s agenda in 2024/25.
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Deepening Board knowledge
The Board’s diverse skills and experience reflect and
meet SSE’s needs – see the skills matrix on
page 90
for details. Given the ever-evolving nature of the energy
industry, the Board welcomes opportunities to deepen
its knowledge of specialist topics. To this end, there are
internally and externally facilitated Board learning
sessions throughout the year. Here are some of the
topics covered in 2024/25.
Visiting the National HVDC Centre
The Board visited the National HVDC (High Voltage
Direct Current) Centre in Scotland, an Ofgem-funded
cutting-edge simulation and training facility supporting
all HVDC schemes connecting to the GB grid. The visit
enhanced the Board’s understanding of how the centre
is working with transmission owners, system operators,
interconnector projects and manufacturers to de-risk
projects and protect the security of the grid network.
The Board was shown replicas of the control systems of
current projects like Caithness-Moray-Shetland and saw
the scale of network reinforcements needed to support
the national aim of connecting 50GW of offshore wind
by 2030. The session provided insights into the centre’s
pioneering developments to support the delivery of
direct current networks in GB. The Board was very
positive about the centre’s industry collaboration
androle in attracting engineering talent, and supports
itsplans to expand as a critical testbed for net
zeroinfrastructure.
AI and cyber security
IT specialists presented a session on AI and cyber
security to the Board.
AI
Part of the session covered integrating AI into
SSE’s digital toolkit and the enhanced capabilities this
could provide. This included how AI is being used now
and potential future uses inSSE’s businesses and the
wider energy industry. Board members shared their
own experiences and views in a rich discussion. This
gave the Board invaluable insights into AI’s potential
tosupport business goals and the energy transition.
Cyber security
The session also covered SSE’scyber strategy and the
macro environment and operating factors affecting
cyber security. Topics included the value of continuous
colleague education and awareness, enhancements
tosecurity (including supply chain security), the
risksconnected to operating in new markets,
riskmanagement, and using agile methodologies to
cutthe time and costs for cyber risk assurance. This
session deepened the Board’s understanding of the
cyber security landscape and the need for ongoing
investment, diligence and responsiveness. Theinsights
gained will inform Board discussions and decisions
aimed at strengthening cyber security.
Delivering flexibility in the
net zero transition
The Board continued to examine opportunities to deliver the
future flexibility required for a renewables-led power system.
These included low-carbon flexible generation and energy
storage, as well as decarbonisation-ready (through either a
transition to hydrogen or carbon capture and storage (CCS))
projects to support long-term decarbonisation, a key priority
forthe Group. The Board is very aware of the extent to which
constrained supply chains and shifting energy policies affect the
development of these new technologies.
Balancing stakeholder interests
– Security of supply. The Board supported the final investment
decision to build Tarbert Next Generation power station,
which will run on 100% sustainable biofuels with the potential
to convert to hydrogen. This shows a commitment to
supporting the electricity system in Ireland by addressing
shorter-term supply challenges while laying the foundations
for a low-carbon future.
– Collaborating with partners. The Board supported a
partnership with Siemens Energy to deliver gas turbines
capable of running on 100% hydrogen to support the
decarbonisation of Keadby 2 and future decarbonisation-
ready projects. This partnership shows SSE’s commitment
totransitioning from fossil fuels to a clean power system.
TheBoard recognises that low-carbon power stations are
essential to have clean power throughout the UK.
– Impact of policy on pipeline. The Board stayed up to date on
the evolving commercial and operational context related to
delivering low-carbon infrastructure. The Board recognises
the need for supportive government policy to deliver the
low-carbon generation assets crucial to CCS and hydrogen
projects and to maintain system flexibility and resilience.
Potential future opportunities
– Low-carbon thermal. The Board will continue to consider
therole of new low-carbon flexible generation in the
transition to net zero, covering CCS, hydrogen, and
decarbonisation-ready technology. It recognises theneed
todeliver at pace when government policy allows.
– Safeguarding the supply chain. The Board will continue
tosupport proactive engagement with supply chain
partnersto ensure capacity for both operational sites
andfuture projects.
The Board’s year continued
Reviewing strategic priorities (continued)
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Committed to safety
SSE’s commitment to safety remains an
absolute priority for the Board. Safety is
highon the agenda of every Board meeting,
reflecting the Board’s important leadership
on embedding SSE’s safety culture.
The Board receives regular updates on
safety performance and reviews key safety
metricsmonthly. This enables the Board
toeffectively challenge the work of the
Group Safety team and Business Units. The
Board was pleased with this year’s safety
performance (see
page 54
). It stressed,
however, the need to go beyond statistics
tokeep a strong safety culture alive across
the Group.
In November 2024, two Board members
attended a contract partner conference
organised by SSE. They engaged directly
with participants from 85 companies
andshared feedback with the rest of the
Board. This successful event should have a
positive impact on contractor safety
behaviours, and the Board supports holding
the conference each year.
Most Board members have completed SSE’s
immersive safety training, strengthening
their commitment to making sure all
employees and partners return home safely.
For more on the Board’s focus on safety,
see the culture dashboard on page 98
and
the SSHEAC Report on pages 122 to 125 .
Leading on sustainability
Sustainability is integral to the Board’s role
and plan of work. The Board has overall
responsibility for SSE’s most significant
sustainability impacts, including in relation
to climate change. SSE has sustainability-
related priorities to encourage the policies,
practice and performance that will achieve
its sustainability and climate goals (see
pages 45 to 59
). The 2024/25 priorities
were reviewed and approved by the Board.
During the year, the Board also approved
updates to SSE’s Just Transition strategy and
SSE’s Human Rights and Modern Slavery
statement. These included KPIs to measure
progress and performance. The Board
supported efforts to robustly track and
monitor these KPIs to ensure informed
decision making.
SSE monitors key climate-related policy and
guidance, which in 2024/25 included the
UKGovernment’s Clean Power 2030 Action
Plan and the Climate Change Committee’s
seventh carbon budget. In April 2025,
theBoard approved an updated Net Zero
Transition Plan with revised scenarios of the
pathway towards SSE’s net zero ambitions.
To align with the UK Government’s
Transition Plan Taskforce recommendation,
the Board has approved a resolution to be
tabled at the 2025 AGM. This resolution
proposes changing the preparation cycle
ofSSE’s Net Zero Transition Report from
one year to three years for consideration
byshareholders on an advisory basis.
See
pages46 and 101
for more.
The Board also approved the appointment
of EY, SSE’s existing statutory auditor, as
thenew auditor of non-financial reporting
to assure selected sustainability metrics.
Seethe Audit Committee Report on
pages
113 to 119
for more.
Overseeing digital
transformation
Throughout the year, senior management
inIT and Digital, Cyber Security and Data
Protection kept the Board informed on
these critical topics.
The Board drives a strong security culture
by regularly monitoring progress on
cyber-related activities. It reviewed SSE’s
cyber security threat and risk position in
light of geopolitical events, regulatory
compliance, and the increasing importance
of cyber security for critical infrastructure
and supply chains. As part of the Group’s
updated cyber security strategy, the
Boardapproved a refreshed approach to
mitigating cyber security risks. This involved
reprioritising current risks to make sure
these reflect the cyber threat landscape.
Formore on SSE’s Cyber Security and
Resilience Principal Risk, see page 65
.
The Board was also updated on SSE’s
progress in AI, covering strategic
developments, adoption and uses in
Business Units. It considered the significant
progress with AI in the Energy Customer
Solutions (ECS) Business Unit. It reviewed
the AI maturity roadmap outlining key
phases and steps needed to adopt AI across
SSE to create value. To emphasise the
Board’s commitment to cyber security and
AI, the Schedule of Reserved Matters for the
Board was revised to outline the Board’s
important oversight of these areas.
The Board reviewed metrics from the
GroupData Protection Officer on
incidentresponse, training, assessments of
personal data processing, communications
and assurance activities. These showed
thatthe overall data protection picture
continued to be stable at SSE and
emphasised the importance of ongoing
activities to strengthen SSE’s data
protectionprogramme.
For more on how the Board engaged with
AI and cyber, see the Deepening Board
knowledge section on
page 96
.
Supporting innovative
customer solutions
During the year, the Board received updates
from Energy Customer Solutions’ (ECS)
leaders on innovative solutions to support
delivery of the NZAP Plus. This included the
impact of SSE Business Energy’s new billing
platform Evolve, implemented in 2024,
andECS’s future systems strategy. The
Board endorsed enhancing ECS’s digital
andsystem capabilities as growth enablers
and acknowledged technology’s role in
advancing green and low carbon energy
solutions. The Board was also updated on
ECS’s strategic priorities, which underpin
the business’s commitment to supporting
customers and its key role in SSE’s value
chain (see pages 40 to 41 ).
Colleagues discuss operations with Lady Elish Angiolini at a social housing insulation
project in Dublin
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Assessing, monitoring and embedding culture
Setting the tone
The Board sets the culture and values of SSE and sees these as integral to delivering SSE’s strategy. It believes that a strong, values-driven
culture empowers employees at all levels to perform well and meet strategic objectives with integrity and purpose. To create a strong
culture, the Board leads by example: making sure its own behaviours and strategic decisions reflect SSE values.
The Board oversees how the values are communicated and embedded across the organisation and the extent to which these influence
decision making, leadership behaviours and day-to-day operations. It is updated on how SSE’s values are reflected within key policies,
employee engagement initiatives, and learning and development materials.
See page 2
for more on the values and how SSE defines a healthy, ethical business culture.
The Board recognises that culture is most effective when reinforced through tangible actions. To make sure culture and performance are
aligned, executive remuneration and employee recognition programmes are directly linked to SSE’s values. See page 131
for more on
how executive remuneration is aligned to culture.
Measuring culture
The Board assesses the strength of SSE’s culture in various ways.
Culture health
check
– Twice a year, the Board reviews the Culture Dashboard which brings together data from various sources to measure the
health of SSE’s culture. This helps the Board assess whether its cultural aims are being achieved and informs employee
engagement activities to reinforce and enhance SSE’s culture.
– This year, a new method has been adopted to allow non-Executive Directors to share observations of key aspects of culture
after engaging with employees. These insights are used to enrich the range of data in the health check and drive targeted
actions to reinforce SSE’s culture.
Aligning culture
with strategy
– The Board regularly engages with employees and visits a range of SSElocations to understand people’s connections to
culture and strategy at all levels within the organisation.
– The Board conducted a programme ofemployee engagement activities (see
pages 99 to 100
) focused on sharing key
aspects of SSE’sstrategy and culture.
– The Board noted that engagement with SSE’s Net Zero strategy has increased by 4% and that more colleagues understand
how their role is helping to deliver this than in 2023/24.
Inclusion and
diversity
– The Board continued to engage with the co-leads of SSE’s employee led ‘Belonging communities’ to understand employees’
priorities and promote inclusion across the Group.
– The Board reviewed and re-affirmed its Inclusion & Diversity Policy – see pages 111 to 112
.
Safety culture – The Board reviewed key safety metrics and targets (see pages 122 to 124 ) and during regular operational site visits
observed the strength of SSE’s safety culture in practice (see page 125
).
– Various Board members attended SSE’s immersive safety training to experience and understand how safety culture is
embedded across employees and contractors.
People – The Board considered employee feedback including the all-employee survey results (see page 54 ).
– An all-employee call and an in-person meeting with commended employees were heldafter the AGM and attended by
various Board members. Topics important to employees were discussed, with a particular focus on SSE’s net zero ambitions
(see
page 99
).
– The Board considered reports on SSE’s whistleblowing arrangements covering performance, case trends, and employee
confidence in the speak-up mechanisms and protection.
Outcomes
As a result of monitoring and measuring how SSE’s culture has been embedded, the Board endorsed:
– An engagement programme to embed updated descriptions of SSE’s core values (the SSE SET).
– ‘Doing the Right Thing Week’, an all-employee communication initiative focusing on key aspects of SSE’s ethical culture.
– Training for senior leaders on ‘How We Lead at SSE’ including how to promote SSE’s values in practice.
– The expansion of SSE’s Employee Recognition Programme which is aligned to SSE’s values and culture.
– A refreshed employee onboarding process with a focus on immersing new employees in SSE’s values and culture.
– Continued investment in SSE’s immersive safety training.
Employee feedback enables the Board to assess the strength of SSE’s culture:
Overall employee
engagement
Inclusion Safety Our strategy Doing the
right thing
Senior leaders
86% 90% 91% 86% 85% 67%
Feedback from
employees through
the annual employee
survey
Feel we have an
inclusive culture
Feel we promote a
safe workplace
culture
Feel engaged with
our strategy
Feel empowered to
do the right thing
Trust in senior
leaders
A full survey was carried out in 2023/24. This year’s results reflect responses to a pulse survey with a condensed question set. Trends are based on a like-for-like basis.
Culture dashboard 2024/25
The Board’s year continued
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Hearing from and
responding toemployees
The Board is committed to making sure
thateveryone is able to voice their opinions
through an appropriate channel. Board
members engage with employees in various
environments, roles and locations.
Theseactivities give insights into people’s
experiences and views, and strengthen
theconnection between the Board and
SSEemployees.
– Employee sessions: in-person and
virtual meetings to gather employee
perspectives and insights.
– Employee surveys: all-employee surveys
to capture employee views which help
measure progress, assess culture and
guide initiatives and decisions.
– Digital and written communication:
including updates that share and
reinforce strategic and cultural messages
with employees.
– Roadshows and conferences: virtual,
face-to-face or hybrid events to interact
with employees and embed SSE’s
purpose, strategy and culture.
– Site visits: visits to enhance
understanding of the working
environment and interact with
employees on site.
– Focus groups: small group sessions to
discuss key topics and learn valuable
insights.
– Employee representatives and groups:
consulting and engaging with employee
representatives including trade unions
and employee-led Belonging in SSE
communities.
SSE’s annual all-employee survey helps the
Board understand what matters most to
employees. Guided by the survey results,
senior leadership have continued to engage
with employees on SSE’s strategy and net
zero ambitions.
– Post-AGM engagement: Board members
hosted a virtual meeting open to all
employees and an in-person meeting
with 25 employees commended during
the year through SSE’s employee
recognition platform. These discussions
gave the Board insight into how
colleagues feel they contribute to SSE’s
strategy, their understanding of it, and
how the Board can help them further
engage with net zero.
15
Board site visits and engagements
11
Board-led virtual sessions
12
Sessions with the Non-Executive
Director for Employee Engagement
35,900
Overall employee attendance at
Board-led virtual sessions
6,950
Largest audience size
The AGM provides an opportunity for employees to spend time with the Board
Spotlighting SSE’s star performers
SSE encourages employees to
nominate outstanding work
contributions from colleagues
through its digital employee
recognition platform. Last year the
platform drew 13,000 nominations
over six months.
At the AGM held in Perth in July
2024, the Board and senior
executives met some of the
nominated employees to listen to
their perspectives on working life at
SSE. Employees indicated how much
they valued the inclusive, supportive
and broadly non-hierarchical culture
of SSE, as well as the flexible working
arrangements. Colleagues wanted to
hear more on career progression,
inclusion and diversity, and
innovation.
The in-person session included
non-Executive Directors Lady Elish
Angiolini, Melanie Smith, Helen Mahy
and John Bason, and Executive
Directors Martin Pibworth and Barry
O’Regan. The event format included
table discussions with Directors
rotating every 30 minutes, while
4,000 colleagues joined a virtual
Q&A session with a mix ofexecutives.
– SSEN Transmission: John Bason spent a
day visiting sites in north-east Scotland,
including Peterhead, Eastern Green Link
2 and Netherton Hub. The visits gave
John an appreciation for the scale of the
net zero challenge that the Transmission
business is working towards and allowed
him to meet with teams working on a
range of projects. John attended a
roundtable session with the wider
project team to learn more about the
opportunities and dependencies of
theseprojects.
– 2024 graduate programme: The
induction event in Glasgow welcomed
141 new graduates into the business.
New starters were able to engage with
members of the Board, including Lady
Elish Angiolini and Helen Mahy, to
discuss SSE’s strategy, culture, vision
andvalues.
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The Board’s year continued
Taking the lead on employee engagement
Wider Board engagement is strengthened by a comprehensive programme led by SSE’s Non-Executive Director for Employee Engagement,
Lady Elish Angiolini. This programme shapes new opportunities for engagement by building on existing channels of communication.
Examples of how Lady Elish engaged with employees during the year and the observations she shared with the wider Board are below.
Engagement Observations
Medway Power Station
Lady Elish visited Medway Power Station to meet with operational
colleagues and discuss decarbonisation options. She heard insights
into safety processes and culture at the station, along with useful
views on the skills development programme. Colleagues also
shared how they see their role in SSE’s strategy and wider culture.
– The need for Board oversight of safety and cyber security,
particularly with contracting partners, was highlighted.
TheBoard ensures this through the SSHEAC, which works
withsenior management to enhance safety performance.
Seepages 122 to 125
. The Board also regularly appraises
cyber security.See pages 96 and 97 .
– Developing skills and fostering a talent pipeline continues
tobeimportant. The Board receives updates on
organisationalcapabilities through the Nomination Committee.
See pages 107 to 112 .
Energy Customer Solutions
Lady Elish visited the Energy Customer Solutions business in
Dublin. She discussed approaches to helping customers work
towards net zero and new technologies to improve customer
experience. Colleagues also shared their experiences of internal
long-term career development programmes. The team then invited
Lady Elish to visit a social housing insulation project, where the
installation team shared their understanding of how their work
supports the local area and the journey to net zero.
– Insights into what makes SSE a good employer through views
shared on teamwork, career development and technological
innovation.
– A strong programme of internal communication is important in
sharing information widely about projects being done and the
positive impacts these can have on communities and the
transition to net zero.
I had the privilege of engaging with employees
across various environments and locations. I deeply
appreciated the openness with which they shared
their insights. It was heartening to see the strong
understanding among our employees of how their
work contributes to SSE’s purpose of building a
better world of energy.”
Lady Elish Angiolini
Non-Executive Director for Employee Engagement
100
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Understanding
shareholderviews
The Board prioritises engagement with
investors to better understand their
strategic, financial, governance and
sustainability expectations when making
key decisions.
Institutional investors
A comprehensive engagement programme
with institutional investors reaches around
45% of SSE’s issued share capital annually.
The timeline below summarises the Board’s
interactions in 2024/25. The Board is kept
informed of investor sentiment through
feedback after eachengagement, monthly
investor andmarket reports, and
independent reports fromSSE’s brokers.
Examples of how such engagement
influenced decision making are set out
onthis page.
Retail shareholders
Retail shareholders are supported through
adedicated helpline and online Investor
Centre managed by SSE’s registrar,
Computershare Investor Services plc.
TheInvestor Relations team and Company
Secretariat support as required, and the
Chair is kept informed as appropriate.
SSE’sinvestor website also provides
information, including regulatory news
andpublished reports.
The Board has endorsed initiatives to
efficiently manage SSE’s share register,
engage with retail shareholders and prevent
their assets from becoming dormant. These
include an asset reunification programme in
conjunction with Georgeson, a subsidiary of
Computershare. See page 284
for details
of this programme.
For more on how the Board engages
withshareholders and debt providers, see
page 103
. See pages 95 to 96 for more
on how investor views are considered
by the Board.
Net Zero Transition Report – resetting voting frequency
As a result of work with the investor
group Climate Action 100+, a
framework forannual voting on
SSE’sNet Zero Transition Report
wasapproved at the2021 AGM.
TheTransition Plan Taskforce has since
published guidance and recommended
a three-year review cycle for transition
plans. After consulting shareholders
throughout 2024/25, the Board noted
clear investor support for moving from a
one- to three-year cycle for preparing
Net Zero Transition Reports for
consideration byshareholders on an
advisory basis. Climate Action 100+
alsosupported this change to enhance
engagement and promote more
meaningful disclosures over a longer
period. The Board has decided to table
a resolution at the 2025 AGM that will
reset the framework andestablish a
three-year cycle for voting on SSE’s
NetZero TransitionReport.
Progress against SSE’s carbon targets
and net zero transition plan will
continue to be published yearly in
SSE’sAnnual and Sustainability Reports.
The Board interacted with shareholders in a range of ways during 2024/25, supported by senior management and the Investor
Relations team.
June 2024
Executive Directors met with
shareholders during the post-full year
results investor roadshow.
November/December 2024
Executive Directors met with
shareholders at the post-half year
results investor roadshow.
The Board considered and approved
the half-year report for the year
ended 31March 2025.
January/
February 2025
The Board considered and approved
the Q3 Trading Statement.
The Chair and the Chair of the
Remuneration Committee engaged
with shareholders on the
Remuneration Policy.
September/October 2024
Executive Directors attended
industry conferences.
January 2025
Executive Directors attended
industry conferences.
March 2025
Executive Directors
attended industry
conferences.
July 2024
The Chair, and in some cases the
Senior Independent Director, met
with 11 of the top 20 shareholders
during a pre-AGM roadshow.
The Board considered and approved
the Q1 Trading Statement.
The Board attended the 2024 AGM
in Perth and responded directly to
shareholder questions.
Engagement highlights
Open and transparent discussion
around ESG issues is a key feature
ofSSE’s programme of investor
engagement. Meaningful sustainability
credentials remain a key measure for
investors, analysts and brokers when
judging SSE’s non-financial
performance.
In July 2024, SSE held its first in-person
ESG roundtable to update investors
ahead of the AGM on SSE’s progress
against its climate ambitions. The
session also looked at how the
Company works to balance social,
environmental and economic impacts
as it transitions to netzero.
The roundtable gave institutional
investors an opportunity to engage
directly with SSE’s Chief Commercial
Officer, Chief Financial Officer and
Chief Sustainability Officer. The
discussion prompted useful debate
ona similar range of topics to those
covered when SSE met other investors
during the year. They included progress
against SSE’s Net Zero Transition Plan,
how SSE is engaging with communities
near its planned electricity transmission
projects, and SSE’s scope 3 emissions
and net zero transition plans for
thermal joint ventures.
Engaging with investors and
shareholders on ESG issues
Consulting on remuneration
When developing the 2025 Remuneration
Policy to be proposed for approval at the
AGM, the Board sought the views of
shareholders representing around 55% of
the issued share capital. See pages126
to130
for details on this consultation
process and how shareholder feedback
shaped the proposed policy.
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Our stakeholders and Section 172 statement
The Board fosters a reciprocal relationship
with stakeholders that results in meaningful
influence across business plans and
objectives. While situations will exist
wherenot every stakeholder interest can
beaddressed, stakeholder views are
considered to the greatest extent possible
indecision making across SSE.
This section summarises how the Board has
upheld SSE’s social contract through the
discharge of its duties under Section 172
ofthe Companies Act 2006. For an
introduction to SSE’s six key stakeholder
groups, see pages 8 to 9
.
How we make decisions
Board priorities
It’s the Board’s duty to lead by example and
ensure fair and responsible decision making
across SSE. SSE’s Governance Framework
guides the Board in setting ambitions,
parameters and expectations to create
long-term success. These expectations are
reflected in SSE’s purpose, vision, strategy
and culture – and in the belief that
stakeholder views should be considered
when making long-term plans and
day-to-day decisions.
Cementing SSE’s place at the heart of the
clean energy transition remains the guiding
principle of stakeholder engagement.
Eachyear, the Board approves a set of
engagement priorities which cover the
cross-cutting issues requiring meaningful
and constructive engagement with all
stakeholders. These will frame activities
across SSE for 2025/26 and include:
– Continuing to execute against our NZAP
Plus targets and ensuring our plans for
clean energy investment to 2030 and
beyond create value for stakeholders.
– Advocating for policy frameworks that
support investment in critical net zero
infrastructure, and maintaining
alignment with the UK Government’s
Clean Power 2030 Action Plan.
– Listening to and working closely
withcommunities affected by SSE’s
operations to leave a positive and
enduring legacy through initiatives
suchas community funds so
thateveryone benefits from the
transition to net zero.
Considering the long term
SSE’s strategic approach to creating value
for shareholders and society leads to
actions with a significant long-term impact.
Four 2030 goals (see page 45 ) and a
net-zero-focused strategy guide decision
making and provide clear interim milestones
up to 2050. Set by the Board, these
parameters are integrated into SSE’s
strategic work and objectives, including
incapital investment, the Group budget,
dividends and resource planning. SSE’s Risk
Management Framework – the Group’s
Principal Risks, Emerging Risks, and Risk
Appetite statement – also shape long-term
perspectives.
Considering climate impacts
The significant threat that climate change
poses to the natural world is integrated into
numerous aspects of the Board agenda.
SSEis committed to open and transparent
disclosure to allow stakeholders to assess
itsenvironmental performance and the
potential impact of various climate
scenarios on future financial performance.
See pages 73 to 78
for more.
Considering business conduct
The Board leads and monitors SSE‘s culture
by setting the tone and a framework within
which agreed values and behaviours can
bedemonstrated by employees. This
includes doing the right thing through
responsible business conduct and making
apositive difference for key stakeholders.
See page 98 for more.
SSE operates under an implicit social contract in delivering its strategy. This places key
stakeholders – thepeople, communities and organisations affected by its actions – at the
heart of its decisions.
Considering our key stakeholders
Employees
Shareholders and
debt providers
Energy
customers
Governments
and regulators
NGOs,
communities
and civil society
Suppliers,
contractors and
partners
Our purpose
To provide energy needed today,
while building a better world of
energy for tomorrow.
Our vision
To be a leading energy company
in a net zero world.
Our strategy
To create value for shareholders
and society in a sustainable way
by developing, building, operating
and investing in the electricity
infrastructure and businesses
needed in the transition to
netzero.
Our culture
See pages 2 and 98
How we take decisions
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The following pages explain how the Board considered stakeholder interests
during the year relating to a number of key developments.
Stakeholder group How the Board engaged What we believe is most important to them
Employees
SSE’s strategy and
success depend on the
shared talent, diversity,
innovation and values
of the people it
employs.
See pages 53 to 56 and
99 to 100
– Employee-focused work by the Non-
Executive Director for Employee
Engagement.
– Site visits and attendance at face-to-face
and virtual events, allowing employees
toengage directly with Executive and
non-Executive Directors.
– Regular assessments and reviews of
SSE’sculture.
– Updates on the impact of organisational
changes across SSE, to ensure that
employees were treated with fairness.
– Employee safety, mental wellbeing, support and resilience.
– SSE’s employee offering, including reward, benefits,
inclusivity, flexibility and career progression.
– Understanding employees’ contributions to SSE’s net zero
strategy, ambitions and just transition approach.
– Clear communication around the Chief Executive
successionprocess.
– Giving all employees a voice and acting in response to the
all-employee survey findings.
– Continued engagement with senior leaders.
– Continued engagement with SSE’s Inclusion and
Diversitystrategy.
Shareholders and debt providers
SSE must be well-
financed, with the
ability to remunerate
shareholders for their
investment, secure debt
at competitive rates and
grow the business.
See
page 101
– A programme of physical and virtual
Director-investor meetings and
roadshows covering key financial
announcements, long-term priorities
andspecific issues at investors’ request.
– Directors attending investor conferences.
– Direct engagement at the AGM, where
shareholders asked questions in-person
and online.
– Executive Directors engaging with the
credit rating agencies used by debt
providers.
– Financial and ESG performance compared to market
expectations.
– The effect of competition, cost pressures, government
policy and supply chain constraints on returns and delivery
timelines from renewables investments in GB, Ireland and
new markets.
– Progress on the construction of large capital projects.
– Optimising capital allocation across SSE’sBusiness Units.
– Ensuring the Remuneration Policy aligns with strategic
priorities.
– Insights into the enduring role of SSEThermal in providing
flexibility in a changing and volatile market environment.
– Refinancing requirements, liquidity and the level of
protection against interest rates.
– SSE’s hedging position and the Group’s earnings exposure
toenergy commodity prices.
Energy customers
Consumers create
demand for the energy
and services SSE
provides and set the
tone for our purpose.
See pages 49 to 50
– Updates from SSE’s customer-facing
Business Units on the influence of
customer factors on business direction
and propositions.
– Monitoring performance to ensure an
appropriate level of customer service
andinvestment.
– Updates on the SSE response and
support for customers during
significantstorms.
Networks customers
– The impact of increased severe weather events with a focus
on investment, communication and support for vulnerable
customers.
– Improved customer services and connection processes
inSSEN Distribution.
– Driving efficiency in the execution of RIIO-ED2.
– Investment in network resilience.
Energy supply customers
– Energy efficiency and decarbonisation measures for
businessand domestic customers.
– Energy affordability and available funds and support
mechanisms.
– Customer experience, particularly around wait times
andsupport.
Stakeholder engagement and keylearnings
SSE’s strategic stakeholder engagement isdesigned to ensure all perspectives areheard and to cultivate a useful understanding of the
important issues for SSE’s six key stakeholder groups. Aligned with legislative and regulatory requirements, this approach combines
business-led and Board-level interactions to enable stakeholders to influence business plans and supporting objectives. For more on how
the Board considered stakeholder factors within a number of key developments in 2024/25, see pages 95 to 96 .
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Stakeholder group How the Board engaged What we believe is most important to them
Governments and regulators
SSE relies on policy
frameworks and public
services that support
investment in critical
national infrastructure,
are fair on customers,
and maintain the
momentum behind
netzero.
See pages 4 to 5
and94
– Direct constructive engagement with the
UK Government, new Irish Government,
regulatory bodies and political
stakeholders.
– Overseeing the implementation of SSE’s
Political Engagement Policy and related
advocacy priorities.
– Monitoring engagement with and
responses to regulators to make sure
strategic, financial, operating and
investment frameworks stay aligned to
the external landscape.
– Supporting SSE’s advocacy for policy
frameworks that encourage investment in
carbon capture and storage and hydrogen.
– Accelerating infrastructure delivery to improve energy
security and decarbonise the sector, in line with the UK
Government’s Clean Power 2030 Action Plan.
– Strategic investment in networks to facilitate net zero and
improve energy resilience.
– Evolving the electricity market and supporting mechanisms
to continue to invest in UK energy infrastructure.
– Constructive dialogue on planning and consents with the
Department for Energy Security and Net Zero.
– Continuing to build support for the RIIO-T3 framework to
accelerate network investment through to 2031.
NGOs, communities and civil society
SSE needs the support
of the communities it
works in and the
backing of civil society
to pursue a just
transition to net zero.
See pages 56 to 59
– Receiving and approving updates on
SSE’s 2030 goals aligned to the UN
Sustainable Development Goals.
– Considering the community impact and
benefit of large capital projects including
the approach to consultation.
– Deepening understanding of local
community priorities through site visits.
– Overseeing SSE’s community investment
model in the UK and Ireland and
approving underlying investment
fundprinciples.
– Net zero transition planning considering both social and
nature interdependencies.
– The allocation and impact of SSE’s community investments.
– The cost of energy, particularly in the context of current high
costs for energy users.
– Restoring nature, adding value to natural capital, and
preventing harm to species and ecosystems.
– Balancing local communities’ socioeconomic needs with the
national demand for infrastructure to meet the UK’s climate
ambitions.
– Policies and practices that support a just and fair transition
tonet zero.
– Maintaining high employment standards, including Living
Wage, safe workplaces, and a culture that promotes
inclusion and diversity.
– The responsible behaviour of large businesses including tax
policies and tax transparency.
– Clear communications when responding to storms and
maintaining network resilience.
Suppliers, contractors and partners
SSE relies on a healthy
supply chain and works
with partners whose
capabilities offer
synergies for innovative
project development
and efficient ownership
structures.
See pages 51 to 52
– Executive Director meetings with
strategic partners and suppliers.
– Board-wide engagement with key
supplier partners through the annual
strategy day.
– Updates on joint venture project
strategyand progress.
– Reports on contractor safety
performance and initiatives.
– The management and mitigation of health and safety risks
on SSE’s sites.
– The impact of supply chain constraints on large capital
project delivery.
– Improving procurement approach to minimise risk exposures
in high-risk jurisdictions.
– Economic opportunities in local supply chains.
– Ensuring supply chain resilience and sustainability through
mitigating and managing key environmental and social
impacts.
– Ensuring supply chain respect for human rights and
addressing modern slavery concerns.
– The approach to project decisions and innovation.
– Prompt payment and fair expectations around project
delivery.
Our stakeholders and Section 172 statement continued
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Progress against 2023/24 actions
The Board made progress on areas highlighted as opportunities for refinement following last year’s Board performance review.
Previous opportunities for refinement Progress on actions agreed by the Board
NZAP Plus execution andgrowth The Board has continued to enhance its oversight and engagement with management on the
NZAP Plus. It receives regular progress updates on performance and execution, as well as
project-specific deep dives (pages 94 to 96
).
Enhancing stakeholder engagement The Board considered supply chain dynamics and heard directly from external speakers,
including suppliers, at the annual strategy day. The Board continued to consider policy
developments and oversaw an extensive programme of engagement with policymakers and
regulators (pages 94 and 102 to 104
).
Board succession and Committee
Chair changes
The Board, supported by the Nomination Committee, has conducted a comprehensive
review of Board composition, skills and tenure. This year, effective succession planning has
resulted in the appointment of Martin Pibworth as Chief Executive designate and Hixonia
Nyasulu as Senior Independent Director designate (pages 107 to 112
).
The Board undertakes a yearly review of the impact of its activities, the strength of its
decisions, and the unique contributions made by each Director. This scrutiny ensures its
ongoing performance, growth and effectiveness.
– Several Board performance review providers were invited to provide a proposal for this year’sreview.
– An initial shortlist of respondents were interviewed about their proposal. Areas explored included their
approach, previous experience, cultural alignment through shared values, communication style and use of
digital platforms.
– A final shortlist of two candidates were each interviewed by the Chair, Senior Independent Director and
Group General Counsel and Company Secretary. A recommendation was then made to the Nomination
Committee and the Board, and Heidrick & Struggles wereconfirmed.
– Between July and October 2024, the Principal Reviewer interviewed each Board member as well as the
Group General Counsel and Company Secretary. The interviews included open conversation and discussion
of topics relevant to the effectiveness of the Board and its Committees.
– Between September and October 2024, Board members completed a questionnaire rating the extent to
which they agreed with statements.
– The Principal Reviewer attended the November 2024 Board meeting in person to observe Board dynamics
and operations in action.
– A range of documents, including Board and Board Committee materials, agendas and minutes, was
thoroughly reviewed. This also supported the capability review.
The Group General Counsel and Company Secretary facilitated this process by ensuring that Heidrick & Struggles
had appropriate access to Board members and the materials needed for the review.
The review approach – including interviews, a questionnaire, document review, meeting observation and
capability review – was agreed in discussions with the Principal Reviewer toensure a comprehensive
assessment of all aspects of the Board’s effectiveness.
– Heidrick & Struggles produced the Board and Board Committee performance review reports for review in
December 2024.
– The Chair, Chief Executive and Group General Counsel and Company Secretary met with the Principal
Reviewer to discuss the report findings before these were shared with the Board.
– The Principal Reviewer presented the review findings to the Board in person at the January 2025 meeting.
This gave members the opportunity to discuss the findings and to share their thoughts on key strengths and
opportunities for refinement.
Assessing Board performance
This year’s Board and Board Committee performance reviews were externally facilitated by Heidrick & Struggles, with Alice Breeden
as the Principal Reviewer. This was the only contractual connection between SSE, the individual Directors and Heidrick & Struggles.
Heidrick & Struggles have reviewed this section and agreed that its contents are accurate. This review is in full compliance with the
Chartered Governance Institute’s Code of Practice for Independent Board Reviewers.
2024/25 independent Board performance review process
STAGE 1
Choosing an
independent provider
STAGE 3
Conducting
the review
STAGE 2
Designing the
performance review
STAGE 4
Reviewing the
report, discussions
and actions
105
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2024/25 independent Board performance review findings
The findings of this independent Board performance review were very positive, with the Board found to be operating effectively and led by
a strong Chair. Key strengths included:
– Board dynamics and commitment.
Boardmembers were united in their
commitment to support SSE’s growth
and success. This commitment extends
beyond the boardroom through
mentoring and coaching individuals
across the Company and actively
engaging with SSE’s talent pipeline.
While the review findings were highly positive and confirmed the Board was operating effectively, as with all balanced processes
opportunities forrefinement were highlighted.
Opportunities for refinement Commentary and actions
Executive talent and
succession planning
While highly complimentary of the composition of the Board, the review suggested continuing
tofocus on executive talent and succession planning. Supporting actions agreed by the Board
included:
– Continuing both formal and informal talent engagement between all Board members and the
talent pipeline at varying levels of seniority.
– Formal governance arrangements supporting the Chief Executive succession.
– A detailed onboarding programme for Hixonia Nyasulu ahead of her appointment as Senior
Independent Director, becoming effective after the AGM in July 2025.
Oversight and further
alignment on
opportunities
In light of SSE’s ambitious growth strategy, the review highlighted an opportunity to strengthen
alignment on international markets. As a result, the Board agreed to dedicate additional time during
the June 2025 strategy day to explore strategic principles around potential international
opportunities.
Board operations
The review highlighted ongoing work to refine Board operations, questioning whether more time
should be allotted for non-Executive Directors to discuss topics. Supporting actions agreed by the
Board included:
– Providing additional feedback and training to improve submissions to the Board through the
continued use of paper templates and executive summaries.
– Prioritising and reviewing agenda requirements against time constraints for Board meetings.
– Additional non-Executive Director meetings outside of Board meetings to allow for additional
discussion, with the first of these taking place in March 2025.
Chair performance
In conjunction with the SID, it was agreed
that the performance of the Chair would be
evaluated as part of Heidrick &Struggles’
review. This found that the Chair
encourages open communication and
diverse perspectives, balances support and
challenge, and promotes a forward-thinking
vision that enriches Board discussions.
He maintains effective relationships with all
Directors built on a strong foundation of
trust. He supports and drives a committed
and inclusive culture that encourages
constructive debate. His positive and open
tone contributes to effective meetings.
Thereview confirmed that he gives enough
time to the role, shows effective leadership
and meets the requirements of the UK
Corporate Governance Code 2018.
Individual Director performance
Individual Director performance and
contributions were assessed through a
series of one-to-one meetings with the
Chair. These sessions included discussion
ofpersonal development and training
needs, as well as of boardroom culture
andprocess. The findings, in combination
with individual skills (see page 90 ),
timecommitments, and independence
assessments (see
pages 110 to 111 )
confirmed that each Director continues
tocontribute positively.
Board Committees
It was confirmed that each Committee
provided effective Board support. The
Chairs oversaw specific findings and the
agreement of actions for their Committee,
while also considering the findings of
theoverall Board performance review.
EachCommittee will continue to monitor
progress – see pages 107 to 153
fordetails in Committee Reports.
– Robust composition. The Board’s
composition was seen as strong and fit
for the strategic direction of SSE, with
each Board member bringing distinct
strengths. Recent appointments have
further enhanced the Group’s
composition and skillsets through
expanded industry backgrounds,
international experience and non-UK
and Ireland perspectives.
– Effective governance processes.
Thereview highlighted that the Board
had strong and continually improving
governance processes, reflecting its
commitment to fostering transparency
and collaboration. Informed discussions
with Board materials have become more
concise and focused.
Assessing Board performance continued
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Nomination Committee Report
We’ve worked extensively on succession planning for
the Chief Executive and Senior Independent Director
positions to prepare for significant Board changes in
the coming year.”
Sir John Manzoni
Committee Chair
The role of this Committee
The Nomination Committee brings
adedicated focus to people-centred
matters. It leads the process for
Boardand executive appointments,
monitors senior talent pipelines,
promotes leadership diversity, and
ensures that proper procedures are
inplace for the nomination, selection,
training and evaluation of Directors.
For details of the role and
responsibilities of the Committee, see
its Terms of Reference on sse.com
.
This process involved an external search,
aswell as benchmarking and evaluating our
internal talent pipeline. Our Committee
agreed a detailed Chief Executive Success
Profile laying out the desirable attributes,
skills and experience, and this was used in
considering potential candidates from a
diverse range of backgrounds. Members
ofthis Committee met with shortlisted
candidates, and those who progressed
alsotook part in leadership assessment
interviews and psychometric evaluations.
At the end of this competitive process, our
Committee was delighted that the Board
approved our recommendation to appoint
Martin Pibworth as our new Chief Executive.
Martin is a proven industry leader, with deep
sector experience and a highly strategic
outlook. He clearly has the attributes
needed to be a successful Chief Executive
at this exciting time for SSE – and will
formally take over from Alistair after our
AGM on 17 July 2025.
Board changes
With Senior Independent Director (SID)
Helen Mahy reaching the end of her Board
tenure in 2025, we assessed the Board’s
composition and agreed that a new Board
member would bring fresh perspectives to
this key role. With the support of executive
search firm Russell Reynolds Associates, we
began a comprehensive search for a new
non-Executive Director to replace Helen.
This rigorous process resulted in our
recommendation that Hixonia Nyasulu be
appointed as a non-Executive Director and
SID designate. We were confident that her
significant international experience at Board
level and knowledge of capital-intensive,
safety-critical businesses would enhance
the Board’s leadership and governance
capabilities. The Board approved our
recommendation, and we were pleased
towelcome Hixonia to the Board on
1January 2025.
Hixonia will take over as SID when Helen
steps down from the Board after our 2025
AGM. We would like to thank Helen for her
valuable contribution to SSE throughout her
time here.
Priorities for 2025/26
The outcomes of the Board and Board
Committee’s performance review facilitated
by Heidrick & Struggles (see pages 105 to
106 ) havegiven us a clear plan for the
year ahead. A key focus will be working
withExecutive Directors and Group HR to
monitor the effectiveness of action plans
toenhance the diversity and breadth of
experience of the Group Executive
Committee and senior leaders.
Given the significant changes to our
leadership this year, we’ll continue to
consider Board succession plans and
particularly Committee Chair roles in the
context of planned Board departures.
We’llalso oversee the transition of the
keyroles of SID and SSHEAC Chair to
Hixonia Nyasulu and Dame Angela Strank,
respectively.
With a successor for the Chief Executive
role now secured, we’ll also work closely
with the Group General Counsel and
Company Secretary to ensure a focused
and tailored induction. We look forward to
supporting Martin as he leads SSE through
its next phase of development and growth.
On behalf of the Committee, I’d like to
thank you for reading our report. We hope
you find it an informative and clear account
of our work during the year.
Sir John Manzoni
Chair of the Nomination Committee
20 May 2025
I’m pleased to present our Committee
report for 2024/25. This sets out the key
activities and matters considered by this
Committee in what has been a particularly
busy year.
We’ve worked extensively on succession
planning for the Chief Executive and Senior
Independent Director positions to prepare
for significant Board changes in the coming
year. This report explains how we’ve
supported the Board in securing successors
for these pivotal roles. It also covers
changes to Board Committee composition,
Hixonia Nyasulu’s tailored induction,
Directors’ time commitments, non-
Executive Directors’ independence, and our
ongoing focus on succession and diversity
at Board and senior management level.
Chief Executive succession
After the November 2024 announcement
that Alistair Phillips-Davies will retire as
Chief Executive in 2025, our Committee
focused on developing succession plans to
ensure a robust selection process for the
role. We engaged executive search specialists
Korn Ferry for advice and support.
107 SSE plc Annual Report 2025
Governance Financial StatementsStrategic Report

Nomination Committee Report continued
Governance
Membership and attendance
The Committee comprises all SSE non-Executive Directors and the Board Chair, who is also the Committee Chair. The Group
General Counsel and Company Secretary is the Secretary, and Executive Directors attend meetings as appropriate. See
pages 87
to90
for member biographies. The Committee met nine times in 2024/25, with attendance set out on page 93 .
Board and Committee performance review
The Committee oversaw a robust process to choose an external provider for the 2024/25 Board and Board Committee performance
review (pages 105 to 106 ). This resulted in the Committee approving the appointment of Heidrick & Struggles.
The annual review of Committee performance confirmed that the Committee continued to operate effectively and led to agreed
actions for 2025/26.
Review
confirmed
– The Committee is led by a strong Chair who proactively drives succession planning with a focus on diversity.
–A strong Director onboarding process has been established by the Committee, with a customised
induction programme tailored to each new Board member.
– The Committee effectively uses sub-groups to lead focused discussions.
– Committee members actively engage with SSE’s pipeline of emerging leaders through talent sessions,
Board presentations and informal interactions.
Actions for
2025/26
– Further accelerate executive planning processes by continuing to regularly review the talent pipeline.
– Continue to focus on enhancing the diversity around the organisation and breadth of experience of the
Group Executive Committee.
– Consider Committee Chair succession and ensure a smooth transition process for the SSHEAC Chair given
the specialised nature of that Committee.
Ensuring effective leadership
Board composition
As the biographies (pages 87 to 90
) and
tables outlining the Board’s composition
and competencies (page 90 ) show,
theSSE Board is diverse in terms of skills,
experience, gender and ethnicity.
This Committee regularly assesses Board
composition against the criteria it believes is
needed to effectively lead SSE in delivering
its strategy, setting and overseeing the
desired culture and values, and ensuring
long-term sustainable success. The Board’s
skills matrix sets out what these attributes
are (page 90
) and this is used to guide
succession planning. The Board’s Inclusion
and Diversity Policy, planned departures,
and the regulatory landscape in which SSE
operates also inform this process.
Board renewal
Having identified the need for a non-
Executive Director to succeed Helen Mahy
as SID, in 2024/25 this Committee was
instructed bythe Board to initiate a
comprehensive recruitment process. As set
out in the Chair’s introduction to this report,
the Committee recommended to the Board
that Hixonia Nyasulu be appointed as a
non-Executive Director and SID designate.
The Board approved this recommendation,
and Hixonia joined the Board on 1 January
2025. Details of the appointment process
are in the table on page 109 .
After the AGM in July 2025, Helen Mahy
willretire from the Board having served
justover nine years. To ensure a smooth
transition of the SID role to Hixonia Nyasulu,
a limited time extension to her tenure was
approved by the Board as recommended
bythis Committee.
During 2024/25, this Committee
recommended to the Board that Lady Elish
Angiolini and Debbie Crosbie, both of
whom had completed their initial three
year-terms as non-Executive Director, be
appointed for second three-year terms.
TheBoard also approved the Committee
recommendation that Melanie Smith be
appointed for her third three-year term.
These recommendations were supported
by the continued independence,
experienceand contribution of these
Directors. No Director took part in
discussions or decisions related to their
ownre-appointment.
Chief Executive succession
After Alistair Phillips-Davies announced that
he would retire in 2025, the Board, building
on its long-term Chief Executive succession
planning activity, asked the Chair to lead
therecruitment process working with
thisCommittee.
Throughout the process, this Committee
acted in line with the Board’s Inclusion
andDiversity Policy (see
page 112 )
andconsidered the benefits of diverse
representation. As set out in the Chair’s
introduction to this report, the process
resulted in the Committee recommending
to the Board that Martin Pibworth be
appointed as Chief Executive. The Board
approved this recommendation, and Martin
will formally take over from Alistair Phillips-
Davies after SSE’s AGM on 17July 2025.
Details of the appointment process are in
the table on
page 109
.
Alistair Phillips-Davies will step down from
the Board at the end of the 2025 AGM
before leaving SSE in November 2025.
Hewill remain as non-Executive Chair
ofSSEN Distribution during this time.
108 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Process for appointing a new Independent
non-Executive Director and SID
Process for appointing a new
ChiefExecutive
STEP 1:
Confirming
objectives
The Board and Nomination Committee agreed
that a new non-Executive Director would bring
fresh perspectives to the SID role. While this was
the primary objective of the recruitment process,
the Committee also saw the opportunity to
closepotential gaps in experience and diversity,
particularly in the context of planned Board
departures.
After Alistair Phillips-Davies announced his intention
to retire during 2025, the Board delegated authority
to the Chair to lead the recruitment process with
this Committee. The Committee assessed existing
succession plans for the Chief Executive role and
agreed on a selection process, in which external
and internal candidates with diverse backgrounds
and experience would beconsidered.
STEP 2:
Engaging an external
recruitment firm
and agreeing the
role specification
Russell Reynolds Associates* was engaged to
support this process. They worked with the
Committee to refine the role specification setting
out the attributes needed to be an effective SID
and enhance the Board. These attributes included:
– Board-level experience at a business of a
certain scale and complexity with international
operations.
– Experience as a non-Executive Director.
– Strong interpersonal skills.
Korn Ferry* was appointed to assist with the
process and provide advice. They worked with
theCommittee to refine a Chief Executive
SuccessProfile that set out the attributes needed
tolead SSE in successfully executing its existing
strategy and the transition to clean power in the
future. Theseattributes were multi-dimensional
and included:
– Experience in defining, planning, and shaping
strategies and initiatives that set organisational
direction.
– A track record of dealing productively with key
external stakeholders such as regulatory bodies,
government agencies, industry groups and
investors.
– The ability to take a global and enterprise-wide
lens to issues and build capabilities to scale the
business globally at the appropriate time, while
staying attuned to local country business and
cultural dynamics.
STEP 3:
Assessing how the
role specification
could be met
through a longlist
Supported by Russell Reynolds Associates, a
longlist of candidates was collated using as broad
a brief as possible. A sub-group of this Committee
– the Chair, Helen Mahy, Tony Cocker, John
Bason and Debbie Crosbie – was given authority
to review the longlist against the role specification
considering levels of interest, bandwidth and
potential conflicts.
Using the Chief Executive Success Profile, Korn
Ferry undertook a comprehensive market-mapping
exercise to identify and evaluate a wide and diverse
range of external candidates. They then presented
anumber of potential executives for consideration.
Our Committee selected a longlist of primary
candidates for Korn Ferry to approach and gauge
interest, while at the same time assessing the
internal talent pipeline.
STEP 4:
Reviewing technical
and cultural fit
to agree a shortlist
The Committee agreed a shortlist of candidates
tomeet with each member of the sub-group.
After these meetings, feedback was given to the
full Committee. The Committee then chose a
preferred candidate who was invited to meet
withthe remaining members of the Nomination
Committee and the Executive Directors.
Once they had engaged with the longlist of
preferred candidates, Korn Ferry fed back to the
Committee. After careful consideration, a shortlist
of candidates was asked to attend interviews
withasub-group of this Committee: the Chair,
Tony Cocker, Helen Mahy, Maarten Wetselaar
andJohn Bason. The interviews were then
discussed and a small number of shortlisted
candidates werechosen to progress. They
undertook detailedassessments with Korn Ferry,
including leadership and market interviews
andpsychometric assessments.
STEP 5:
Making a
recommendation
to the Board
Hixonia Nyasulu was recommended to the Board
as new Board member and SID designate. This
Committee agreed that Hixonia’s skills and
experience were in line with the role specification
and that she would be a good cultural fit. This
followed confirmation of her independence and
capacity to take on the role.
The Committee discussed the merits of the final
candidates and evaluated the pros and cons of
appointing an internal versus an external candidate.
Considering the opportunities, risks and skills
needed for the future, as well as the complementary
skills of the SSE team, Martin Pibworth was chosen
as the outstanding candidate. The Board approved
his appointment after considering this Committee’s
recommendation.
* Neither Russell Reynolds Associates nor Korn Ferry have any other connection with SSE or individual Directors. Both are signatories to the voluntary code of conduct for
executive search firms.
Key roles appointment process
109 SSE plc Annual Report 2025
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Nomination Committee Report continued
Committee changes
In appointing Board Committee members
and key Board roles, this Committee
strivesto:
– Ensure alignment between skills and
specific Committee and individual
responsibilities.
– Prevent undue reliance on any one
Director.
– Comply with recognised guidance,
including the UK Corporate Governance
Code (the Code).
As part of succession planning for the Board
roles held by Helen Mahy, the Committee
recommended Dame Angela Strank as
Chair of the SSHEAC. This was approved by
the Board and will take effect after the 2025
AGM. Angela has been a member of the
SSHEAC since 2020. She has extensive
knowledge of safety, sustainability, health
and environmental matters. This includes
non-executive experience on Rolls-Royce’s
Safety, Energy Transition & Tech Committee
and as Chair of Mondi’s Sustainable
Development Committee, and executive
experience as BP’s Chief Scientist and
Headof Downstream Technology.
After a recommendation from the
Committee, the Board also agreed that
Hixonia Nyasulu would join the Nomination
Committee on 1 January 2025 and the Audit
Committee and SSHEAC after the 2025 AGM.
External appointments
This Committee also ensures Directors
havethe time to perform their roles on the
Board and its Committees. Before each
Director’s appointment, the individual’s
external commitments and demands on
time are assessed to confirm their capacity
for the role. The amount of time expected
for therole is specified in their Letter of
Appointment, and Board members can
onlyaccept additional commitments with
approval from the Board. Approval is only
granted when the Board has reviewed the
individual’s circumstances and is satisfied
that the Director can continue to give
enough time to their SSE role.
During the year, approvals were given
forSirJohn Manzoni, John Bason and
Melanie Smith. Key changes are reflected on
pages87 to 90
. In each case, the Board
was satisfied that the appointment would
not affect the Director’s time commitment
to SSE or create a conflict of interest.
Sir John Manzoni became Chair of Diageo
plc on 5 February 2025, having received
clearance from the Board in 2023/24.
Before assuming this role, he made changes
tohis external appointments by resigning
asChair of the Atomic Weapons
Establishment. In January 2025, this
Committee reviewed Sir John’s external
appointments, considering relevant proxy
advisory guidance and investor policies,
andreaffirmed that there are no concerns
with his ability to devote enough time to
meet his SSE responsibilities. The SID
chaired the Committee during this process.
Hixonia Nyasulu visits the National HVDC Centre in Cumbernauld
Hixonia Nyasulu joined the
Board on 1January 2025. Her
ongoing induction programme
is tailored to familiarise
herwith SSE’s operations and
key stakeholders. It will prepare
her for becoming Senior
Independent Director and
joining the Audit Committee
and SSHEAC in July 2025.
The programme has been delivered
inphases, with the most material
information provided early on.
Hixonia has attended numerous
knowledge-based sessions with
internal functions and external
advisors on a range of topics
including: SSE’s purpose, strategy
and business model; the energy
sector and trends; SSE’s energy
portfolio and long-term energy
markets; corporate governance
andBoard operations; legal and
regulatory views of the external
environment; and IT and cyber
security. She has also visited SSEN
Transmission’s simulation, testing
and training centre for High Voltage
Direct Current (HVDC) systems to
gain insight into the use of HVDC
onthe GB transmission network.
See
page 96
.
Senior Independent
Director role
Meetings and discussions with
Helen Mahy are ongoing, with Helen
providing adetailed overview of the
key aspects of the SID role specific
to SSE. Hixonia has also met with
the Director of IR, Director of
Corporate Affairs, Regulation and
Strategy, and SSE’s brokers to
become familiar with key
stakeholders and theirpriorities.
Committee roles
Hixonia’s induction for her Audit
Committee role has included
internal sessions with the Chief
Financial Officer and senior
members of the finance team on
financial performance and strategy,
funding, assurance, and risk
management. She has also attended
external sessions with the Group’s
auditor and financial advisors.
Forher SSHEAC role, she has met
and discussed pertinent matters
with the Chief Sustainability Officer,
Group Safety, Health and
Environment Manager, and Director
of HR.
Hixonia Nyasulu’s induction
110 SSE plc Annual Report 2025
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Conflicts of interest and independence
The Committee reviews SSE’s Conflicts of
Interest Register and the independence of
Board members. This involves considering
the principles relating to independence in
the Code and taking into account each
Director’s character, objectivity and integrity.
After its review in 2024/25, the Committee
recommended that the conflicts or
potential conflicts of interest detailed in the
Register be authorised and that all non-
Executive Directors be seen as independent.
This was confirmed by theBoard.
Inducting new Directors
All Directors receive a comprehensive
andbespoke induction. This is designed
with the Chair and Group General Counsel
and Company Secretary considering each
Director’s expertise and potential Board or
Committee roles. It includes one-to-one
meetings with the Chair, Executive
Directors, Group General Counsel and
Company Secretary, members of the
GroupExecutive Committee, and other
senior leaders.
Inductions familiarise Directors with SSE’s
operations, strategy, culture, governance,
and the regulatory environment in which
itoperates. They also generally include
meetings with external advisors and visits
tokey sites. Once appointed, Directors are
given access to SSE’s electronic Board paper
system – this contains past Board and
Committee papers, key internal policies,
and information on the duties of being
aDirector of a listed company.
Martin Pibworth’s tailored induction is
ongoing as he transitions to Chief Executive
after the 2025 AGM. The programme takes
account of his extensive experience at
SSEand existing knowledge of the industry
and sector. Its primary focus is on the
roleand responsibilities of a Chief Executive
of a listed company, and it includes
meetings with advisors, investors and
otherstakeholders.
To prepare for Dame Angela Strank’s
transition to SSHEAC Chair in July 2025,
meetings have been held with key
colleagues on inputs to Committee
business, current trends and issues. She
willalso meet with the outgoing Chair
Helen Mahy to review the Committee’s
operations and ensure a smooth handover.
Capability and development
Succession planning
The Committee works closely with
GroupHR to support SSE’s continued
abilityto recruit talent and develop the
skills, experience and knowledge needed at
Executive Director and below-Board level to
ensure the Company’s long-term success.
The internal pipeline of people with the
potential to move into key leadership and
functional roles, whether in the short or
longer term, is regularly reviewed and
challenged. Recent hires and external talent
pools are also considered.
Building capability and capacity
SSE is committed to investing in its people
through targeted development initiatives
tobuild capability. External providers
support with some of these initiatives,
which are designed to create the education,
exposure and experience required to deliver
SSE’s strategy.
To support this, the Committee regularly
reviews development activity and oversees
talent programme participation. Members
of this Committee also engage with SSE’s
emerging leaders through talent sessions,
Board presentations, informal interactions,
and opportunities for coaching and
mentorship. Colleagues are invited to
present at Board-level meetings, and
non-Executive Directors interact with
emerging leaders at business-led sessions
and internal conferences.
Inclusion and diversity
SSE’s Group-wide inclusion and diversity
strategy is explained on pages 55 to 56
and in SSE’s Inclusion and Diversity Report
2025 available on sse.com . Board and
senior leadership diversity ambitions and
targets are set in line with the FTSE Women
Leaders Review, the UK Listing Rules
andthe Parker Review. See the table
onpage 112 for details of the gender
andethnic diversity on the Board and
ExecutiveCommittee.
Board diversity
The Board aims to set the right tone from
the top and foster a diverse culture that
welcomes all views, perspectives and
experiences. To this end, it operates under
astandalone Inclusion and Diversity Policy
which aligns its membership with SSE’s
purpose, strategy and values through
agreed principles and ambitions. The full
policy can be found on sse.com .
This Committee reviews the policy each
year and from time to time recommends
changes that may enhance the diversity of
the Board and its Committees. No changes
were proposed or made in 2024/25. Policy
implementation is assessed by reviewing
the diversity of the Board and Committees
and evaluating progress and compliance
against set goals – see page 112
.
Senior leadership diversity
The Committee reviews inclusion and
diversity at below Board level, including
strategy, plans and activities to create a
more inclusive and diverse environment.
Itworks with the Executive Directors
andGroup HR to develop action plans
thatsupport SSE’s stretching senior
leadership diversity ambitions and
monitorstheir progress.
As reported last year, the Committee
endorsed an ambition of 6% ethnic minority
representation in senior management
tobeachieved by December 2027. The
Committee is monitoring progress and
believes this ambition remains credible
andstretching. See
page 55 for details
onprogress across all senior leadership
diversity ambitions.
The Committee also worked during the year
with Group HR to identify levers to improve
gender diversity in the Group Executive
Committee and its direct reports. These
include programmes to support colleagues
returning from extended leave (such as
maternity leave), bespoke networking
channels, and learning and development
programmes. Improving opportunities for
diverse candidates will continue to be a
priority for this Committee, as every change
to the composition of this relatively small
group of people can affect how quickly
goals are achieved.
More broadly, the Committee was pleased
tosee positive progress in inclusion and
diversity overall at SSE, with stronger
representation of women, ethnic minorities
and disabled people.
Coaching emerging talent
2024/25 highlights
– Dinners for senior women leaders
were held in May and November
2024 and attended by Melanie
Smith, Lady Elish Angiolini, Dame
Angela Strank and Helen Mahy.
These were an opportunity to
gather insights and have open
andhonest conversations in a
supportive environment.
– Dame Angela Strank joined SSE’s
leadership training programme in
September 2024 to engage with
and support future talent. She
noted the strong diversity there –
particularly in education, gender
and ethnicity – and felt this would
create a strong leadership pipeline.
– John Bason, Debbie Crosbie
andHelen Mahy went to Group
leadership events in Reading and
Dublin in January 2025 for both
formal and informal interaction.
These events provided an
opportunity for open conversation,
and to observe and informally
coach emerging talent.
111 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Board Inclusion and Diversity Policy
How the policy links to strategy
People are at the heart of the transformational change needed to achieve net zero, and SSE believes innovative solutions to climate
changerequire diverse views, experiences and skills. A diverse Board brings constructive challenge and fresh perspectives to discussions.
Theprinciples of equality, fairness, inclusion and diversity must be at the centre of everything SSE does to effectively drive the transition to
net zero.
Policy principles
Leadership and composition
– Identify Board and Committee needs including the balance of diversity characteristics.
See page 90 .
Recruitment
– Adopt a formal and inclusive Board recruitment process.
– Engage executive search firms who have signed the enhanced code of conduct and discuss ambitions for diverse candidate lists.
– Recruit based on an objective and shared understanding of merit.
See pages 108 and 109 .
Culture and strategy
– Nurture an inclusive Board and Committee culture.
– Be aware of stakeholder expectations and challenge targets in wider strategy.
See pages 98 and 111 .
Succession
– Oversee work to develop a diverse talent pipeline.
See page 111 .
Policy goals
– Goal. Board members at least 40% women, with the aim to stay as close to an even gender balance (50%) as possible on a rolling basis.
9 46% women on the Board as at 20 May 2025. 44% rolling three-year female representation as at 31 March 2025.
– Goal. At least one woman in the roles of Chair, Senior Independent Director, Chief Executive or Chief Financial Officer.
9 The role of Senior Independent Director is held by a woman.
– Goal. At least one Director from an ethnic minority background.
9 Two Directors are from an ethnic minority background.
– Goal. At least one woman as a member of each of the Board Committees.
9 At least two women sit on each of the Board’s Committees.
Compliance against FCA Listing Rule 6.6.6(9)
As at the Company’s chosen reference date, 31 March 2025, SSE confirms it has met the targets set out under LR 6.6.6(9). In line with
LR 6.6.6(10) as at the reference date, the composition of the Board and Executive Management was as follows:
Gender (sex)
Number
of Board
members
Percentage
of the Board
Number of senior positions
on the Board (CEO, CFO,
SID and Chair)
Number in
Executive
Management
1
Percentage of
Executive
Management
1
Men 7 54% 3 10 91%
Women 6 46% 1 1 9%
Ethnic background
Number
of Board
members
Percentage
of the Board
Number of senior positions
on the Board (CEO, CFO,
SID and Chair)
Number in
Executive
Management
1
Percentage of
Executive
Management
1
White British or other White (including minority-white groups) 11 84.6% 4 11 100%
Mixed/Multiple Ethnic Groups – – – – –
Asian/Asian British – – – – –
Black/African/Caribbean/Black British 1 7.7% – – –
Other ethnic group 1 7.7% – – –
Not specified/prefer not to say – – – – –
1 Executive Management within SSE is the Group Executive Committee including the Committee Secretary.
At the conclusion of the AGM on 17 July 2025, Helen Mahy and Alistair Phillips-Davies will retire from the Board. Martin Pibworth will be appointed as Chief Executive and Hixonia
Nyasulu will assume the role of SID (
pages 108 and 109
). Changes in composition will not affect compliance with LR 6.6.6 and the goals within the Board’s inclusion and
diversity policy.
Gender information is captured from legal documentation provided by the employee and recorded in SSE’s HR data system, which maintains a 100% completion rate. This is
what is used when reporting the gender diversity of the Board and Executive Management. Ethnicity data is given voluntarily and can be recorded directly in SSE’s HR data
system or via a secure online form which feeds into the system. SSE has 100% voluntary completion of ethnicity data at Board and Executive Management level. All diversity
data reporting is completed securely and in a way that protects anonymity, so that no one person can be identifiable. All information is strictly confidential in accordance with
SSE’s Privacy Notice in line with the UK and ROI General Data Protection Regulations (UK GDPR and GDPR 2018 and DPA 2018).
Nomination Committee Report continued
112 SSE plc Annual Report 2025
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We’re confident that SSE continues to maintain a
strong control environment, ensuring financial
integrity and compliance.”
John Bason
Committee Chair
Audit Committee Report
Internal controls and
governancereforms
We received updates during the year on
thework underway to prepare SSE for the
changes introduced by the UK Corporate
Governance Code 2024 (the Code). A new
requirement of the Code is Provision 29.
This requires the Directors to formally
declare that the Group has appropriate
systems to monitor and review the
effectiveness of material internal controls
and risk management frameworks.
While this change will only apply from
SSE’sfinancial year 2026/27, we have
proactively taken steps to strengthen
ourapproach tooverseeing and assuring
ourinternal controls. Weseethe changes
brought about by theCode as an opportunity
to further enhance governance, drive
accountability and reinforce stakeholder
confidence inourcontrol environment
andrisk management framework.
In September 2024, we oversaw the launch
of SSE’snew Financial Controls Centre
ofExcellence. We endorsed a three-year
roadmap to evolve our financial control
framework, advance our approach to
assurance, and embed astronger control
culture across the business. As part of our
oversight, the Financial Controls Team
updated us on implementation progress
and alignment with our strategic objectives.
Enhancing financial insights
During the year, we established a rolling
engagement programme with SSE’s
Business Unit Finance Directors, who
presented to our Committee on their
specific areas. These sessions provided
updates on the operational and financial
dynamics of each Business Unit and have
been invaluable in strengthening our
oversight and informing our approach
torisk, assurance and performance
monitoring. They also enabled us to identify
opportunities for Finance to provide
enhanced support to the Business Units.
I’d also like to recognise the valuable impact
that Barry O’Regan has made on both our
work as a Committee and the Finance
function. During his first year as Chief
Financial Officer, Barry has continued to
develop our already strong Finance function
The role of this Committee
The Audit Committee provides a
dedicated focus to:
– Financial reporting
– External audit
– Internal audit
– Internal controls and risk
management
For more details on the Committee’s
role and responsibilities, see its Terms
of Reference on sse.com
.
through structural enhancements and a
strong focus on building talent capability.
These developments have been
complemented by enhanced financial
controls, streamlined reporting processes,
and a greater focus on strategic planning.
Fair, balanced and understandable
During the year, we successfully ensured
the integrity and reliability of the Company’s
financial reporting.
Our Committee helps the Board make sure
that the Annual Report and Accounts are
fair, balanced, and understandable and that
shareholders have the information needed
to evaluate the Company’s position,
performance, business model, and strategy.
We confirm that the 2024/25 Annual Report
and Accounts meet these standards and
that the Directors have provided necessary
information for shareholders. See
page 114
of this report for details of the review process.
Committee changes
Hixonia Nyasulu will replace Helen Mahy
asa member of the Committee, as Helen
retires from the Board after the 2025 AGM.
I’m looking forward to working with
Hixonia, who brings significant international
energy sector knowledge, as well as UK and
international board experience, which will
no doubt strengthen our discussions and
oversight. I would also like to sincerely
thank Helen for her diligent and thoughtful
contributions to the Committee.
As a Committee, we’re confident that
SSEcontinues to maintain a strong control
environment, ensuring financial integrity
and compliance. I hope you find this report
valuable in understanding how our
Committee has worked to ensure this.
John Bason
Chair of the Audit Committee
20 May 2025
I’m pleased to present our Committee
report for the financial year 2024/25.
Thisreport sets out the key activities
andfocus areas considered by the
Committee during the year. We supported
the Board byproviding independent
oversight and assurance of SSE’s financial
reporting, internal controls and risk
management frameworks. This year, we
also oversaw progress on enhancements
tothe Group’s non-financial reporting
metrics, as well asthe development of
anappropriate non-financial reporting
assurance framework.
Assuring non-financial reporting
We recognise that the role of non-financial
reporting will continue to grow over the
coming years. This provides valuable
insights into SSE’s performance and
strategy, enhancing transparency for
ourstakeholders. In recognition of this,
weagreed to an appropriate risk-based
assurance framework. Reflecting rising
stakeholder expectations and evolving
reporting standards, we have placed
particular focus on climate-related
disclosures and cyber security.
Following PwC’s decision to no longer
assure certain sustainability metrics,
weundertook a selection process and
appointed our External Auditor, EY, to
independently assure these metrics.
Webelieve this approach will bring
efficiencies by aligning both financial
andnon-financial information.
113 SSE plc Annual Report 2025
Governance Financial StatementsStrategic Report

Audit Committee Report continued
Financial reporting
Financial statements
This Committee reviews and reports on
theaccuracy and clarity of the half- and
full-year financial statements to ensure the
Annual Report contains the information
needed to assess SSE’s performance and
strategy. The Finance team worked with the
External Auditor to make sure disclosure
was adequate and consistent with IFRS,
along with ensuring that alternative
performance measures were appropriate.
The Committee discussed reports from
management and the External Auditor.
Itconsidered the significant financial
judgements made by management when
reviewing the half- and full-year results.
Andit recommended that the Board
approve the financial statements, the
GoingConcern statement, and the letter
ofrepresentation to the External Auditor.
See the independent auditor’s report on
pages 272 to 282
for the approach to
keyaudit matters.
Ensuring a fair, balanced and
understandable Annual Report
This Committee helps the Board make
surethe Annual Report is fair, balanced
andunderstandable – and that it gives
shareholders the information needed to
assess SSE’s performance, business model
and strategy.
This year, the Committee:
– Thoroughly verified its factual content.
– Reviewed reports from the External
Auditor on material inconsistencies.
– Received feedback during the drafting
process from:
• Directors and senior management
tomake sure key messaging aligned
with performance and strategy and
narrative sections were consistent
with the financial statements.
• Independent senior management to
consider messaging and balance.
• SSE’s brokers to ensure consistency
andbalance.
Management confirmed to the Committee
that the assurance framework was followed
when preparing the Annual Report.
The Committee advised the Board that they
considered the Annual Report as a whole
tobe fair, balanced and understandable.
Viability statement and Going Concern
This Committee examined and challenged
management’s assessment of SSE’s
long-term viability and its ability to continue
as a Going Concern, considering SSE’s
ability to withstand scenarios reflecting its
current risk exposures. The Committee was
satisfied that the viability assessment
process was robust, and that a four-year
assessment period remains appropriate.
After reviewing supporting information, the
Committee concluded that both the Group
and SSE plc as the parent company have
enough headroom to continue as a Going
Concern. In the unlikely event of not being
able to refinance maturing debt, the Group
will be able to access the revolving credit
facility, defer uncommitted capex, make
further cost reductions, and delay or defer
dividend payments.
The financial statements have been
prepared on a Going Concern basis (see
A6.3
Accompanying information to the
financial statements).
Significant financial judgements
andestimates
The Committee examined the aspects of
financial statements requiring significant
judgements or estimation uncertainties,
which are set out on
pages 115 to 117 and
note4 . During the year, the Committee
received comprehensive reports from both
the CFO and the External Auditor regarding
these areas as well as other matters
theydeemed necessary to bring to the
Committee’s attention. This allowed the
Committee to monitor and challenge
thoseviews – and EY also reported on
theappropriateness of the judgements.
After discussing the accounting treatment
with both management and EY, the
Committee confirmed that management’s
judgements were robust and justified.
Enhancing the assurance of non-
financial information and disclosures
This Committee closely monitors SSE’s
approach to fulfilling the controls and
assurance requirements for material
non-financial reporting disclosures.
Withincreasing mandated sustainability
disclosures, improving SSE’s integrated
assurance of non-financial information is a
focus. Future requirements include the EU
Corporate Sustainability Reporting Directive
(EU CSRD), the UK Sustainability Disclosure
Requirements, andupdates to the Code.
Governance
Membership and attendance
The Committee comprises five non-Executive Directors. John Bason and Debbie Crosbie bring strong financial experience. Tony
Cocker, Maarten Wetselaar and Helen Mahy bring strong energy sector experience (Helen will be replaced by Hixonia Nyasulu after
the 2025 AGM). See
pages 87 to 90
for biographies of each member. The Board Chair, CFO, Director of Group Risk and Audit,
External Auditor and Committee Secretary also attend each Committee meeting. Senior finance and business managers are invited
as required to report on specific business matters.
To facilitate open dialogue, the Committee also meets privately at least twice a year with the Director of Group Risk and Audit and
External Auditor without management present.
The Committee met four times in 2024/25, with attendance set out on page 93
.
Committee performance review
Heidrick & Struggles facilitated this year’s review of the Committee’s performance (see
pages 105 to 106
). This confirmed that the
Committee continues to operate effectively and led to agreed actions for the year ahead.
The 2023/24 evaluation identified several key actions: making Internal Audit reporting more accessible, increasing the Committee’s
knowledge of Business Unit Finance teams, and overseeing the review, enhancement and assurance of non-financial metrics.
Goodprogress was made in terms of Internal Audit reporting and Business Unit Finance teams, and these actions were closed.
Whileprogress was also made on non-financial metrics, this will stay on the Committee’s agenda.
Review confirmed
– The Committee operates effectively, with members being well prepared and engaging inopen,
pragmatic discussions.
– The Committee is well-structured, promoting effective governance and financial transparency.
– The Audit Chair and CFO have seamlessly integrated into their roles on the Committee.
Actions for 2025/26
– Refine the Committee’s scope to focus on key activities and ensure papers are streamlined.
114 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

sustainability-related disclosures meet high
standards. The Committee approved the
creation of a Group-level Sustainability-
related Financial Disclosures Committee
(SFRD) to advise, steer and govern
sustainability-related disclosures across the
Group. The SFRD will report into the Group
Risk Committee.
After a process overseen by this Committee,
EY was appointed to audit SSE’s
sustainability metrics from 2024/25 to
2028/29. This will increase efficiencies and
alignment between financial and non-
financial information.
This Committee also helps direct SSE’s
approachto climate-related disclosures in
both financial statements and throughout
theAnnual Report. This year, senior
management outlined climate-related
risksand opportunities as well as assurance
arrangements linked to climate-related
disclosures to the Committee. Based on
thisinput, as well as positive stakeholder
feedback on the clarity of SSE’s climate-
related financial disclosures, the Committee
approved the continued integration of
thesedisclosures throughout the Annual
Report. This integration makes disclosures
more accessible and reflects SSE’s holistic
approach to managing climate-related issues.
The Committee makes recommendations
to the Board as to whether these disclosures
are fair, balanced and understandable in the
context of SSE’s Annual Report.
The Committee also considered climate
change and SSE’s NZAP Plus when
reviewing the Financial Statements inorder
to approve the significant financial
judgements and estimates.
See
pages 71 to 79
for SSE’s climate-
related financial disclosures.
Throughout the year, the Committee
received updates on:
– Current assurance activities across SSE’s
principal non-financial reporting topics.
– Work being done to establish a controls
operating model to support compliance
with the Code.
– Progress on developing a risk-based
non-financial reporting assurance
framework.
In the coming year, the Committee will
continue to monitor regulatory changes
andimplications for SSE while overseeing
SSE’s progress on non-financial reporting:
its governance, controls and integrated
assurance.
See the statement on non-financial and
sustainability information on
page 81
formore.
Sustainability-related disclosures
With the increased focus on sustainability-
related financial information, the
Committee recognises the need for a
governance framework that ensures
Significant financial judgements and estimates for the year ended 31 March 2025
Matters considered How these were addressed by the Committee Committee conclusions
Impairment testing and valuation of certain non-current assets (financial judgement and estimation uncertainty)
The Group reviews the carrying amounts of
itsgoodwill, other intangible assets, specific
property, plant and equipment and investment
assets to determine whether any impairments
or reversal of impairments to the carrying
value of those assets requires to be recorded.
Where an indicator of impairment or
impairment reversal exists, the recoverable
amount of those assets is determined by
reference to value in use calculations or fair
value less cost to sell assessments. As well as
its goodwill balances, the specific assets under
review in the year ended 31 March 2025 are
intangible development assets and specific
property, plant and equipment assets related
to gas storage and thermal power generation.
In addition, the Group performed an
impairment review over the carrying value
ofits equity investments in Neos Networks
Limited and Triton Power Holdings Limited.
An annual impairment testing and valuation of
certain non-current assets exercise iscarried out
by SSE Finance, with management presenting
theoutcome of thisreview to the Committee.
In conducting its reviews, the Group makes
judgements and estimates in considering both
the level of cash generating unit (CGU) at which
common assets such as goodwill are assessed
against, as well as the estimates and assumptions
behind the calculation of recoverable amount of
the respective assets orCGUs.
Changes to the estimates and assumptions
onfactors such as regulation and legislation
changes, power, gas, carbon and other
commodity prices, volatility of gas prices, plant
running regimes andload factors, discount rates
and other inputs could impact the assessed
recoverable value of assets and CGUs and
consequently impact the Group’s income
statement and balance sheet.
Further detail of the calculation basis and key
assumptions used in the impairment review, the
resulting impairment and the sensitivity of this
assessment to key assumptions is disclosed at
note15
. Detail on the accounting policies
applied is included in the
Accompanying
Information at A1 .
The Committee reviewed and
challenged the assumptions and
projections in the management paper
and considered the External Auditor’s
reporting and findings. Following this
review, the Committee supported the
judgements made to recommend:
– an impairment of £249.6m in
SSE’sSouthern Europe platform’s
goodwill and intangible
development assets primarily due
to challenges in the Spanish
market, particularly those related to
delays and obstacles in obtaining
planning permissions and grid
connection consents.
– exceptional charges recognised in
relation to the Group’s Operating
Model and Efficiency review
including a £32.2m of asset
impairment charges and £14.7m
ofother restructuring costs.
– an exceptional impairment of
Enerveo Limited £13.5m to
write-down the value of the assets
to their recoverable value.
The Committee also supported the
recommendation that no impairment
or impairment reversal was required to
be recognised this year following the
impairment review over the carrying
value of its equity investments in
NeosNetworks Limited and Triton
Power Holdings Limited, and its gas
storage assets.
115 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Audit Committee Report continued
Significant financial judgements and estimates for the year ended 31 March 2025
Matters considered How these were addressed by the Committee Committee conclusions
Retirement benefit obligations (estimation uncertainty)
The assumptions in relation to the cost of
post-retirement benefits during the period are
based on the Group’s best estimates and set
after consulting qualified actuaries.
While the assumptions are believed to be
appropriate, a change in these would affect
both the level of retirement benefit obligation
recorded and the cost to the Group of
administering the schemes.
The assets and liabilities of the Group’s defined
benefit retirement schemes are regularly
reviewed and advice is taken from independent
actuaries on the IAS 19 valuation of the schemes.
The Committee considered how the schemes
were valued and the External Auditor’s findings
on the scheme’s key assumptions relative to
market practice.
Following this review, the Committee
supported the judgements made.
See
note 23
for details of
thecalculation basis and key
assumptions, resulting movements
inobligations, andthe sensitivity of
key assumptions to the obligations.
Revenue recognition – customers unbilled supply of energy (estimation uncertainty)
Revenue from the energy supply activities of
the Business Energy and Airtricity businesses
includes an estimate of the value of electricity
or gas supplied to customers between the date
of the last meter reading and the year end.
Seenote 4
for details of the estimation.
In the prior financial year, the Group’s SSE
Business Energy segment commenced the
migration of customers to a new billing
platform, which was completed in the current
year. Reflecting the operating stabilisation
ofthe billing platform, the level of unbilled
salesand the level of judgement applied in
determining the sales accrual has lessened
compared to the position at March 2024.
Forthe prior year end, the Group recognised
aprovision against this accrual to reflect
thatcustomer billing delays may result in
adeterioration in collection performance.
Nocomparable risk provision was recognised
at31 March 2025 and it is expected that the
level of judgement applied will be reduced
infuture reporting periods as operational
performance continues to improve.
This unbilled estimation is subject to an internal
corroboration process which compares calculated
unbilled volumes to a theoretical “perfect billing”
benchmark measure of unbilled volumes (in GWh
and millions of therms) derived from historical
consumption patterns and aggregated metering
data used in industry reconciliation processes.
Unbilled revenue is compared to billings in the
period between the balance sheet date and the
finalisation of the financial statements which has
provided evidence of post report date billings
andhence support to the accrual recognised.
Given the requirement of management to
applyjudgement, the estimated revenue
accrualremains a significant estimate made
bymanagement in preparing the financial
statements. A change in the assumptions
underpinning the unbilled calculation would
havean impact on the amount of revenue
recognised in any given period.
The Committee reviewed the process, issues
andassumptions in determining the estimation
uncertainty and also considered the findings
ofthe External Auditor.
The Committee considered the
Group’s judgements in respect of
theunbilled sales accrual based on
analysis of the improved data from
itsnew billing platform, billing
performance in the year and other
relevant information.
The Committee supported the
estimate for revenue recognition from
energy supply activities. Note 18
details the sensitivity associated with
this judgement.
Impact of climate change and transition to net zero (financial judgement and estimation uncertainty)
Climate change and the transition to net zero
have been considered in the preparation of
these financial statements. The Group has a
clearly articulated NZAP Plus plan to lead in
theUK’s transition to net zero and aligns its
investment plans and business activities to that
strategy. These plans are supported by the
Group’s Green Bond framework under which
the Group’s eighth green bond was issued by
SSEN Transmission in August 2024 and ninth
green bond was issued by SSE plc in March
2025 (see
note 4
). The eighth green bond
funded Transmission network projects, while
the ninth green bond financed/refinanced
Renewables wind farm projects.
The impact of future climate change regulation
could have a material impact on the currently
reported amounts of the Group’s assets
andliabilities. In preparing these financial
statements, the following climate change
related risks have been considered:
– Valuation and useful economic life of
property, plant and equipment, and
impairment assessment of goodwill;
– Valuations of decommissioning provisions;
– Defined benefits scheme assets; and
– Going Concern and viability statements.
The Committee reviewed:
– The disclosures regarding the implications of
climate change, the NZAP Plus, and related
significant accounting judgements.
– The approach taken by the Group-level SFRD,
which is responsible to steer and govern
sustainability-related disclosures.
– The Group’s climate-related financial
disclosures statement, which demonstrates
the Group’s compliance with UK Listing Rule
requirements mandating climate-related
financial disclosures under the Companies
Act2006.
– Information from EY on the associated audit
requirements.
After a presentation on the proposed
disclosures and the External
Auditor’sreport on SSE’s approach,
the Committee approved the basis
ofreporting and related financial
judgement disclosures included in
theFinancial Statements for the year
ended 31 March 2025.
See note 15.1
for details of the
sensitivity associated with this
judgement.
116 SSE plc Annual Report 2025
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Significant financial judgements and estimates for the year ended 31 March 2025
Matters considered How these were addressed by the Committee Committee conclusions
Valuation of other receivables (financial judgement and estimation uncertainty)
The Group holds a £100m loan note due from
OVO Holdings Limited following the disposal of
SSE Energy Services on 15 January 2020. The
loan is repayable in full by 31 December 2029,
carries interest at 13.25% and is presented
cumulative of accrued interest payments,
discounted at 13.25%. At 31 March 2025, the
carrying value (net of expected credit loss
provision of £1.8m (2024: £1.6m)) is £193.5m
(2024: £170.1m) (see
note 4
).
The Group has assessed recoverability of the
loan note receivable and has recognised a
provision for expected credit loss in accordance
with the requirements of IFRS 9.
The Committee considered the steps taken by
management to assess all available information
in respect of the recoverability of the loan note.
Procedures included reviewing recent financial
information of Energy Transition Holdings
Limited (“ETHL”) (the ultimate parent of Ovo
Group Limited and its subsidiaries, including Ovo
Holdings Limited), including the 31 December
2023 statutory financial statements; and
discussions with ETHL management.
Following management’s assessment
of the recoverability of the loan note,
the Committee considered the
judgement to be appropriate.
While the carrying value is
consideredto be appropriate,
changesin economic conditions
could lead to a change in the
expected credit loss incurred by
theGroup in future periods.
External audit
EY has been SSE’s External Auditor since
2019 and was re-appointed by shareholders
at the 2024 AGM for the financial year
2024/25. After being lead Audit Partner for
five years, Annie Graham was replaced by
Will Binns for the financial year ending
31March 2025.
During the year, the Committee received
acomprehensive audit plan from EY
explaining the audit timetable and
proposedscope, key audit matters (see the
independent auditor’s report on pages 272
to 282
), and an assessment of key areasof
risk. The audit plan and key risk assessment
were reviewed and challenged by the
Committee to make sure underlying
judgements were robust.
The Committee’s actions related to external
audit during the year included:
– Receiving updates from the External
Auditor on the 2024/25 audit plan and
related actions.
– Considering EY’s performance,
independence and objectivity.
– Monitoring non-audit services provided
by EY.
– Reviewing the Group’s Non-Audit
Services Policy and approving EY’s
non-audit services and related fees.
– Reviewing the disclosure of information
to the External Auditor and approving
those arrangements.
Independence and objectivity
The Committee monitors the independence
and objectivity of the External Auditor.
Itreviews:
– Assurances from EY onthe safeguards
inplace to maintain independence.
– The Non-Audit Services Policy and
feespaid.
– SSE’s policy on employing former
auditors.
EY confirmed that all partners and
staffcomplied with their ethics and
independence policies and procedures,
andthat no employees working on the
auditheld shares in SSE plc.
External audit fees
The external audit fee proposal for the
yearending 31 March 2025 was reviewed
bythe Committee in September 2024.
TheCommittee discussed the reasons for
the increased fee with EY. The composition
of the Group and the level of complexity
requiring an increased proportion of
specialist resources were among the factors
for the increase. The total External Audit
Feefor financial year 2025 was £6.3m
(2024:£6.0m), which included:
– Scope changes of £0.8m (2024: £0.9m)
related to the previous year’s audit.
– Assurance and other service fees £0.3m
(2024: £0.3m), includes fees incurred
inrelation to regulatory accounts and
returns required by Ofgem, comfort
letters in connection with funding and
debt issuance and ESGassurance.
– Non-audit services of £0.3m
(2024:£0.2m).
For details of fees paid to the External
Auditor, see
note 6
to the Financial
Statements.
Sustainability Auditor
During the year, the External Auditor was
appointed as Sustainability Auditor for SSE’s
sustainability metrics from 2024/25 to
2028/29. This will increase efficiencies and
alignment between financial and non-
financial information. Following a process,
the Committee recommended to the
Boardthat it believed EY would provide
anindependent, efficient and integrated
sustainability assurance process alongside
the financial audit. The Committee was
alsosatisfied that this service did not affect
EY’s independence.
Non-Audit Services Policy
The Non-Audit Services Policy governs
theprocess by which the External Auditor
can provide non-audit services to SSE.
Thepolicy was reviewed by the Committee
in 2025, in line with the International Ethics
Standards Board for Accountants, and will
be reviewed again in 2027.
SSE imposes a 70% cap on non-audit fees
paid to the External Auditor, based on
average audit fees paid over the previous
three consecutive financial years. The
Committee receives reports at each
meeting listing all approved non-audit
services to monitor compliance with the
policy and this cap on fees. The ratio
ofnon-audit fees to audit fees is
approximately 0.05:1.
The Committee was satisfied that the
non-audit services provided by the External
Auditor did not affect their independence
and approved these services in line with
thepolicy and FRC Ethical Standard.
Reappointing the External Auditor
Reflecting on EY’s performance, the
effectiveness of their audit and their
relationship with SSE, the Committee
believes itis in the best interests of SSE
andits shareholders to continue with EY.
The Committee advised the Board to seek
shareholder approval to reappoint EY
asExternal Auditor for the financial year
ending 31 March 2026.
In line with best practice, SSE will begin
atender process for the external audit
contract no later than 2029. The Committee
confirms ongoing compliance with the
Statutory Audit Services for Large Companies
Market Investigation (Mandatory Use of
Competitive Tender Processes and Audit
Committee Responsibilities) Order 2014.
117 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Audit Committee Report continued
Ensuring external audit effectiveness
The Committee oversees the Group’s relationship with EY to ensure the independence, quality, rigour and challenge of the external
audit process. The Committee’s review involves the following key activities.
Key Contributions Key Outputs
Audit Committee
– Monitored performance throughout the year.
– Assessed the audit strategy and independent auditors’
report.
– Considered the results of a survey of Audit Committee
members, regular attendees and Group Finance.
– Considered the quality of the External Auditor’s reporting
on key accounting and audit judgements and the skill
with which EY applied robust challenge and professional
scepticism when dealing with management.
– Met with EY twice during the year without senior
management team.
– Meetings held with audit engagement partner and
Committee Chair.
External Auditor
– Confirmed its policies and procedures for maintaining
independence.
– Provided confirmation that it operates in accordance
with the ethical standards required of audit firms.
Management
– Assessed the feedback from a management survey
ofpeople subject to the external audit process.
– Received assurance on the process for providing
information to the External Auditor.
Regulator
– The UK Financial Reporting Council’s (FRC) report on
Audit Quality Inspections included a review ofaudits
carried out by EY.
Results
– The audit partners and team were confirmed to be of
highquality, with no significant issues in the feedback.
– The audit was well planned and executed, addressing
keyfindings and ensuring proper engagement on
misstatements and materiality judgements.
– EY showed a strong commitment to audit quality,
understanding the Group and its internal controls,
andfocusing on major financial risks.
– The review of management papers, analyses, and
discussions with management and the auditor confirmed
an appropriate level of challenge during the audit.
Conclusion
The Committee concluded that EY:
– Delivered an effective external audit in line with the
auditplan.
– Showed a depth of knowledge in relation to complex
issues and gave constructive, independent and objective
challenge to management.
Debrief sessions were held between EY and Finance
management teams across SSE to consider how to enhance
the audit process andenvironment.
Internal Audit
Internal Audit gives independent and
objective assurance to management,
theCommittee and Board on the
effectiveness of SSE’s risk management
activities, internal controls and corporate
governance. The purpose, scope and
authority of Internal Audit is defined in its
charter, which is approved each year by
thisCommittee.
Internal Audit Plan
Approved by the Committee, the Internal
Audit Plan aligns with SSE’s operating
model, risk profile, control environment and
assurance arrangements. Split between a
one-year plan and a three-year strategy, the
plan sets out the broader areas of Internal
Audit’s priorities. Where specific skills and
expertise are needed, external providers
aresometimes brought in to support the
delivery of the plan.
During the year, the Committee reviewed,
challenged and monitored the
implementation of the 2024/25 Internal
Audit Plan through regular updates.
TheCommittee discussed findings and
audit actions, and challenged management
to ensure remedial actions were delivered.
TheCommittee was satisfied with progress
against the Internal Audit Plan in 2024/25.
Ensuring effectiveness
This Committee also assessed the
effectiveness of the Internal Audit function
during the year. The evaluation was based
on the results of a survey sent to key
stakeholders across SSE, including the
Committee itself, Group executives and
directors of functions. The External Auditor
also gave informal and supportive feedback.
The Committee was pleased with the
positive feedback from the Board,
concluding that Internal Audit provided
effective assurance over SSE’s risks
andcontrols.
In line with Institute of Internal Auditors’
guidance to complete an external
assessment every five years and SSE’s policy
todo one every three to four years, the next
independent external assessment will take
place in 2027. The previous external quality
assessment completed by PwC in 2023
judged the Internal Audit function to
beeffective.
Internal control and risk management
The Committee oversees and reviews the
effectiveness of SSE’s system of internal
control on behalf of the Board. This covers
allmaterial controls including financial,
reporting, operational and compliance.
Examples of the areas considered are:
– Financial reporting controls. SSE’s
internal financial control environment
isdesigned to protect its assets, prevent
and identify significant fraud and errors,
and ensure the accuracy and
completeness of accounting records used
to produce financial information. This
year, the Committee continued to monitor
the new Financial Controls Centre of
Excellence to ensure focused oversight
and continuous improvement in controls
management. This is a key initiative to
prepare for the regulatory reform in the
UK that will apply to SSE’s financial year
ending 31 March 2027. The Committee
was pleased with the progress in this area
and will oversee the ongoing maturity of
the financial control framework. This will
remain a key focus for the Committee in
years ahead, with regular updates
provided at meetings.
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System of Internal Control
GOVERNANCE
FRAMEWORK
Ensures focus on the
key components of
effective decision
making: clarity,
accountability,
transparency and
efficiency. For details,
see page 92
of the
Governance Report.
STRATEGIC
FRAMEWORK
Includes SSE’s purpose,
strategy, goals, values
and business model
andis the basis for all
activity under the
RiskManagement
Framework. For details,
see pages 1 to 7
of
the Strategic Report.
RISK MANAGEMENT
FRAMEWORK
Supports each Business
Unit in managing risks
andhelps to ensure
thatthe Board meets
itsobligations. This
framework is
underpinned by the
fundamental principle
that everyone atSSE is
responsible for managing
risk. See pages 60 to
69

for details.
ASSURANCE
FRAMEWORK
An integrated
programme of audit and
assurance activity that’s
independent of the
day-to-day operations
ofthe Business Units
andcorporate functions.
It’s made up of
InternalAudit, Group
Compliance, Large
Capital Projects Services
and Group Safety,
Healthand Environment.
STANDARDS AND
QUALITY FRAMEWORK
Sets out the expected
standards and
guidelines to be
followed when
delivering the Group’s
core purpose.
Board and Board
Committees
Strategic
objectives
Financial
objectives
Sustainability
goals
Group Risk Policy
External Audit
Internal Audit
Group policies
Group Executive
Committee and
Executive sub-
Committees
Principal Risk
Self-Assessment
Risk Appetite
Statement
Viability Assessment
Key Risk Indicators
Group Compliance
Group Safety, Health
and Environment
Large Capital Projects
Services
Governance
manuals
Business Unit
Executive
Committees and
Corporate Support
Functions
Business Unit Principal
Risk Self-Assessment
Assurance Evaluation
Risk Blueprint
Business
Assurance
Business Unit,
policies, procedures,
processes and
systems
– Cyber security. Managing SSE’s cyber
security risks and ensuring proper
mitigation is a key focus. The Committee
received updates on threats, risks, and
proactive improvement plans. The
Committee reviewed the outcomes of
the updated 2024 cyber maturity
assessment framework, noting
improvements across Business Units and
Central IT to ensure regulatory
compliance with the Network &
Information Systems Regulations by
2027. The Committee commended the
Cyber team for developing a strong
culture and a cyber control framework
that identifies threats, reduces exposures
and drives improvement initiatives.
– Compliance. The Committee reviewed
and approved the proposed compliance
audits for 2025/26. These audits are
designed to ensure adherence to the key
legislative and regulatory obligations and
address risks within the Business Units
and across SSE Group. The Committee
received bi-annual compliance updates
and was satisfied the areas identified
were appropriately aligned to the key
compliance risks of the business.
– Anti-Financial Crime. The Committee
received bi-annual anti-financial crime
reports from the Group Financial Crime
Officer, which included activities across
the Group and information on changes
to rules and legislation, such as the
implementation of the Economic Crime
and Corporate Transparency Act 2023.
The Committee was satisfied that
effective controls were in place to
mitigate financial crime risks based on
assessments and monitoring activities.
For details on SSE’s risk management,
see
pages 60 to 69
.
The Energy Markets Risk Committee
oversees internal control and risk
management in relation to SSE’s energy
market related exposures – see pages 120
to 121
for more.
Internal control and risk management
effectiveness
The Committee was satisfied that SSE’s
internal controls operated effectively
throughout the year. This conclusion was
also informed by an evaluation conducted
by stakeholders within each framework of
SSE’s System of Internal Control (see below).
The Chief Financial Officer assessed these
evaluations and submitted a letter to the
Committee which summarised the work
completed during the year to improve the
control environment and recommended
theoverall effectiveness of the system.
The Committee also considered the letter
of assurance evaluations completed each
year by the Managing Directors of SSE’s
Business Units and the Directors of
corporate functions. The process
considered each framework of theSystem
of Internal Control from a Business Unit
andcorporate function perspective and
included planned improvements. These
improvements are tracked, and the Group
Risk Committee is regularly updated.
Based on the Committee’s review and
recommendation, the Board agreed that
SSE’s System of Internal Control continued
to be effective and was in line with the
requirements of the FRC Guidance on Risk
Management, Internal Control and related
Financial and Business Reporting. The
Board also confirmed that no significant
failings or weaknesses were identified
during the financial year and that processes
are inplace to make sure necessary action
is taken, and progress is monitored where
areas for improvement are identified.
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Our work as a Committee is important in maintaining
SSE’sstrong risk management of energy markets and
overseeing the governance arrangements around
managing portfolio exposures.”
Tony Cocker
Committee Chair
Energy Markets Risk Committee Report
that the Board approve the acceleration of
SSE Renewables’ hedge position. During
certain periods of unfavourable market
conditions for thermal generation, we
closely monitored the reduction in hedging
activity for SSE Thermal, allowing forward
prices to be locked in when opportunities
presented themselves.
In addition, we considered the approach
tohedging energy output in Ireland.
Inanticipation of the expiration of the
Renewables Energy Feed-In-Tariff scheme
– which would create exposure to
fluctuating energy prices – theCommittee
recommended to the Boardthe
implementation of a phased hedge approach
in Ireland as those schemes expire.
The updates are reflected in the latest
hedging approach statement – see
pages23 to 24
.
Risk controls and metrics
Our Committee continued to oversee the
performance of SSE Energy Markets: our
primary decision maker for all trading
periods. This business provides the route to
market and manages the execution for all of
SSE’s commodity trading. Throughout the
year, it reported to us onmarket conditions,
liquidity and net Groupexposures. It also
updated us on its strategy, including
expanding its trading capability in new
markets, to support SSE’s long-term
growthambitions and to manage liquidity
exposures in the UK.
To allow this business to take advantage of
optimisation opportunities, there is some
scope for position-taking. To ensure that
this is carried out within acceptable risk
levels, we oversaw the strict position limits
and risk controls in this respect.
To make sure risks around trading, credit
and collateral activities continue to be
managed effectively, we also reviewed the
related control environment and metrics
tomake sure appropriate measures are in
place. We recommended that the Board
approve changes to reflect current market
conditions and to ensure operational
effectiveness.
The role of this unique
Committee
The Committee maintains a
dedicated focus on SSE’s exposures
to market volatility, regulatory
complexities and operational and
financial risks relating to energy
markets. This enables the Board to
effectively fulfil its responsibilities
forrisk management and internal
controls in relation to energy markets.
For more details on the role and
responsibilities of the Committee, see
its Terms of Reference at sse.com
.
Year ahead
Over the next year, we will continue to:
– Oversee energy market risk exposures,
including ones linked to expanding into
new markets.
– Oversee SSE Energy Market’s role as the
primary decision maker, including how it
supports the optimisation of SSE’s asset
portfolios and its management of
volatility through risk managed trading.
– Monitor macroeconomic developments,
focusing on risks stemming from
geopolitical events, commodity price
fluctuations and volatility, inflationary
pressures, and changes in regulatory
requirements.
I’d like to thank the members of the
Committee for their dedication throughout
the year and their significant contributions
in supporting our work.
Tony Cocker
Chair of the EMRC
20 May 2025
This report sets out our Committee’s key
activities during 2024/25 and shows how
we’ve continued to monitor SSE’s energy
market risk exposures.
Our work as a Committee is important in
maintaining SSE’s strong risk management
of energy markets and overseeing the
governance arrangements around
managing portfolio exposures. This is
particularly critical against a backdrop
ofvaried market volatility, fluctuating
demand, supply concerns, and geopolitical
uncertainty driving price movements.
Through regular monitoring, we help the
Board ensure that controls align with SSE’s
risk appetite and that SSE’s approach to
riskmanagement remains resilient and
responsive in a fast-changing environment.
SSE’s hedging approach
We believe that SSE continues to be well
supported by its hedging approach. This
aims to reduce exposure to commodity
price variation related to electricity
generation and supply well before delivery,
while retaining sufficient flexibility to
respond to any wider market changes.
This year, we reviewed analysis of the
hedgeapproach to determine whether this
remained optimal. To maximise value in
current market conditions, we recommended
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Areas of focus for 2024/25
The following is an overview of the
workand considerations of the Committee
during the year, aligned to its key areas
ofresponsibility.
Overseeing SSE’s hedging approach
SSE’s hedging approach generally seeks to
reduce its broad exposure to commodity
price variation at least 12 months in advance
of delivery. SSE continues to monitor market
developments and conditions and alters this
approach in response to changes in its
exposure profile.
During the year, the Committee:
– Reviewed, at each meeting, reports
onthe latest hedge position, including
performance against SSE’s hedging
approach.
– Evaluated the impact of market
developments, conditions, and
exposures to assess whether the current
hedge approach is effective and
delivering optimal value.
It was concluded that the current approach
remained appropriate to manage SSE’s
exposure to commodity price variation.
TheCommittee endorsed the hedging
disclosure included in SSE’s interim and
preliminary results statements and
recommended this to the Board.
Further details of SSE’s hedging approach
and position are set out on pages 23 to 24
.
Energy market risks
The Committee received regular updates on
emerging issues and associated risks across
domestic and international energy markets.
This included scenario analysis and risk
outlooks designed to enhance the
Committee’s understanding of volatility,
geopolitical developments, and regulatory
shifts that could affect market dynamics.
During a year of varied market conditions,
itconsidered and assessed the potential
impact of:
– The future market outlook in the
UKand Republic of Ireland.
– Market conditions in the all-island
power market (ISEM).
– Regulatory changes including the
potential impact of the Review of
Electricity Market Arrangements
(REMA).
– The impact of geopolitical events.
The Committee was satisfied that
associated risks were being effectively
addressed and managed. It will continue to
assess the impact and mitigation of risks
stemming from future macroeconomic
developments.
Internal controls and risk management
The Committee evaluated internal controls
for managing, monitoring and reporting
energy market risks by reviewing:
– Controls relating to trading, credit
andcollateral activities and related
exposures.
– Thresholds set for value-at-risk and
stop-loss limits.
– Quarterly Internal Audit reports relating
to SSE Energy Markets including the
status of any audit actions. This
provides the Committee with valuable
assurance regarding the effectiveness
of energy market risk controls.
– Output from the Group Energy Markets
Exposure Risk Committee, an
executive-level forum which meets
monthly and allows SSE’s senior
management to review and consider
energy market risks and exposures.
This allowed the Committee to assess
whether energy market risks and exposures
are being effectively and appropriately
managed in current market conditions.
The Committee concluded that these risks
continue to be managed effectively.
Governance
Membership and attendance
The Committee comprises five non-Executive Directors and two Executive Directors. SSE’s Chief Executive and the Managing
Director of SSE Energy Markets also routinely attend Committee meetings. See
pages 87 to 90
for member biographies.
TheCommittee met four times in 2024/25, with attendance set out on page 93 .
Committee performance review
The yearly review of Committee performance was facilitated by Heidrick & Struggles (see pages 105 to 106 ) and the outcome
considered by theCommittee.
Review
confirmed
– The Committee operates well and provides valuable support to the Board.
– The Committee plays a key role in ensuring robust controls are in place.
– The Committee benefits from the leadership of an experienced and knowledgeable Chair.
Actions for
2025/26
– Support with the succession plan for the Chair to ensure continuity and maintain the effectiveness
oftheCommittee.
– Deep dives or briefings on critical areas to be provided to the Committee.
– Continue to improve Committee papers to focus on key points and provide clear summaries to
enhanceunderstanding.
Empowering confidence in
future growth
During the year, the Committee
undertook a review of SSE Energy
Markets’ strategy and trading capability.
The Committee concluded that SSE is
well positioned to monitor and manage
its exposures through the continued
work of this business. This confidence
is further underpinned by a diversified
portfolio mix, which allows risk to be
mitigated through internal trading and
contracts spanning SSE’s portfolio of
asset and customer businesses.
In support of SSE’s long-term growth
ambitions, and to manage exposures
inthe UK, the Committee endorsed a
proposal to further increase SSE Energy
Market’s ability to trade in carefully
selected European and international
power and gas markets.
As part of this initiative, the Committee
also evaluated the related control
environment to ensure that robust
safeguards are in place for managing
associated exposures.
Details of how SSE Energy Markets
supports SSE’s strategy and its
performance during the year are set
out on
page 39
.
121
SSE plc Annual Report 2025
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Safety, Sustainability, Health and Environment
Advisory Committee Report
DameAngela Strank and I joined SSE’s
second Group SHE Contract Partner
conference, where the revised SHE
specifications were announced to 180
contract partners. Theconference also
highlighted several ongoing safety initiatives
and provided anopportunity for awards to
be given to people who have gone above
and beyond when it comes to safety, taking
care of ourselves, each other and the
environment. We were pleased with the
engagement this produced and see this
event as an invaluable opportunity to
fosterpositive safety behaviours with our
valued partners.
Our Committee went on various site visits
during the year to experience SSE’s safety
culture. This engagement helps us offer
informed input on safety, health and
wellbeing, and environment strategies.
Sustainability and ESG performance
To ensure that SSE meets its objective to
create value for both shareholders and
society, our Committee discussed emerging
sustainability strategies and plans during
2024/25. These included the Transmission
sustainability strategy which isinformed
bya detailed impact assessment and
stakeholder engagement. We support the
Transmission ambition to leave a positive
community legacy through housing
development in local communities andits
Community Benefit Fund, launched in 2024.
We reviewed SSE’s performance
againstkeyESG ratings and considered
recommended actions going forward.
Wealso approved the publication of the
Sustainability Report 2025, which discloses
information on the most material economic,
social and environmental impacts of SSE’s
business activities.
Environment
In support of SSE’s Net Zero Transition Plan
and the Company’s environmental activities,
we discussed SSE’s climate adaptation
andresilience plans. We welcomed the
establishment of a Climate Adaptation
working group reporting into the Group
Safety, Health and Environment Committee.
The role of this unique
Committee
The Safety, Sustainability, Health and
Environment Advisory Committee
(SSHEAC) brings a dedicated focus
tosafety, sustainability, health and
environmental matters through:
– Reviewing and monitoring KPIs
and other reporting measures in
the Group.
– Assessing the effectiveness of
related strategy, initiatives, training
and targets.
– Overseeing the development and
implementation of related Group
policies.
– Monitoring the resources,
competence and commitment for
managing these issues to ensure
continuous improvement and a
healthy culture.
The Committee’s Terms of Reference
areavailable on sse.com
.
This will improve how the Group oversees
climate adaptation. We also reviewed and
gave feedback on SSE’s readiness for the
Taskforce on Nature-related Financial
Disclosures (TNFD) reporting requirements.
Health and wellbeing
Our Committee valued contributions from
Mental Health First Aiders and Wellbeing
Champions, as well as stress support
initiatives addressing challenges faced by
colleagues. We also welcomed the Press
Pause Stress programme and a campaign
for National Stress Awareness Month.
InJanuary 2025, SSE received the Investors
in People: We invest in Wellbeing Platinum
Accreditation. This reflects the Company’s
commitment to supporting colleagues’
social, physical and psychological wellbeing.
A new Chair
This will be my final report as Committee
Chair, as I will be stepping down after the
AGM. Dame Angela Strank will take over as
Chair, and I’m confident the Committee will
be in excellent hands under her leadership.
On behalf of the Committee, I’d like to
thank all employees and partners for their
hard work and commitment. I hope this
report gives a clear and useful overview of
how our Committee has supported and
overseen the matters within our remit.
Helen Mahy CBE
Chair of the SSHEAC
20 May 2025
By monitoring the implementation of SSE’s SHE
strategy, as well as itssustainability policies and
performance, we support the delivery of SSE’s key
priorities: to keep our people safe anddeliver social
and environmental value.”
Helen Mahy CBE
Committee Chair
This report outlines the Committee’s
activities over 2024/25 and shows how
we’ve worked with senior management
toshape policies, targets and strategy to
improve safety,sustainability, health and
environmental performance.
Here are some highlights from the
Committee’s year.
Safety
We worked with senior management to
enhance safety performance across the
Group. The majority of the Committee
members have attended SSE’s immersive
safety training programme. We valued this
unique experience and strongly support this
investment in culture and safety behaviours.
We also oversaw the work to update SSE’s
safety, health and environment (SHE)
specifications for contract partners.
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Governance
Membership and attendance
This Committee comprises four non-Executive Directors, the Chair of the Board, the Chief Commercial Officer, the Chief
Sustainability Officer, the MD of SSEN Distribution, and the SHE Director. The Chief Executive also attends meetings. With Enterprise
integrating into other Business Units, Nathan Sanders, the MD of Distributed Energy, stepped down from the Committee after the
November 2024 meeting. Dame Angela Strank will become Chair after Helen Mahy retires, and Hixonia Nyasulu will join the SSHEAC
after the July 2025 AGM. The Committee met four times in 2024/25 with attendance set out on page 93
.
Committee performance review
The annual review of Committee performance was facilitated by Heidrick & Struggles (see pages 105 to 106 ) and the results
considered by the Committee. This confirmed the Committee’s continued effective operation and actions for 2025/26.
Review
confirmed
– The Committee has significantly evolved, showing strong governance, productive debate and papers that
support effective decision making.
– There is an effective flow of information from the SSHEAC to the Board, enabling seamless
communication and alignment on key priorities.
– A diverse group of employees, including junior employees, presents to the Committee to bring a range of
perspectives.
Actions for
2025/26
– Succession planning – a comprehensive succession plan for the SSHEAC Chair to maintain the continuity
and effectiveness of the Committee’s leadership.
– Adaptability – continuously adapting to changing stakeholder expectations in sustainability and SHE, while
being mindful of the Committee’s scope and role in relation to other Committees.
– Meeting papers and data – a continued focus on improving Committee papers and the balance of data,
with an emphasis on key insights and concise summaries.
Safety
The SSHEAC gave feedback to management
on the SHE plan for 2025/26, which
supports the delivery of the overarching ‘We
all get Home Safe’ SHE strategy. There was
strong support for building on the existing
approach while emphasising that the
fundamentals shaping SSE’s SHE strategy
are unchanged. The SSHEAC also evaluated
the Home Safe communication strategy
that covered SHE communication,
campaigns, and training and engagement
for employees and contract partners.
To enhance the Group’s safety culture by
recognising good behaviours at Committee
level, the Committee requested examples
ofwhen a colleague’s action led to a
positive outcome. A report called Positive
Actions is now shared in each meeting.
Thisshowcases the behaviours of SSE’s
employees and contractors that promote a
safe working environment and celebrates
people’s contributions to safety, the
environment or the community. Stories
from the report are shared across the
Groupto expand learning and encourage
implementation.
Safety – monitoring performance
In every meeting, the SSHEAC reviews
reports on SSE’s safety, health and
wellbeing, environmental and sustainability
performance. 2024/25 reports covered
performance against agreed targets and
KPIs, including Total Recordable Incident
Rates (TRIRs). They also reviewed incident
trends, high potential incidents, significant
risks and their mitigations, process and asset
safety as well as other key matters emerging
from operations and projects across the
Group. The SSHEAC also endorsed SHE
metrics for 2025/26.
For details on SHE metrics for 2024/25 see
pages 53 to 54 .
Immersive safety training
The Committee received regular updates on
attendance, feedback and monthly activities
for the programme. It was agreed by the
Committee that its success would not be
measured by output alone, but also by
long-term behavioural change and
recognition of what it feels like when
something goes wrong. Different scenarios
for immersive experiences, such as the
impact of power outages, are now being
discussed between the SSE SHE team
andtraining organiser. The addition of
immersive safety training for contract
partners is another important step forward.
Supporting contract partner safety
To enhance collaboration with contract
partners, the SSHEAC reviewed the three
focus areas of SSE’s contract partner
strategy: collaborate, support and check.
This review looked at a comprehensive
planof actions for each focus area which
ensures alignment with procurement,
contractors and joint venture partners.
During the year, SHE specifications for
contract partners were reviewed, updated
and implemented, with the Committee
overseeing these activities. These
specifications standardise how SSE works
with its partners and support positive
collaboration. The updated content was
developed through extensive internal
consultation with Business Units and
benchmarked externally. The SSHEAC
emphasised the need to be bold enough
todrive improvements while recognising
the balance of contract partners’
responsibilities. The members highlighted
the differences in standards and cultures,
asSSE operates internationally. New SHE
specifications were announced at the
Group SHE Contract Partner conference
inNovember and the Committee is
monitoring their implementation.
Fatigue management
The SSHEAC monitored the effectiveness
offatigue management processes in
Distribution, along with associated working
hours controls. A collaboration with the
University of Hull provided valuable insights
for improving the risk assessment process
and interventions. The Committee also
noted updates on engagement with trade
unions and how learnings from this can be
applied. In their discussion, the SSHEAC
considered fatigue risk in adverse weather
conditions, acknowledging the challenge of
balancing the increased risk profile during
storms with the necessity for the business
to maintain constant availability due to
potential customer impact.
Public safety
To better understand the nature of the
public safety risks, the SSHEAC received an
overview of the public safety strategy for
Distribution. It was particularly interested
inindustry alignment, stakeholder
engagement, and the legal and company
frameworks supporting the management
ofassociated risks. Industry-wide
engagement films that show impactful
content were highly regarded. The
Committee discussed how national
cooperation and technologies such as cable
detection and avoidance tools could
improve public safety. The Committee gave
feedback to the Distribution team on how
123 SSE plc Annual Report 2025
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Safety, Sustainability, Health and Environment Advisory Committee Report continued
SSE can further support these initiatives.
These are being reflected in the national
cooperation work.
Assurance and audit
The SSHEAC regularly reviewed progress
against assurance and audit plans along
with the SHE management system. The
SSHEAC also reviewed and endorsed the
2025/26 assurance and audit programme.
The programme discussion focused on
environmental standards and audits.
Risks and legislation
The SSHEAC reviewed the SHE risk matrices
and the changes to the risk profile over the
past year. They considered the outputs of
these risk matrices alongside the annual
SHE risks review and legislation update.
For a comprehensive analysis of SSE’s
performance in safety, health and wellbeing,
environment and sustainability, please see
pages 42 to 59
of this report and the
Sustainability Report 2025.
Environment
The SSHEAC reviewed SSE’s environment
strategy for 2025/26 and each Business
Unit’s environmental plan. The Committee
discussed SSE’s waste management
activities, with a focus on recycling and
diversion from landfill and related Group
targets for 2025/26. Recycling and diversion
targets are set annually.
To support SSE’s environmental strategy
and ensure accountability, the SSHEAC has
endorsed targets and KPIs for 2025/26.
Environment – monitoring performance
The SSHEAC monitored SSE’s
environmental incidents and permit
breaches across the Group. It looked at how
comprehensive waste management and
recycling programmes, including metal
recycling, were implemented to enhance
sustainability efforts. Waste management
reports provided the SSHEAC with detailed
information on waste types, disposal
categories, diversion rates and recycling
efforts, highlighting SSE’s commitment to
environmental responsibility. In alignment
with SSE’s biodiversity objectives, the
Committee reviewed biodiversity data for
projects across various Business Units,
fostering a culture of ecological stewardship.
Climate adaptation and resilience
The Committee received an annual climate
adaptation and resilience update, that
incorporated adaptation to physical climate
risks and related planning and reporting.
The Committee endorsed
recommendations including an asset
managers’ forum to agree common climate
risks, the establishment of the Climate
Adaptation Working Group, and the
alignment of climate risks across SSE’s risk
registers.
Nature-related disclosures
The Committee discussed SSE’s readiness
toreport against the TNFD disclosures at a
Group level, the current level of maturity
ofthe Group-wide view of nature-related
disclosures, and next steps to enhance
nature-related disclosures at the
appropriatetime.
For more on SSE’s approach to nature, see
pages 58 to 59
of this report and the
Sustainability Report 2025.
Health and wellbeing
The SSHEAC continues to focus on making
sure effective support and meaningful
initiatives are in place to address the
challenges faced by colleagues across SSE.
The Committee acknowledged good
progress in advancing the health and
wellbeing strategy in 2024/25. In particular,
it praised the comprehensive health offering
available to employees through a single
Health Hub website and the initiative to
promote its use by adding access QR codes
to hard hats.
As part of the health and wellbeing
performance report, the SSHEAC reviewed
the uptake for various SSE employee
assistance programmes including an
onlineGP service, mental health first aid,
occupational health programmes,
physiotherapy and PureGym discounts.
Thepopularity of these services shows
thatemployees are both aware of and
comfortable using them, and that the
promotional campaigns have been effective.
The SSHEAC regularly reviews reports
onsickness and absence during the year.
These included comprehensive trend
analyses, giving valuable insights into the
overall health and wellbeing of employees
and the types of support that can be
provided. The Committee was satisfied
thatSSE offers a comprehensive range
ofsupport services that are well used by
colleagues when needed.
The Committee also supported enhanced
direct support for colleagues through
external partners such as British Heart
Foundation, Nuffield and WeCare. They
discussed upcoming plans and initiatives,
and the increased digitalisation of offerings,
including a mental health wellbeing app
called Thrive. The Committee also asked
forwelfare provisions to be specified in
theupdated contract partners’ SHE
specifications.
Sustainability and ESG
ESG ratings
One of the ways in which SSE’s sustainability
performance is assessed is through
investorESG ratings, which are of strategic
importance to SSE and its stakeholders.
TheSSHEAC reviewed the final ESG rating
performance score card for 2024,
discussedan update on progress against the
recommendations arising from last year’s
ESG ratings review and endorsed the ESG
review recommendations and priorities for
each action identified.
Sustainability Report
During the reporting year, the Committee
reviewed the approach and content plan
forthe Sustainability Report 2025 in the
context of increasing complexity of
sustainability disclosures in corporate
reporting. The SSHEAC acknowledged the
importance of the Sustainability Report and
its enhanced disclosures as a crucial
communication tool with investors and
other stakeholders. The SSHEAC continues
to approve the report before it’s published.
124 SSE plc Annual Report 2025
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Members of the SSHEAC
continued with their programme
of site visits to support and engage
with colleagues in various
operating environments. Each site
gave detailed safety briefings.
The feedback from visits was
encouraging, with teams working
hard to positively impact SSE’s
culture, the environment and
local communities. Potential
challenges included recruitment
in remote sites and skills shortages
in certain areas.
Summary of observations
– Kinardochy Substation. Employees
seemed to be encouraged to voice
safety concerns in a psychologically
safe environment. Safety, health
andwellbeing signs were displayed
across the site, promoting proactive
safety awareness.
– Isle of Wight – Ryde depot. The visit
showed continued improvement in
delivery and culture, with a strong
focus on the team and customers.
Communication within the team
indicated a positive working
environment, and recent safety
alertswere prominently displayed
inthe depot.
– Aberdeen – tree cutting site and
office. It was clear that the
team here are deeply committed to
customer care, whether engaging
with landowners, responding to
queries, supporting vulnerable
customers, or restoring supplies.
They were highly engaged and
empowered to make local
improvements, such as the new
digitalStorm Room, to enhance
performance. The Room uses
technology to improve the
management of faults during storms
by giving the team real-time access
toall the systems data needed for
effective decision making.
– Dogger Bank C HVDC Station.
Thiswas a busy yet well-organised
construction site with tight traffic
management and security. The strong
safety ethos was evident, with
barriered walkways keeping people
separated from traffic.
– Bindoo Wind Farm. The team here
were proud to discuss recent
innovations. They seemed to trust their
colleagues when needing support and
had the autonomy to explore new
areas of working.
– Glasthule Buildings County Dublin.
Residents in Glasthule had access to a
direct issues phoneline, contributing
toa transparent and safe working
environment. A fire drill demonstrated
effective processes.
– Medway Power Station. It was good
tosee the team’s efforts to explore
options for decarbonising energy
generation at Medway to make sure
the site could continue to provide
essential flexible power in a net-zero
world.
– Keadby 1 and Keadby 2 Power
Stations. These sites had a strong
continuous improvement ethos in
process safety, operations, outages
and culture. Keadby 2 was currently on
outage, while Keadby 1 had recently
returned. It was interesting to discuss
outage processes, control room
handovers, commissioning, and issue
management.
– Lerwick Power Station. The safety
culture on site was very positive
among SSE employees and contract
partners, creating a real community
feel.
– Gremista Project. The Transmission
team was managing several high-
standard improvement projects.
Thegood organisation of the site was
clear from its security, signage, and
well-prepared parking zone complete
with EV charging points. There was a
clear sense of teamwork among the
project team.
Helen Mahy spent time with colleagues on Shetland to hear about safety processes on major projects there
Site visits
125 SSE plc Annual Report 2025
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Remuneration Committee Report
Sustainability is at the heart of this strategy,
reinforced through both the five-year
NetZero Acceleration Programme (NZAP)
Plus investment plan to 2027 and the 2030
Goals aligned with four UN Sustainable
Development Goals (shown on page 6 ).
The vesting of PSP awards links directly to
performance against both the NZAP Plus
and the 2030 Goals. The PSP awards have
dedicated strategy and sustainability
measures, which represent a combined
30%of the award. And 10% of the AIP
awardis linked to our performance in
publicly available sustainability indices.
Afurther 30% of this AIP award relates to
operational performance aligned with key
NZAP Plus deliverables.
Alongside sustainability and operational
excellence, our incentives focus on financial
performance and value creation, aligning
performance with shareholders’ interests.
These measures will be increasingly
important as SSE moves into its next phase
of growth. See page 14
for details of
where KPIs link directly to remuneration.
Policy review
Our current Directors’ Remuneration Policy
was approved by shareholders at the 2022
AGM with over 91% of the votes cast in favour
of the resolution. Policy changes made in
2022 were mostly focused on alignment with
the newly launched NZAP, later upgraded
toNZAP Plus. This policy expires at the
conclusion of our 2025 AGM. Therefore,
anupdated policy will be proposed for
consideration at the 2025 AGM.
In developing proposals for the updated
policy, the Committee reviewed the current
policy to make sure it remains fit-for-
purpose, particularly in the context of:
– Chief Executive succession plans, which
came into sharper focus after our current
Chief Executive, Alistair Phillips-Davies
announced his intention to retire
during2025.
– Our NZAP Plus investment plan designed
to deliver growth and create value across
SSE to 2026/27.
SSE has continued to perform well
throughout the current five-year plan,
showing the benefits of a balanced portfolio
Role of the Committee
The Remuneration Committee
determines and agrees SSE’s broad
policy for executive remuneration,
ensuring that it is appropriate,
enhances personal performance
andrewards individual contributions
towards the long-term sustainable
success of SSE.
For more details on the role and
responsibilities of the Committee, see
its Terms of Reference at sse.com
.
of market-focused energy assets supported
by regulated income from electricity networks.
All three of our serving Executive Directors
were appointed internally and have been
with SSE for a number of years. Due to
thisand legacy final salary pension
arrangements, thefixed pay of Alistair is
around 40% of his total target remuneration.
In future, we’d like a smaller proportion
ofremuneration to be fixed, with more
emphasis on performance-related pay
(bothshort- and long-term). This will allow
us to pay competitively without relying too
heavily on base pay. This is designed to
create value for money for shareholders
andlink executive pay more directly to
SSE’sperformance.
With the competition for roles becoming
increasingly diverse and international,
remuneration at all levels of the business
needs to be flexible enough to retain and
attract world-class talent.
With all of this in mind, our Committee is
proposing four policy changes for approval
atthe 2025 AGM:
1. An increase in maximum AIP opportunity
of up to 200% of salary for Executive
Directors (from up to 150% of salary).
2. An increase in the maximum annual
awards under the PSP of up to 300%
ofsalary (from up to 250% of salary).
3. A consequential increase in Executive
Directors’ shareholding requirement
toalign with the face value of annual
awards of shares under the PSP.
4. A streamlining of the current two-year
post-employment shareholding policy:
other than shares purchased by the
Executive Director, the requirement
willbeto hold any shares to the value
oftheminimum requirement set by the
policy (or the projected shareholding
including in-flight long-term incentive
awards if lower). This is effectively a
housekeeping change to simplify the
administration and enforcement of
thepolicy. It will apply from 2025/26.
If approved, the first three changes above
willnot apply toAlistair.
For many years we’ve reviewed market
practice by looking at our sector competitors,
We believe our proposed policy continues
tobeclearly aligned with SSE’s strategy
andsustainability focus. It will enable future
succession and support our growth plans.”
Melanie Smith CBE
Committee Chair
This Directors’ Remuneration Report aims
to set out clearly and simply the details of
Directors’ remuneration at SSE and the
rationale behind our approach. It covers:
– The link between remuneration and
strategy
– The Directors’ Remuneration Policy
review
– Board changes taking place in 2025/26
– Delivery and performance during
2024/25
• Annual Incentive Plan outcome
• Performance Share Plan outcome
• Base salary increases from April 2025
The proposed updated 2025 Directors’
Remuneration Policy is set out in full on
pages 131 to 138
, and will be submitted to
shareholders for approval at the 2025 AGM.
The Annual Report on Remuneration
follows on pages 140 to 153 , and contains
details of our remuneration arrangements
and various legislative, regulatory and best
practice disclosures.
Link to strategy
Our approach to pay is designed to support
the execution of our purpose: to provide
energy needed today while building a
betterworld of energy for tomorrow.
Theperformance measures and targets
forthe Annual Incentive Plan (AIP) and the
longer-term Performance Share Plan (PSP)
are directly linked to SSE’s strategy to create
value for shareholders and society in a
sustainable way.
126 SSE plc Annual Report 2025
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Governance
Membership and attendance
The membership of the Committee comprises four non-Executive Directors and the Chair of the Board. The Group General Counsel
and Company Secretary is Secretary, and the Director of HR and Director of Reward and Pensions provide advice to the Committee.
The Chief Executive may also attend the meetings but is not present for any discussion about their own remuneration arrangements.
The Committee met three times in 2024/25, with attendance set out on page 93
.
Committee performance review
The annual review of Committee performance was facilitated by Heidrick & Struggles (see
pages 105 to 106 ) and the results
considered by the full Committee. This confirmed the Committee’s continued effective operation and actions for 2025/26.
Review
confirmed
– The Committee functions well with prepared members engaging in productive discussions that strike
the right balance between support and challenge
– Advisors provide valuable insights into market trends, regulatory updates and competitor benchmarking
– Thorough executive reviews and performance assessments are conducted with clear and strategic links
to SSE’s overarching goals and objectives
Actions for 2025/26
– The Committee should continue to operate in the same way going forward
the FTSE 100, the FTSE 20 to50 and,
increasingly, the FTSE 50 (excluding financial
services). SSE’s market capitalisation is
around the upper quartile ofthe FTSE 20 to
50 and close to the median of the FTSE 50.
The proposed change to incentive levels
leaves total remuneration well below the
median of theFTSE 50.
During the year, I consulted with our
30largest shareholders, representing
around 55% of SSE’s issued share capital,
and the three main proxy advisory agencies.
We received responses from half of those
consulted with, and I’m very grateful to
everyone who shared their views on the
proposed policy changes in person or in
writing. We entered the process aware of
wider developments, such as hybrid awards
and above-inflationary increases at the
largest companies, but decided to take a
conservative approach. The feedback
received was generally supportive, and the
proposals shared in this report did not
change as a result of the shareholder
consultation process.
Board changes
After 28 years with SSE and 12 years of
exceptional leadership as Chief Executive,
Alistair will step down from the Board and
will be succeeded by Martin Pibworth, our
current Chief Commercial Officer, after the
2025 AGM.
When Alistair leaves the Board in July,
he’llbe treated in line with the Directors’
Remuneration Policy and his service contract.
For the purposes of incentives, and given his
long and successful career with SSE, he will
be treated as a ‘good leaver’.
He will not receive an award under the 2025
PSP, and outstanding share awards under
the PSP will be pro-rated to reflect the time
between the start of the performance
period and when he leaves SSE. Awards will
vest in line with the normal timetable. His
AIP will stop accruing when he steps down
from the Board and he’ll receive a pro-rated
award, without deferral, related to his
service in the 2025/26 financial year.
Alistair will continue to receive all elements
of fixed pay including base salary, benefits
and pension until he leaves at the end of
November 2025. He’ll be required to keep a
shareholding for at least two years after his
leaving date in line with the policy.
When he becomes Chief Executive on
17July 2025, Martin’s base salary will be
£970,000, 10% less than Alistair’s salary
upon leaving. We plan to increase his salary
by 8% to £1,050,000 with effect from 1 April
2026, subject to satisfactory performance
inthe role. His pension allowance will be
reduced from 15% to 12% of base salary
inline with current policy and with the
potential pension contribution available to
the wider workforce. Martin’s overall fixed
pay from 1April 2026 will be around 22%
lower than Alistair’s fixed pay on stepping
down from the Board.
Subject to approval of the Policy at the
2025AGM, we propose that Martin’s AIP
opportunity rises to a maximum of 175%
ofsalary from 17 July 2025 and to200%
from 1April 2026. His PSP opportunity will
increase to a maximum of 275% of salary for
the 2025 grant and to 300% for the 2026
grant. His shareholding requirement will
mirror his PSP opportunity, rising to 275%
and then 300% from 1 April 2026. Once the
changes are fully implemented from 1 April
2026, Martin’s total target pay will only be
around 4% higher than Alistair’s on stepping
down fromthe Board.
In line with our policy review and discussions
with shareholders, the proposed total pay
position gives a better balance of fixed and
variable pay, with more focus on pay for
performance (as shown in the chart). We are
confident that this phased approach provides
a balanced, yet competitive, outcome which
reflects Martin’s experience as a proven
industry leader with deep sectorexperience.
As disclosed in last year’s report, the base
salary for the Chief Financial Officer, Barry
O’Regan, will rise to £700,000 (up by 7.7%)
from 1 April 2025 as part of a planned
phased increase following his appointment
to the Board in 2023. As the Board changes
come into effect, Barry may take on
additional responsibilities and we will
reviewhis base salary position again in
September 2025 when Board changes
havetaken effect.
Barry’s maximum AIP opportunity is
currently 20% less than the Chief Executive’s
and the intention is to maintain this
differential. So, we propose to increase his
AIP opportunity to 155% from 17 July 2025
and to 180% from 1 April 2026. A similar
approach will be taken with PSP, where the
differential is 25%. We intend to increase the
maximum PSP opportunity to 250% for the
2025 grant and to 275% for the 2026 grant.
Chief Executive fixed and
variable pay comparison
Current Chief Executive pay
Post-policy Chief Executive pay
Base salary
Benefits
Pension
AIP
PSP
40%
fixed pay
60%
variable pay
30%
fixed pay
70%
variable pay
127 SSE plc Annual Report 2025
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We considered these proposed changes
relative to our main external comparator
groups: FTSE 50 and FTSE 20 to 50 (excluding
financial services). The charts show how
proposed total target remuneration for
Martin and Barry is positioned against these
benchmarks. Totalpay for Martin will
remain below lower quartile relative to the
FTSE 50. Barry’s total pay after the Board
changes will be in the lower quartile to
median range against theFTSE 50.
Overall, the Committee believe that these
changes will support our ability to retain
and recruit executive directors, and indeed
employees across the Group generally, with
the knowledge, skills and performance to
make SSE successful.
Full details of the policy changes and the
policy review process are on page 129
.
Delivery and performance
During 2024/25, our disciplined investment
programme continued to create sustainable
earnings growth. Our networks and
renewables businesses have each
contributed over £1bn in adjusted operating
profit for the first time. Together, the
contribution of earnings from regulated
electricity networks and renewables has
increased from 63% in the prior year to 87%.
We have also delivered on the
commitments we made for the year – with
160.9p adjusted Earnings Per Share (EPS)
achieved despite the expected
normalisation of profitability in our flexible
thermal portfolio. We have continued to
progress our growth enhancing investment
plans, delivering record capital investment
this year of £2.9bn.
Annual incentive outcomes
We assess AIP against a broad range of
metrics – financial, operational, personal
and sustainability performance targets –
collectively designed to reflect financial and
non-financial business performance each
year. We evaluate performance objectively,
taking into account SSE’s performance in
the round, and use our discretion to adjust
any outcomes we consider inappropriate.
Financial objectives were achieved in
2024/25 and progress was made in
operational performance related to the
NZAP Plus. Performance against external
sustainability indices continues to be strong,
with an average ranking around the upper
quintile for the third year running.
In particular, safety performance has been
encouraging – with fewer injuries overall
and the Total Recordable Injury Rate among
our contract partners improving on the
previous year. Our immersive safety training
won a Utility Week award, and over 8,000
SSE employees have now been through the
programme. During the year, we were also
awarded an Investors in People: We invest
inWellbeing Platinum accreditation, the
highest level available.
The outturn for the 2024/25 AIP is 81% of
the maximum. We believe this outcome is a
fair representation of overall performance
and the SSE stakeholder experience. In line
with the policy, 33% of the award is deferred
into shares for three years. The AIP
scorecard is shown on page 142
.
Long-term incentive outcomes
The PSP awards granted in 2022 are due to
vest after the 2024/25 financial year-end.
This is subject to financial, strategic, and
value-creation performance conditions –
and measured over the three-year
performance period ending 31 March 2025.
This is the first year of vesting after the
introduction of the strategy and
sustainability measures mentioned
previously in this report.
We objectively assessed the vesting outcome
against the performance measures and
targets set. Adjusted EPS growth targets
performed particularly well, with this measure
paying out in full. Total Shareholder Return
(TSR) was only just above median ranking
against both the FTSE 100 and European
utilities peer groups, with macroeconomic
challenges affecting SSE’sshare price towards
the end of the performance period.
The strategy measure performed well overall,
reflecting strong performance against
networks Regulated Asset Value (RAV)
Proposed target remuneration against benchmarks
Remuneration Committee Report continued
growth targets. Sustainability performance
was also good, particularly in championing a
fair and just energy transition, and enabling
low-carbon generation and demand.
The outturn for the 2022-2025 PSP award
is59% of the maximum award. For details
onthe performance measures, targets and
performance assessments, see
page 145
.
We agreed that the outcomes under the AIP
and PSP were appropriate in the context of
wider business performance, and decided
that it wasn’t necessary to apply any discretion.
Base salary changes
Ahead of changes to the Board and the
related remuneration changes in July 2025,
we have also considered increasing Executive
Directors’ base salaries from 1April 2025.
Wetook into account SSE’s performance,
shareholder returns, and progress against
theNZAP Plus.
Importantly, we also considered the pay
arrangements for the wider employee
population. Half of the employee group
covered by trade union agreements is
expected to receive an increase of around
6.2% from 1 April 2025. This includes a pay
award of CPIH (expected to be around 3.9%)
plus 1%, and an additional 1.3% related to pay
progression. The pay budget for the rest of
employees was 3%, with awards typically
ranging from between 1.5% and 5%
depending on performance.
Taking this into consideration, we agreed
thatthe base salary increases for Alistair
andMartin would be 3% from 1 April 2025
(with Martin subject to further increase once
he becomes Chief Executive on 17 July
2025). Barry’s base salary will rise by 7.7% to
the euroequivalent of £700,000, in line with
the phased salary increases agreed when he
was appointed tothe Board in 2023.
To conclude
We believe our proposed policy continues
tobeclearly aligned with SSE’s strategy
andsustainability focus. It will enable future
succession and support our growth plans.
Incentive outturns in the year reflect
performance, and base salary increases
areappropriate relative to the wider
employee population.
Looking ahead, we plan to continue to be
open about our decision making, clear in
ourreporting about remuneration, and
fullymindful of SSE’s stakeholder groups.
Iwelcome all feedback and comments on
this Directors’ Remuneration Report or on
remuneration more generally, and can be
reached through SSE’s Group General
Counsel and Company Secretary, Liz Tanner
at ir@sse.com
.
Melanie Smith CBE
Chair of the Remuneration Committee
20 May 2025
Upper quartile
Median
Lower quartile
July 2025
April 2026
Total target remuneration £000s
Chief Executive Chief Financial Officer
1,000
2,000
3,000
4,000
5,000
6,000
7,000
FTSE 20–50FTSE 50FTSE 20–50FTSE 50
128 SSE plc Annual Report 2025
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Directors’ Remuneration Policy review
Introduction
The current Directors’ Remuneration Policy was
approved in 2022 and is due for renewal at the AGM
inJuly 2025.
In September 2024, the Remuneration Committee held
a policy review workshop where they discussed the
important role the policy plays in supporting both SSE’s
ambitious growth plans and executive succession plans.
In light of this, a set of key principles was established on
which the policy and proposed changes are based.
These are in the adjacent illustration.
A timeline ofthis process and more detail on the key
considerations are shown in the following pages.
Policy changes
A broad range of potential changes were explored by the Committee. After feedback from shareholders, a set of policy change proposals
were agreed.
Area of change Current policy Proposed policy Rationale for change
Annual Incentive
Plan (AIP)
quantum
The maximum AIP
opportunity for the
ChiefExecutive is 200%
ofbase salary.
The maximum AIP opportunity
will increase to 250% of base
salary to create headroom for
the recruitment of a new Chief
Executive.
The current Chief Executive’s fixed pay is c.40% of
total target remuneration on account of the legacy
final salary pension (which will not be available
toanew Chief Executive). A greater balance of
performance-related pay will allow more
competitive pay without relying too heavily on
basesalary, providing better value for shareholders.
SSE’s competition for talent is increasingly diverse
and international, and the increase in quantum will
help attract and retain theright candidates.
The combined value of incentives will be a
maximum of 500%, which is in the lower quartile
tomedian relative to external benchmarks.
Performance
Share Plan (PSP)
quantum
The maximum PSP
opportunity for the
ChiefExecutive is 250%
ofbase salary.
The maximum PSP
opportunity will increase to
300% of base salary to create
headroom for the recruitment
of a new Chief Executive.
Shareholding
requirement
The Chief Executive must
maintain a shareholding of
250% of base salary.
The Chief Executive’s
shareholding requirement will
increase to 300% of basesalary.
A consequential increase in the shareholding to
align with the face value of the annual award of
shares under the PSP.
Post-employment
shareholding
Executive Directors are
required to hold their
in-employment shares for
afurther two years after
employment finishes.
Executive Directors will be
required to hold any shares to
the value of theminimum
requirement set by the policy
(or the projected shareholding
including in-flight long-term
incentive awards if lower).
This is considered a housekeeping change,
whichmaintains an effective post-employment
shareholding requirement but reduces the
administrative burden.
The Committee also considered and decided against the following options:
– Replacing the current PSP with a Restricted Share Plan. Ultimately, the Committee decided that performance shares based on a
combination of financial, market-based and strategic goals remains the best long-term reward mechanism. This reflects the Board’s
confidence in the NZAP Plus and SSE’s ability to deliver against it.
– Reducing the proportion of the award deferred as shares under the AIP. The Committee acknowledged that some companies have
reduced bonus deferral, particularly once shareholding requirements have been met. As the current deferral is consistent with broader
internal practice, a decision was made not to make changes in this area.
Key principles for our Remuneration Policy
Balanced
The policy should provide an
appropriate balance of fixed and
variable pay, with an emphasis
on performance-related pay
andless reliance on base pay.
Competitive
The approach to remuneration
at all levels of the business
needs to be flexible enough to
retain and attract world-class
talent.
Sustainable
The policy should encourage
the long-term stewardship of
SSE and support its sustainable,
long-term growth ambitions
through the Net Zero
Acceleration Programme
(NZAP)Plus.
Strategically aligned
There should be clear links to
SSE’s strategy of creating value
for shareholders and society in
asustainable way.
129 SSE plc Annual Report 2025
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Policy in action
This sets out how the Remuneration Committee intends to operate the new policy once fully implemented in 2026/27.
Element Maximum 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32
Fixed pay
Salary Set with reference to
pay increases for the
wider employee
population
Salary paid
Benefits Market competitive Benefits paid
Pension 12% of base salary Pension
contribution/
allowance paid
Variable
pay
Annual
Incentive
Plan (AIP)
CEO 200% of salary
CFO 180% of salary
67% cash, 33%
deferred shares
Performance
period
AIP cash paid
Deferred AIP
share award
granted
Deferral period Deferred
AIPshare
awards vest
Performance
Share Plan
(PSP)
CEO 300% of salary
CFO 275% of salary
PSP award
granted
Performance/
holding period
PSP award
vests
Holding
period
Holding
period ends
Additional
governance
Share
ownership
requirement
CEO 300% of salary
CFO 275% of salary
Shareholding requirement maintained for two years after leaving
Malus and clawback provisions apply
January 2025
Meetings took place betweenSSE
and a number ofshareholders and
proxy advisory agencies. Written
responses from other shareholders
were reviewed. There was general
support for the changes and no
major concerns were identified.
June 2025
The proposed Director’s
Remuneration Policy is disclosed
in this Annual Report.
July 2025
Shareholders will vote
on the proposed policy
at the AGM. Assuming a
positive result, this will
be adopted immediately
after the meeting.
May 2025
The original shareholder group
consulted was sent a letter
confirming the outcomes of
theconsultation process.
November 2024
The Committee agreed proposed
policy changes and the process
for shareholder consultation.
September 2024
In a policy review workshop,
the Remuneration Committee
discussed principles, assessed
risks and considered key areas
ofchange.
December 2024
Consultation began with
the30largest shareholders,
representing around 55% of SSE’s
issued share capital. Along with
the main proxy advisory agencies,
they received a letter explaining
the proposed policy changes
andunderlying rationale.
Policy review and shareholder consultation timeline
Directors’ Remuneration Policy review continued
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Directors’ Remuneration Policy
Introduction
SSE’s proposed new Directors’ Remuneration Policy is set out in this section. This policy is subject to a binding shareholder vote at SSE’s
AGM on 17July 2025 and, if approved, will apply from this date. It will apply for up to three years and will be subject to re-approval at the
2028 AGM at thelatest.
The policy was reviewed and approved by the Remuneration Committee. As part of this process, the views of our larger shareholders and
other shareholder advisory bodies were sought. In addition, the thoughts of other Board members, management and external advisors
were considered. The members of the Committee then made decisions independently without inappropriate influence. No person
participated in decisions relating to their personal remuneration. The policy review process is detailed on
pages 129 and 130
.
The current policy was approved at the AGM on 21 July 2022 and can be seen in full in SSE’s 2022 Annual Report.
The Remuneration Committee considered the policy in the context of the principles set out in the UK Corporate Governance Code.
Clarity
– Our Directors’ Remuneration Policy is designed to be
sustainable and simple. It supports and rewards the diligent
andeffective stewardship vital to delivering SSE’s core purpose
(providing energy needed today while building a better world of
energy for tomorrow) and our strategy of creating value for
shareholders and all stakeholders.
– The policy updates the previous policy with minimal structural
changes. So it’s already embedded into the business and is well
understood by participants and shareholders alike.
– The policy clearly sets out the terms under which it can be
operated, including appropriate limits in terms of quantum,
themeasures which can be used, and discretions which could
be applied as appropriate.
– Transparency in approach has been a cornerstone of our policy.
There is detailed disclosure of the relevant performance
assessments and outcomes for shareholders to consider.
Simplicity
– Our pay arrangements include a market standard annual
incentive and long-term share plan, each of which is
explained in detail in our policy.
– No complex or artificial structures are needed to operate
theplans.
– We explain our approach to pay clearly and simply.
Risk
– Appropriate limits are stipulated in the policy and respective
plan rules.
– The Committee also has appropriate discretions to override
formulaic outturns when assessing the variable incentive plans.
– Each year, the Committee reviews risks associated with the
policy and its operation. Any risks identified are considered with
appropriate mitigation strategies or tolerance levels agreed.
– Regular interaction with the Audit and SSHEA Committees
ensures relevant risk factors are considered when setting or
assessing performance targets.
– Clawback and malus provisions are in place across all incentive
plans, and the ‘triggers’ have been reviewed and strengthened.
Predictability
– The possible reward outcomes can be easily quantified, and
these are reviewed by the Committee.
– The graphical illustrations provided in the policy clearly show
the potential scenarios of performance and resulting pay
outcomes.
– Performance is reviewed regularly, so there are no surprises
when performance is assessed at the end of the period.
Proportionality
– Variable incentive pay outcomes are clearly linked to delivering
the strategy.
– Performance is assessed on a broad basis, including a
combination of financial, operational and sustainability metrics.
This ensures no undue focus on a single metric.
– The Committee also has the discretion – which it has used – to
override formulaic outcomes if they are seen as inappropriate
inlight of wider Company performance and the experience
ofstakeholders.
Alignment to culture
– At the heart of the policy is a focus on the long-term
sustainability of the business.
– This reflects SSE’s business culture of ‘doing the right thing’,
which is aligned to effective stewardship that creates value
forall stakeholders.
– Our incentive plans and approach to measuring performance
in particular, reflect our SSE SET core values.
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Policy table
Base salary
Purpose and link to strategy The base salary supports the recruitment and retention of Executive Directors of the calibre needed to
develop SSE’s strategy, deliver efficient operations and investments, and engage effectively with key
stakeholders. It’s intended to reflect the role and its responsibilities, business and individual performance
measured against strategy and core purpose, and competitive market pressures.
Operation The Remuneration Committee sets base salary taking into account:
– the individual’s skills, experience and performance;
– salary levels at other UK-listed companies of a similar size and complexity and other energy businesses;
– remuneration of different groups of employees and wider internal pay arrangements; and
– the overall policy objective to set a competitive, but not excessive, total remuneration position against our
chosen benchmarks.
Base salary is normally reviewed each year with changes effective from 1 April. It may be reviewed more
frequently or at different times of the year if the Committee sees this as appropriate.
Maximum opportunity Salary increases are normally capped at the typical level of increases awarded to other employees at SSE.
Increases may be above this level in certain circumstances, including but not limited to:
– where a new Executive Director has been appointed to the Board at an initially lower base salary with
theintention that larger salary increases would be awarded as the Director gains experience;
– where there has been a significant increase in the scope and responsibility of an Executive Director’s role
or where they have been promoted; and
– where a larger increase is considered necessary to reflect significant changes in market practice.
Performance measures When setting and reviewing salaries each year, the Committee considers how Executive Directors have
ensured that SSE fulfils its core purpose of providing the energy needed today while building a better world
of energy for tomorrow. They also assess delivery on SSE’s strategy to create value for shareholders and
society in a sustainable way by developing, building, operating and investing in the transition to net zero.
Benefits
Purpose and link to strategy To provide a market-competitive level of benefits for Executive Directors.
Operation The objective is to provide the appropriate level of benefits taking into account market practice at similar
sized companies and the level of benefits provided for other employees at SSE.
Current core benefits include car allowance, private medical insurance and health screening.
Executive Directors are eligible to participate in the SSE’s all-employee share plans on the same terms as UK
colleagues. SSE currently operates the Share Incentive Plan (SIP) and the Sharesave Scheme (SAYE).
If an Executive Director needed to relocate to perform their role, the Committee may provide other
reasonable benefits to reflect the circumstances.
The Committee may introduce or remove particular benefits if seen as appropriate.
Travel and business-related expenses incurred which may be treated as taxable benefits will be reimbursed
inline with SSE’s expenses policy.
Maximum opportunity When determining the level of benefits, the Committee will consider the factors outlined above. The cost will
depend on the cost to SSE of providing individual items and the individual’s circumstances. There is no
maximum benefit level.
Performance measures Not applicable.
Directors’ Remuneration Policy continued
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Pension
Purpose and link to strategy Pension planning is an important part of SSE’s remuneration strategy, as it’s consistent with the long-term
goals of the business.
This approach to pension planning supports SSE’s ability to retain experienced Executive Directors and
develop talentinternally.
Operation The current Chief Executive participates in the Southern Electric Pension Scheme, the same scheme which
any employee recruited at that time participates in. This scheme is a funded final salary scheme pension
(subject to the cap on future increases in pensionable pay described below). Where an Executive Director
issubject to the scheme-specific salary cap (which mirrors the provisions of the previous HMRC cap
arrangements) SSE provides top-up unfunded arrangements (UURBS) up to the maximum benefit
statedbelow.
The current Chief Commercial Officer receives a cash allowance in lieu of accruing future pension benefits.
This allowance predates his appointment as an Executive Director and is in line with other former defined
benefit scheme members who have opted out at 15%.
The Chief Financial Officer and any new appointments to the Board will receive pension provisions in line
with arrangements for SSE employees.
Maximum opportunity Arrangements for the Chief Executive provide for a maximum pension of two-thirds of final salary, normally
at age 60. From 1 April 2017, future pensionable pay increases will be capped at RPI + 1% (regardless of the
level of any actual increases in salaries).
For new appointments, employer’s pension contributions are capped in line with the potential pension
contribution available for all SSE employees: 12% of base salary.
Performance measures Not applicable.
Annual Incentive Plan (AIP)
Purpose and link to strategy To achieve a suitable balance of fixed and variable remuneration, the AIP rewards Executive Directors based
on their achievement of performance targets linked to SSE’s strategy and core purpose.
Compulsory deferral into SSE shares helps align Executive Directors’ interests and the long-term interests of
shareholders.
Operation The Committee determines the level of incentive at its absolute discretion. It takes into account performance
in each of the measures, the underlying performance of the business, and how Executive Directors have
managed and performed in relation to all business issues during the year.
Performance is typically assessed over a financial year. For each measure, where performance reaches or
exceeds the maximum, an outturn of 100% is payable. There is no payment for below-threshold performance.
The award will normally be delivered as 67% in cash and 33% in deferred shares.
The Committee may decide to award a different balance of cash and deferred shares. Deferred shares
normally vest three years from the award date (unless the Committee decides another vesting period is
appropriate), subject to continued employment with accrual of dividends over that period. Until vesting, the
awards may accrue additional dividend shares. Dividend equivalents may be decided by the Committee on a
cumulative basis and may assume reinvestment of dividends in SSE shares.
In certain circumstances as set out in the plan rules, the Committee has discretion to apply malus to
outstanding awards under the AIP or unvested deferred share awards before the relevant vesting or payment
date. They can also, or instead, claw back the cash or share portion of awards under the AIP for up to three
years after the cash payment date of the relevant award.
Maximum opportunity The maximum annual incentive opportunity for Executive Directors is 200% of base salary.
Performance measures The annual incentive is normally based on a mix of financial, operational, strategic and stakeholder measures
reflecting the key values and priorities of the business. A minimum of 50% of the annual incentive will be
based on financial performance metrics. The Committee determines the exact metrics each year based on
the key strategic objectives for the forthcoming year and makes sure these are appropriately stretching in the
context of the business plan. The measures for the current year are on
page 144
.
The Committee may review the detailed targets and weightings of measures each year, as well as the
appropriate threshold levels of vesting and performance.
Around 50% of the incentive is paid if target levels of performance are delivered, with the full incentive paid
for delivering stretching levels of performance.
The part of the AIP that’s deferred in the form of deferred shares is not linked to any further performance
conditions.
133 SSE plc Annual Report 2025
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Performance Share Plan (PSP)
Purpose and link to strategy The PSP aims to reward Executive Directors – over a three-year performance period and a further two-year
holding period – for their part in delivering the sustained success of the Company. It also ensures that their
interests are aligned with those of SSE’s shareholders.
Operation Shares are awarded which normally vest based on performance over a period of three years. Awards granted
to Executive Directors will be subject to an additional two-year post-vesting holding period. During this time
the Executive Director must retain the post-tax number of shares vesting under the award. All the shares
vest if the maximum performance standard is reached or exceeded. No vesting is possible for below
threshold performance.
The Committee determines the extent to which the performance conditions have been met. No shares will
vest unless the Committee is satisfied with the underlying financial performance of the Company. Awards
only vest after the end of the performance period.
Until vesting, PSP awards may accrue additional dividend shares. Dividend equivalents may be determined
by the Committee on a cumulative basis and may assume dividends have been reinvested in SSE shares.
In certain circumstances set out in the PSP rules, the Committee may at its discretion apply malus to
outstanding awards before vesting and/or clawback vested awards for up to three years after the vesting date.
The Committee may adjust and amend awards in line with PSP rules.
Maximum opportunity The maximum annual value of award that can be granted under the PSP for Executive Directors is up to
300% of base salary.
See also the share ownership policy requirement.
Performance measures The Committee reviews and adjusts targets each year, ensuring these are stretching and represent value
creation for shareholders while being realistically achievable for management.
Awards vest based on a range of measures which may include value creation, financial, operational, strategic
or stakeholder-based measures. A minimum of 70% of the award will be based on financial and value-
creation measures. The Committee will review the most appropriate measures, detailed targets and
weightings of measures each year, as well as the appropriate threshold levels of vesting and performance.
Share ownership policy
Purpose and link to strategy A key element of SSE’s Remuneration Policy is to align the interests of Executive Directors with those of SSE
shareholders.
Operation Shareholding is normally built up by shares vesting through the PSP, as well as deferred shares from the AIP
and all-employee share schemes. Executive Directors may also choose to buy shares.
The requirement to hold shares continues after employment. Executive Directors must continue to hold any
shares (excluding those purchased from own funds) to the value of the minimum requirement set by the
policy (or the projected shareholding including in-flight LTIP awards if lower), for another two years
following cessation of employment.
Maximum opportunity Executive Directors are required to maintain a shareholding. This is linked to the face value of the annual
award of shares under the PSP (i.e. up to a maximum of 300% of base salary), and should be built up over a
reasonable timeframe.
Performance measures Not applicable.
Directors’ Remuneration Policy continued
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Chair and non-Executive Directors’ fees
Purpose and link to strategy Fees are set at a level which rewards Directors for undertaking their role. They’re intended to attract and
retain people with the calibre and experience to contribute effectively at Board level.
Operation The Committee is responsible for determining fees for the Chair. The Board determines fees for other
non-Executive Directors.
Fees are reviewed at appropriate intervals against companies of a similar size and complexity. Fees are set in
a way that is consistent with the wider remuneration policy.
The fee structure may be made up of:
– a basic Board fee or Chair fee;
– an additional fee for any committee chairship or membership; and
– an additional fee for other responsibilities such as Senior Independent Director, non-Executive Director
for Employee Engagement, or periods of increased activity.
Non-Executive Directors do not participate in the Annual Incentive Plan, Deferred Bonus Scheme or any of
the share schemes, or contribute to any group pension scheme.
Non-Executive Directors currently receive no benefits. Benefits may be provided in future for non-Executive
Directors if the Board sees this as appropriate, and they may be provided in future for the Chair if the
Committee sees this as appropriate.
Reasonable travelling and other expenses for costs incurred in the course of the non-Executive Directors
undertaking their duties are reimbursed (including any tax due on the expenses).
All non-Executive Directors are expected to build up at least 2,000 SSE shares.
Maximum opportunity The aggregate level of non-Executive Director fees should not go over the maximum set out in the Articles of
Association.
Performance measures There are no direct performance measures relating to Chair and non-Executive Director fees. The
performance of the Board is evaluated each year, and this includes an evaluation of individual members.
Performance measures and targets
The Committee sets a range of simple, transparent and balanced performance measures linked to Executive Directors’ remuneration. All
have a clear link to strategic objectives and support value creation for shareholders. Performance targets will be stretching, and maximum
performance will only be attained for true out-performance of targets. Longer-term financial targets set for the awards under the PSP will
be reviewed and set in light of the relevant business plan. Where possible, targets will be disclosed prospectively unless there are
commercial sensitivities, in which case they may be shared retrospectively at an appropriate time.
Committee discretion
All incentive awards are subject to the terms of the relevant plan rules under which awards are made. The Committee may adjust or amend
awards in line with the provisions of the relevant plan rules. This includes, but is not limited to:
– Adjusting the number of shares and/or performance conditions attached to awards in the case of changes to SSE’s share capital or
reserves, or a demerger, special dividend, rights issue or other event.
– Adjusting PSP performance conditions for subsisting awards to take account of relevant factors, for example to reflect changes to
accounting standards.
– If the Company is voluntarily wound-up, allowing some or all outstanding PSP awards to vest (and be deemed exercised) on the date the
resolution for the winding-up is passed.
The Committee may make minor changes to this policy (such as for regulatory, exchange control, tax or administrative purposes – or to
account for changes in legislation, corporate governance requirements or guidance) without asking shareholders to approve the change.
Legacy commitments
The Committee has the right to make any remuneration payments and payments for loss of office (including exercising its discretion in
connection with such payments) even if they are not in line with the policy set out in this report, where the terms of the payment were
agreed:
– before this policy came into effect as long as the terms of the payment were consistent with the shareholder-approved Directors’
Remuneration Policy in place at the time they were agreed or,
– at a time when the relevant individual was not an SSE Director and, in the opinion of the Committee, the payment was not related to the
person becoming a Company Director.
Payments include the Committee agreeing awards of variable remuneration and an award over shares is ‘agreed’ at the time the award is
granted. Any payments made outside of the Directors’ Remuneration Policy related to legacy commitments will be shared in full in the
relevant year’s Annual Report.
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Directors’ service contracts and non-Executive Directors’ letters of appointment
Current Executive Directors have service contracts terminable by the Company immediately without notice upon breach by the individual,
or by the Company with 12 months’ notice, or by payment in lieu of salary only during that notice. The payment in lieu of notice may be
made in staged payments and may either reduce or stop completely when the departing Executive Director gains new employment. The
Executive Director may terminate the contract by giving the Company 12 months’ notice. Contracts for new Executive Directors will be
limited to 12 months’ notice by both parties (or payment in lieu of notice in respect of the Company). The service contracts are available to
view at SSE’s registered office.
Non-Executive Directors are appointed for fixed terms of three years, subject to retirement and re-appointment at AGMs. Non-Executive
Directors are not entitled to any payment in lieu of notice or any compensation for loss of office when they leave.
Non-Executive Director letters of appointment are available to shareholders at
sse.com
.
Loss of office policy
The Committee takes a number of factors into account when determining leaving arrangements for Executive Directors:
– The Committee must satisfy any contractual obligations which are in the Remuneration Policy or entered into on or before 27 June
2012 in line with relevant legislation.
– The treatment of outstanding share awards is governed by the relevant share plan rules, as set out below.
– The Committee may decide that the Executive Director should receive reasonable outplacement support and legal advice at the
expense of the Company as well as any payments required by statute.
– The Company can terminate any Executive Director’s contract by giving notice or payment in lieu of notice (as explained above).
AIP
The Executive Director may continue to be eligible for an AIP award for the financial year in which they leave employment if the Committee
has decided good leaver terms apply. AIP awards will be determined by the Committee, taking into account time in employment and
performance. AIP awards received in such cases may not be subject to deferral into shares, as long as the post-employment share
ownership policy has already been fulfilled or will be by other means. To be clear, any AIP will be pro-rated for the period of service.
Deferred shares
If an Executive Director’s employment ends in circumstances such as death, injury, disability, ill health or other circumstances that the
Committee considers appropriate, unvested deferred shares will vest in full when employment finishes.
If an Executive Director leaves the business in other circumstances, their deferred shares will lapse.
Performance share plan
If an Executive Director’s employment ends in circumstances such as death, injury, disability, ill health or other circumstances that the
Committee considers appropriate, PSP shares may continue to vest. The PSP shares will normally be reduced to reflect the time elapsed in
the three-year performance period when the Executive Director’s employment ended. They will normally still be subject to performance
conditions at the end of the performance period.
The Committee may decide, in exceptional circumstances, that PSP shares can be released when employment finishes. It will determine
the level of vesting taking into account how long the Executive Director has been in employment and the extent to which performance
conditions have been met at that time. This may be adjusted if the Committee considers that a performance condition would have been
met to a greater or lesser extent at the end of the original performance period.
The Committee has the discretion to remove time pro-rating or change the time pro-rating fraction if it considers that the Executive
Director’s contribution to the business would not otherwise be properly recognised. In this circumstance, the vesting of PSP shares would
be subject to performance until the end of the performance period. The Committee will have discretion to determine the treatment of any
holding period in accordance with the post-cessation shareholding requirement and/or the rules of the plan.
If the Executive Director’s employment ends for any other reason, unvested PSP share awards will lapse. Vested PSP shares, which are
subject to a mandatory holding period, will not lapse as a result of employment coming to an end for any other reason.
Pension
When an Executive Director participating in the defined benefit pension scheme retires through ill health, they’re entitled to an unreduced
pension based on service to expected retirement.
In the event of any reorganisation or redundancy, Executive Directors who are 50 or older with at least five years of service will be given
anunreduced accrued pension. If an Executive Director is not yet 50 at the time of this event, their pension will be paid from age 50.
From age 55 Executive Directors can leave SSE and receive a pension reduced for early payment, unless the Company agrees to the
pension being paid on an unreduced basis.
Depending on the circumstances of the Executive Director’s leaving and the financial health of the Company at the time, the Committee
will consider a cash commutation of the UURBS pension at the time of leaving. Any cash commutation would limit SSE’s liability, taking into
account valuations by independent actuarial advisors. This would be undertaken on what the Committee judges to be a cost neutral basis
to SSE.
The following is information about the pension of Alistair Phillips-Davies, who is in the HMRC-approved Southern Electric Group of the
Electricity Supply Pension Scheme. The terms of this also apply to the UURBS arrangement.
Directors’ Remuneration Policy continued
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– Dependants’ pensions on death are four-ninths of the member’s pensionable pay, together with a capital sum equal to four times
pensionable pay. If death occurs after the age of 55 an additional lump sum between three to five times notional pension is payable
depending on age and length of service.
– On death in retirement, the Director’s spouse will receive a pension equal to two-thirds of that payable to the Director. In addition, if
death is within the first five years of retirement, a lump sum is payable equal to the balance outstanding of the first five years’ pension
payments.
– Post-retirement increases are expected to be in line with RPI (guaranteed up to the level of 5% per year and discretionary above
thatlevel).
Other arrangements
If buyout awards are made on recruitment, the treatment on leaving will be determined at the time of the award.
For all-employee share plans, such as the Sharesave Scheme and the Share Incentive Plan, leavers will be treated in line with the HMRC-
approved plan rules.
Change of control
On a change of control, Executive Directors’ awards will be treated in line with the rules of the applicable plan(s). In summary, if there’s a
change of control of the Company, performance in the PSP will be measured to that date. This is subject to modification if the Committee
considers that the performance conditions would be met to a greater or lesser extent at the end of the original performance period.
Awards will normally be scaled down to reflect the period up to the change of control. The Committee can remove or change the
pro-rating fraction if it feels that participants’ contribution to creating shareholder value during the performance period would not
otherwise be properly recognised.
Any outstanding unvested deferred shares from the AIP will vest automatically, and any vested shares subject to a holding period will be
released.
Recovery provisions
The Committee believes that it should be able to recover pay in circumstances where that pay is later proved to have been unfairly earned.
The PSP and AIP have recovery provisions under malus and clawback.
Malus is the ability to reduce or cancel unvested deferred AIP and PSP share awards. Clawback is the ability to take back value delivered
through the cash element of AIP or vested AIP awards at any point. In order to provide sufficient time for any issues to come to light, it will
apply for up to three years post-payment of cash under the AIP and up to threeyears post-vesting of PSP shares. They would apply under
the following circumstances at any point between the grant date and vesting date:
– Material misstatement or restatement of accounts
– Misconduct which results in a materially adverse financial effect
– Serious reputational damage including material environmental or safety issue, or material operational or business failing
– Factual error in calculating payment/vesting
– Serious misconduct
–Corporate failure
– Material risk failure
– Material detriment to the market reputation of stakeholders or the Company
– Unreasonable failure to protect stakeholders’ interests
These recovery provisions form part of the relevant plan rules which participants agree to be bound to as part of their service contracts.
Recruitment policy
The Committee aims to align remuneration packages with this Policy. In determining a total remuneration package for a new recruit, the
overriding objective is to make decisions in the best interests of SSE, its shareholders and other stakeholders.
Base salary will be set with reference to the individual’s skills, experience and performance, salary levels at similar sized UK companies and
domestic and international energy businesses, remuneration of different groups of employees, and wider internal pay arrangements.
The Committee will determine appropriate pension provision for any new Executive Director. When determining pension arrangements for
new external appointments, the Committee will keep contributions in line with the potential pension contributions available to the wider
employee population which is currently 12% of salary.
Variable incentive levels will be in line with those set out in the policy table, with the maximum no more than 200% of base salary for AIP
and 300% of base salary for PSP. While the intention is generally to set consistent performance measures across the executive team, it may
sometimes be necessary to set alternative measures for the initial awards based on the timing and circumstances of a new appointment.
PSP awards may be granted shortly after an appointment, as long as the Company is not in a closed period.
The Committee may make awards under the Company incentive plans or other available structures when appointing an Executive Director
to “buy out” remuneration arrangements given up on leaving previous employment. In doing this, the Committee will take into account
relevant factors such as performance conditions attached to these awards, their form (cash or shares), and the time over which they would
have vested. Generally, buy-out awards will be made on a comparable basis to the ones forfeited.
Under the FRC Listing Rules exemptions, the Committee may make awards under SSE’s incentive plans to facilitate the recruitment or
retention of an Executive Director in unusual circumstances. The use of the exemption is limited to the granting of buy-out awards or share
awards within the limits described above.
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Shareholders’ views
The Committee Chair, on behalf of the Committee, consulted with SSE’s largest shareholders in developing the new Remuneration Policy,
as well as representatives from the main proxy voting agencies. Details of the consultation process are on
page 130 .
The Committee Chair also consults from time to time with institutional shareholders on a broad range of remuneration issues. The
Committee finds such meetings a valuable chance to hear feedback on the work of the Committee and the key issues it’s considering.
Thehelpful feedback and insights received inform the Committee’s decisions.
The Committee also monitors the views of other stakeholders and broader developments in executive remuneration.
Remuneration engagement across SSE
The Committee appreciates the importance of maintaining an appropriate relationship between remuneration levels of Executive Directors,
senior executives, managers and other employees in SSE (although comparison metrics are not used to determine pay policy). The structure
of reward necessarily differs based on scope and responsibility of role, level of seniority and location.
The table on page 150
shows how the core elements of executive pay align with the wider workforce.
In summary:
– Senior management also participates in annual and long-term incentive arrangements. In line with Executive Directors’ arrangements,
incentives for senior management have an emphasis on share awards, and the performance metrics support those used at Board level.
– All employees have the opportunity to own shares through the Share Incentive Plan and Sharesave Plan. These shareholders are able to
express their views in the same way as any other shareholders.
– Pension planning is an important part of SSE’s reward strategy for all employees as it’s consistent with the long-term goals and horizons
of the business.
– As part of its Employee Engagement Survey, SSE invites all employees to share their views on benefits and pay.
The Remuneration Committee is responsible for determining the pay for SSE’s most senior executives and the Chair of the Board. It also
reviews remuneration arrangements for all employees across the Group.
The Chair of the Remuneration Committee meets at least once a year with SSE’s recognised trade unions to discuss SSE’s position on
executive remuneration.
Illustration of the Directors’ Remuneration Policy for 2025/26
These charts show a forward-looking potential single total figure of remuneration value for 2025/26 at below threshold, target and
maximum for each of the Executive Directors. The scenarios incorporate the proposed changes to remuneration for Martin and Barry
following Martin’s appointment as Chief Executive on 17 July 2025, as described on page 127 , and represent an increase on the previous
year. Alistair will step down from the Board on 17 July 2025 and his pay has been pro-rated to this date. He will receive no PSP grant in the
year, and he will receive a pro-rated AIP award without any deferral into shares.
Single total figure of remuneration – an illustration of the application of our policy
Total fixed
Below
threshold
Target Max Max + 50%
share price
Alistair Phillips-Davies Martin Pibworth Barry O’Regan
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
Below
threshold
Target Max Max + 50%
share price
Below
threshold
Target Max Max + 50%
share price
AIP LTIP Share price growth
£000s
100% 61% 43% 43%
39%
57% 57%
100% 37% 22% 18%
26%
32% 25%
37%
46% 35%
22%
100% 37% 22% 17%
23%
29% 22%
40%
49% 38%
23%
Directors’ Remuneration Policy continued
138 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Remuneration at a glance
Single total figure of remuneration outcomes in 2024/25
Executive Directors’ total remuneration has increased relative to the
previous year. This is partly because the Chief Financial Officer joined the
Board part way through 2023 and so his pay in the previous year was
pro-rated. Fixed pay was higher in 2024/25, following increases to base
salary, and a higher valuation of the Chief Executive’s final salary pension.
Variable pay was also slightly higher on account of a higher AIP outturn.
This chart shows the single total figure of remuneration for each
ExecutiveDirector.
Base salary Benefits
Pension AIP
PSP
Chief
Executive
Chief
Commercial
Officer
2024/25
2023/24
2024/25
2023/24
Chief Financial
Officer
2024/25
2023/24
£000’s 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500
Incentive performance
These charts show incentive plan performance during the year relative to the maximum outturn achievable under each measure. They explain how each
performance measure links to wider SSE strategy. The overall outturn for the Annual Incentive Plan (AIP) is 81% and the overall outturn for the Performance
Share Plan (PSP) is 59%.
Annual Incentive Plan
ActualMaximum
22%
20%
22%
10%
7%
30%
20%
30%
10%
10%
Adjusted Earnings Per Share
A strategic KPI and measure
of value creation
Operational
Safety, capital delivery and
operational performance
Personal
Individual objectives set to support
NZAP Plus delivery
Cashflow
Measures financial stability and the ability to
make future NZAP Plus-critical investment
Sustainability
Ranking in external sustainability indices –
supporting the transition to net zero
%
0 5 10 15 20 25
30
Performance Share Plan
ActualMaximum
4%
14%
10%
11%
20%
20%
30%
15%
15%
20%
%
0 5 10 15 20 25 30
TSR FTSE 100
Measures value creation
relative to the FTSE 100
Strategic
Progress against the
NZAP Plus investment plan
Growth in Adjusted Earnings Per Share
A measu
re of value creation
over the longer term
TSR European utilities
Measu
res value creation
relative to European utilities
Sustainability
P
rogress against SSE’s 2030 goals linked
to UN Sustainable Development Goals
Executive shareholding
Executive Directors are required to maintain a holding of SSE shares in
order to align their interests with those of SSE’s shareholders. This chart
shows shareholdings at 31 March 2025 relative to the shareholding
requirement for each Executive Director.
The Chief Executive is currently required to hold shares equivalent to 250%
of base salary, and the other Executive Directors are required to hold
shares equivalent to 225% of base salary. Both the Chief Executive and the
Chief Commercial Officer have exceeded the shareholding requirement.
The Chief Financial Officer continues to build up a shareholding following
his appointment in 2023.
ActualRequirement
750%
250%
427%
225%
121%
225%
Chief Executive
Chief Commercial Officer
Chief Financial Officer
% of base salary
0 100 200 300 400 700600500
800
139 SSE plc Annual Report 2025
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This Annual Report on Remuneration explains what each Executive Director was paid for the financial year ending 31 March 2025 and what
they will be paid for the 2025/26 financial year.
1. Single total figure of remuneration (audited)
The table below shows the single total figure of remuneration for each Executive Director over the past two years. There has been a
year-on-year increase in remuneration of 25%.
Barry O’Regan joined the Board as Chief Financial Officer (CFO) on 1 December 2023 so his pay in 2023/24 was pro-rated which accounts
for a large part of the increase.
Fixed pay was higher in 2024/25 following increases to base salary from 1 April 2024, and also because of the valuation of the final salary
pension of Alistair Phillips-Davies. The pension valuation is based on the capitalised pension accrual during the period. Due to high CPI in
2023/24, the value was negative and shown as zero in the table in line with reporting regulations. The pension valuation has returned to a
positive value in 2024/25.
Variable pay was slightly higher in 2024/25 on account of higher annual incentive outcomes following strong financial and operational
performance. The longer-term PSP award was slightly lower despite 2024/25 being the first year of vesting following an increase to the
maximum opportunity. This is because performance was assessed at a slightly lower level than the previous year, and also because the
award did not benefit from any share price appreciation.
As his home base is in the Republic of Ireland, Barry’s pay is determined in sterling and converted into euros for payment. The table shows
his remuneration in sterling and, where applicable, an exchange rate of £1 to €1.1589 has been used. This was the 12-month average
exchange rate to 31 March 2024.
AUDITED
Fixed pay Variable pay
£000s
Base salary Benefits Pension
Total
fixed pay AIP PSP
Total
variable pay Total
Alistair Phillips-Davies 2024/25 1,044 11 154 1,209 1,269 1,414 2,683 3,892
2023/24 999 20 0 1,019 1,034 1,509 2,543 3,562
Martin Pibworth 2024/25 750 19 113 882 790 877 1,667 2,549
2023/24 688 19 103 810 617 910 1,527 2,337
Barry O’Regan 2024/25 650 20 78 748 684 – 684 1,432
2023/24 203 7 24 234 179 – 179 413
Total 2024/25 2,444 50 345 2,839 2,743 2,291 5,034 7,873
2023/24
1,890 46 127 2,063 1,830 2,419 4,249 6,312
The following sections give more detail on each element of pay including any underlying assumptions, calculations and explanations of
thefigures.
Base salary
In setting base salaries, the Remuneration Committee takes into account a range of internal and external factors including:
–performance;
– progress against the NZAP Plus;
– Total Shareholder Returns over the year;
– wider workforce pay;
– the increasingly competitive market for talent; and
– salaries at other UK-listed companies of a similar size and complexity, and other energy businesses.
From 1 April 2024, Alistair’s salary was increased by 4.5%, less than the pay budget for the wider workforce which was typically 6% to 6.5%.
Martin Pibworth’s salary was increased by 9%: a normal salary increase of 4.5% plus an additional 4.5% to account for his expanded role
after Gregor Alexander retired as Finance Director.
It’s proposed that base salaries for Alistair and Martin are increased by 3% from 1 April 2025. This is lower than the base salary increases
forthe wider workforce. Half of the employee group covered by trade union agreements is expected to receive an increase of around 6.2%
from 1 April 2025. This includes a pay award of CPIH (expected to be around 3.9%) plus 1%, and an additional 1.3% related to pay
progression. The pay budget for the rest of employees was 3%, with awards typically ranging from between 1.5% and 5% depending on
performance.
Martin’s base salary will increase to £970,000 when he becomes Chief Executive on 17 July 2025, and to £1,050,000 from 1 April 2026,
subject to satisfactory performance in the role.
Annual Report on Remuneration
Key:
AUDITED
IMPLEMENTATION
Table content that sits under the
amberAudited rule has been
subject to audit.
Table content that sits under the
turquoise Implementation rule is
planned for implementation in 2025.
140 SSE plc Annual Report 2025
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Ahead of his appointment to the Board as CFO on 1 December 2023, it was agreed that Barry O’Regan’s salary would start at £600,000 and
increase to £650,000 from 1 April 2024, then to £700,000 from 1 April 2025, subject to review (as disclosed in previous annual reports).
Barry’s base salary position will be reviewed in September following the Board changes.
AUDITED
IMPLEMENTATION
£000s 2023/24 % increase 2024/25 % increase 2025/26
Alistair Phillips-Davies 999 4.5% 1,044 3.0% 1,075
Martin Pibworth 688 9.0% 750 3.0% 773
(from 1 April 2025)
970
(from 17 July 2025)
Barry O’Regan
203 8.3% 650 7.7%
700
(subject to further
review in September
2025)
Benefits
Appropriate benefits are provided to Executive Directors, taking into account market practice at similar sized companies and the level of
benefits given to the wider workforce. Core benefits include car allowance or company car, private medical insurance and health
screening. They can also participate in SSE’s all-employee share schemes on the same terms as other employees.
The values shown in the table below represent the cost to SSE of providing benefits to Executive Directors in line with the choice available
to the wider employee population. Part way through 2023/24, Alistair opted to participate in SSE’s company car scheme, which has a lower
value than the car allowance he previously received. This reduced his overall benefits value for the year.
No changes are proposed to benefits in 2025/26.
AUDITED IMPLEMENTATION
£000s 2023/24 2024/25 2025/26
Alistair Phillips-Davies 20 11 In line with 2024/25
Martin Pibworth 19 19 In line with 2024/25
Barry O’Regan 7 20 In line with 2024/25
Pension
SSE’s pension arrangements for all employees depend on when they joined. This is also true for Executive Directors, whose arrangements
align to other employees with similar levels of service.
Alistair is a member of the Southern Electric Pension Scheme, and his plan membership predates his Board appointment. He participates
inthe same defined benefit pension arrangements that were available to all employees recruited at that time when he joined in 1997. The
scheme closed in 1999 and the service costs are 32.5% of salary. This is a funded final salary pension scheme and the terms of the scheme
apply equally to all members. His service contract provides for a possible maximum pension of two-thirds of final salary from the age of 60.
An approved pension is payable from the scheme, with the balance of the pension entitlement met directly by SSE through an Unapproved
Unfunded Retirement Benefits scheme (UURBS).
Alistair has the following pension provisions relating to leaving SSE:
– For retirement through ill-health, an unreduced pension based on service to expected retirement is paid.
– If there’s a reorganisation or redundancy, an unreduced accrued pension is paid to members who are 50 or older with at least five years’
service or, for members who have not yet reached that age, it will be payable from 50 years old.
– From the age of 55, a member is entitled to leave SSE and receive a pension, reduced for early payment, unless SSE gives consent and
funds this pension on an unreduced basis.
The pension value shown in the single total figure of remuneration table for Alistair represents the increase in capital value of pension
accrued over one year times a multiple of 20 (net of CPI and Directors’ contributions) in line with statutory reporting requirements. The
value of the defined benefit pension is based on the capitalised pension accrual (net of CPI inflation) during the period, less the direct
employee contribution of £153,600. The outcome of this calculation was zero in the prior year due to high rates of CPI working through
the required calculations.
The actual pension accrued by Alistair during the year is shown here:
£000s 2023/24 2024/25
Alistair Phillips-Davies 597 646
Martin, who joined SSE in 1998, receives a cash allowance in lieu of pension contributions at 15% of base salary. This is in line with the
employer’s contribution for the majority of SSE’s employees, taking into account length of service. This follows a phased reduction from
30% of base salary, which was his pension allowance on becoming an Executive Director in 2017. His pension allowance will reduce further
to 12% of base salary on his appointment to Chief Executive.
141 SSE plc Annual Report 2025
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Barry participates in the SSE Ireland Pension Scheme, a defined contribution arrangement. SSE makes employer’s contributions equivalent
to 12% of base salary, aligned to the policy for new appointments and the potential pension contribution available to employees.
AUDITED IMPLEMENTATION
£000s 2023/24 2024/25 2025/26
Alistair Phillips-Davies 0 154 No change
Martin Pibworth 103 113 15%
(reducing to 12% on
Chief Executive
appointment)
Barry O’Regan 24 78 No change
Annual Incentive Plan
The Annual Incentive Plan (AIP) requires broad performance across a range of financial and strategic metrics set at the beginning of the
financial year. For 2024/25, performance was assessed at 81% of the maximum opportunity for Executive Directors. A detailed performance
scorecard is shown on the following pages.
The total award is made up of a 67% cash award with 33% deferred as shares for a period of three years.
AUDITED
AIP award for 2024/25
£000s
Maximum
opportunity as
% of base salary AIP cash
AIP deferred
as shares AIP total
Alistair Phillips-Davies 150% 1,269 – 1,269
Martin Pibworth 130% 529 261 790
Barry O’Regan 130% 459 226 684
AIP performance scorecard
Performance measures and a summary assessment are shown in the table below. The outturns have been arrived at by applying formulaic
assessment (where possible), judgement, and relativity to past performance. There are more details of the performance of each measure
beneath the scorecard.
As part of their performance assessment, the Remuneration Committee has also considered SSE’s performance in the round and against
our pay principles. It is satisfied that the outcomes noted below are appropriate and reflect performance in the year and agreed that no
discretion should be applied to the overall outturn.
Measure Weighting Threshold
Performance
Maximum Outcome
Outturn (% of
total AIP)
Financial
(50%)
Adjusted Earnings Per Share (EPS)
Underlying measure of financial
performance and a strategic KPI
30% 146p
(25% outturn)
170p
(100% outturn)
159.0p 22%
73%
Cashflow
Ratio of net debt to EBITDA
20% 4.2x
(25% outturn)
3.6x
(100% outturn)
3.2x 20%
100%
Strategic
(50%)
Personal
Assessment against a range of personal
objectives set at the beginning of the year
10% Rating 1
(zero outturn)
Rating 5
(100% outturn)
Rating 4 7%
70%
Operational
Operational goals relating to safety, capital
delivery and operational performance
30% Rating 1
(zero outturn)
Rating 5
(100% outturn)
Rating 4 22%
73%
Sustainability
Sustainability performance independently
assessed relative topeer groups
10% Median
ranking
(20% outturn)
Upper quintile
ranking
(100% outturn)
Average 89th
percentile
10%
100%
Total 81%
Annual Report on Remuneration continued
142 SSE plc Annual Report 2025
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Adjusted Earnings Per Share (30%)
The adjusted Earnings Per Share of 159.0p used in the AIP assessment is the value before the 1.9p exclusion described on
page 22
relating to “Employee Benefits” charges. This resulted in a 73% outturn.
Cash flow (20%)
The cash flow metric for 2024/25 has performed well with net debt 3.2 times EBITDA resulting in a 100% outturn for this measure based on
a formulaic assessment.
Personal (10%)
Executive Directors have detailed personal objectives which are set and agreed by the Committee at the start of the year, then assessed at
year-end based on judgement, and relativity to past performance. As a majority of objectives set were at or above target, the Executive
Directors were rated four on a one-to-five rating scale. This resulted in a 70% outturn for this measure.
Summary of objectives set Summary of performance assessment
A range of objectives are set specific to each
objective, they include:
– Safety
–Strategy
–Financial
–Operations
– Stakeholder management
– Team and personal development
– Inclusion and diversity
– Overall strong performance in a challenging
environment
– Safety performance has been good with all
businesses improving, and no life changing injuries
– Around £3bn invested in critical national
infrastructure during the year as part of the NZAP Plus
– Effectively pivoted capital around renewables,
networks and flexibility assets reflecting changes to
market opportunities
– Adjusted EPS delivered above budget
– Key project delivery milestones achieved in relation
to: Viking, Yellow River and Chaintrix onshore
windfarms; Shetland HVDC link; and the new Slough
Multifuel plant
– Committed to being a critical partner in the clean
energy transition through engagement with various
stakeholders including Ofgem, NESO, and UK and
Irish governments, and through attendance at
COP29
– Succession plans in place ahead of the Board
changes in July 2025
– An efficiency review has been established to set SSE
up for the next phase of growth
– Representation across SSE’s workforce increased in
key diversity metrics during 2024/25, and all cohorts
of senior leadership (except GEC) saw increases in
the proportion of women represented
Operational (30%)
At the beginning of the year, the Committee reviewed and set operational measures. These fall under one of three distinct areas worth 10%
each: safety, capital delivery, and operational performance. Quantitative targets set at the beginning of the year are assessed formulaically
and adjusted to take into account broader performance in each of these areas. In 2024/25, a substantial majority of goals were assessed at
being at or above target, and this resulted in a 73% outturn.
Measure Factor Summary performance Weighting
Performance
outcome Outturn
Safety Overall employee and
contractor safety
performance including
TRIR (Total Recordable
Injury Rate)
– Fewer reportable injuries, high potential injuries and
RTCs (road traffic collisions)
– Improved TRIR performance for contract partners
– Slightly reduced TRIR performance for SSE colleagues
– Immersive safety training delivered to over 8,000 SSE
colleagues and won a Utility Week award
– Awarded Investors in People: We invest in Wellbeing
Platinum Accreditation
– For more information see page 122
10% 80% 8%
Capital
delivery
Large capital project (LCP)
performance, SSEN
Distribution capex, SSEN
Transmission RAV, SSE
Renewables pipeline
– First power from Dogger Bank offshore wind farm
– Significant progress in delivery of SSEN Transmission’s
Pathway to 2030 programme
– More than £7bn transmission network infrastructure
asset base
– Significant increase in SSEN Distribution capex
– SSE Renewables secured 1GW share in IJmuiden Ver
Alpha offshore wind farm in the Netherlands, 200MW
solar in Poland, 800MW for Fearna pumped storage
inScotland
– For more information see
page 30 onwards
10% 56% 6%
Operational
performance
SSEN Distribution incentive
performance, SSEN
Transmission network
reliability, SSE Renewables
availability and production,
SSE Thermal availability
andreliability
– SSEN Distribution incentive performance impacted
through weather and planned IIS (Interruptions
Incentive Scheme) impacts
– Mixed performance through the Energy Not Supplied
(ENS) incentive
– SSEN Transmission’s overall network reliability
measured by NESO was 99.99%
– SSE Renewables asset availability and production
performance exceeded targets on a weather
adjustedbasis
– Strong underlying performance across SSE Thermal
despite extended outages at Great Island and Keadby 2
– For more information see page 30 onwards
10% 78% 8%
Total 30% 73% 22%
143 SSE plc Annual Report 2025
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Sustainability (10%)
Since 2022, SSE has linked AIP to sustainability by assessing performance against external sustainability indices which rank SSE against a
peer group based on a number of ESG metrics. High thresholds were set, with a maximum outturn only available for an average upper
quintile performance. SSE’s average performance is in the 89th percentile resulting in a 100% outturn, which is aligned with the previous
year’s performance.
Measure Factors considered in ESG assessment Assessment Weighting
Performance
outcome Outturn
Sustainalytics ESG
risk rating
Electric Utilities
sub-industry – global
peer group consisting of
c.270 companies
Carbon – own operations; emissions, effluents
and waste; resource use; land use and
biodiversity; business ethics; corporate
governance; product governance; community
relations; human capital; occupational health
and safety.
Score: 21.8;
88th percentile;
Upper quintile
(February 2025)
S&P Global CSA
Electric Utilities peer
group – global peer
group consisting of
c.270 companies
26 different categories which cover all the
above plus issues such as policy influence,
information and cyber security, talent
attraction and retention, stakeholder
engagement, and climate strategy.
Score: 71/100;
89th percentile;
Upper quintile
(February 2025)
Average ranking: 89th percentile Upper quintile 10% 100% 10%
IMPLEMENTATION
AIP – performance measures for 2025/26
Martin’s AIP opportunity will increase from 130% to 175% of base salary when he becomes Chief Executive on 17 July 2025, and to 200% of
base salary from 1 April 2026, subject to approval. Barry’s AIP opportunity will increase from 130% to 155% of base salary from 17 July 2025,
and to 180% of base salary from 1 April 2026, subject to approval.
AIP measures in 2025/26 will be largely unchanged. Adjusted Earnings Per Share and cash flow remain key measures for the AIP. Targets,
aligned with the NZAP Plus, are set each year and take into account wider market factors. Due to commercial sensitivities, detailed targets
are not shared at this stage. They will be disclosed retrospectively in as much detail as possible in next year’s report.
Measure Weighting
Financial
(50%)
Adjusted Earnings Per Share (EPS)
Underlying measure of financial performance and a strategic KPI
30%
Cash flow
Ratio of net debt to EBITDA
20%
Strategic
(50%)
Personal
Assessment against a range of personal objectives set at the beginning of the year
10%
Operational
Operational goals relating to safety, capital delivery and operational performance
30%
Sustainability
Sustainability performance independently assessed relative topeer groups
10%
Examples of the operational measures that will be considered are as follows:
– Safety: employee and contractor safety performance
– Capital delivery: LCP performance, SSEN Distribution capex, SSEN Transmission RAV, SSE Renewables cost efficiency
– Operational performance: SSEN Distribution incentives, SSEN Transmission network reliability, SSE Renewables availability and
production, SSE Thermal availability and reliability
Performance Share Plan
The PSP is a long-term incentive plan where a grant of shares is made to Executive Directors before vesting to them three years later. This is
subject to performance conditions designed to encourage sustainable value creation, effective stewardship and good long-term decision
making. Under the 2022 PSP, which matures in 2025, a range of value creation, financial and strategic performance metrics are assessed.
This will be the first year of assessing against the new performance measures implemented as part of the 2022 Directors’ Remuneration
Policy review.
Performance has been assessed at 59% of the maximum opportunity. Shares awarded are subject to an additional two-year post-vesting
holding period.
The estimated value of the award is based on the average share price in the three months up to 31 March 2025 at £15.46. Nothing was
attributable to share price appreciation over the period. As the award will not vest until after this report is published, the actual value on
vesting will be confirmed in next year’s report. The table below provides details of the award.
Annual Report on Remuneration continued
144 SSE plc Annual Report 2025
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AUDITED
2022 PSP award vesting
Maximum
opportunity as
% of base salary
Share awards
available
Additional awards
in respect of
accrued dividends
Total number
of shares vesting
Estimated value
of awards vesting
£000s
Share price
appreciation
£000s
Alistair Phillips-Davies 250% 135,407 19,644 91,480 1,414 –
Martin Pibworth 225% 83,928 12,174 56,700 877 –
Barry O’Regan ––––––
Barry received his first grant under the PSP in 2024, which will vest in 2027. In the interim, he will continue to receive share awards which
were granted before he joined the Board under the below-Board long-term incentive plan, the Leadership Share Plan (LSP). As this award
does not relate to his Board service, it’s not included in the total single figure of remuneration table. The value of the award vesting under
the LSP in 2025 will be £193,853.
PSP performance scorecard
The PSP measures and performance summary are in the table below. The value creation and financial outturns are assessed formulaically.
The strategic and sustainability metrics have been assessed using a framework which scores each area between one (below threshold) and
five (all goals at or above target). The Remuneration Committee has reviewed the outturns taking into account the wider environment and
believe that they are fair in the context of broader performance over the three-year period. As such, no discretion has been applied to the
outcome.
Measure Weighting Threshold
Performance
Maximum Outcome
Outturn (% of
total award)
Value creation
(50%)
Total Shareholder Return (FTSE 100)
Relative share price performance against
FTSE 100
20%
Median
ranking
(20% outturn)
Upper quintile
ranking
(100% outturn)
Rank
47 of 94
4%
21%
Total Shareholder Return (Utilities)
Relative share price performance against
the MSCI European utilities index
30%
Median
ranking
(20% outturn)
Upper quintile
ranking
(100% outturn)
Rank
10 of 24
14%
48%
Financial
(20%)
Adjusted Earnings Per Share growth
Compound annual growth rate (CAGR)
over the three-year performance period
20%
4% CAGR
(20% outturn)
11% CAGR
(100% outturn)
19% CAGR 20%
100%
Strategic
(30%)
Strategy
Performance against the NZAP Plus
15%
Rating 2
(20% outturn)
Rating 5
(100% outturn)
Rating 3/4 10%
67%
Sustainability
Performance against SSE’s 2030 goals
15%
Rating 2
(20% outturn)
Rating 5
(100% outturn)
Rating 4 11%
70%
Total 59%
Total Shareholder Return – FTSE 100 (20%)
TSR performance relative to the FTSE 100 peer group was just above median leading to an outturn of 21%.
Total Shareholder Return – MSCI European utilities (30%)
TSR performance relative to the European utilities peer group was between median and upper quartile leading to an outturn of 48%.
Adjusted EPS growth (20%)
Adjusted EPS at the end of the performance period was 159.0p (the value before the 1.9p exclusion described on page 22
relating to
“Employee Benefits” charges) against a baseline of 95.4p, representing a compound annual growth rate (CAGR) of 19%. This exceeded the
maximum performance target and resulted in an outturn of 100%.
145 SSE plc Annual Report 2025
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Strategy (15%)
The strategy measure assesses performance against the main areas of implementation to the NZAP Plus against a five-point rating scale
where one is ‘below threshold’ and five is ‘all goals at or above target’. The Committee assessed performance as shown in the table,
resulting in an outturn of 67%.
Measure Factor Summary performance Weighting
Performance
outcome Outturn
Renewables >10GW pipeline of net
installed capacity potential
by FY26.
2GW to be built by FY26.
– Challenging market conditions has meant focus
onvalue over volume
– Current FY27 projection of around 7GW
– Total secured pipeline is currently around 17GW
6% Rating 2
30%
1.8%
Networks
growth
SSEN Transmission and
Distribution to exceed
NZAP RAV growth targets
of £6bn for SSEN
Transmission and £5.5bn
for Distribution.
– Targets comfortably met and exceeded
– Projected RAV in SSEN Transmission is greater than
£12bn by FY27
– Projected RAV in SSEN Distribution is around £7bn
byFY27
7.5% Rating 5
100%
7.5%
Energy
businesses
Low carbon thermal
installed capacity to meet
0.9GW by FY26.
Distributed Energy (DE)
installed capacity to reach
0.6GW by FY26.
– Government policy progress slower than expected
– DE is expected to be 0.23GW
– Taken a final investment decision on 300MW
TarbertNext Generation power station in Ireland,
withplanned completion by the end of 2027
0.75% Rating 2
20%
0.2%
Customer On course to be a leading
PPA player in the market
by2026.
– Onshore wind Corporate Power Purchase
Agreements (CPPA) executed in four regions
inIreland, France, Italy and Spain
– Further offshore framework agreed in the
Netherlands
0.75% Rating 4
70%
0.5%
Total 15% 67% 10%
Sustainability (15%)
The sustainability measure assesses performance against the 2030 goals, which are aligned to the UN’s Sustainable Development Goals
(SDGs), against a five-point rating scale where one is ‘below threshold’ and five is ‘all goals at or above target’. The Committee assessed
performance as shown in the table, resulting in an outturn of 70%.
Measure Factor Summary performance Weighting
Performance
outcome Outturn
SDG 13
Climate action
Reduce scope 1 carbon
intensity by 80% by 2030,
compared to 2017/18 levels,
to 61gCO
2
e/kWh.
– Scope 1 carbon intensity decreased by c.14% overall
between FY23 and FY25, from 254gCO
2
e/kWh to
218gCO
2
e/kWh
– During the period, SSE achieved its lowest scope 1
intensity on record in FY24, at 205gCO
2
e/kWh,
however the increase in FY25 resulted due to
increased thermal generation output and the impact
of constrained wind
3.75% Rating 4
70%
2.6%
SDG 7
Affordable and
clean energy
Build a renewable energy
portfolio that generates at
least 50TWh of renewable
electricity a year by 2030.
– SSE Renewable’s output increased from 10.2TWh in
FY23 to 13.3TWh in FY25
– Key project milestones reached with Viking and
Seagreen entering into operation, and first power at
Dogger Bank
3.75% Rating 3
40%
1.5%
SDG 9 Industry,
innovation and
infrastructure
Enable at least 20GW of
renewable generation and
facilitate around 2 million
EVs and 1 million heat
pumps on SSEN’s electricity
networks by 2030.
– Total renewable generation capacity connected
within SSEN Transmission’s network area increased
c.40%, from 7.8GW to 10.9GW over the performance
period
– SSEN Distribution facilitated increased demand for
low-carbon technologies connected to its network
with the number of electric or hybrid vehicles
registered in its licence areas increasing from 130,000
to c.336,000
3.75% Rating 4
70%
2.6%
SDG 8 Decent
work and
economic
growth
Be a global leader for the
just transition to net zero,
with a guarantee of fair
work and commitment to
paying fair tax and sharing
economic value.
– Continuation of commitment to fair work and fair tax
principles, celebrating a decade of both Living Wage
and Fair Tax Mark accreditations
– Maintained top position in the just transition element
of the WBA Climate and Energy benchmark
– Published an action plan for delivering a just transition
for SSEN Distribution energy consumers, reviewed
SSE’s Just Transition Strategy and developed 10 KPIs
to measure progress
3.75% Rating 5
100%
3.8%
Total 15% 70% 11%
Annual Report on Remuneration continued
146 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

IMPLEMENTATION
PSP – performance measures for the 2025 to 2028 award
Subject to approval of the new Policy, Martin’s PSP opportunity will increase from 225% to 275% of base salary for the 2025 grant, and to
300% of base salary for the 2026 grant. Barry’s PSP opportunity will increase from 225% to 250% of base salary for the 2025 grant, and to
275% for the 2026 grant.
There are no changes proposed to the measures: the award granted in 2025 will use the same measures as the previous three years, as
shown below.
Measure Description Weighting Threshold Maximum
TSR FTSE 100 Relative share price performance against FTSE 100 20% 50th percentile
(20% outturn)
80th percentile
(100% outturn)
TSR MSCI Relative share price performance against the MSCI European
utilities index
30% 50th percentile
(20% outturn)
80th percentile
(100% outturn)
Adjusted
Earnings Per
Share
Growth targets in line with SSE’s plan over three years linked to
the NZAP Plus
20% 165p +CPI
(20% outturn)
200p +CPI
(100% outturn)
Strategic Performance in the main areas of the implementation of the
NZAP Plus
15% Rating 2
(20% outturn)
Rating 5
(100% outturn)
Sustainability Performance linked to UN Sustainable Development Goals 15% Rating 2
(20% outturn)
Rating 5
(100% outturn)
The target range for adjusted EPS will be 165p to 200p consistent with the range for the 2024 to 2027 award although, to reflect that this
will be measured a year later, these figures will be increased by CPI over the period April 2027 to March 2028.
The changing macro-environment, delays to policy and planning and uncertainty over market reform have led to a revision of SSE’s NZAP
Plus. The 2030 goals are closely linked to NZAP Plus and are subject to ongoing review to ensure they continue to support SSE’s strategy.
Against this backdrop, an efficiency review has taken place recently with a focus on increasing competitiveness and rebalancing the Group
for future growth. The Board’s annual strategy review day will take place shortly after this report is published, taking these things into
consideration.
The Committee has decided it would be prudent to delay setting detailed targets in relation to strategy and sustainability for the three-year
performance period of the 2025 PSP grant until after this strategy session has taken place. Targets will be agreed by the Committee shortly
and will be published retrospectively in next year’s Directors’ Remuneration Report. Further information on how SSE is ‘responding to the
world around us’ can be found on page 5
.
The strategy and sustainability measures under the PSP, and the personal measures under AIP, will be assessed against a five-point rating
scale on the same basis as the awards under assessment this year. The ratings definitions and outturns are shown below. The Remuneration
Committee may decide to award an outturn between levels if warranted.
Score Performance assessment Illustrative outturn as % of maximum
1 Below threshold zero
2Threshold performance 20%
3 Majority of goals at or above target 40%
4 Substantial majority of goals at or above target 70%
5 All goals at or above target 100%
AUDITED
Deferred bonus and PSP awards granted in 2024
The table below shows the deferred bonus and PSP awards granted to Executive Directors in 2024. Dividends will accrue during deferral,
performance and holding periods.
Type of award Date of grant Director Shares granted
Market value on
date of award
Face value
(£000s)
Deferred bonus 30 May 2024 Alistair Phillips-Davies
Martin Pibworth
Barry O’Regan
19,716
11,768
3,418
£17.16
£17.16
£17.16
338
202
59
Sub total 599
PSP 30 May 2024 Alistair Phillips-Davies
Martin Pibworth
Barry O’Regan
150,807
97,499
84,489
£17.16
£17.16
£17.16
2,588
1,673
1,450
Sub total 5,711
Total 6,310
The performance measures for the 2024 PSP award are Total Shareholder Return relative to the FTSE 100 (20%) and European utilities
(30%), adjusted Earnings Per Share growth (20%), strategy (15%) and sustainability (15%). These measures are set out in detail on page 170 of
SSE’s 2024 Annual Report
. The face value of the 2024 PSP awards was 250% of salary for Alistair, and 225% of salary for Martin and Barry.
Threshold performance results in 20% of the award vesting.
147 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Share ownership policy
The table below shows the shareholding and share interests of the Executive Directors at 31 March 2025. Alistair is required to maintain a
shareholding equivalent to 250% of base salary, and other Executive Directors are required to maintain a shareholding equivalent to 225%
of base salary. The shareholding requirement aligns with the face value of annual awards of shares under the performance share plan.
Alistair and Martin have both exceeded the shareholding requirement, and Barry is building up a shareholding following his appointment
tothe Board in 2023.
AUDITED
Number of shares Number of options
Shareholding as
a % of salary
Shares owned
outright at
31 March 2025*
Interests in
shares, awarded
without
performance
conditions at
31 March 2025
(DBS Awards)
Interests in
shares, awarded
subject to
performance
conditions at
31 March 2025
(PSP Awards)
Interests in
shares, awarded
subject to
performance
conditions at
31 March 2025
(LSP Awards)
Interests in
share options,
awarded
without
performance
conditions at
31 March 2025
Interests in
share options,
awarded subject
to performance
conditions at
31 March 2025
Shares owned
outright at
31 March 2024*
Alistair Phillips-Davies 750% 491,164 63,630 420,662 – – – 431,416
Martin Pibworth 427% 200,936 37,823 264,761 – 1,326 – 166,083
Barry O’Regan
121% 49,244 12,540 84,489 32,540 1,068 – 40,294
* including holdings of any connected persons
Chair and non-Executive Directors’ fees
Non-Executive Directors’ fees – 2024/25
This table sets out what each non-Executive Director was paid for the financial year ending 31 March 2025 relative to the previous
financialyear.
Hixonia Nyasulu joined the Board on 1 January 2025 and will take up the role of Senior Independent Director when Helen Mahy steps down
from the Board following the 2025 AGM in July.
AUDITED
£000s 2023/24 2024/25
Lady Elish Angiolini 96 102
John Bason 93 107
Tony Cocker 107 102
Debbie Crosbie 79 82
Peter Lynas 30 –
Helen Mahy 104 127
Sir John Manzoni 433 452
Hixonia Nyasulu – 21
Melanie Smith 99 107
Dame Angela Strank 79 82
Maarten Wetselaar 46 82
Total 1,136 1,264
IMPLEMENTATION
Non-Executive Directors’ fees – 2025/26
Fees are typically reviewed each year in a way that is consistent with wider remuneration policy, and relative to other companies of a similar
size and complexity. In 2024/25, the Chair’s fee and base non-Executive Director fees were increased by 4.5%, in line with Executive
Directors’ salary increases. A review of independently sourced benchmark data suggested that fees for the various Committee Chair roles
and the non-Executive Director for Employee Engagement had fallen behind the FTSE 20 – 50 peer group and as such, increases were
recommended to reflect the time commitments associated with these roles.
Annual Report on Remuneration continued
148 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Proposed fee levels for 2025/26 are shown below and represent a 3% increase on the previous year, in line with the proposed increases to
Executive Directors’ salaries.
£000s 2024/25 2025/26
Chair fee 452 466
Base fee 82 85
Senior Independent Director 25 26
Audit Committee Chair 25 26
Remuneration Committee Chair 25 26
Energy Markets Risk Committee Chair 20 21
Safety, Sustainability, Health and Environment Advisory Committee Chair 20 21
Non-Executive Director for Employee Engagement 20 21
AUDITED
Non-Executive Directors’ share interests
This table shows the share interests and shareholdings of the non-Executive Directors at 31 March 2025. They are each expected to build
up a minimum holding of 2,000 SSE shares.
Shareholding
guideline
Shares owned
outright at
31 March 2025*
Lady Elish Angiolini Met 2,000
John Bason Met 2,117
Tony Cocker Met 5,000
Debbie Crosbie Met 2,000
Helen Mahy Met 3,310
Sir John Manzoni Met 2,788
Hixonia Nyasulu Met 2,000
Melanie Smith Met 2,174
Dame Angela Strank Met 2,152
Maarten Wetselaar Met 4,000
* including holdings of any connected persons
149 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Executive remuneration in context
Executive Directors’ remuneration is considered in the wider context of workforce remuneration, shareholder returns and other financial
dispersals. Below are some of the factors which the Remuneration Committee take into account when setting pay for Executive Directors.
Workforce pay
Similar pay principles apply to all employees across SSE, and there are commonalities between executive pay and wider workforce pay.
While the Remuneration Committee’s responsibilities focus on pay arrangements for Executive Directors and the Group Executive
Committee, itis fully briefed on pay arrangements for the wider workforce and takes this into account in decision making. This table shows
how pay is aligned across employee groups.
Executive Directors and Group Executive Committee (GEC) Wider workforce
Base salary Base salaries are reviewed each year, taking into account
skills, experience and performance; salary levels at other
UK-listed companies of a similar size and complexity;
wider internal pay arrangements; and the overall policy
objective of setting competitive, but not excessive,
remuneration against benchmarks.
There are two main groups of employees. Around half are
subject to collective bargaining through our recognised trade
unions. Annual increases are based on the attainment of skills.
The remaining employees have salaries set with reference to
market requirements. Annual increases are based on a
performance pay matrix.
Benefits Voluntary benefits are provided in line with the wider
workforce, with the addition of contractual entitlements
to car and private medical benefits.
Some employees receive contractual car and private medical
benefits.
All employees have access to a comprehensive suite of
voluntary benefits including private medical benefits, a salary
sacrifice car scheme, holiday purchase, financial wellbeing
benefits, and a range of family-friendly benefits.
Pension Pensions arrangements are aligned with the wider
workforce.
All employees are members of a defined contribution pension
scheme or one of our legacy defined benefit pension schemes,
unless they’ve opted out.
The arrangements are diverse, and employer costs typically
range from 3% to 32.5% of salary when both defined contribution
and defined benefit schemes are taken intoaccount.
Annual
incentive
AIP for Executive Directors is linked directly to
performance and structured around performance
measures that are 50% financial and 50% non-financial.
The award is delivered as 67% cash and 33% deferred
shares.
GEC members participate on the same basis as other
eligible employees.
Around half of the wider employee population is eligible for
AIP. Awards are linked to the performance of the Group, the
employee’s business or function, andthe employee’s individual
performance rating. Employees in leadership roles may have a
portion of their award deferred asshares.
Long-term
incentive
Executive Directors participate in the PSP which is a share
award over three years with performance linked to value
creation, financial, strategic and sustainability measures.
GEC members participate in the Leadership Share Plan on
the same basis as others in leadership roles.
Senior leaders are eligible for the Leadership Share Plan. This is
a share award over three years, part focused on retention and
the rest linked to both Group and business performance in
relation to the NZAP Plus.
All employees may participate in a Share Incentive Plan (SIP)
and SAYE.
Share
ownership
policy
Executive Directors are required to maintain a minimum
shareholding of SSE shares linked to the level of annual
award under the PSP (up to 300% of base salary).
GEC members are required to build up a shareholding
ofSSE shares equivalent to 100% of base salary.
All employees are encouraged to become SSE shareholders
through participation in the SIP or SAYE.
Around 50% of employees participate in SAYE, and 67% of
employees participate in SIP.
Chief Executive pay ratio
SSE’s remuneration policy is designed with fairness in mind – fairness to Executive Directors in recognition of their responsibilities, and
fairness relative to the rest of the SSE team. SSE’s Chief Executive-to-employee pay ratio has been disclosed in the Annual Report since
2016, before this reporting became mandatory in 2019.
The following table shows the pay ratio over time based on methodology C in line with the Companies (Miscellaneous Reporting)
Regulations 2018. This uses Gender Pay Gap data as its basis, and includes other important components of pay at SSE, such as overtime
and employer’s contribution to pension. It excludes salary sacrifice arrangements. The 2024/25 pay ratio will be recalculated next year in
line with the restating of the Chief Executive’s total single figure of remuneration – based on the actual value of the PSP award on vesting.
Year
Calculation
methodology
Ratio to employee pay
at 25th percentile
Ratio to employee pay
at median
Ratio to employee pay
at 75th percentile
2024/25 C 97:1 69:1 52:1
2023/24 C 95:1 65:1 49:1
2022/23 C 136:1 100:1 73:1
2021/22 C 141:1 106:1 76:1
2020/21 C 95:1 73:1 52:1
2019/20 C 83:1 59:1 44:1
2018/19 C 57:1 42:1 30:1
Annual Report on Remuneration continued
150 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

This table sets out base salary and total pay and benefits for the Chief Executive and UK employees at the 25th, 50th and 75th percentile.
The total pay figures have been used to determine the pay ratios in the previous table.
Chief Executive UK employees
25th percentile Median 75th percentile
£000s
Base salary Total pay Base salary Total pay Base salary Total pay Base salary Total pay
2024/25 1,044 3,892 33 40 45 57 60 75
2023/24 999 3,562 31 38 42 54 57 73
2022/23 952 4,776 29 35 37 48 51 65
2021/22 924 4,655 28 33 36 44 49 61
2020/21 915 3,045 28 32 35 42 48 59
2019/20 890 2,418 – 29 – 41 – 55
2018/19 866 1,639 – 29 – 39 – 54
As a large proportion of the Chief Executive’s pay is based on performance and the flow through to variable pay, the pay ratio can vary
significantly from year to year. The Chief Executive’s total pay has increased by 9% on account of an increase in base salary, an increase to
the reportable value of the defined benefit pension, and an increase in annual incentive outturn. Employee pay typically has a high
proportion of fixed pay with less reliance on variable pay. Total employee pay at median increased by 4% leading to a small change in the
ratio from 65:1 to 69:1.
For more on employee pay, including the Gender Pay Gap, see
page 55
and the Inclusion and Diversity Report .
Change in remuneration of Directors and employees
The table below shows the percentage change in the annual remuneration of Directors and UK employees over the past five years,
asrequired by the reporting regulations. These changes reflect the information provided in the single total figure of remuneration table on
page 140 and the non-Executive Directors’ fees table on page 149 .
2020/21 v 2019/20 2021/22 v 2020/21 2022/23 v 2021/22 2023/24 v 2022/23 2024/25 v 2023/24
Director
Base
salary/fee Benefits Bonus
Base
salary/fee Benefits Bonus
Base
salary/fee Benefits Bonus
Base
salary/fee Benefits Bonus
Base
salary/fee Benefits Bonus
Non-Executive Directors
Lady Elish Angiolini ––– ––– –––28%–– 7%––
John Bason ––– ––– –––48%–– 16%––
Tony Cocker 13%–– 11%–– 3%–– -1%–– -5%––
Debbie Crosbie ––– ––– ––– 5%–– 4%––
Helen Mahy 2%–– 1%–– 3%–– 16%––22%––
Sir John Manzoni ––– ––– 3%–– 5%–– 4%––
Melanie Smith 3%–– 1%–– 3%––32%–– 9%––
Dame Angela Strank – – – – – – 3% – – 5% – – 4% – –
Executive Directors
Alistair Phillips-Davies 3% 0 20% 1% 4% 21% 3% 3% 9% 5% -27% -18% 4% -45% 23%
Martin Pibworth 11% 6% 30% 11% 0% 32% 3% 1% 11% 5% 5% -18% 9% -1% 28%
All employees 6% 8% 10% 6% 3% 51% 22% 16% 6% 25% 11% 36% 19% 13% -11%
Relative importance of the spend on pay
This table shows how the earnings of Executive Directors compare with SSE’s other financial dispersals. For every £1 spent on Executive
Directors’ earnings by SSE in 2024/25, £75 was paid in tax, £131 was spent on employee costs and £372 was spent on capital and
investment expenditure. In addition, £85 was made in dividend payments to shareholders.
2017/18
£m
2018/19
£m
2019/20
£m
2020/21
£m
2021/22
£m
2022/23
£m
2023/24
£m
2024/25
£m
Executive Directors’ earnings 5.3 3.6 5.1 6.8 10.4 10.4 8.2 7.9
Dividends to shareholders 926.1 973.0 948.5 836.4 862.3 955.8 956.4 671.0
Adjusted investment, capital and
acquisition expenditure 1,503.0 1,422.9 1,371.9 912.0 2,067.8 2,803.3 2,476.7 2,936.1
Total UK taxes paid (profits, property,
environment and employment taxes) 484.1 403.7 421.6 379.0 335.3 501.7 679.2 592.1
Staff costs 665.6 653.5 684.7 700.4 688.7 771.8 938.4 1,035.0
151 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Here is the Chief Executive’s annual remuneration over the same period.
Year
Single total figure
of remuneration
(£’000)
Annual variable
element award
(% of maximum)
Long-term
incentive vesting
(% of maximum) Application of discretion
2024/25 3,892 81 59
2023/24 3,562 69 62
2022/23 4,776 88 76 Downward discretion applied to AIP
2021/22 4,655 83 66
2020/21 3,045 69 28 Downward discretion applied to AIP
2019/20 2,418 59 27
2018/19 1,639 0 26 Downward discretion applied to AIP
2017/18 2,693 78 30
2016/17 2,917 72 46 Downward discretion applied to AIP
2015/16 1,696 54 0
Governance
External appointments
Executive Directors are able to accept non-Executive appointments outside of SSE with the consent of the Board, as this can enhance their
experience and value to SSE. Any fees received are kept by the Director.
The Chief Executive is a non-Executive Director of Anglian Water Services Limited, for which he receives an annual fee of £62,000. Noneof
the other Executive Directors hold any paid external appointments.
Payments for loss of office and payments to past Directors
There were no payments for loss of office during the year.
The former Finance Director, Gregor Alexander, will receive a pro-rated award in respect of the PSP award granted in 2022, in line with his
‘good leaver’ status (as reported in the 2024 Annual Report). The award has been calculated using the same performance conditions as
current Executive Directors described on
page 144
, and is £655,829.
Annual Report on Remuneration continued
Total Shareholder Return (TSR)
This graph shows SSE TSR performance over the past ten years relative to FTSE 100 performance. The FTSE 100 index has been
chosen because SSE has been a constituent member throughout the period.
March
2015
March
2016
March
2017
March
2018
March
2019
March
2020
March
2021
Source: Datastream (a LSEG product)
March
2022
March
2023
March
2024
March
2025
SSE FTSE 100
TSR (rebased to 100)
80
100
120
140
160
180
200
220
152 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Advice to the Remuneration Committee
The Chief Executive, Director of HR, and Director of Reward and Pensions advised the Committee on certain remuneration matters for
theExecutive Directors and senior executives, although they were not present for any discussions related to their own remuneration.
The Director of HR and Director of Reward and Pensions advised on HR strategy and the application of HR policies across the wider
organisation.
FIT Remuneration Consultants LLP (FIT) provided a range of information to the Committee, including market data drawn from published
surveys, governance developments and their application to SSE, advice on remuneration disclosures and regulations, and comparator
group pay. FIT received £113,701 in relation to their work for the Committee, calculated on a time and materials basis. FIT are founding
members of, and adhere to, the Remuneration Consultants’ Group Code of Conduct. This defines the roles of consultants, including the
requirement to have due regard to the organisation’s strategy, financial situation, pay philosophy, the Board’s statutory duties, and the views
of investors and other stakeholders. The Committee reviews performance annually to determine it is satisfied with the quality, relevance,
objectivity and independence of the advice. FIT provides no other services and has no other connection to SSE or individual Directors.
Freshfields LLP also advised on legal matters, such as share plan rules, during the year.
Shareholder voting
On 18 July 2024, shareholders approved the Annual Remuneration Report for the year ended 31 March 2024. On 21 July 2022,
shareholders approved the current Directors’ Remuneration Policy.
Annual Report on Remuneration – shareholder voting in 2024 Directors’ Remuneration Policy – shareholder voting in 2022
For..................97.97%
Against ........... 2.03%
For................. 91.43%
Against ............8.57%
Total votes cast: 784,672,015
Votes withheld: 343,964
Total votes cast: 678,277,304
Votes withheld: 7,750,651
Employee engagement
The Board actively seeks opportunities for two-way dialogue with SSE’s employees. Engagement activity is diverse and includes face-to-
face meetings, site visits, attendance at employee events and virtual meetings. During the year, the Remuneration Committee Chair met
with a group of employee representatives to discuss the pay arrangements for SSE’s executives and how they align to the wider employee
population. For more on ‘Hearing and responding to employees’ see page 99
.
Remuneration Committee
The Terms of Reference for the Committee were reviewed during 2024/25 and no changes were made – these are available on sse.com .
A summary of the Committee’s role is on the first page of the Directors’ Remuneration Report.
The members of the Committee and the meetings attended are on page 93
. The focus of each of the meetings was as follows:
May 2024 Confirmed AIP and PSP performance outcomes
Set AIP and PSP performance measures for the year ahead
Reviewed below-Board pay arrangements
November 2024 Received a market and governance update following AGM season
Reviewed how AIP and PSP measures were tracking against performance
Discussed the Directors’ Remuneration Policy review
Reviewed Committee Terms of Reference
March 2025
Reviewed how AIP and PSP measures were tracking against performance
Agreed salary and fee increases for Executive Directors and the Chair
Reviewed Committee evaluation outcomes
Received an update on the outcome of the shareholder consultation process on the Directors’ Remuneration Policy
153 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Compliance with the UK Corporate Governance Code 2018
The Board assesses its approach to
corporate governance on an ongoing basis
against the FRC’s UK Corporate Governance
Code 2018 (the Code). A copy of the Code
can be found at
www.frc.org.uk . The
Board welcomes the 2024 evolution of the
Code and work is underway to ensure that
SSE’s governance arrangements continue
toevolve in line with best practice.
The spirit of the Code and application of its
Principles are upheld through the work of
the Board and its Committees. The Board
confirms compliance against all Code
Provisions for the year ended 31 March
2025. This statement gives details of
thiscompliance and where supporting
disclosures can be found elsewhere in
theAnnual Report.
1. Board leadership and company
purpose
A. Board’s role
The Board is responsible for leading SSE and
promoting its long-term success, while also
generating value for shareholders and wider
stakeholders. The Board actively monitors
internal and external developments,
provides effective oversight and challenge,
and makes informed decisions. This is
enabled by the Board’s composition, SSE’s
Governance Framework, the Board’s annual
workplan, and the Group-wide strategic
stakeholder engagement programme.
See also:
– SSE’s Governance Framework on
page 92
– Board composition on
pages 87 to 90
– Board work in 2024/25 on
pages 94 to 101
– SSE’s stakeholders on
pages 102 to 104
B. Purpose, culture and strategy
The Board actively considers SSE’s purpose,
vision and strategy to ensure a continued
focus on developing clean energy
infrastructure, energy security and
affordability for consumers in the transition
to net zero. Each year, the Board reviews
and agrees SSE’s strategy and monitors its
delivery through a continuous programme
of work, supported by a fully funded capex
plan to 2027. SSE’s business model shows
how the Group’s deliberate mix of
businesses creates lasting value within
itscomplex operating environment.
The Board sets SSE’s culture and values to
create a strong foundation supporting its
purpose, vision, and strategy. At SSE, a
healthy culture is defined as ‘Doing the
rightthing’. The Board leads by example,
ensuring the correct tone is instilled
throughout the Group by promoting a fair
workplace and ethical business practices.
Regular updates on culture help the Board
make sure SSE continues to embed a
healthy culture, with employee engagement
activities framing the Board’s assessment
ofculture.
See also:
– SSE’s purpose, vision, strategy,
values and business model on
pages 2 to 7
– Board work on strategy on
pages 94 to 96
– Board focus on culture on
pages 98
C. Resources and controls
A set of targets and 2030 business goals
support the delivery of SSE’s strategy
andthe NZAP Plus. The Board monitors
progress against these to make sure agreed
objectives are met. The Board sets key
parameters, including SSE’s financial
andinvestment strategy (such as annual
operating and capital expenditure budgets)
and the delegated authorities set out in
SSE’s Governance Framework. These
delegations support day-to-day operations
and the implementation of strategy – and
are overseen by the Group Executive
Committee.
The Board has a Schedule of Reserved
Matters and a wider Board Charter which
governs its own operations and relevant
Group-wide matters. The Schedule of
Reserved Matters ensures that areas
material to the delivery of SSE’s purpose,
vision and strategy are safeguarded by
theBoard. This can be read on
sse.com
,
along with other key SSE corporate
governance documents.
The Board oversees delegated matters
through verbal updates at Board meetings
and sub-Committee minutes, standing
reports such as the Chief Executive’s
Reportand Finance Report, and written
reports and dashboards covering a
rangeoffinancial and non-financial
keyperformance indicators.
The Board sets the approach to
riskmanagement and oversees the
effectiveness of SSE’s system of internal
control with support from the Audit
Committee.
D. Stakeholder engagement
The Board agrees a framework of
stakeholder engagement which confirms:
SSE’s key stakeholder groups, the purpose
of meaningful stakeholder relations,
andhow stakeholder views should be
considered at Business Unit and Group level.
Given the societal impact and scale of
SSE’sbusiness operations, stakeholder
engagement is necessary to make sure
decisions reflect an appropriate awareness
of stakeholder views and needs. SSE
engages in a range of ways through its
executive and business-led stakeholder
network. The Board regularly engages
directly with stakeholders and receives
reports on below-Board activity. This means
emerging stakeholder considerations can
be promptly identified so that senior leaders
and Business Units can take stakeholder
opinions into account when making
decisions and setting longer-term objectives.
See also:
– SSE’s stakeholders on
pages 8 to 9
– Stakeholders and Section 172
Statement on pages 102 to 104
E. Workplace policies
SSE’s processes and procedures help to
embed a strong and consistent culture
across the Group. The Board approves key
pillars such as SSE’s values, SSE’s Group
policies, and the employee guide called
‘Doing the right thing; SSE’s guide to good
business ethics’. The policies and guide
convert SSE’s values into actionable
behaviours and are reinforced by mandatory
training for all employees.
The Board recognises the importance of
making sure that everyone in SSE feels
empowered to speak up in relation to
wrongdoing. It reviews a report every six
months to assess the ongoing effectiveness
of SSE’s whistleblowing arrangements.
Thereport covers performance, case trends
and employee confidence in speak-up
mechanisms and protections.
154 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

2. Division of responsibilities
F. Chair
The Chair is responsible for leading the
Board and nurturing a culture of informed
and transparent decision making. Clearly
defined Board roles support this, and the
Chair encourages constructive dialogue
both during and outside of meetings.
Private sessions are scheduled at each
Board meeting to allow non-Executive
Directors to speak directly with the Chair
without Executive Directors present.
Sir John Manzoni, the current Chair, was
considered independent on appointment.
His performance in the role is assessed each
year during the Board performance review.
For more, see Assessing Board performance
on
pages 105 to 106
.
G. Board composition, independence
and division of responsibilities
The Board is composed of the Chair, nine
independent non-Executive Directors and
three Executive Directors. Excluding the
Chair, the nine non-Executive Directors
(over half of the Directors) are considered
independent. The Board’s Charter outlines
the clear division of responsibilities between
the Chair and Chief Executive. It also sets
out the responsibilities of the non-Executive
Directors, including the roles of the Senior
Independent Director and Non-Executive
Director for Employee Engagement. The
division of responsibilities across the Board
can be seen on sse.com
.
Each Director must disclose any actual
orpotential conflict of interest situations,
asdefined by law, for consideration and
approval by the Board if appropriate. This
issupported by an authorisation process
each year, overseen by the Nomination
Committee, to inform the ongoing
assessment of each non-Executive
Director’s independence.
See also:
– Board composition on
pages 87 to 90
– Board independence and conflicts on
page 111
H. Non-Executive Directors’ role and
time commitment
The expected time commitment of the
Chair and non-Executive Directors is
included in every Letter of Appointment.
The Letter of Appointment is issued after
confirming each person’s capacity to join
the Board and involves assessing existing
external commitments.
The Nomination Committee monitors the
time commitments of Board members,
andthe annual Board performance review
considers the performance and time
commitment of each Director. Any changes,
such as additional external appointments,
require Board approval.
To make sure non-Executive Directors have
the appropriate level of oversight and ability
to challenge and review, the Board has
unrestricted access to senior leadership,
their teams and specialist functions. People
from different levels across the organisation
are invited to present at Board meetings and
deep dive sessions throughout the year.
See also:
– Board external commitments on
pages87 to 90
– Assessing Board performance on
pages105 to 106
– Time commitment on page 110
I. Company Secretary
The Group General Counsel and Company
Secretary makes sure Board procedures are
followed and helps the Chair, in
consultation with the Chief Executive,
develop meeting agendas in linewith the
agreed annual workplan. Thisworkplan
accounts for the status of projects, strategic
workstreams and the overarching operating
context. Meeting materials are shared using
an electronic portal, allowing the timely and
streamlined navigation of materials. The
Company Secretary ensures that each
agenda item is given enough time in
meetings for effective and constructive
discussions. Guidance on drafting papers
and presenting to the Board is available
toeveryone who writes and presents
Boardmaterials.
The Board and any Director can ask for
more information to support their individual
duties or collective role as a Board. These
requests can come from Board discussions,
be raised as a development opportunity or
be an area of general interest relating to
SSE. Depending on the request, SSE may
support the learning internally or externally.
For more, see Deep dives on
page 96
.
3. Composition, succession and
evaluation
J. Appointments and succession
planning
The Nomination Committee considers
Board and Executive appointments and
oversees SSE’s succession planning to
inform the composition of the Board. The
Nomination Committee reviews the size,
structure and composition of the Board and
its Committees (including skills, knowledge,
experience and diversity) and makes
recommendations to the Board that
promote the long-term success of SSE.
This Committee also reviews the talent
pipeline and succession planning for senior
executives. Guided by the Board’s Policy, it
considers the skills and attributes needed
tocreate a diverse pipeline for Board and
senior leadership roles, initiatives to develop
internal capabilities, and the external
market. The Board engages in core talent
programmes and Directors meet with
potential future leaders through both
structured and informal activities.
The Board’s Inclusion and Diversity Policy
ensures recruitment is inclusive and
promotes diversity and equal opportunity.
Appointments to the Board follow a
process, starting with a role specification
and engaging external support if needed.
The outcomes of Board succession
planning and recruitment work are
reportedin the Annual Report each year.
For more on the Nomination Committee’s
work, see
pages 107 to 112 .
K. Skills, experience and knowledge
The Nomination Committee identifies the
skills, knowledge and experience needed
for effective leadership and the long-term
success of SSE. It considers the balance of
competencies through succession planning,
knowledge development and recruitment.
This work is supported by the Board’s skills
matrix and composition metrics to identify
where apotential gap exists or where more
work is needed in relation to the Board.
All non-Executive Directors serve a fixed
term of three years and must be re-elected
yearly by shareholders. In line with best
practice, this fixed term can be renewed for
up to nine years, unless the Board decides
otherwise in exceptional circumstances.
With the exception of Alistair Phillips-Davies
and Helen Mahy, allDirectors will seek to
bere-elected at the 2025 Annual General
Meeting, including Hixonia Nyasulu,
whojoined the Board on 1 January 2025.
See also:
– Board composition on pages 87 to 90
– Nomination Committee considerations
on pages 107 to 112
L. Board performance
Each year, the Board reviews its own
performance by reflecting on the
effectiveness of its activities, the strength
ofits decisions, and the individual and
collective contributions made by each
Board member. This yearly assessment
allows the Board to scrutinise its own
performance and constructively discuss
areas identified where there was an
opportunity to change, refine or improve.
The Board performance review is facilitated
externally at least every three years and
wasdone by Heidrick & Struggles this year.
For more on assessing Board performance,
see
pages 105 to 106 .
155 SSE plc Annual Report 2025
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4. Audit, risk and internal control
M. Internal and external audit
The Audit Committee oversees the Internal
Audit function and reviews its independence
and overall effectiveness throughout the
year. Internal Audit plays a crucial role in
helping SSE achieve its objectives by
providing independent and objective
assurance on the effectiveness of the
Group’s risk management activities,
internalcontrols and Corporate Governance
Framework. The Audit Committee makes
sure the Group’s Internal Audit Plan is
aligned to SSE’s operating model, risk
profile, control environment and assurance
arrangements, and receives regular updates
throughout the year.
The Audit Committee also oversees the
relationship with EY, SSE’s external auditor,
to ensure independence, quality and
challenge during the external audit process.
And the Committee reviews the significant
financial judgements to monitor the overall
integrity of the financial and narrative
statements.
For more on the Audit Committee’s work,
see
pages 113 to 119
.
N. Fair, balanced and understandable
assessment
On the recommendation of the Audit
Committee, the Board reviews the Annual
Report and Accounts to make sure that,
taken as a whole, it is fair, balanced and
understandable – and allows shareholders
to assess the Group’s overall performance,
business model and strategy. This
assessment is supported by an assurance
framework which the Board and Audit
Committee consider each year.
For more on the fair, balanced and
understandable assessment, see
page 114
.
O. Risk management
SSE’s risk management framework is
designed tomanage, rather than eliminate,
the risk offailing to achieve business
objectives. Aspart of SSE’s system of
internal control, the framework can provide
reasonable but not absolute assurance
against material misstatement or loss.
Each year the Board conducts a robust
assessment of the Principal Risks facing the
Group which have the potential to threaten
its business model, future performance,
solvency or liquidity. Emerging risks are
continuously considered in response to
theoperating environment and potential
impacts on SSE.
For more, see the Group Principal Risks on
pages 64 to 69
.
5. Remuneration
P. Remuneration policies and practices
The Remuneration Committee oversees
SSE’s policy for executive remuneration and
its ongoing appropriateness and relevance.
It is the Remuneration Committee’s
responsibility to make sure remuneration
stays in line with SSE’s purpose and strategy,
while encouraging long-term stewardship
and rewarding individual contributions
towards the success of SSE.
SSE’s Directors’ Remuneration Policy was
approved with over 91% of shareholders’
support at the AGM on 21 July 2022. As
thepolicy applies for up to three years,
shareholders will be asked to approve the
policy, including proposed changes, again
at the 2025 AGM. A copy of the proposed
policy is on pages 131 to 138 . This
includes details of how the policy addresses
factors set out in the Code such as clarity,
simplicity, risk, predictability, proportionality
and alignment to culture.
For more on the work of the Remuneration
Committee, see pages 126 to 153
.
Q. Developing executive remuneration
policy
The Directors’ Remuneration Policy is
structured to ensure that SSE can attract
world-class talent, especially as it is
increasingly exposed to new markets and
technologies. Stakeholder views, including
from shareholders through dialogue with
investors and from employees through
Board engagement activities, are
considered when setting pay policy
andpractice.
R. Remuneration outcomes and
independent judgement
The Remuneration Committee sets
stretching targetsthat reward outstanding
performance and has used its discretion in
recent years toreduce formulaic outcomes
where considered necessary.
The Chief Executive, Director of HR and
Head of Reward advise the Committee
onremuneration for Executive Directors
and senior executives on an ongoing basis.
To maintain independence, no Director
orsenior executive join any discussions
related to their own remuneration.
Externalremuneration advisors also
supportthe Committee and adhere to the
Remuneration Consultants’ Group Code
ofConduct.
Compliance with the UK Corporate Governance Code 2018 continued
156 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Other statutory information
The Directors submit their Annual Report and Accounts for SSE plc, together with the consolidated Financial Statements of the SSE Group
of companies, for the year ended 31 March 2025.
The Strategic Report is on
pages 1 to 83
and the Governance Report, which is SSE’s Directors’ Report, is on pages 84 to 160 .
TheStrategic Report and Governance Report make up the management report as required under Rule 4.1.8R of the Disclosure Guidance
and Transparency Rules.
As permitted by section 414C (11) of Companies Act 2006, the below matters have been disclosed in the Strategic Report:
Page reference
An indication of likely future developments in the business of the Company pages 1 to 83
Particulars of important events affecting the Company since the financial year end page 159
Greenhouse gas emissions page 79
Energy consumption page 59
Energy efficiency action page 59
Employee engagement and involvement pages 99 to 100 and 103
Engagement with suppliers, customers and others in a business relationship with the Company pages 49 to 57 and 103 to 104
A summary of the Principal Risks facing the Company pages 60 to 69
Information required to be disclosed is contained on the pages listed below.
Page reference
Statement of interest capitalised by the Group during the financial year page 193
Details of any long-term incentive schemes pages 133 to 139
Results and dividends
The Group’s results and performance highlights for the year are on pages 14 to 15 and 17 to 27 . An interim dividend of 21.2 pence per
Ordinary Share was paid on 27 February 2025. The Directors propose a final dividend of 43.0 pence per Ordinary Share. Subject to approval
at the AGM 2025, the final dividend will be paid on 18 September 2025 to shareholders on the Register of Members at close of business on
25 July 2025.
Board of Directors
Director appointment and retirement
The Company Directors who served during the financial year ending 31 March 2025 are included in the attendance table on page 93
.
Thebiographies of the Directors on 20 May 2025 are on pages 87 to 90 . Details of Board changes are on pages 108 and 110 .
The Company’s Articles of Association, the UK Corporate Governance Code, the Companies Act 2006 and other related legislation outline
the rules governing the appointment and retirement of Directors.
Indemnification of Directors and insurance
The Directors have the benefit of an indemnity provision contained in the Company’s Articles of Association. They have also been granted
a qualifying third party indemnity provision, which was in force throughout the year and still is now. During the financial year, the Company
bought and maintained Directors’ and Officers’ liability insurance for itself and for its Directors and Officers.
Political donations and expenditure
SSE operates on a politically neutral basis and does not make any donations to political parties, political organisations, or independent
election candidates. During the year, there was no political expenditure and the Group made no political donations.
Accounting policies, financial instruments, and risk
Details of the Group’s accounting policies, financial instruments and risk are outlined in note 24 to the Financial Statements and notes A6
to A8
of the Accompanying Information.
Research and development
SSE’s involvement in innovative projects and programmes designed to transform the energy system is described in the Strategic Report
onpages 1 to 83 .
Employing disabled people
SSE has a range of employment policies in place which clearly explain the standards, processes, expectations and responsibilities of its
people and the organisation. These policies are designed to ensure that every person, including those with existing or new disabilities
andfrom any background, is treated fairly and inclusively during recruitment and their career at SSE. This includes providing access to
appropriate training, development opportunities and job progression. For more on our approach see pages 53 to 56 .
Shares
Share capital
The Company has a single share class which is divided into Ordinary Shares of 50 pence each. The issued share capital as of 31 March
2025, together with details of any changes during the year, is set out in note 22
to the Financial Statements. As of 31 March 2025,
theissued share capital consisted of 1,111,159,424 Ordinary Shares. This figure includes 4,857,828 Ordinary Shares held in treasury
(representing 0.44% of the issued share capital). The voting and dividend rights of Treasury Shares are automatically suspended.
The Company was authorised at the 2024 AGM to allot shares or grant rights over shares up to an aggregate nominal amount equal to
£182,242,225 (representing 364,484,450 Ordinary Shares of 50 pence each excluding Treasury Shares). This represents one-third of its
issued share capital. A renewal of this authority will be proposed at the 2025 AGM.
157 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Other statutory information continued
Variation of rights
Subject to the applicable statutory provisions, if at any time the capital of the Company is divided into different classes of shares, the rights
attached to any class of shares may be varied or abrogated. This can be done with the written consent of holders of three-quarters in
nominal value of the issued shares of that class (excluding any shares held as Treasury Shares), or by way of a special resolution passed
ataseparate general meeting of the holders of that class.
Transfer of Ordinary Shares
There are no restrictions on the transfer of Ordinary Shares in the Company other than certain restrictions which may from time to time
beimposed by law. The Company is not aware of any agreements between shareholders that could result in restrictions on the transfer
ofsecurities or voting rights.
Substantial shareholdings
At 31 March 2025, the following percentage interests in the Ordinary Share capital of SSE plc had been notified under Rule 5 of the
Disclosure Guidance and Transparency Rules (DTR 5). The Company is not aware of any changes in the interests disclosed under DTR 5
between 31 March 2025 and 20 May 2025.
Shareholder
Date of receiving
notification
Voting rights
attached
to shares*
Voting rights
attached to shares
as %, rounded to
2 decimal places
Voting rights
through financial
instruments*
Voting rights
through financial
instruments
as %, rounded to
2 decimal places
Total of both
in %, rounded
to 2 decimal
places Nature of holding
BlackRock, Inc.
7 January 2025 88,390,921 8.01% 3,988,800 0.34% 8.35%
Indirect, ADR,
Securities Lending, CFD
The Capital Group
Companies, Inc.
17 September
2020 50,981,817 4.90% – – 4.90% Indirect, ADR
Invesco Limited 7 May 2014 45,775,918 4.69% – – 4.69% Indirect
Caisse de dépôt et
placement du
Québec 7 January 2021 41,492,159 3.98% – – 3.98% Direct
Barclays Bank Plc
1 August 2022 35,834,843 3.35% 19,978,657 1.87% 5.22%
Indirect, ADR, Options,
Right to Recall
(loan and collateral),
Portfolio Swap
Norges Bank 16 December
2024 33,135,477 3.00% 10,013 0.00% 3.00%
Direct, Shares on loan
(right to recall)
Bank of America
Corporation 1 August 2023 4,713,063 0.43% 85,944 0.01% 0.44% Indirect, Swaps
The Goldman Sachs
Group, Inc.
23 December
2024 2,093,596 0.19% 126,764 0.01% 0.20%
Indirect, Securities Lending,
Swap, Call Warrant
* At date of disclosure by relevant entity.
Authority to purchase shares
At the 2024 AGM, the Company obtained shareholder approval to buy up to 109,345,335 of its own Ordinary Shares (representing 10% of its
issued share capital) up until the end of the AGM 2025 or, if earlier, the close of business on 30 September 2025.
On 30 September 2024, the Company announced the commencement of a programme to repurchase its Ordinary Shares up to a
maximum value of £75 million (the “Buyback Programme”). The Buyback Programme was undertaken solely to cap scrip dividend take-up
at 25% in respect of the financial year ended 31 March 2024, in line with the Company’s long-standing dividend plan to 2026/27. Between
30 September 2024 and 16 October 2024, 3,806,487 Ordinary Shares were repurchased on the London Stock Exchange as detailed in
thetable below. The Ordinary Shares purchased are held in treasury. All Ordinary Shares acquired under the Buyback Programme were
purchased within certain pre-set parameters, and in accordance with the authority granted by shareholders at SSE’s 2024 AGM, Chapter 9
of UK Listing Rules, and the Market Abuse Regulation (596/2014) as it forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 and as amended (including by the Market Abuse (Amendment) (EU Exit) Regulations 2019) (MAR). Further information
on the Buyback Programme can be found on
sse.com .
Share repurchase programme Number of shares repurchased Nominal value of shares purchased Aggregate amount paid
Percentage of called-up share
capital as at 20 May 2025
represented by shares repurchased
Scrip take-up 3,806,487 £1,903,243.50 £71,273,666.88 0.34
During the financial year ended 31 March 2025, the Company used 1,742,582 of the Treasury Shares acquired under the Buyback
Programme and prior share repurchase programmes to satisfy the requirements of the UK all-employee Sharesave Scheme.
At the 2025 AGM, the Directors will seek renewed authority to purchase the Company’s own shares in the market.
158 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Voting
Each Ordinary Share of the Company carries one vote at general meetings of the Company. Any Ordinary Shares held in treasury have no
voting rights.
A shareholder entitled to attend, speak and vote at a general meeting can exercise their right to vote by attending (either in person or
virtually where electronic facilitates are provided), or by validly appointing a proxy or corporate representative in the case of corporate
members. To be valid, notification of the appointment of a proxy must be received at least 48 hours before the general meeting at which
the person named in the proxy notice proposes to vote. The Directors have the discretion to exclude non-working days when calculating
the 48-hour period.
Employees who participate in the Share Incentive Plan, whose shares remain in the schemes’ trust, may direct the trustees to vote on
theirbehalf by completing a Form of Direction. SSE also has a Share Plan Account service with Computershare which may be used by
employees to hold shares arising from the exercise of matured options under SSE’s Sharesave Scheme. Computershare provide a facility
forparticipants to vote on their shares with voting deadlines communicated in advance of each General Meeting.
Annual General Meeting (AGM)
The AGM of the Company will be held on Thursday 17 July 2025 at 12.30pm at the Perth Concert Hall, Mill Street, Perth PH1 5HZ and
virtually, via a secure online platform. Shareholders joining online will be able to watch the meeting, ask questions and vote in real time.
Details of the arrangements for the AGM, resolutions to be proposed, and how to vote and ask questions are set out in the Notice of Annual
General Meeting 2025 which accompanies this report for shareholders receiving hard copy documents. This is also available at sse.com
for those receiving documents electronically.
Articles of Association changes
The Company’s Articles of Association were adopted at the 2021 AGM. Amendments to the Articles of Association can only be made by a
special resolution at a general meeting of the Company.
Change of control
The Company is party to several agreements that take effect, alter or terminate upon a change of control of the Company following a
takeover. At 31 March 2025, change of control provisions were included in agreements for committed credit facilities, EIB debt, US private
placements, senior bonds and hybrid instruments. The Company is not aware of any other agreements with change of control provisions
that could significantly affect the business.
Disclosure of information to the auditor
Each Director who held office at the date of approval of this Directors’ Report confirms that, as far as they are aware, there is no relevant
audit information of which the Company’s Auditors are unaware. Each Director has taken all necessary steps required in their duty as a
Director to become aware of any relevant audit information and to make sure the Company’s Auditors are aware of such information.
Related party transactions
Related party transactions are set out in note A5 of the Accompanying Information.
Post-balance sheet events
There are no post-balance sheet events to report.
The Directors’ Report set out on
pages 84 to 160
has been approved by the Board of Directors in accordance with the Companies
Act2006.
By order of the Board
Liz Tanner
Group General Counsel and Company Secretary, SSE plc
20 May 2025
159 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

The Directors are responsible for preparing the Annual Report and the Group and parent Company financial statements in accordance with
applicable law and regulations.
Company law requires the Directors to prepare Group and parent Company financial statements for each financial year. Under that law
they are required to prepare the Group financial statements in accordance with UK-adopted international accounting standards (“IFRS”),
and have elected to prepare the parent Company financial statements in accordance with United Kingdom Generally Accepted Accounting
Practice (United Kingdom Accounting Standards and applicable law) including Financial Reporting Standard 101, “Reduced Disclosure
Framework”.
Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of
the state of affairs of the Group and parent Company and of their profit or loss for that period. In preparing each of the Group and parent
Company financial statements, the Directors are required to:
– select suitable accounting policies in accordance with IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors and then
apply them consistently;
– make judgements and accounting estimates that are reasonable, relevant and reliable;
– present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable
information;
– provide additional disclosures when compliance with the specific requirements in IFRSs (and in respect of the parent Company financial
statements, FRS 101) is insufficient to enable users to understand the impact of particular transactions, other events and conditions on
the Group and parent Company financial position and financial performance;
– in respect of the Group financial statements, state whether UK-adopted international accounting standards have been followed, subject
to any material departures disclosed and explained in the financial statements;
– in respect of the parent Company financial statements, state whether applicable UK Accounting Standards, including FRS 101, have been
followed, subject to any material departures disclosed and explained in the financial statements;
– assess the Group and parent Company’s ability to continue as a Going Concern, disclosing, as applicable, matters related to Going
Concern; and
– use the Going Concern basis of accounting unless they either intend to liquidate the Group or the parent Company, or to cease
operations, or have no realistic alternative but to do so.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the parent Company’s
transactions and disclose with reasonable accuracy at any time the financial position of the parent Company and enable them to ensure
that its financial statements comply with the Companies Act 2006. They are responsible for such internal control as they determine is
necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and
have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Group and to prevent and
detect fraud and other irregularities.
Under applicable law and regulations, the Directors are also responsible for preparing a Strategic Report, Directors’ Report, Directors’
Remuneration Report and Corporate Governance Statement that complies with that law and those regulations.
The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company’s
website. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in
otherjurisdictions.
Responsibility statement of the Directors in respect of the annual financial report
We confirm that to the best of our knowledge:
– the financial statements, prepared in accordance with UK-adopted international accounting standards, give a true and fair view of the
assets, liabilities, financial position and profit or loss of the Company and the undertakings included in the consolidation taken as a
whole; and
– the Annual Report, including the Strategic Report, includes a fair review of the development and performance of the business and the
position of the issuer and the undertakings included in the consolidation taken as a whole, together with a description of the principal
risks and uncertainties that they face.
We consider the Annual Report and Accounts, taken as a whole, is fair, balanced and understandable and provides the information
necessary for shareholders to assess the Group’s position and performance, business model and strategy.
Alistair Phillips-Davies Barry O’Regan
Chief Executive Chief Financial Officer
20 May 2025
Statement of Directors’ responsibilities in respect of the
Annual Report and the Financial Statements
160 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Alternative Performance Measures 162
Consolidated income statement 169
Consolidated statement of comprehensive income 170
Consolidated balance sheet 171
Consolidated statement of changes in equity 172
Consolidated cash flow statement 173
Notes to the consolidated financial statements 174
Accompanying information 229
Company balance sheet 263
Company statement of changes in equity 264
Notes to the Company financial statements 265
Independent Auditor’s Report 272
Glossary 283
Shareholder information 284
Financial
Statements
Financial StatementsGovernanceStrategic Report
SSE plc Annual Report 2025161

When assessing, discussing and measuring the Group’s financial performance, management refer to measures used for internal
performance management. These measures are not defined or specified under International Financial Reporting Standards (“IFRS”) and as
such are considered to be Alternative Performance Measures (“APMs”).
By their nature, APMs are not uniformly applied by all preparers including other participants in the Group’s industry. Accordingly, APMs used
by the Group may not be comparable to other companies within the Group’s industry.
Purpose
APMs are used by management to aid comparison and assess historical performance against internal performance benchmarks and across
reporting periods. These measures provide an ongoing and consistent basis to assess performance by excluding items that are materially
non-recurring, uncontrollable or exceptional. These measures can be classified in terms of their key financial characteristics:
– Profit measures allow management to assess and benchmark underlying business performance during the year. They are primarily used
by operational management to measure operating profit contribution and are also used by the Board to assess performance against
business plan. The Group has six profit measures, of which adjusted operating profit and adjusted profit before tax are the main focus of
management through the financial year and adjusted earnings per share is the main focus of management on an annual basis. In order
to derive adjusted earnings per share, the Group has defined adjusted operating profit, adjusted net finance costs, and adjusted current
tax charge as components of the adjusted earnings per share calculation. Adjusted EBITDA is used by management as a proxy for cash
derived from ordinary operations of the Group.
– Capital measures allow management to track and assess the progress of the Group’s significant ongoing investment in capital assets
and projects against their investment cases, including the expected timing of their operational deployment and also to provide a
measure of progress against the Group’s strategic Net Zero Acceleration Programme Plus objectives (“NZAP Plus”).
– Debt measures allow management to record and monitor both operating cash generation and the Group’s ongoing financing and
liquidity position.
During the year the Group simplified its adjusted profit metrics by removing the adjustment for interest on net pension assets/liabilities
valued under IAS 19 “Employee Benefits” as explained in note 1.2 to the financial statements. There have been no other changes to the
Group’s APMs in the current year.
The following section explains the key APMs applied by the Group and referred to in these statements:
Profit measures
Group APM Purpose
Closest equivalent
IFRSmeasure Adjustments to reconcile to primary financial statements
Adjusted EBITDA
(earnings before
interest, tax,
depreciation and
amortisation)
Profit
measure
Operating profit – Movement on operating and joint venture operating derivatives (“certain
re-measurements”)
– Exceptional items
– Adjustments to Gas Production decommissioning provision
– Share of joint ventures and associates’ interest and tax
– Depreciation and amortisation before exceptional charges (including
depreciation expense on fair value uplifts)
– Share of joint ventures and associates’ depreciation and amortisation
– Non-controlling share of operating profit
– Non-controlling share of depreciation and amortisation
– Release of deferred income
Adjusted Operating
Profit
Profit
measure
Operating profit – Movement on operating and joint venture operating derivatives (“certain
re-measurements”)
– Exceptional items
– Adjustments to Gas Production decommissioning provision
– Depreciation expense on fair value uplifts
– Share of joint ventures and associates’ interest and tax
– Non-controlling share of operating profit
Adjusted Profit
Before Tax
Profit
measure
Profit before tax – Movement on operating and financing derivatives (“certain re-
measurements”)
– Exceptional items
– Adjustments to Gas Production decommissioning provision
– Non-controlling share of profit before tax
– Depreciation expense on fair value uplifts
– Share of joint ventures and associates’ tax
Adjusted Net
Finance Costs
Profit
measure
Net finance costs – Exceptional items
– Movement on financing derivatives
– Share of joint ventures and associates’ interest
– Non-controlling share of financing costs
Alternative Performance Measures
162 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Group APM Purpose
Closest equivalent
IFRSmeasure Adjustments to reconcile to primary financial statements
Adjusted Current
Tax Charge
Profit
measure
Tax charge – Share of joint ventures and associates’ tax
– Non-controlling share of current tax
– Deferred tax including share of joint ventures, associates and non-
controlling interests
– Tax on exceptional items and certain re-measurements
Adjusted Earnings
Per Share
Profit
measure
Earnings per share – Exceptional items
– Adjustments to Gas Production decommissioning provision
– Movements on operating and financing derivatives (“certain re-
measurements”)
– Depreciation expense on fair value uplifts
– Deferred tax including share of joint ventures, associates and non-
controlling interests
Rationale for adjustments to profit measures
1 Movement on operating and financing derivatives (“certain re-measurements”)
This adjustment can be designated between operating and financing derivatives.
Operating derivatives are contracts where the Group’s SSE Energy Markets function enters into forward commitments or options to buy or
sell electricity, gas and other commodities to meet the future demand requirements of the Group’s SSE Business Energy and SSE Airtricity
operating units, or to optimise the value of the production from SSE Renewables and Thermal generation assets or to conduct other
trading subject to the value at risk limits set out by the Energy Markets Risk Committee. Certain of these contracts (predominantly
purchasecontracts) are determined to be derivative financial instruments under IFRS 9 and as such are required to be recorded at their
fairvalue. Changes in the fair value of those commodity contracts designated as IFRS 9 financial instruments are reflected in the income
statement (as part of “certain re-measurements”). The Group shows the change in the fair value of these forward contracts separately
asthis mark-to-market movement is not relevant to the underlying performance of its operating segments due to the volatility that can
arise on revaluation. The Group will recognise the underlying value of these contracts as the relevant commodity is delivered, which will
predominantly be within the subsequent 12 to 24 months. Conversely, commodity contracts that are not financial instruments under IFRS 9
(predominantly sales contracts) are accounted for as “own use” contracts and are consequently not recorded until the commodity is
delivered and the contract is settled. Gas inventory purchased by the Group’s Gas Storage business for secondary trading opportunities is
also held at fair value with gains and losses on re-measurement recognised as part of “certain re-measurements” in the income statement.
Finally, the mark-to-market valuation movements on the Group’s contracts for difference contracts entered into by SSE Renewables that
are not designated as government grants and which are measured as Level 3 fair value financial instruments are also included within
“certain re-measurements”.
Financing derivatives include all fair value and cash flow interest rate hedges, non-hedge accounted (mark-to-market) interest rate
derivatives, cash flow foreign exchange hedges and non-hedge accounted foreign exchange contracts entered into by the Group to
manage its banking and liquidity requirements as well as risk management relating to interest rate and foreign exchange exposures.
Changes in the fair value of those financing derivatives are reflected in the income statement (as part of “certain re-measurements”).
TheGroup shows the change in the fair value of these forward contracts separately as this mark-to-market movement is not relevant
totheunderlying performance of its operating segments.
The re-measurements arising from operating and financing derivatives, and the tax effects thereof, are disclosed separately to aid
understanding of the underlying performance of the Group.
2 Exceptional items
Exceptional charges or credits, and the tax effects thereof, are considered unusual by nature or scale and of such significance that separate
disclosure is required for the underlying performance of the Group to be properly understood. Further explanation for the classification of
an item as exceptional is included in note 3.2.
3 Adjustments to Gas Production decommissioning provision
The Group retains an obligation for 60% of the decommissioning liabilities of its former Gas Production business which was disposed
inOctober 2021. The revaluation adjustments relating to these decommissioning liabilities are accounted for through the Group’s
consolidated income statement and are removed from the Group’s adjusted profit measures as the revaluation of the provision is not
considered to be part of the Group’s core continuing operations.
4 Share of joint ventures and associates’ interest and tax
This adjustment can be split between the Group’s share of interest and the Group’s share of tax arising from its investments in equity
accounted joint ventures and associates. The Group is required to report profit before interest and tax (“operating profit”) including its share
of the profit after tax from its equity accounted joint ventures and associates. However, for internal performance management purposes
and for consistency of treatment, SSE reports its adjusted operating profit measures before its share of the interest and/or tax on joint
ventures and associates. The presentation of the Group’s share of profits from equity accounted investments is expected to change on
adoption of IFRS 18 (see note 2.2), at which point it is expected that the Group’s APM reconciliation will also change.
163 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements
Governance

5 Share of joint ventures and associates’ depreciation and amortisation
For management purposes, the Group considers EBITDA (“earnings before interest, tax, depreciation and amortisation”) based on a
sum-of-the-parts derived metric which includes a share of the EBITDA from equity accounted investments. While this is not equal to
adjusted cash generated from operating activities, it is considered useful by management in assessing a proxy for such a measure, given the
complexity of the Group structure and the range of investment structures utilised. For the purpose of calculating the “Net Debt to EBITDA”
metric referred at
page 24
, “adjusted EBITDA” is further refined to remove the proportion of adjusted EBITDA from equity-accounted joint
ventures relating to off-balance sheet debt (see note 5.1(v)).
6 Depreciation expense on fair value uplifts
The Group’s strategy includes the realisation of value (developer gains) from divestments of stakes in SSE Renewables’ offshore and
international developments. In addition, for strategic purposes the Group may also decide to bring in equity partners to other businesses
and assets. Where SSE’s interest in such vehicles changes from full to joint control, and the subsequent arrangement is classified as an
equity accounted joint venture, SSE may recognise a fair value uplift on the re-measurement of its retained equity investment. Those
non-cash accounting uplifts will be treated as exceptional gains in the year of the relevant transactions completing. Furthermore, SSE may
acquire businesses or joint venture interests which are determined to generate an exceptional opening gain on acquisition and accordingly
an exceptional accounting fair value uplift to the opening assets acquired will be recorded. These uplifts create assets or adjustments
toassets, which are depreciated or amortised over the remaining life of the underlying assets or contracts in those businesses with the
charge being included in the Group’s depreciation and amortisation expense. The Group’s adjusted operating profit, adjusted profit before
tax and adjusted earnings per share are therefore adjusted to exclude any additional depreciation, amortisation and impairment expense
arising from the fair value uplifts given these charges are derived from significant one-off gains, which are treated as exceptional when
initially recognised.
7 Release of deferred income
The Group deducts the release of deferred income in the year from its adjusted EBITDA metric as it principally relates to customer
contributions against depreciating assets. As the metric adds back depreciation, the income is also deducted.
8 Deferred tax
The Group adjusts for deferred tax when arriving at adjusted profit after tax, adjusted earnings per share and its adjusted effective rate of
tax. Deferred tax arises as a result of differences in accounting and tax bases that give rise to potential future accounting credits or charges.
As the Group remains committed to its ongoing capital programme, the liabilities associated are not expected to reverse and accordingly
the Group excludes these from its adjusted profit measures.
9 Results attributable to non-controlling interest holders
The Group’s structure includes non-wholly owned but controlled subsidiaries which are consolidated within the financial statements of
theGroup. The most significant of those is SSEN Transmission, a 25% stake in which was divested on 30 November 2022. The Group
hasremoved the share of profit attributable to holders of non-controlling equity stakes in all such businesses from the point when the
ownership structure changed from all of its profit measures, to report all metrics based on the residual share of profits items attributable to
the ordinary equity holders of the Group. The adjustment has been applied consistently to all of the Group’s adjusted profit measures,
including removing proportionate non-controlling share of operating profit and depreciation and amortisation from the Group’s adjusted
EBITDA metric; removing the non-controlling share of operating profit from the Group’s adjusted operating profit metric; removing the
non-controlling share of net finance costs from the Group’s adjusted net finance costs metric; and removing the non-controlling interest
share of current tax from the Group’s adjusted current tax metric.
Alternative Performance Measures continued
164 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

March 2025
Continuing operations
Reported
£m
Movement
on derivatives
£m
Exceptional
items
£m
Reported before
exceptional items
and certain
re-measurements
£m
Adjustments to
GasProduction
decommissioning
provision
£m
Joint
venture
interest
and tax
£m
Depreciation
expense
on FV uplifts
£m
Deferred
tax
£m
Share of
profit
attributable
tonon-
controlling
interests
£m
Adjusted
£m
Operating profit 1,962.2 78.5 309.7 2,350.4 (17.9) 173.3 20.1 – (106.7) 2,419.2
Net finance (costs)/
income (111.3) (12.8) (0.3) (124.4) – (164.3) – – 7.7 (281.0)
Profit before taxation 1,850.9 65.7 309.4 2,226.0 (17.9) 9.0 20.1 – (99.0) 2,138.2
Taxation (518.0) (4.0) (29.7) (551.7) – (9.0) – 276.6 (12.3) (296.4)
Profit after taxation 1,332.9 61.7 279.7 1,674.3 (17.9) – 20.1 276.6 (111.3) 1,841.8
Attributable to other
equity holders (143.5) – – (143.5) – – – (41.5) 111.3 (73.7)
Profit attributable
to ordinary
shareholders 1,189.4 61.7 279.7 1,530.8 (17.9) – 20.1 235.1 – 1,768.1
Number of shares
for EPS 1,099.2 1,099.2
Earnings per share
(pence) 108.2 160.9
EBITDA
Adjusted
operating profit
from
continuing
operations
£m
Share of joint
ventures and
associates’
depreciation
and
amortisation
£m
Depreciation
expense
on FV uplifts
£m
Release of
deferred
income
£m
Depreciation,
impairment
and
amortisation
before
exceptional
charges
£m
Share of
depreciation,
impairment and
amortisation
before
exceptional
items
attributable to
non-controlling
interests
£m
Adjusted
EBITDA
£m
Adjusted operating profit from
continuingoperations 2,419.2 226.0 (20.1) (14.1) 776.1 (37.8) 3,349.3
March 2024
Continuing operations
(restated*)
Reported
£m
Movement
on derivatives
£m
Exceptional
items
£m
Reported before
exceptional items
and certain
re-measurements
£m
Adjustments to
GasProduction
decommissioning
provision
£m
Joint
venture
interest
and tax
£m
Depreciation
expense
on FV uplifts
£m
Deferred
tax
£m
Share of
profit
attributable
tonon-
controlling
interests
£m
Adjusted
£m
Operating profit 2,608.2 (507.4) 266.3 2,367.1 9.9 169.5 19.0 – (139.1) 2,426.4
Net finance (costs)/
income (113.1) (6.1) (0.3) (119.5) – (110.7) – – 4.7 (225.5)
Profit before taxation 2,495.1 (513.5) 266.0 2,247.6 9.9 58.8 19.0 – (134.4) 2,200.9
Taxation (610.7) 115.0 (23.3) (519.0) – (58.8) – 198.8 8.0 (371.0)
Profit after taxation 1,884.4 (398.5) 242.7 1,728.6 9.9 – 19.0 198.8 (126.4) 1,829.9
Attributable to other
equity holders (173.9) – – (173.9) – – – (25.6) 126.4 (73.1)
Profit attributable
to ordinary
shareholders 1,710.5 (398.5) 242.7 1,554.7 9.9 – 19.0 173.2 – 1,756.8
Number of shares
for EPS 1,091.8 1,091.8
Earnings per share
(pence) 156.7 160.9
* The comparative has been restated. See note 1.2.
EBITDA
Adjusted
operating profit
from
continuing
operations
£m
Share of joint
ventures and
associates’
depreciation
and
amortisation
£m
Depreciation
expense
on FV uplifts
£m
Release of
deferred
income
£m
Depreciation,
impairment
and
amortisation
before
exceptional
charges
£m
Share of
depreciation,
impairment and
amortisation
before
exceptional
items
attributable to
non-controlling
interests
£m
Adjusted
EBITDA
£m
Adjusted operating profit from
continuingoperations 2,426.4 208.8 (19.0) (13.0) 724.9 (32.5) 3,295.6
165 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Debt measure
Group APM Purpose
Closest equivalent
IFRSmeasure Adjustments to reconcile to primary financial statements
Adjusted Net Debt
and Hybrid Capital
Debt measure Unadjusted net debt – Cash held and posted as collateral and other deposits
– Lease obligations
– Non-controlling share of borrowings and cash
–Hybrid equity
Rationale for adjustments to debt measure
10 Cash held and posted as collateral and other deposits
Cash held and posted as collateral refers to cash balances received from and deposited with counterparties including trading exchanges.
Collateral balances mostly represent initial and variation margin, required as part of the management of the Group’s exposures on
commodity contracts, that will be received on maturity of the related trades. Deposits with a maturity of more than three months are also
included in this adjustment. The Group includes this adjustment to better reflect the immediate cash resources to which it has access,
which in turn better reflects the Group’s funding position.
11 Lease obligations
SSE’s reported loans and borrowings include lease liabilities on contracts within the scope of IFRS 16 “Leases”, which are not directly related
to external financing of the Group. The Group excludes these liabilities from its adjusted net debt and hybrid capital measure to better
reflect the Group’s underlying funding position with its primary sources of capital.
12 External net debt and cash attributable to non-controlling interests
The Group’s structure includes non-wholly owned but controlled subsidiaries which are consolidated within the financial statements of
theGroup under applicable accounting standards. The most significant of those is SSEN Transmission, a 25% stake in which was divested
on 30 November 2022. Following completion of the transaction, the Group has removed the share of external debt and cash in these
subsidiaries proportionately attributable to the non-controlling interest holders from its adjusted net debt and hybrid capital metric.
Whilelegal entitlement to these items has not changed, the Group makes this adjustment to present net debt proportionately attributable
to ordinary equity holders of the Group.
13 Hybrid equity
The characteristics of certain hybrid capital securities mean that they qualify for recognition as equity rather than debt under applicable
accounting standards. Consequently, their coupon payments are presented within equity rather than within finance costs. As a result, the
coupon payments are not included in SSE’s adjusted profit before tax measure. To present total funding provided from sources other than
ordinary shareholders, SSE presents its adjusted net debt measure inclusive of hybrid capital to better reflect the Group’s funding position.
March 2025
£m
March 2024
£m
Unadjusted net debt (9,513.9) (8,097.8)
Cash (held)/posted as collateral and other deposits (63.3) (353.2)
Lease obligations 455.0 407.5
External net debt attributable to non-controlling interests 817.9 490.2
Adjusted Net Debt (8,304.3) (7,553.3)
Hybrid equity (1,882.4) (1,882.4)
Adjusted Net Debt and Hybrid Capital (10,186.7) (9,435.7)
Alternative Performance Measures continued
166 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Capital measures
Group APM Purpose
Closest equivalent
IFRSmeasure Adjustments to reconcile to primary financial statements
Adjusted
Investment and
Capital
Expenditure
Capital
measure
Capital additions
to intangible assets
and property, plant
and equipment
– Joint ventures and associates’ additions funding
– Allowances and certificates
– Customer or third party funded additions
– Lease asset additions
– Non-controlling share of capital expenditure
– Additions acquired through business combinations
Adjusted
Investment,
Capital and
Acquisition
Expenditure
Capital
measure
Capital additions
to intangible assets
and property, plant
and equipment
– Joint ventures and associates’ additions funding
– Allowances and certificates
– Customer or third party funded additions
– Lease asset additions
– Non-controlling share of capital expenditure
– Additions acquired through business combinations
– Acquisition cash consideration
Rationale for adjustments to capital measures
14 Joint ventures and associates’ additions funding
Joint ventures and associates’ additions included in the Group’s capital measures represent the direct loan or equity funding provided by
the Group to joint venture and associate arrangements in relation to capital expenditure projects. This has been included to better reflect
the Group’s use of directly funded equity accounted vehicles to grow the Group’s asset base. Asset additions funded by project finance
raised within the Group’s joint ventures and associates are not included in this adjustment.
15 Allowances and certificates
Allowances and certificates consist of purchased carbon emissions allowances and generated or purchased renewable source of
generation certificates such as renewable obligations certificates (“ROCs”). Additions in the year are not included in the Group’s “capital
expenditure and investment” APM to better reflect the Group’s investment in enduring operational assets.
16 Customer or third party funded additions
Customer or third party funded additions represents additions to the Group’s electricity and other networks that are financed by cash
provided by third parties. Given these are directly funded by customers or third parties, these additions have been excluded to better reflect
the Group’s underlying investment position.
17 Lease additions
Additions of right of use assets under the Group’s IFRS 16 compliant policies for lease contracts are excluded from the Group’s adjusted
capital measures as they do not represent directly funded capital investment. This is consistent with the treatment of lease obligations
explained at 11, above.
18 Non-controlling interest share of capital expenditure
The Group’s structure includes non-wholly owned but controlled subsidiaries which are consolidated within the financial statements of
theGroup. The most significant of those is SSEN Transmission, a 25% stake in which was divested on 30 November 2022. The Group has
removed the share of capital additions attributable proportionately to these equity holders from its “adjusted investment and capital
expenditure” and “adjusted investment, capital and acquisition expenditure” metrics. This is consistent with the adjustments noted
elsewhere related to these non-controlling interests.
19 Additions acquired through business combinations
Where the Group acquires an early-stage development company which is classified as the acquisition of an asset, or group of assets and
not the acquisition of a business, the acquisition is treated as an addition to intangible assets or property, plant and equipment and is
included within “adjusted investment and capital expenditure”. Where the Group acquires an established business or interest in an equity-
accounted joint venture requiring a fair value assessment in line with the principles of IFRS 3 “Business Combinations”, the fair value of
acquired consolidated tangible or intangible assets is excluded from the Group’s “adjusted investment and capital expenditure”, as they are
not direct capital expenditure by the Group. However, the fair valuation of consideration paid for the business or investment is included in
the Group’s “adjusted investment, capital and acquisition expenditure” metric, see 20 below. During the current and prior year there were
no significant business acquisitions.
167 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

20 Acquisition cash consideration in relation to business combinations
The Group has outlined a significant investment programme which will partly be achieved through the acquisition of businesses with
development opportunities for the Group. The cash consideration paid for these entities is included within the Group’s “adjusted
investment, capital and acquisition expenditure” metric as it provides stakeholders an accurate basis of cash investment into the Group’s
total development pipeline and is consistent with the reporting of the Group’s Net Zero Acceleration Programme Plus. During the current
and prior year there were no significant business acquisitions.
March 2025
£m
March 2024
£m
Capital additions to intangible assets 1,045.5 1,314.2
Capital additions to property, plant and equipment 2,791.5 1,971.4
Capital additions to intangible assets and property, plant and equipment 3,837.0 3,285.6
Joint ventures and associates’ additions 288.0 390.0
Allowances and certificates (603.7) (774.5)
Customer or third party funded additions (163.4) (152.0)
Lease asset additions (126.7) (73.0)
Non-controlled interests share of capital expenditure (320.8) (199.4)
Adjusted Investment and Capital Expenditure 2,910.4 2,476.7
Adjusted Investment, Capital and Acquisition Expenditure 2,910.4 2,476.7
Alternative Performance Measures continued
168 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Revenue
5
10, 131 . 9
–
10,1 31 . 9
10,457.2
–
10,457.2
Cost of sales
(6 , 210.9)
(57 .4)
(6, 26 8. 3)
(6 ,56 8. 3)
461 .3
(6, 10 7 .0)
Gross profit/(loss)
3,9 21.0
(5 7 .4)
3,86 3.6
3,888.9
461. 3
4,350.2
Operating costs
6
(1 ,742.0)
(30 9.7)
(2 ,051 .7)
(1,577 .7)
(270.9)
(1,8 48.6)
Debt impairment charges
A6.2
(47.1)
–
(47.1)
(128.8)
–
(128.8)
Other operating income
6
107.5
–
107 .5
11 6.7
4. 6
121.3
and associates
2,239.4
(3 67 . 1)
1,872 .3
2, 299.1
195 .0
2,494. 1
Share of operating profit
284. 3
–
28 4.3
237.5
–
237 .5
Share of interest
(164. 3)
–
(164. 3)
(110.7)
–
(1 10.7)
Share of movement in derivatives
–
(28. 1)
(28.1)
–
6 1.4
61. 4
Share of tax
(9.0)
7 .0
(2.0)
(58.8)
(15. 3)
(7 4.1)
Share of profit on joint ventures and
associates
16
111 .0
(21. 1)
89.9
68 .0
46. 1
1 14.1
Operating profit/(loss)
5
2 ,350.4
(388. 2)
1 ,962 .2
2,367.1
241.1
2,608.2
Finance income
9
194.8
1 3. 1
207 .9
198.8
6.4
205.2
Finance costs
9
(319.2)
–
(319.2)
(318.3)
–
(318.3)
Profit/(loss) before taxation
2, 226.0
(375. 1)
1 ,850.9
2,24 7 .6
2 47 .5
2,495.1
Taxation
10
(551 .7)
33 .7
(518. 0)
(519.0)
(91 .7)
(610.7)
Profit/(loss) for the year
1 ,674. 3
(3 41 .4)
1 , 332 .9
1,72 8.6
155.8
1, 884.4
Ordinary shareholders of the parent
11
1, 5 3 0. 8
(34 1.4)
1, 18 9 .4
1, 554.7
1 55.8
1,710.5
Non-controlling interests
69.8
–
69.8
100 .8
–
10 0. 8
Other equity holders
73.7
–
73.7
73.1
–
73.1
Basic (pence)
11
108 . 2
156. 7
Diluted (pence)
11
108. 1
156.5
The accompanying notes are an integral part of these financial statements.
Consolidated income statement
for the year ended 31 March 2025
169 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Profit for the year – continuing operations
1,3 32 .9
1,884 .4
Net gains on cash flow hedges
48. 1
6. 5
Transferred to assets and liabilities on cash flow hedges
10 .0
2.1
Taxation on cashflow hedges
(11 . 3)
(0. 3)
46.8
8.3
Share of other comprehensive loss of joint ventures and associates, net of taxation
(16.7)
(4 0.9)
Exchange difference on translation of foreign operations
(42 . 9)
(66 .6)
Gain on net investment hedge
36.0
30.9
23.2
(6 8. 3)
Actuarial gain/(loss) on retirement benefit schemes, net of taxation
39.6
(116.4)
Share of other comprehensive income of joint ventures and associates, net of taxation
15.8
–
(Loss)/gain on revaluation of investments in equity instruments, net of taxation
(0.3)
3.5
55. 1
(1 12.9)
Other comprehensive gain/(loss), net of taxation
78. 3
(18 1.2)
Total comprehensive income for the year – continuing operations
1 ,41 1 . 2
1,7 0 3.2
Ordinary shareholders of the parent
1,2 63 . 6
1,529 .3
Non-controlling interests
73.9
10 0. 8
Other equity holders
73.7
73.1
1, 4 1 1.2
1,7 03 .2
The accompanying notes are an integral part of these financial statements.
Consolidated statement of comprehensive income
for the year ended 31 March 2025
170 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Property, plant and equipment
14
18,824.1
16 ,61 1 . 5
Goodwill and other intangible assets
13
2,1 7 0.5
2,324.6
Equity investments in joint ventures and associates
16
1,9 87 .3
1, 963.2
Loans to joint ventures and associates
16
1,5 1 0 .3
1 ,352 .9
Other investments
16
8.8
3.2
Other receivables
18
199.9
170.1
Derivative financial assets
24
63 .5
64.2
Retirement benefit assets
23
501 .8
42 1 .6
Non-current assets
25,266 .2
22,911. 3
Intangible assets
13
392 .7
75 4.7
Inventories
17
462.9
343 .0
Trade and other receivables
18
2,9 43 .2
2,654.1
Current tax asset
10
29.7
35. 1
Cash and cash equivalents
21
1,0 90 .5
1,0 35 .9
Derivative financial assets
24
178.4
536 .1
Current assets
5,09 7 .4
5,358.9
Total assets
30,363 .6
28, 270 . 2
Loans and other borrowings
21
1 ,964.0
1,12 8.0
Trade and other payables
19
2,8 9 7 .9
3, 32 2. 5
Current tax liabilities
10
–
9. 3
Financial guarantee liabilities
24
2.4
3.1
Provisions
20
80.5
52.7
Derivative financial liabilities
24
126.3
345.2
Current liabilities
5,071.1
4,860. 8
Loans and other borrowings
21
8,640.4
8,00 5.7
Deferred tax liabilities
10
1,8 44 . 5
1,536. 8
19
1,2 4 7 .9
1,0 92 .8
Financial guarantee liabilities
24
23. 1
36.4
Provisions
20
676. 1
712.4
Derivative financial liabilities
24
167 .7
222. 2
Non-current liabilities
12,599 .7
11,6 06.3
Total liabilities
17 ,670.8
16 ,4 67 . 1
Net assets
12,69 2.8
11,80 3.1
Share capital
22
555.6
548.1
Share premium
81 2.6
820. 1
Capital redemption reserve
52 .6
52.6
Hedge reserve
432 .7
407 .6
Translation reserve
(8.6)
(2.6)
Retained earnings
8,336.7
7, 5 4 0 . 0
Equity attributable to ordinary shareholders of the parent
10, 181 .6
9, 3 65 .8
Hybrid equity
22
1,8 8 2. 4
1,882 .4
Attributable to non-controlling interests
22
628. 8
55 4.9
Total equity
12,69 2.8
11,803 .1
* The comparative has been restated. See note 1.2.
The accompanying notes are an integral part of the financial statements.
These financial statements were approved by the Board of Directors on 20 May 2025 and signed on their behalf by:
Barry O’Regan, Sir John Manzoni,
Chief Financial Officer Chairman
SSE plc
Registered No: SC117119
Consolidated balance sheet
as at 31 March 2025
171 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

At 1 April 2024 (restated*)
5 48. 1
820. 1
52.6
407 .6
(2 .6)
7,540.0
9,365. 8
1 , 882 .4
11 , 248. 2
554. 9
11 , 803. 1
Profit for the year
–
–
–
–
–
1 , 1 8 9 . 4
1 , 1 8 9 . 4
7 3 . 7
1 , 2 6 3 . 1
6 9 . 8
1 , 3 3 2 . 9
Other comprehensive
income/(loss)
–
–
–
25. 1
(6.0)
55.1
7 4.2
–
74.2
4.1
78.3
Total comprehensive
income for the year
–
–
–
25 . 1
(6 .0)
1 , 244. 5
1 , 263.6
73 .7
1 ,337 . 3
73. 9
1 ,411 . 2
Dividends to shareholders
–
–
–
–
–
( 6 7 1 . 0)
( 6 7 1 . 0)
–
( 6 7 1 . 0)
–
( 6 7 1 . 0)
share issue
7.5
(7.5)
–
–
–
268.9
268.9
–
268.9
–
268.9
Issue of treasury shares
–
–
–
–
–
1 7 . 8
1 7 . 8
–
1 7 . 8
–
1 7 . 8
equity holders
–
–
–
–
–
–
–
( 7 3 . 7)
( 7 3 . 7)
–
( 7 3 . 7)
Share buyback (note 22.1)
–
–
–
–
–
( 7 1 . 7)
( 7 1 . 7)
–
( 7 1 . 7)
–
( 7 1 . 7)
Credit in respect of
employee share awards
–
–
–
–
–
2 2 . 3
2 2 . 3
–
2 2 . 3
–
2 2 . 3
Investment in own shares
–
–
–
–
–
( 1 4 . 1)
( 1 4 . 1)
–
( 1 4 . 1)
–
( 1 4 . 1)
At 31 March 2025
555.6
81 2. 6
52 .6
432 .7
(8.6)
8, 336.7
10, 181 .6
1 ,8 82 .4
12 ,06 4.0
628 .8
12 ,692 .8
Consolidated statement of changes in equity
for the year ended 31 March 2025
At 1 April 2023 (restated*)
547 .0
82 1. 2
52.6
441 .2
32.1
6 ,852 .6
8,746.7
1 ,882 .4
10,629.1
454 .1
1 1,0 83. 2
Profit for the year
–
–
–
–
–
1 , 7 1 0 . 5
1 , 7 1 0 . 5
7 3 . 1
1 , 7 8 3 . 6
1 0 0 . 8
1 , 8 8 4 . 4
Other comprehensive loss
–
–
–
(33.6)
(34.7)
(112.9)
(181.2)
–
(181.2)
–
(181.2)
Total comprehensive
income for the year
–
–
–
(33.6)
(3 4.7)
1,597.6
1 ,529. 3
7 3.1
1 ,602.4
100.8
1,703. 2
Dividends to shareholders
–
–
–
–
–
(9 5 6 . 4)
(9 5 6 . 4)
–
(9 5 6 . 4)
–
(9 5 6 . 4)
share issue
1.1
(1.1)
–
–
–
3 8.6
3 8.6
–
38. 6
–
38.6
Issue of treasury shares
–
–
–
–
–
9 . 2
9 . 2
–
9 . 2
–
9 . 2
equity holders
–
–
–
–
–
–
–
( 7 3 . 1)
( 7 3 . 1)
–
( 7 3 . 1)
Credit in respect of
employee share awards
–
–
–
–
–
2 0 . 2
2 0 . 2
–
2 0 . 2
–
2 0 . 2
Investment in own shares
–
–
–
–
–
( 2 1 . 8)
( 2 1 . 8)
–
( 2 1 . 8)
–
( 2 1 . 8)
(restated*)
54 8.1
820. 1
52.6
407 .6
(2.6)
7 ,540.0
9,365 .8
1 ,882 .4
1 1, 248. 2
554 .9
1 1,8 03.1
* The comparative has been restated. See note 1.2.
for the year ended 31 March 2024
172 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Operating profit – continuing operations
1 ,962. 2
2,608. 2
Less share of profit of joint ventures and associates
(89.9)
(1 14.1)
Operating profit before jointly controlled entities and associates
1 , 872 . 3
2,494.1
Pension service charges less contributions paid
23
(6 .7)
(9.5)
Movement on operating derivatives
24
60. 1
(443 .4)
Depreciation, amortisation, write downs and impairments
1, 0 5 7 .1
859. 0
Impairment of joint venture investment including shareholder loans
7,16
–
136.8
Charge in respect of employee share awards
22. 3
20. 2
Profit on disposal of assets and businesses
6
(47 .9)
(9.0)
Charge in respect of provisions
20
6.4
14 .6
Credit in respect of financial guarantees
(1 .9)
(12. 5)
Release of deferred income
6
(14.1)
(13.0)
Cash generated from operations before working capital movements
2,9 4 7 .6
3,037.3
(Increase)/decrease in inventories
(109. 5)
39.6
Decrease in receivables
2.6
76 3 . 1
(Decrease)/increase in payables
(196 .0)
24 3 .0
Decrease in provisions
(23. 7)
(33.9)
Cash generated from operations
2, 62 1.0
4,049.1
Dividends received from investments
16
200.6
223.7
Interest paid
(10 4. 2)
(67 .0)
Taxes paid
(240.6)
(345.8)
Net cash from operating activities
2,4 7 6.8
3,860.0
Purchase of property, plant and equipment
5
(2 ,689. 2)
(1,970.3)
Purchase of other intangible assets
5
(4 41 . 8)
(542. 2)
Receipt of government grant income
5
55.7
93 . 4
Deferred income received
20. 2
17 .4
Proceeds from disposals
6,7,16
25 .2
14 .9
Purchase of businesses, joint ventures and subsidiaries
12,16
–
(42 .9)
Loans and equity provided to joint ventures and associates
16
(408 . 3)
(4 43 .6)
Loans and equity repaid by joint ventures
16
121.7
14 .6
(Increase)/decrease in other investments
16
(1 . 9)
0.4
Net cash used in investing activities
(3,318.4)
(2 ,858 .3)
Proceeds from issue of share capital
22
17.8
9. 2
Dividends paid to company’s equity holders
11
(4 02 . 1)
(917 .8)
Share buybacks
22
(71 .7)
–
Hybrid equity dividend payments
22
(73.7)
(73.1)
Employee share awards share purchase
22
(14. 1)
(21 .8)
New borrowings
21
2,5 9 2.2
1,9 82.2
Repayment of borrowings
21
(1 , 162 . 2)
(1 ,842.7)
Settlement of cashflow hedges
10.0
6.4
Net cash from/(used in) financing activities
896. 2
(857 .6)
Net increase in cash and cash equivalents
54.6
14 4 . 1
Cash and cash equivalents at the start of year
21
1, 0 3 5 .9
891. 8
Net increase in cash and cash equivalents
54.6
14 4 . 1
Cash and cash equivalents at the end of year
21
1, 0 90 .5
1,0 35. 9
The accompanying notes are an integral part of these financial statements.
Consolidated cash flow statement
for the year ended 31 March 2025
173 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

1
General Information
andbasisofpreparation
1.1. General information
SSE plc (the “Company”) is a company domiciled in Scotland.
The address of the registered office is given on the back cover.
The Group’s operations and its principal activities are set out in
the Strategic Report. The consolidated financial statements for the
year ended 31 March 2025 comprise those of the Company and
its subsidiaries (together referred to as the Group). The Company
financial statements present information about the Company as
a separate entity and not about the Group, these can be seen on
pages 263 to 271 .
1.2. Basis of preparation
Statement of compliance
The financial statements were authorised for issue by the Directors
on 20 May 2025. The financial statements have been prepared in
accordance with UK-adopted International Accounting Standards
(“IAS”).
Going Concern
The Directors consider that the Group has adequate resources to
continue in operational existence for the period to 31 December
2026. The financial statements are therefore prepared on a Going
Concern basis.
In addition, further details of the Group’s liquidity position and
Going Concern review are provided at
note 21 and in A6 .
Accompanying Information to the Financial Statements on
page 249 .
Basis of measurement
The financial statements of the Group are prepared on the historical
cost basis except for certain gas inventory, derivative financial
instruments, financial instruments designated at fair value through
profit or loss or other comprehensive income on initial recognition,
assets of the Group pension schemes, all of which are measured at
their fair value, and liabilities of the Group’s pension schemes which
are measured using the projected unit credit method. The directors
believe the financial statements present a true and fair view. The
financial statements of the Group are presented in pounds Sterling
and all values are rounded to the nearest million to one decimal
place (£m), unless otherwise stated. The basis for including
operations and transactions conducted in currencies other than
pounds Sterling is provided in
A1
. Accompanying Information
to the Financial Statements on
page 229 .
Use of estimates and judgements
The preparation of financial statements conforming with adopted
IFRS requires the use of certain accounting estimates. It also
requires management to exercise judgement in the process of
applying the accounting policies. The areas involving a higher level
of judgement or estimation are summarised at
pages 176 to 178
.
Changes to presentation and prior year adjustments
The prior year comparatives at 31 March 2024 have been restated
as follows:
Segments
In accordance with the requirements of IFRS 8 “Operating
Segments” the Group aligns its segmental disclosures with its
internal reporting to the Group Executive Committee (the Chief
Operating Decision Maker). The reporting of these operating
segments is used to assess operating performance and to make
decisions on how to allocate capital. During the year to 31 March
2025, the Group’s Enterprise business was integrated into its SSE
Business Energy, SSE Thermal and SSE Energy Markets operating
segments. Consequently, the segmental results reported within
these financial statements have been restated with effect from
1 April 2023. Details of the main activities reallocated from SSE
Enterprise into the Group’s other segments are provided note 5 .
Comparative segmental information in note 5 has been restated
to reflect the change to these segments. The impacts of the
restatements are a decrease to the adjusted operating profit of
SSE Business Energy (2024: £40.6m), an increase to the adjusted
operating profit of SSE Thermal (2024: £16.4m) and a decrease in
the adjusted operating profit of SSE Energy Markets (2024: £1.4m)
and a decrease to the adjusted EBITDA of SSE Business Energy
(2024: £36.5m), an increase to the adjusted EBITDA of SSE Thermal
(2024: £22.0m) and a decrease in the adjusted EBITDA of SSE
Energy Markets (2024: £1.4m). The reported operating profit by
segment has been restated by the same amounts. Additionally,
adjusted capital expenditure has been restated with an increase to
SSE Business Energy (2024: £40.9m), SSE Thermal (2024: £9.6m)
and SSE Energy Markets (2024: £0.5m) and revenue has been
restated with an increase to SSE Business Energy (2024: £63.5m)
and SSE Thermal (2024: £28.4m).
This restatement has had no impact on the consolidated adjusted
performance measures of the Group at 31 March 2024.
Additionally note 8.2 employee numbers and A6.2 concentrations
of risk have been restated for March 2024 for this integration.
Alternative Performance Measures (“APMs”) – adjustment for
net interest on net pension assets/liabilities
During the year the Group simplified its adjusted profit metrics
by removing the adjustment for interest on net pension assets/
liabilities valued under IAS 19 “Employee Benefits”. This adjustment
is no longer deemed necessary by management as the pension
interest adjustment is less volatile and material to the Group than it
was when first introduced as an APM adjustment. The impacts of
the restatements for 31 March 2024 are an increase in the adjusted
profit before tax of £26.2m and adjusted earnings per share of
2.4 pence.
There have been no other changes to the Group’s APMs in the
current year.
Non-controlling interest presentation change
After reconsidering the accounting for sale of the 25% non-
controlling stake in Scottish Hydro Electric Transmission plc,
which the Group disposed of in the year ending 31 March 2023, the
comparative balance sheets and statements of changes in equity
have been restated to increase retained earnings by £195.0m (with a
corresponding decrease in non-controlling interests) representing
the gain recognised in equity on that transaction. Comparatives at
1 April 2023, 31 March 2024 have been restated accordingly. This
adjustment had no impact on net assets, the income statement,
statement of cashflows or adjusted performance measures of the
Group, at any reporting date.
Changes to estimates
On 31 March 2025, the Group’s Thermal business reviewed the
useful economic life of the Peterhead, Keadby and Medway CCGT
assets. The review confirmed the technical capability of the assets
to continue to operate until at least 2035. Noting also the
recommendations of the UK Government’s UK Clean Power 2030
Action Plan and the Group’s ongoing success in the capacity
markets it is expected that the assets will continue to generate
economic benefit in this period. As a result, the useful economic
lives of the assets have been extended to 2035. The change in
useful economic life had no impact on the depreciation charge for
the year ended 31 March 2025, but will reduce the depreciation
charge for the year ending 31 March 2026 by £14.2m.
Notes to the consolidated financial statements
for the year ended 31 March 2025
174 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

2
New accounting policies
and reporting changes
The principal accounting policies applied in the preparation of these
financial statements are set out below and in the A1 Accompanying
Information to the Financial Statements on pages 229 to 237 .
2.1. New standards, amendments and interpretations
effective or adopted by the Group
During the year ended 31 March 2025, the Group adopted the
amendments to:
– IAS 1 “Presentation of Financial Statements” in relation to
non-current liabilities with covenants
– IFRS 16 “Leases” in relation to a lease on sale and leaseback
– IAS 7 “Statement of Cash Flows” and IFRS 7 “Financial
Instruments: Disclosures” in relation to supplier finance
arrangements’
Adoption of these amendments had no material impact on these
Financial Statements. There were no other standards, amendments
to standards or interpretations relevant to the Group’s operations
which were adopted during the year.
2.2. New standards, amendments and interpretations
issued, but not yet adopted by the Group
IFRS 18 “Presentation and Disclosure in Financial Statements” was
issued in April 2024 and will be effective from 1 January 2027
(1 April 2027 for the Group), subject to UK endorsement. This
standard will replace IAS 1 “Presentation of Financial Statements.”
The new standard does not amend the principles of recognition
and measurement and so will not impact the financial results
of the Group. However, it will impact the presentation of the
consolidated financial statements, in particular the Consolidated
Income Statement.
While the Group is continuing to assess the full impact of
adoption of the standard, it is expected that the presentation of
the Consolidated Income Statement will be amended to include
the new subtotals prescribed in the standard. The share of profit
recognised from equity accounted investments will be classified
within investing activities, instead of its current classification
within operating activities. It is expected that certain notes to
the consolidated financial statements will also be amended to
comply with aggregation and disaggregation principles.
Amendments to IFRS 9 “Financial Instruments” and IFRS 7
“Financial Instruments: Disclosures” in relation to the classification
and measurement of financial instruments have been issued.
An additional amendment has also been made to both standards
in relation to contracts referencing nature-dependent electricity.
These amendments will be effective from 1 January 2026 (1 April
2026 for the Group). While the impact of adoption is continuing to
be assessed, it is not expected the amendments will have a material
impact on the Group’s consolidated financial statements.
3
Adjusted accounting measures
The Group applies the use of adjusted accounting measures or
alternative performance measures (“APMs”) throughout the Annual
Report and Financial Statements. These measures enable the
Directors to present the underlying performance of the Group and
its segments to the users of the statements in a consistent and
meaningful manner. The adjustments applied and certain terms
such as “adjusted operating profit”, “adjusted earnings per share”,
“adjusted EBITDA”, “adjusted investment and capital expenditure”,
“adjusted investment, capital and acquisition expenditure” and
“adjusted net debt and hybrid capital” are not defined under IFRS
and are explained in more detail below. In addition, the section
“Alternative Performance Measures” at page 162 provides further
context and explanation of these terms.
3.1 Adjusted measures
The Directors assess the performance of the Group and its
reportable segments based on “adjusted measures”. These
measures are used for internal performance management and are
believed to be appropriate for explaining underlying performance to
users of the accounts. These measures are also deemed to be the
most useful for ordinary shareholders of the Company and for
other stakeholders.
The performance of the reportable segments is reported based on
adjusted profit before interest and tax (“adjusted operating profit”).
This is reconciled to reported profit before interest and tax by
adding back exceptional items and certain re-measurements (see
note 3.2 below), depreciation expense on fair value uplifts, the
share of operating profit attributable to non-controlling interests,
adjustments to the Gas Production decommissioning provision
and after the removal of interest and taxation on profits from
equity-accounted joint ventures and associates.
The performance of the Group is reported based on adjusted
profit before tax which excludes exceptional items and certain
re-measurements (see
note 3.2
below), depreciation expense
on fair value uplifts, the share of profit before tax attributable to
non-controlling interests, adjustments to the Gas Production
decommissioning provision and taxation on profits from
equity-accounted joint ventures and associates.
The Group also uses adjusted earnings before interest, taxation,
depreciation and amortisation (“adjusted EBITDA”) as an alternative
operating performance measure which acts as a management
proxy for cash generated from operating activities. This does not
take into account the rights and obligations that SSE has in relation
to its equity-accounted joint ventures and associates. This measure
excludes exceptional items and certain re-measurements (see
note 3.2
below), the depreciation charged on fair value uplifts,
the share of EBITDA attributable to non-controlling interests,
adjustments to the Gas Production decommissioning provision,
depreciation and amortisation from equity-accounted joint
ventures and associates and interest and taxation on profits from
equity-accounted joint ventures and associates. For the purpose of
calculating the “Net Debt to EBITDA” metric referred at page 24 ,
“adjusted EBITDA” is further adjusted to remove the proportion of
adjusted EBITDA from equity-accounted joint ventures relating to
off-balance sheet debt (see note 5.1(v) ).
The Group’s key performance measure is adjusted earnings per
share (“EPS”), which is based on basic earnings per share before
exceptional items and certain re-measurements (see note 3.2
below), depreciation on fair value uplifts, adjustments to the Gas
Production decommissioning provision and after the removal of
deferred taxation and other taxation items. Deferred taxation is
excluded from the Group’s adjusted EPS because of the Group’s
significant ongoing capital investment programme, which means
that the deferred tax is unlikely to reverse. Adjusted profit after tax is
presented on a basis consistent with adjusted EPS except for the
non-inclusion of payments to holders of hybrid equity.
The financial statements also include an “adjusted net debt and
hybrid capital” measure. This presents financing information on the
basis used for internal liquidity risk management. This measure
excludes obligations due under lease arrangements and the
share of net debt attributable to non-controlling interests, and
includes cash held and posted as collateral on commodity trading
exchanges, and other deposits with a maturity of more than three
months. The measure represents the capital owed to investors,
lenders and equity holders other than the ordinary shareholders.
As with “adjusted earnings per share”, this measure is considered to
be of relevance to the ordinary shareholders of the Group as well
as other stakeholders and interested parties.
175 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Finally, the financial statements include an “adjusted investment
and capital expenditure” and an “adjusted investment, capital and
acquisition expenditure” measure. These metrics represent the
capital invested by the Group in projects that are anticipated to
provide a return on investment over future years, or which
otherwise support Group operations and are consistent with
internally applied metrics. They therefore include capital additions
to property, plant and equipment and intangible assets and the
Group’s direct funding of joint venture and associates’ capital
projects. The Group has considered it appropriate to report these
values both internally and externally in this manner due to its use of
equity-accounted investment vehicles to grow the Group’s asset
base and to highlight where the Group is providing funding to the
vehicle through either loans or equity. The Group does not include
project funded capital additions in these metrics, nor does it include
other capital invested in joint ventures and associates. In addition,
the Group excludes additions to its property, plant and equipment
funded by customer contributions and additions to intangible
assets associated with allowances and certificates. The Group
also excludes the share of investment and capital expenditure
attributable to non-controlling interests in controlled but not wholly
owned subsidiaries and disposed or impaired additions. The
“adjusted investment, capital and acquisition expenditure” measure
also includes cash consideration paid by the Group in business
combinations which contribute to growth of the Group’s capital
asset base and is considered to be relevant metric in context of the
Group’s Net Zero Acceleration Programme Plus. As with “adjusted
earnings per share”, these measures are considered to be of
relevance to management and to the ordinary shareholders of
the Group as well as to other stakeholders and interested parties.
Reconciliations from reported measures to adjusted measures
along with further description of the rationale for those adjustments
are included in the “Alternative Performance Measures” section at
pages 162 to 168
.
Where the Group have referred to an adjusted performance
measure in the financial statements the following sign is presented
to denote this
APM
.
3.2 Exceptional items and certain re-measurements
Exceptional items are those charges or credits that are considered
unusual by nature and/or scale and of such significance that
separate disclosure is required for the financial statements to
be properly understood. The trigger points for recognition of items
as exceptional items will tend to be non-recurring, although
exceptional charges (or credits) may impact the same asset class
or segment over time.
Examples of items that may be considered exceptional include
material asset, investment or business impairment charges;
reversals of historic exceptional impairments; certain business
restructuring and reorganisation costs; significant realised gains
or losses on disposal; unrealised fair value adjustments on
acquisition or disposals; and provisions in relation to significant
disputes and claims.
The Group operates a policy framework for establishing whether
items should be considered exceptional. This framework, which
is reviewed annually, is based on the materiality of the item, by
reference to the Group’s key performance measure of adjusted
earnings per share. This framework estimates that any qualifying
item greater than £40.0m (2024: £40.0m) will be considered
exceptional, with the exception of any strategic restructuring of
activities or discontinued operations, which will respectively be
considered on a case-by-case basis or will always be treated as
exceptional. The only further exception to this threshold is for gains
or losses on disposal, or divestment of early-stage international or
offshore wind farm development projects within SSE Renewables,
which are considered non-exceptional in line with the Group’s
strategy to generate recurring gains from developer divestments.
Where a qualifying gain arises on a non-cash transaction, the gain
is still treated as exceptional.
Certain re-measurements are re-measurements arising on certain
commodity, interest rate and currency contracts which are
accounted for as held for trading or as fair value hedges in
accordance with the Group’s policy for such financial instruments;
re-measurements on stocks of commodities held at the balance
sheet date; or movements in fair valuation of contracts for
difference not designated as government grants. The amount
recorded in the adjusted results for these contracts is the amount
settled in the year as disclosed in note 24.1
.
This excludes commodity contracts not treated as financial
instruments under IFRS 9 where the contracts are held for the
Group’s own use requirements; the fair value of these contracts
is not recorded and the value associated with the contract is not
recognised until the underlying commodity is delivered.
The impact of changes in corporation tax rates on deferred tax
balances are also included within certain re-measurements.
3.3 Other additional disclosures
As permitted by IAS 1 “Presentation of Financial Statements”, the
Group’s income statement discloses additional information in
respect of joint ventures and associates, exceptional items and certain
re-measurements to aid understanding of the Group’s financial
performance and to present results clearly and consistently.
4
Accounting judgements and
estimation uncertainty
In the process of applying the Group’s accounting policies,
management is required to make judgements and estimates that
will have a significant effect on the amounts recognised in the
financial statements. Changes in the assumptions underlying the
estimates could result in a significant impact to the financial
statements. The Group’s key accounting judgement and estimation
areas are noted below, with the most significant and material
financial judgement areas that are specifically considered by the
Audit Committee highlighted separately.
The Group has made no changes to its significant accounting
judgements and identified no new areas of estimation uncertainty
during the year. As there is no provision for uncertain tax positions
within the financial statements in the current or comparative years
(2024 and 2023: £nil) and noting the Group’s current view on such
matters, this estimation uncertainty has been removed from the
disclosure of estimates that could result in a significant impact on
the financial statements.
4.1 Significant financial judgements and estimation
uncertainties
The preparation of these financial statements has specifically
considered the following significant financial judgements, some
of which are also areas of estimation uncertainty as noted below.
i. Impairment testing and valuation of certain non-current
assets – financial judgement and estimation uncertainty
The Group reviews the carrying amounts of its goodwill, other
intangible assets, specific property, plant and equipment and
investment assets to determine whether any impairments or
reversal of impairments to the carrying value of those assets
requires to be recorded. Where an indicator of impairment or
impairment reversal exists, the recoverable amount of those assets
is determined by reference to value in use calculations or fair value
less cost to sell assessments. As well as its goodwill balances, the
specific assets under review in the year ended 31 March 2025 are
intangible development assets in Southern Europe and Japan;
and specific property, plant and equipment assets related to gas
Notes to the consolidated financial statements continued
for the year ended 31 March 2025
3
Adjusted accounting measures
continued
3.1 Adjusted measures continued
176 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

storage at Aldbrough and Atwick and the Group’s thermal power
station at Great Island in Ireland. In addition, the Group performed
an impairment review over the carrying value of its equity
investments in Neos Networks Limited and Triton Power
Holdings Limited.
In conducting its reviews, the Group makes judgements and
estimates determining both the level of cash generating unit
(“CGU”) at which common assets such as goodwill are assessed
against, as well as the estimates and assumptions behind the
calculation of recoverable amount of the respective assets or CGUs.
Changes to the estimates and assumptions on factors such as
regulation and legislation changes (including relevant climate
change related regulation), power, gas, carbon and other
commodity prices, volatility of gas prices, plant running regimes
and load factors, discount rates and other inputs could impact the
assessed recoverable value of assets and CGUs and consequently
impact the Group’s income statement and balance sheet.
Further detail of the calculation basis and key assumptions used in
the impairment review, the resulting impairment and the sensitivity
of this assessment to key assumptions is disclosed at
note 15
.
Detail on the accounting policies applied is included in the
Accompanying Information section A1 .
ii. Retirement benefit obligations – estimation uncertainty
The assumptions in relation to the cost of providing post-retirement
benefits during the year are based on the Group’s best estimates
and are set after consultation with qualified actuaries. While these
assumptions are believed to be appropriate, a change in these
assumptions would impact the level of the retirement benefit
obligation recorded and the cost to the Group of administering
the schemes.
Further detail of the calculation basis and key assumptions used,
the resulting movements in obligations, and the sensitivity of key
assumptions to the obligation is disclosed at note 23
.
iii. Revenue recognition – Customers unbilled supply of energy
– estimation uncertainty
Revenue from energy supply activities undertaken by the SSE
Business Energy and SSE Airtricity businesses includes an estimate
of the value of electricity or gas supplied to customers between the
date of the last meter reading and the year end. This estimation
comprises both billed revenue and unbilled revenue and is
calculated based on applying the tariffs and contract rates
applicable to customers against aggregated estimated customer
consumption, taking account of various factors including tariffs,
consumption patterns, customer mix, metering data, operational
issues relating to the billings process and externally notified
aggregated volumes supplied to customers from national
settlements bodies.
The Group’s SSE Business Energy segment completed the
migration of customers to a new billing platform during the current
financial year. Following the completion of the migration, the billing
platform performance has stabilised and resulted in a lower level
of unbilled sales at 31 March 2025. The level of judgement applied
in determining the sales accrual has also lessened compared to
the position at March 2024. For the prior year end, the Group
recognised a provision against the sales accrual to reflect that
customer billing delays may result in a deterioration in collection
performance. No comparable risk provision was recognised at
31 March 2025 and it is expected that the level of judgement
applied will be reduced in future reporting periods as operational
performance continues to improve.
This unbilled estimation is subject to an internal corroboration
process which compares calculated unbilled volumes to a
theoretical “perfect billing” benchmark measure of unbilled
volumes (in GWh and millions of therms) derived from historical
consumption patterns and aggregated metering data used in
industry reconciliation processes. Unbilled revenue is compared
to billings in the period between the balance sheet date and
the finalisation of the financial statements which has provided
evidence of post report date billings and hence support to the
accrual recognised.
Given the requirement of management to apply judgement, the
estimated revenue accrual remains a significant estimate made by
management in preparing the financial statements. A change in the
assumptions underpinning the unbilled calculation would have an
impact on the amount of revenue recognised in any given period.
The sensitivity associated with this judgement factor is disclosed at
note 18
.
iv. Valuation of other receivables – financial judgement and
estimation uncertainty
The Group holds a £100m loan note due from OVO Holdings
Limited (a subsidiary of Energy Transition Holdings Limited (“ETHL”))
following the disposal of SSE Energy Services on 15 January 2020.
The loan is repayable in full by 31 December 2029, carries interest at
13.25% and is presented cumulative of accrued interest payments,
discounted at 13.25%. At 31 March 2025, the carrying value (net of
expected credit loss provision of £1.8m (2024: £1.6m)) is £193.5m
(2024: £170.1m) (see note 18).
The Group has assessed recoverability of the loan note receivable
and has recognised a provision for expected credit loss in
accordance with the requirements of IFRS 9. The Group’s
assessment of the recoverability of the loan note is considered a
significant financial judgement. The Group has taken appropriate
steps to assess all available information in respect of the
recoverability of the loan note. Procedures included reviewing
recent financial information of ETHL, including the 31 December
2023 consolidated financial statements; and discussions with
ETHL management. While the carrying value is considered to be
appropriate, changes in economic conditions could lead to a
change in the expected credit loss incurred by the Group in
future periods.
v. Impact of climate change and the transition to net zero –
financial judgement and estimation uncertainty
Climate change and the transition to net zero have been considered
in the preparation of these financial statements. Where relevant,
assumptions have been applied that are consistent to a Paris-
aligned 1.5°C 2050 net zero pathway. The Group has a clearly
articulated NZAP Plus plan to lead in the UK’s transition to clean
power and aligns its investment plans and business activities to that
strategy. These plans are supported by the Group’s Green Bond
framework under which the Group’s eighth green bond was issued
by SSEN Transmission in August 2024 and ninth green bond was
issued by SSE plc in March 2025 (see
note 21
). The proceeds of
the eighth green bond were allocated to fund Transmission network
projects and the proceeds of the ninth green bond were allocated
to finance or refinance Renewables wind farm projects.
The impact of future climate change regulation could have a
material impact on the currently reported amounts of the Group’s
assets and liabilities. In preparing these financial statements, the
following climate change related risks have been considered:
Valuation of property, plant and equipment, and impairment
assessment of goodwill
The Group’s view is that flexible generation capacity, such as the
Group’s fleet of CCGT power stations, will be an essential part of
the net zero transition to provide security of supply to a market
increasingly dependent upon renewable sources, which are
inherently intermittent. The UK Government recently published its
“Clean Power 2030 Action Plan” which supports the Group’s view
that unabated gas will continue to play a back-up role throughout
the transition to clean power, by ensuring the security of supply.
177 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

The Group assesses the useful economic life of its assets on an
annual basis. The assessment performed at 31 March 2025 indicated
that certain unabated CCGT assets at Peterhead, Keadby and
Medway should have their useful economic life extended from
2030 to 2035 due to the combination of UK Government policy
reiterating the importance of flexible generation from gas fired
CCGTs in the transition to clean power; the Group’s ongoing
success in capacity market auctions; and the technical capability
of these assets to operate to that date. The change in end of life
assumption for these assets has been reflected in the annual
impairment process. As a result, all the Group’s unabated CCGT
assets held at 31 March 2025 are forecast to operate beyond 2030.
The process to determine the Group’s material climate-related
opportunities and risks in the period to 31 March 2025 reduced the
perceived risk of mandated early closure for these assets. As a
result, the “Accelerated gas closure” transition risk is no longer a
material transition risk reported in the Group’s TCFD disclosures
(see pages 71 to 78
).
A significant increase in renewable generation capacity in the
Group’s core markets in the UK and Ireland could potentially result
in an oversupply of renewable electricity at a point in the future,
which would lead to a consequential decrease in the power price
achievable for the Group’s wind generation assets. The Group has
not assessed that this constitutes an indicator of impairment at
31 March 2025 as the Group’s baseline investment case models
assume a centrally approved volume of new build in these markets
over the life of the existing assets. The Group’s policy is to test the
goodwill balances associated with its wind generation portfolio
for impairment on an annual basis in line with the requirements of
IAS 36 “Impairment of Assets”. Through this impairment assessment
(see
note 15.1
), a sensitivity to power price, which may arise in
a market with significant new build, was modelled. This scenario
indicated that, despite a modelled 10% reduction in power price,
there remained significant headroom on the carrying value in the
Group’s generating wind assets.
Changes to weather patterns resulting from global warming have
also been considered as a potential risk to future returns from the
Group’s wind and hydro assets. Changes to weather patterns could
result in calmer, drier weather patterns, which would reduce
volumes achievable for the Group’s wind and hydro generation
assets (although noting that this would likely lead to capacity
constraints and hence higher prices). This has not been assessed
as an indicator of impairment for operating assets in the UK
and Ireland at 31 March 2025 as there is no currently observable
evidence to support that scenario directly. The Group has
performed a sensitivity to its impairment modelling and has
assessed that a 10% reduction in achievable volume would result in
significant headroom on the carrying value of the UK and Ireland
assets at 31 March 2025 (see
note 15.1
).
Valuation of decommissioning provisions
The Group holds decommissioning provisions for its Renewable
and Thermal generation assets and has retained a 60% share for
the decommissioning of its disposed Gas Production business. As
noted above, the Group has extended the useful economic life of
three of its unabated CCGT assets at 31 March 2025, which are now
expected to operate to 2035 and delay the decommissioning of
these assets. While the Group has modelled scenarios that estimate
the impact of the closure date being brought forward by legislation,
the Group assessed that the perceived risk of legislation being
enacted by 2030 to mandate the closure of unabated assets has
decreased. Similarly, it is expected that fundamental changes to
weather patterns, or the impact of new wind generation capacity,
will not bring forward the decommissioning of the Group’s wind
farm portfolio.
The discounted share of the Gas Production provision is £201.6m
(2024: £219.7m). At 31 March 2025, the impact of discounting
of this retained provision is £80.8m (2024: £68.3m), which is
expected to be incurred across the period to 31 March 2040.
If the decommissioning activity was accelerated due to changes
in legislation, the costs of unwinding the discounting of the
provision would be recognised earlier.
Defined benefit scheme assets
The Group holds defined benefit pension scheme assets at
31 March 2025 which could be impacted by climate-related risks.
The trustees of the schemes have a long term investment strategy
that seeks to reduce investment risk as and when appropriate and
takes into consideration the impact of climate-related risk.
Going Concern and viability statement
The implications of near-term climate-related risks have been
considered in the Group’s Going Concern assessment and viability
statement assessment.
4.2 Accounting judgements and estimation
uncertainties – changes from prior year
As disclosed in note 1.2 above, the Group’s Thermal business unit
reviewed the useful economic life of the Peterhead, Keadby and
Medway CCGT assets at 31 March 2025 and extended their useful
lives to 2035. The change in useful economic life has been applied
prospectively and had no impact on the results for the year ended
31 March 2025. The depreciation charge for the year ending
31 March 2026 will be reduced by £14.2m.
As there is no provision for uncertain tax positions within the
financial statements in the current or comparative years (2024 and
2023: £nil) and noting the Group’s current view on such matters,
this estimation uncertainty has been removed from the disclosure
of estimates that could result in a significant impact on the
financial statements.
There were no other changes to accounting judgements and
estimation uncertainties during the year.
4.3 Other areas of estimation uncertainty
Decommissioning costs
The calculation of the Group’s decommissioning provisions involves
the estimation of quantum and timing of cash flows to settle the
obligation. The Group engages independent valuation experts to
estimate the cost of decommissioning its Renewable, Thermal and
Gas Storage assets every three years based on current technology
and prices. The last independent assessment for the majority of the
Group’s Renewable and Thermal generation assets was performed
in the current year to 31 March 2025. The last formal assessment for
Gas Storage assets was performed in the year to 31 March 2023.
Retained decommissioning costs in relation to the disposed Gas
Production business are periodically agreed with the field operators
and reflect the latest expected economic production lives of
the fields.
The dates for settlement of future decommissioning costs are
uncertain, particularly for the disposed Gas Production business
where reassessment of gas and liquids reserves and fluctuations
in commodity prices can lengthen or shorten the field life.
Further detail on the assumptions applied, including expected
decommissioning dates, and movement in decommissioning costs
during the year are disclosed at note 20
.
4
Accounting judgements and
estimation uncertainty continued
4.1 Significant financial judgements and estimation
uncertainties continued
v. Impact of climate change and the transition to net zero –
financial judgement and estimation uncertainty continued
Valuation of property, plant and equipment, and impairment
assessment of goodwill continued
Notes to the consolidated financial statements continued
for the year ended 31 March 2025
178 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

5
Segmental information
IFRS 8 requires operating segments to be identified based on the Group’s internal reporting to its Chief Operating Decision Maker to assess
operating performance and to make decisions on how to allocate capital. The Group’s Chief Operating Decision Maker has been identified
as the Group Executive Committee. The changes to the Group’s segments in the year are explained in note 1.2 and are due to the integration
of the activities of SSE Enterprise into SSE’s other segments. Comparative information has been re-presented to reflect the change to these
segments. The Group’s “Corporate unallocated” segment is the Group’s residual corporate central costs which are not allocated to individual
segments and includes the contribution from its Enerveo business and the Group’s joint venture investment in Neos Networks Limited.
The types of products and services from which each reportable segment derives its revenues are:
Business Area
Reported Segments
Description
Transmission
SSEN
Distribution
SSEN
Renewables
SSE
Thermal
SSE Thermal
The generation of electricity from thermal plants including CCGTs in the UK and Ireland and the Group’s
Gas Storage
The operation of gas storage facilities in Great Britain, utilising capacity to optimise trading opportunity
SSE Airtricity
The supply of electricity, gas and energy related services to residential and business customers in the
179 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

As referred to in note 3, the internal measure of profit reported to the Board is “adjusted profit before interest and tax” or “adjusted
operating profit” which is arrived at before exceptional items, the impact of financial instruments measured under IFRS 9, share of profits
attributable to non-controlling interests, adjustments to the Gas Production decommissioning provision, the impact of depreciation on fair
value uplifts and after the removal of taxation and interest on profits from joint ventures and associates.
Analysis of revenue, operating profit, capital expenditure and earnings before interest, taxation, depreciation and amortisation (“EBITDA”) by
segment is provided on the following pages. Revenue and profit before taxation arise primarily from operations within the UK and Ireland.
5.1 Segmental information disclosure
(i) Revenue by segment
revenue
(i)
revenue
(i)
SSEN Transmission
807.0
–
807.0
885.2
–
885.2
SSEN Distribution
1,513.6
66.9
1,580.5
1,004.0
45.9
1,049.9
SSE Renewables
354.9
1,243.8
1,598.7
335.5
876.3
1,211.8
SSE Thermal
633.0
1,251.3
1,884.3
599.4
3,143.0
3,742.4
Gas storage
17.6
3,305.4
3,323.0
11.2
2,948.4
2,959.6
SSE Business Energy
2,692.4
76.3
2,768.7
3,246.7
53.0
3,299.7
SSE Airtricity
1,909.1
163.0
2,072.1
2,021.2
170.0
2,191.2
Gross trading
16,542.4
6,074.6
22,617.0
15,074.3
7,951.4
23,025.7
Optimisation trades
(14,547.0)
36.8
(14,510.2)
(12,785.1)
(2,674.2)
(15,459.3)
SSE Energy Markets
1,995.4
6,111.4
8,106.8
2,289.2
5,277.2
7,566.4
208.9
294.5
503.4
64.8
250.9
315.7
Total SSE Group
10,131.9
12,512.6
22,644.5
10,457.2
12,764.7
23,221.9
(i) Significant inter-segment revenue is derived from the sale of power and stored gas from SSE Renewables, SSE Thermal and Gas Storage to SSE Energy Markets; use of system
income received by SSEN Distribution from SSE Business Energy; SSE Business Energy provides internal heat and light power supplies to other Group companies; SSE Energy
Markets provides power, gas and other commodities to SSE Business Energy and SSE Airtricity; and Corporate unallocated provides corporate and infrastructure services to all
segments as well as third parties. All are provided at arm’s length.
* The comparative segment revenue has been restated. See note 1.2.
5
Segmental information continued
Notes to the consolidated financial statements continued
for the year ended 31 March 2025
180 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Disaggregation of revenue
Revenue from contracts with customers can be disaggregated by reported segment, by major service lines and by timing of revenue
recognition as follows:
SSEN Transmission
783.0
–
–
21.4
–
2.6
–
807.0
–
807.0
SSEN Distribution
1,423.0
–
–
15.4
–
21.7
–
1,460.1
53.5
1,513.6
SSE Renewables
–
97.1
–
121.1
134.4
2.3
–
354.9
–
354.9
SSE Thermal
21.1
583.3
2.8
5.6
–
11.6
–
624.4
8.6
633.0
–
–
–
–
–
–
1 7 . 6
1 7 . 6
–
1 7 . 6
SSE Business Energy
1.8
2,663.5
0.4
–
–
15.4
–
2,681.1
11.3
2,692.4
SSE Airtricity
–
1,887.1
–
–
–
22.0
–
1,909.1
–
1,909.1
SSE Energy Markets
–
–
–
–
1,815.1
180.3
–
1,995.4
–
1,995.4
Corporate unallocated
–
–
–
187.1
–
21.8
–
208.9
–
208.9
Total SSE Group
2,228.9
5,231.0
3.2
350.6
1,949.5
277.7
17.6
10,058.5
73.4
10,131.9
SSEN Transmission
854.1
–
–
18.8
–
12.3
–
885.2
–
885.2
SSEN Distribution
951.2
–
–
14.0
–
16.9
–
982.1
21.9
1,004.0
SSE Renewables
–
58.6
–
104.0
169.5
3.4
–
335.5
–
335.5
SSE Thermal
18.6
531.5
4.7
–
–
44.6
–
599.4
–
599.4
Gas storage
–
–
–
–
–
–
11.2
11.2
–
11.2
SSE Business Energy
–
3,166.1
–
–
–
74.8
–
3,240.9
5.8
3,246.7
SSE Airtricity
–
1,999.2
–
–
–
22.0
–
2,021.2
–
2,021.2
SSE Energy Markets
–
–
–
–
2,136.5
152.7
–
2,289.2
–
2,289.2
Corporate unallocated
–
–
–
–
–
64.8
–
64.8
–
64.8
Total SSE Group
1,823.9
5,755.4
4.7
136.8
2,306.0
391.5
11.2
10,429.5
27.7
10,457.2
* The comparative disaggregation of revenue has been restated. See note 1.2.
181 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Included within trade and other receivables (note 18) is £521.1m (2024: £663.7m) of unbilled energy income. Included within trade and
other payables (note 19 ) is £292.2m (2024: £253.6m) of contract related liabilities. Contract related assets reflect the Group’s right to
consideration in exchange for goods or services that have transferred to the customer, and contract related liabilities reflect the Group’s
obligation to transfer future goods or services for which the Group has already received consideration.
The Group has not disclosed information related to the transaction price allocated to remaining performance obligations on the basis that the
Group’s contracts either have an original expected duration of less than one year, or permit the Group to recognise revenue as invoiced.
Revenue by geographical location on continuing operations is as follows:
UK
8,490.3
8,797.6
Ireland
1,641.6
1,659.6
10,131.9
10,457.2
(ii) Operating profit/(loss) by segment
SSEN Transmission
322.5
–
–
–
107.5
430.0
–
430.0
SSEN Distribution
736.0
–
–
–
–
736.0
–
736.0
SSE Renewables
1,038.8
(19.7)
(155.3)
–
(0.8)
863.0
(245.4)
617.6
248.5
(0.4)
(6.0)
–
–
242.1
(1.3)
240.8
( 3 7 . 1 )
–
–
–
–
( 3 7 . 1 )
( 8 . 4 )
( 4 5 . 5 )
SSE Business Energy
32.7
–
(0.5)
–
–
32.2
–
32.2
SSE Airtricity
159.4
–
(0.4)
–
–
159.0
(2.0)
157.0
SSE Energy Markets
3 0 . 0
–
–
–
–
3 0 . 0
( 7 2 . 9 )
( 4 2 . 9 )
Corporate unallocated
(89.4)
–
–
17.9
–
(71.5)
(58.2)
(129.7)
Neos Networks
(22.2)
–
(11.1)
–
–
(33.3)
–
(33.3)
Total SSE Group
2,419.2
(20.1)
(173.3)
17.9
106.7
2,350.4
(388.2)
1,962.2
The adjusted operating profit of the Group is reported after removal of the Group’s share of interest, fair value movements on operating
derivatives, the depreciation charged on fair value uplifts and tax from joint ventures and associates, adjustments to the Gas Production
decommissioning provision, operating profit from non-controlling interests and after adjusting for exceptional items and certain
re-measurements (note 7
).
The Group’s share of operating profit from joint ventures and associates has been recognised in the SSE Renewables, SSE Thermal,
SSE Business Energy, SSE Airtricity and Corporate segments.
5
Segmental information continued
5.1 Segmental information disclosure continued
Disaggregation of revenue continued
Notes to the consolidated financial statements continued
for the year ended 31 March 2025
182 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

SSEN Transmission
419.3
–
–
–
139.8
559.1
–
559.1
SSEN Distribution
272.1
–
–
–
–
272.1
–
272.1
SSE Renewables
833.1
(19.0)
(145.7)
–
(0.7)
667.7
(37.4)
630.3
752.5
–
(13.1)
–
–
739.4
(78.6)
660.8
8 2 . 8
–
–
–
–
8 2 . 8
( 1 2 5 . 0 )
( 4 2 . 2 )
SSE Business Energy
55.2
–
–
–
–
55.2
–
55.2
SSE Airtricity
95.0
–
(0.5)
–
–
94.5
–
94.5
SSE Energy Markets
37.5
–
–
–
–
37.5
551.1
588.6
Corporate unallocated
(88.8)
–
–
(9.9)
–
(98.7)
4.6
(94.1)
Neos Networks
(32.3)
–
(10.2)
–
–
(42.5)
(73.6)
(116.1)
Total SSE Group
2,426.4
(19.0)
(169.5)
(9.9)
139.1
2,367.1
241.1
2,608.2
* The comparative operating profit/(loss) by segment information has been restated. See note 1.2.
183 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

(iii) Capital and investment expenditure by segment
SSEN Transmission
20.3
1,253.8
12.8
784.7
SSEN Distribution
35.8
743.9
20.3
636.8
SSE Renewables
291.3
545.8
355.1
433.8
56.9
138.6
83.5
34.6
–
0 . 7
–
0 . 8
SSE Business Energy
28.9
33.5
69.4
22.4
SSE Airtricity
7.1
–
14.1
0.7
SSE Energy Markets
585.1
–
723.9
–
Corporate unallocated
20.1
75.2
35.1
57.6
Total SSE Group
1,045.5
2,791.5
1,314.2
1,971.4
Increase in prepayments related to capital expenditure
–
2 5 4 . 9
–
2 1 5 . 1
Tarbert temporary generation additions
–
5 5 . 7
–
9 3 . 4
(Increase)/decrease in trade payables related to capital expenditure
–
( 1 2 2 . 8 )
2.5
(84.6)
Customer or third party funded additions
–
( 1 6 3 . 4 )
–
(152.0)
Lease asset additions
–
( 1 2 6 . 7 )
–
(73.0)
Allowances and certificates
(335.7)
–
(346.6)
–
Net cash outflow
709.8
2,689.2
970.1
1,970.3
* The comparatives have been restated. See note 1.2.
Capital additions do not include assets acquired in acquisitions, assets acquired under leases or assets constructed that the Group were
reimbursed by way of a government grant. During the prior year construction commenced on a temporary generation plant at the Group’s
Tarbert site for which the Group received reimbursements totalling £55.7m (2024: £93.4m) from government bodies (presented separately
on the cash flow statement). Capital additions to intangible assets includes the cash purchase of emissions allowances and certificates
(2025: £268.0m; 2024: £427.9m). These purchases are presented in the cash flow statement within operating activities as they relate to the
obligation to surrender the allowances and certificates in line with operating volumes of emissions. Other non-cash additions comprise
self-generated renewable obligation certificates.
No segmental analysis of assets requires to be disclosed as this information is not presented to the Board.
5
Segmental information continued
5.1 Segmental information disclosure continued
Notes to the consolidated financial statements continued
for the year ended 31 March 2025
184 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Associates
(i)
certificates
(ii)
additions
(iii)
additions
(iv)
interests
(v)
SSEN Transmission
2 0 . 3
1 , 2 5 3 . 8
–
–
–
( 2 . 8 )
( 3 1 7 . 8 )
9 5 3 . 5
SSEN Distribution
35.8
743.9
–
–
(143.3)
(0.6)
–
635.8
SSE Renewables
291.3
545.8
227.8
–
–
(60.1)
(3.0)
1,001.8
56.9
138.6
31.3
(27.3)
(16.2)
(0.2)
–
183.1
–
0 . 7
–
–
–
–
–
0 . 7
SSE Business Energy
28.9
33.5
15.1
–
(3.9)
(0.5)
–
73.1
SSE Airtricity
7 . 1
–
–
–
–
( 0 . 2 )
–
6 . 9
SSE Energy Markets
585.1
–
–
(576.4)
–
–
–
8.7
Corporate unallocated
20.1
75.2
13.8
–
–
(62.3)
–
46.8
Total SSE Group
1,045.5
2,791.5
288.0
(603.7)
(163.4)
(126.7)
(320.8)
2,910.4
(i) Represents equity or debt funding provided to joint ventures or associates in relation to capital expenditure projects.
(ii) Allowances and certificates consist of purchased carbon emissions allowances and generated or purchased renewable obligations certificates and are not included in the Group’s
Capital Expenditure and Investment alternative performance measure.
(iii) Represents removal of additions to electricity and other networks funded by customer or third party contributions.
(iv) Represents removal of additions in respect of right of use assets recognised on the commencement date of a lease arrangement.
(v) Represents the share of capital additions attributable to non-controlling interests.
Associates
(i)
certificates
(ii)
additions
(iii)
additions
(iv)
interests
(v)
SSEN Transmission
12.8
784.7
–
–
–
(2.5)
(199.4)
595.6
SSEN Distribution
20.3
636.8
–
–
(152.0)
–
–
505.1
SSE Renewables
355.1
433.8
324.5
–
–
(16.3)
–
1,097.1
83.5
34.6
51.4
(59.7)
–
(0.6)
–
109.2
–
0 . 8
–
–
–
–
–
0 . 8
SSE Business Energy
69.4
22.4
–
–
–
(7.2)
–
84.6
S S E A i r t r i c i t y
1 4 . 1
0 . 7
–
–
–
–
–
1 4 . 8
SSE Energy Markets
723.9
–
–
(714.8)
–
–
–
9.1
Corporate unallocated
35.1
57.6
14.1
–
–
(46.4)
–
60.4
Total SSE Group
1,314.2
1,971.4
390.0
(774.5)
(152.0)
(73.0)
(199.4)
2,476.7
* The comparatives have been restated. See note 1.2.
(i) Represents equity or debt funding provided to joint ventures or associates in relation to capital expenditure projects.
(ii) Allowances and certificates consist of purchased carbon emissions allowances and generated or purchased renewable obligations certificates and are not included in the Group’s
Capital Expenditure and Investment alternative performance measure.
(iii) Represents removal of additions to electricity and other networks funded by customer or third party contributions.
(iv) Represents removal of additions in respect of right of use assets recognised on the commencement date of a lease arrangement.
(v) Represents the share of capital additions attributable to non-controlling interests.
185 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

(iv) Items included in operating profit/(loss) by segment
plant and equipment
Amortisation/impairment of intangible assets
SSEN Transmission
142.8
–
142.8
8.3
–
8.3
SSEN Distribution
199.3
–
199.3
14.9
–
14.9
SSE Renewables
184.1
–
184.1
18.6
249.5
268.1
87.6
–
87.6
2.0
–
2.0
0.8
–
0.8
–
–
–
SSE Business Energy
2.9
–
2.9
21.8
–
21.8
SSE Airtricity
0.2
0.5
0.7
7.3
–
7.3
SSE Energy Markets
–
–
–
6.8
–
6.8
Corporate unallocated
49.6
6.7
56.3
29.1
24.3
53.4
Total SSE Group
667.3
7.2
674.5
108.8
273.8
382.6
plant and equipment
Amortisation/impairment of intangible assets
SSEN Transmission
123.8
–
123.8
6.3
–
6.3
SSEN Distribution
182.8
–
182.8
12.0
–
12.0
SSE Renewables
154.9
–
154.9
17.0
–
17.0
106.4
–
106.4
3.4
–
3.4
1 2 . 4
1 3 4 . 1
1 4 6 . 5
–
–
–
SSE Business Energy
2.0
–
2.0
11.5
–
11.5
SSE Airtricity
0.1
–
0.1
5.0
–
5.0
SSE Energy Markets
–
–
–
5.1
–
5.1
Corporate unallocated
45.5
–
45.5
36.7
–
36.7
Total SSE Group
627.9
134.1
762.0
97.0
–
97.0
* The comparatives have been restated. See note 1.2.
5
Segmental information continued
5.1 Segmental information disclosure continued
Notes to the consolidated financial statements continued
for the year ended 31 March 2025
186 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

(v) Earnings before interest, taxation, depreciation and amortisation (“EBITDA”)
SSEN Transmission
322.5
–
151.1
–
(2.3)
(37.8)
433.5
SSEN Distribution
736.0
–
214.2
–
(10.8)
–
939.4
SSE Renewables
1,038.8
(19.7)
202.7
132.5
–
–
1,354.3
248.5
(0.4)
89.6
42.9
–
–
380.6
(37.1)
–
0.8
–
–
–
(36.3)
SSE Business Energy
32.7
–
24.7
1.3
(0.5)
–
58.2
SSE Airtricity
1 5 9 . 4
–
7 . 5
–
–
–
1 6 6 . 9
SSE Energy Markets
3 0 . 0
–
6 . 8
–
–
–
3 6 . 8
Corporate unallocated
(89.4)
–
78.7
–
(0.5)
–
(11.2)
Neos Networks
(22.2)
–
–
49.3
–
–
27.1
Total SSE Group
2,419.2
(20.1)
776.1
226.0
(14.1)
(37.8)
3,349.3
Note that the Group’s “Net Debt to EBITDA” metric is derived after removing the proportionate EBITDA from the following debt-financed
Beatrice, Seagreen and Dogger Bank A joint ventures. This adjustment is £153.3m (2024: £179.6m) resulting in EBITDA on continuing
operations for inclusion in the Debt to EBITDA metric of £3,196.0m (2024: £3,116.0m).
For 31 March 2025 the £776.1m (2024: £724.9m) combined depreciation, impairment and amortisation charges included non-exceptional
impairments net of reversals totalling £20.7m (2024: £33.0m).
S S E N T r a n s m i s s i o n
4 1 9 . 3
–
1 3 0 . 1
–
( 2 . 0 )
( 3 2 . 5 )
5 1 4 . 9
SSEN Distribution
272.1
–
194.8
–
(9.9)
–
457.0
SSE Renewables
833.1
(19.0)
171.9
121.6
–
–
1,107.6
752.5
–
109.6
40.6
–
–
902.7
8 2 . 8
–
1 2 . 4
–
–
–
9 5 . 2
SSE Business Energy
55.2
–
13.7
–
(0.5)
–
68.4
S S E A i r t r i c i t y
9 5 . 0
–
5 . 1
–
–
–
1 0 0 . 1
SSE Energy Markets
37.5
–
5.1
–
–
–
42.6
Corporate unallocated
(88.8)
–
82.2
–
(0.6)
–
(7.2)
Neos Networks
(32.3)
–
–
46.6
–
–
14.3
Total SSE Group
2,426.4
(19.0)
724.9
208.8
(13.0)
(32.5)
3,295.6
* The comparative adjusted EBITDA by segment information has been restated. See note 1.2.
187 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

6
Other operating income and cost
Group operating profit on continuing operations is stated after charging/(crediting) the following items:
Depreciation of property, plant and equipment on continuing operations
(i)
(note 14)
665.6
628.6
Net exceptional gains on acquisitions and disposals (note 7)
–
(4.6)
Exceptional charges (continuing operations) (note 7)
309.7
270.9
Research costs
17.2
12.7
Lease charges
(ii)
14.3
11.2
Release of deferred income in relation to capital grants and historic customer contributions
(14.1)
(13.0)
Government grant income
(iii)
(59.3)
(107.7)
Gain on disposals (non-exceptional)
(iv)
(47.9)
(9.0)
(i) Does not include exceptional impairment charges.
(ii) Represents the expense of leases with a duration of twelve months or less and leases for assets which are deemed “low value” under the principles of IFRS 16. In addition,
variable lease payments, which are not included within the measurement of lease liabilities as they do not depend on an index or rate, of £9.8m (2024: £6.2m) were charged in the
current year.
(iii) During the year the Group received £59.3m (2024: £107.7m) of income from government funded customer support schemes. All amounts received were passed to the Group’s energy
customers in the UK and Republic of Ireland. Amounts received have been classed as other operating income in line with the Group’s accounting policies for government grants.
(iv) The Group recognised a gain of £47.9m in relation to the sale of land at Ferrybridge £38.8m, the sale of the gas metering business £7.4m and £1.7m (2024: £9.0m) from
investments in associates during the current financial year of which £1.7m (2024: £14.9m) was received in cash.
Auditor’s remuneration
Audit of these financial statements
0.4
0.4
Audit of financial statements of subsidiaries of the Company
5.3
5.1
Audit related assurance services
0.3
0.3
Other services fees
0.3
0.2
5.9
5.6
Total remuneration paid to auditor
6.3
6.0
Audit fees incurred in the current year include scope changes for non-recurring items and overruns of £0.8m (2024: £0.9m) related to
the prior year audit. Assurance and other service fees incurred in the year were £0.6m (2024: £0.5m). Audit related assurance services
include fees incurred in relation to regulatory accounts and returns required by Ofgem, comfort letters in connection with funding and
debt issuance and ESG assurance. A description of the work of the Audit Committee is set out on pages 113 to 119
and includes an
explanation of how auditor objectivity and independence is safeguarded when non-audit services are provided by the auditors.
Notes to the consolidated financial statements continued
for the year ended 31 March 2025
188 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

7
Exceptional items and certain re-measurements
Asset impairments and related charges
(293.6)
(270.9)
Provisions for restructuring and other liabilities
(16.1)
Net gains on acquisitions/disposals of businesses and other assets
0.3
4.9
Total exceptional items
(309.4)
(266.0)
Movement on operating derivatives (note 24)
(49.0)
452.2
Movement in fair value of commodity stocks
(8.4)
9.1
Movement on financing derivatives (note 24)
12.8
6.1
Share of movement on derivatives in jointly controlled entities (net of tax)
(21.1)
46.1
Total certain re-measurements
(65.7)
513.5
Exceptional items and certain re-measurements on continuing operations before taxation
(375.1)
247.5
Taxation on other exceptional items
29.7
23.3
Taxation on certain re-measurements
4.0
(115.0)
Total taxation
33.7
(91.7)
Total exceptional items and certain re-measurements on continuing operations after taxation
(341.4)
155.8
Exceptional items and certain re-measurements are disclosed across the following categories within the income statement:
Movement on operating derivatives (note 24)
(49.0)
452.2
Movement in fair value of commodity stocks
(8.4)
9.1
(57.4)
461.3
Asset impairments and reversals
(293.6)
(270.9)
Exceptional restructuring provisions and charges
(16.1)
–
(309.7)
(270.9)
Net gains on acquisition/disposals of businesses and other assets
–
4.6
–
4.6
Share of movement on derivatives in jointly controlled entities (net of tax)
(21.1)
46.1
(21.1)
46.1
Operating (loss)/profit
(388.2)
241.1
Movement on financing derivatives (note 24)
12.8
6.1
Interest income on deferred consideration receipt
0.3
0.3
13.1
6.4
Profit before tax on continuing operations
(375.1)
247.5
189 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

7.1 Exceptional items
Exceptional items in the year ended 31 March 2025
In the year to 31 March 2025, the Group recognised a net pre-tax exceptional charge of £309.4m (2024: £266.0m), which is primarily
due to an exceptional pre-tax impairment charge of £249.5m relating to goodwill and intangible assets in the Group’s Southern Europe
Renewables development platform, exceptional Group restructuring costs of £46.7m, exceptional costs related to Enerveo Limited
of £13.5m and a final exceptional credit of £0.3m relating to the part disposal of Slough Multifuel in the year ended 31 March 2021.
The net exceptional (charges)/credits recognised can be summarised as follows:
Southern Europe impairment (i)
(174.7)
(74.8)
–
–
–
(249.5)
Restructuring costs (ii)
(20.5)
(3.8)
(7.2)
(6.5)
(8.7)
(46.7)
E n e r v e o ( i i i )
–
–
–
–
( 1 3 . 5 )
(13.5)
O t h e r c r e d i t s ( i v )
–
–
–
–
0 . 3
0.3
Total exceptional items
(195.2)
(78.6)
(7.2)
(6.5)
(21.9)
(309.4)
i) Southern Europe goodwill and development assets – impairment charge
The Group has recognised a pre-tax impairment charge of £249.5m against the carrying value of its Southern Europe goodwill and
intangible assets, offset by the release of a deferred tax liability of £23.2m. See note 15.1 for further details of the pre-tax impairment
and note 10.3 for the release of the deferred tax liability.
ii) Restructuring costs
In the second half of the financial year the Group announced a Group Operating Model and Efficiency Review, which is expected to
conclude in the first half of the 2026 financial year. During the current year, costs totalling £46.7m have been recognised, including the
impairment of £19.8m of goodwill recognised on acquisition of The Energy Solutions Group Limited (see note 15), the impairment of
£11.1m of stranded IT assets and £13.8m of redundancy costs.
iii) Enerveo
On 3 October 2024, SSE entered into an agreement with HUK 144 Limited to dispose of the Infrastructure Solutions (“IS”) component of
Enerveo for consideration of £1 less costs. At 30 September 2024, the Group assessed that the business met the criteria to be classified
as held for sale. During the second half of the financial year, the transaction to dispose of the business failed to complete, resulting in
the business no longer being classified as held for sale at 31 March 2025. The Group has recognised an exceptional charge of £13.5m,
comprising an impairment of £12.5m to write-down the value of the assets to their recoverable value, and costs of £1.0m related to the
transaction with HUK 144 Limited. The current year charges have been treated as exceptional to align the treatment with previously
recognised exceptional charges associated with the Enerveo business.
iv) Other credits
At 31 March 2025, the Group recognised a final exceptional credit of £0.3m (2024: £0.3m) relating to the unwind of discounting on deferred
consideration recognised on the part disposal of SSE Slough Multifuel Limited in the year ending 31 March 2021. The deferred consideration
of £7.0m was paid on commissioning of the plant.
Exceptional items in the year ended 31 March 2024
In the year to 31 March 2024, the Group recognised a net exceptional charge of £266.0m, which was primarily due to an exceptional
impairment charge related to the Group’s gas storage assets of £134.1m, an exceptional impairment of £63.2m against the carrying value of
the Group’s investment in Triton Power Holdings Limited and an exceptional impairment charge of £73.6m against the Group’s investment
in Neos Networks.
i) Triton Power 50% joint venture – investment impairment charge
At 31 March 2024 the Group recognised an impairment charge of £63.2m against the carrying value of the Group’s investment in Triton
Power Holdings Limited, reflecting future market price assumptions (see note 15.2).
ii) Gas Storage – impairment charge
The Group performed a formal impairment review at 31 March 2024 to reassess the carrying value of its Gas Storage operations at
Aldbrough and Atwick (see note 15.2). As a result of the assessment, the Group recognised an exceptional impairment charge of £85.7m
to the carrying value of the assets at Aldbrough and £48.4m to the carrying value of the assets at Atwick.
iii) Neos Networks 50% joint venture – investment impairment charge
At 31 March 2024, the Group performed a formal impairment assessment on the carrying value of its 50% joint venture investment,
including shareholder loan balances, in Neos Networks Limited. The assessment indicated that the recoverable amount of the investment
and shareholder loan receivable balances were impaired by £73.6m. See note 15.2 for further details of this impairment.
iv) Enerveo acquisition
On 22 March 2024, the Group purchased the entire share capital of Enerveo from Aurelius Antelope Limited (“Aurelius”) for cash
consideration of £1.0m. Completion of the transaction resulted in an exceptional credit of £4.6m being recognised on acquisition during
the year ended 31 March 2024.
Taxation
The Group has separately recognised the tax effect of the exceptional items summarised above.
7
Exceptional items and certain re-measurements continued
Notes to the consolidated financial statements continued
for the year ended 31 March 2025
190 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

7.2 Certain re-measurements
The Group, through its SSE Energy Markets business, enters into forward commodity purchase (and sales) contracts to meet the future
demand requirements of its SSE Business Energy and SSE Airtricity supply businesses, to optimise the value of its SSE Renewables and
SSE Thermal power generation assets or to conduct other trading subject to the value at risk limits set out by the Energy Markets Risk
Committee. Certain of these contracts (predominantly electricity, gas and other commodity purchase contracts) are determined to be
derivative financial instruments under IFRS 9 “Financial Instruments” and as such are required to be recorded at their fair value. Conversely,
commodity contracts that are not financial instruments under IFRS 9 (predominantly electricity sales contracts) are accounted for as
“own use” contracts and are not recorded at their fair value. Inventory purchased to utilise excess capacity ahead of an optimised sale in the
market by the Gas Storage business is held as trading inventory at fair value with changes in value recognised within “certain re-measurements”.
In addition, the mark-to-market valuation movements on the Group’s contracts for difference contracts entered into by SSE Renewables
that are not designated as government grants, and which are measured as Level 3 fair value financial instruments, are also included within
“certain re-measurements”.
Changes in the fair value of those commodity contracts designated as financial instruments and trading inventory are therefore reflected
in the income statement. The Group shows the change in the fair value of these forward contracts and trading inventory separately as
“certain re-measurements”, as the Group does not believe this mark-to-market movement is relevant to the underlying performance of its
businesses.
At 31 March 2025, changes in global commodity markets and in SSE’s contractual positions have resulted in a net mark-to-market re-
measurement on commodity contracts designated as financial instruments, contracts for difference contracts and trading inventory of
£57.4m (loss) (2024: £461.3m (gain)). The net IFRS 9 position on operating derivatives at 31 March 2025 is a liability of £3.9m (2024:
£51.4m asset).
The mark-to-market loss in the year has resulted in a deferred tax credit of £9.3m (2024: £115.0m charge), which has been reported
separately as part of certain re-measurements. In addition, the Group has recognised gains of £12.8m (2024: £6.1m gain) on the re-
measurement of certain interest rate and foreign exchange contracts through the income statement, gains on the re-measurement of
cash flow hedge accounted contracts of £48.1m (2024: £6.5m gain) in other comprehensive income and a loss on the equity share of the
re-measurement of cash flow hedge accounted contracts in joint ventures of £16.7m (2024: £40.9m loss).
The re-measurements arising from IFRS 9 and the associated deferred tax are disclosed separately to aid understanding of the underlying
performance of the Group.
8
Directors and employees
8.1 Staff costs
Wages and salaries
799.6
722.5
Social security costs
92.4
84.8
Share-based remuneration
24.5
22.0
Pension costs (note 23)
118.5
109.1
1,035.0
938.4
Less: capitalised as property, plant and equipment or intangible assets
(299.1)
(238.0)
735.9
700.4
8.2 Employee numbers
Numbers employed at 31 March
(i)
15,824
14,980
15,824
14,980
(i) The number of employees at 31 March 2025 includes 944 employees of Enerveo (2024: 1,089).
191 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

The average number of people employed by the Group (including Executive Directors) during the year was:
SSEN Transmission
2,082
1,568
SSEN Distribution
4,818
4,463
SSE Renewables
2,142
1,933
718
634
97
92
SSE Business Energy
1,997
1,876
SSE Airtricity
981
953
SSE Energy Markets
349
317
Corporate Services
(i)
2,443
1,422
Total SSE Group
15,627
13,258
(i) The increase in Corporate Services includes an average of 920 employees of Enerveo, following the Group’s purchase of the business on 22 March 2024 (see note 12.1).
* The comparative has been restated to reallocate 974 average employees from SSE Enterprise to SSE Business Energy (926) and SSE Thermal (48).
8.3 Remuneration of key management personnel
The remuneration of the key management personnel of the Group (excluding amounts equivalent to pension value increases as set out in
the Remuneration Report), is set out below in aggregate.
2025
2024
Salaries and short-term employee benefits
5.1
5.4
10.5
4.7
4.7
9.4
Social security costs
1.0
1.0
2.0
1.0
0.9
1.9
Post-employment benefits
0.6
0.3
0.9
1.0
0.2
1.2
Share-based benefits
2.7
3.4
6.1
1.8
5.9
7.7
9.4
10.1
19.5
8.5
11.7
20.2
Key management personnel are responsible for planning, directing and controlling the operations of the Group and are designated Persons
Discharging Management Responsibilities (“PDMRs”) in line with the market abuse regulation definition. The Group has three (2024: three)
Executive Directors. Executive committee members included in the table above at 31 March 2025 are the Managing Director of SSEN
Distribution; the Managing Director of SSEN Transmission; the Managing Director of SSE Renewables; the Managing Director of Thermal;
the Director of Corporate Affairs and Strategy; the Director of Human Resources and the Group’s General Counsel.
Further information about the remuneration of individual Directors is provided in the audited part of the Remuneration Report.
Information regarding transactions with post-retirement benefit plans is included in
note 23
.
Non-Executive Directors were paid fees of £1.4m during the current year (2024: £1.3m).
8
Directors and employees continued
8.2 Employee numbers continued
Notes to the consolidated financial statements continued
for the year ended 31 March 2025
192 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

9
Finance income and costs
Recognised in income statement
2025
2024
Interest income from short term deposits
24.8
–
24.8
60.3
–
60.3
Interest on pension scheme assets
(i)
20.7
–
20.7
26.2
–
26.2
Joint ventures and associates
118.8
–
118.8
78.4
–
78.4
Other receivable
30.5
0.3
30.8
33.9
0.3
34.2
149.3
0.3
149.6
112.3
0.3
112.6
Total finance income
194.8
0.3
195.1
198.8
0.3
199.1
Bank loans and overdrafts
(61.1)
–
(61.1)
(77.4)
–
(77.4)
Other loans and charges
(309.9)
–
(309.9)
(274.3)
–
(274.3)
Notional interest arising on discounted provisions
(27.2)
–
(27.2)
(25.2)
–
(25.2)
and liabilities
(0.2)
–
(0.2)
–
–
–
Lease charges
(26.9)
–
(26.9)
(25.8)
–
(25.8)
Less: interest capitalised
(ii)
106.1
–
106.1
84.4
–
84.4
Total finance costs
(319.2)
–
(319.2)
(318.3)
–
(318.3)
or liabilities at fair value through profit or loss
–
12.8
12.8
–
6 . 1
6 . 1
Net finance costs
(124.4)
13.1
(111.3)
(119.5)
6.4
(113.1)
Finance income
194.8
13.1
207.9
198.8
6.4
205.2
Finance costs
(319.2)
–
(319.2)
(318.3)
–
(318.3)
Net finance costs
(124.4)
13.1
(111.3)
(119.5)
6.4
(113.1)
(i) The interest income on net pension assets for the year ended 31 March 2025 of £20.7m (2024: £26.2m) represents the interest earned under IAS 19.
(ii) The capitalisation rate applied in determining the amount of borrowing costs to capitalise in the year was 4.12% (2024: 4.20%).
Adjusted net finance costs are arrived at after the following adjustments:
Net finance costs
(111.3)
(113.1)
Share of interest from joint ventures and associates
(164.3)
(110.7)
Movement on financing derivatives (note 24)
(12.8)
(6.1)
Exceptional item
(0.3)
(0.3)
Share of net finance cost attributable to non-controlling interests
7.7
4.7
Adjusted net finance costs
APM
(281.0)
(225.5)
Notional interest arising on discounted provisions
27.2
25.2
Lease charges
26.9
25.8
Hybrid coupon payment (note 22.5(iii))
(73.7)
(73.1)
Adjusted net finance costs for interest cover calculations
APM
(300.6)
(247.6)
Recognised in other comprehensive income
Gain on effective portion of cash flow hedges (before tax)
48.1
6.5
Share of joint venture and associate loss on effective portion of cash flow hedges (before tax)
(22.3)
(54.5)
Total recognised in other comprehensive income
25.8
(48.0)
* The comparatives have been restated to take account of the removal of the adjustment to exclude net pension scheme interest costs from the Group’s APM.
See note 1.2 for more detail.
193 SSE plc Annual Report 2025
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10
Taxation
10.1 Analysis of charge recognised in the income statement
2025
2024
Corporation tax
247.3
(5.3)
242.0
366.1
(36.5)
329.6
Adjustments in respect of previous years
(8.3)
–
(8.3)
(25.6)
31.8
6.2
Total current tax
239.0
(5.3)
233.7
340.5
(4.7)
335.8
Current year
293.6
(28.4)
265.2
155.3
128.2
283.5
Adjustments in respect of previous years
19.1
–
19.1
23.2
(31.8)
(8.6)
Total deferred tax
312.7
(28.4)
284.3
178.5
96.4
274.9
Total taxation charge/(credit)
551.7
(33.7)
518.0
519.0
91.7
610.7
The Group has separately recognised the tax effect of the exceptional items and certain re-measurements summarised above.
SSE continues to be accredited with the Fair Tax Mark. As a consequence, these financial statements include a number of areas of
enhanced disclosure which have been provided in order to develop stakeholder understanding of the tax the Group pays and the reported
total taxation charge along with additional commentary on the main reconciling items.
These can be seen at section A2
.
The majority of the Group’s profits are earned in the UK, with the standard rate of UK corporation tax being 25% for the year to 31 March
2025 (2024: 25%). Profits earned by the Group in the Republic of Ireland are taxable at either 12.5% or 25%, depending upon the nature of
the income. While the Group has activities in other jurisdictions outside of the UK and Republic of Ireland, tax paid on those development
activities is currently immaterial.
Change in UK corporation tax rates
There are no announced or enacted changes in corporation tax rates in the year ended 31 March 2025.
Finance Act (No.2) 2023 introduced legislation in respect of Multinational Top-up Tax in line with OECD BEPS pillar 2 principles, which
came into force in the current year. Similar draft legislation has been introduced in the Republic of Ireland and other EU jurisdictions.
The Group has carried out a group wide tax rate review, in line with the BEPS pillar 2 legislation and guidance, and has found there is no
impact as tax rates in the countries in which the Group operates exceed 15%. The Group has applied the exemption from recognising and
disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes as required by the amendments to IAS 12
“International Tax Reform – Pillar Two Model Rules”, which were issued in May 2023.
The “adjusted current tax charge” and the “adjusted effective rate of tax”, which are presented in order to best represent underlying
performance by making similar adjustments to the “adjusted profit before tax” measure, are arrived at after the following adjustments:
(restated
*
)
Group tax charge and effective rate
518.0
29.4
610.7
25.6
Add: reported deferred tax charge and effective rate
(284.3)
(16.1)
(274.9)
(11.5)
Reported current tax charge and effective rate
233.7
13.3
335.8
14.1
Effect of adjusting items
(2.4)
1.2
Reported current tax charge and effective rate on adjusted basis
233.7
10.9
335.8
15.3
Share of current tax from joint ventures and associates
45.1
2.2
38.5
1.8
Current tax credit on exceptional items
5.3
0.2
4.7
0.2
Share of current tax attributable to non-controlling interests
12.3
0.6
(8.0)
(0.4)
Adjusted current tax charge and effective rate
APM
296.4
13.9
371.0
16.9
* The comparative adjusted effective rate of tax has been restated. See note 1.2.
Notes to the consolidated financial statements continued
for the year ended 31 March 2025
194 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Tax charge/(credit) recognised in other comprehensive income:
Pension scheme actuarial movements
13.2
(38.8)
Cash flow and net investment hedge movements
11.3
0.3
24.5
(38.5)
All tax recognised through other comprehensive income is deferred tax.
See further Taxation disclosures at A2
10.2 Current tax assets and liabilities
Corporation tax assets
(29.7)
(25.8)
10.3 Deferred taxation
The following are the deferred tax liabilities and assets recognised by the Group and movements thereon during the current and prior
reporting periods:
At 31 March 2023
1,255.1
(90.1)
135.3
–
(1.2)
1,299.1
Charge/(credit) to income statement
145.2
123.3
8.9
–
(2.5)
274.9
under IAS 12
79.5
–
–
(79.5)
–
–
Charge/(credit) to other comprehensive (loss)/income
–
0.3
(38.8)
–
–
(38.5)
C h a r g e t o e q u i t y
–
–
–
–
1 . 8
1 . 8
Exchange adjustment
(0.5)
–
–
–
–
(0.5)
At 31 March 2024
1,479.3
33.5
105.4
(79.5)
(1.9)
1,536.8
Charge/(credit) to income statement
306.0
(5.0)
8.0
3.7
(28.4)
284.3
Transfer of deferred tax on derivatives
–
(18.3)
–
–
18.3
–
under IAS 12
–
–
–
(17.2)
17.2
–
Charge to other comprehensive income
–
11.3
13.2
–
–
24.5
Charge to equity
–
–
–
–
2.2
2.2
Exchange adjustment
(3.3)
–
–
–
–
(3.3)
At 31 March 2025
1,782.0
21.5
126.6
(93.0)
7.4
1,844.5
Certain deferred tax assets and liabilities have been offset, including the asset balances analysed in the tables above. The following is an
analysis of the deferred tax balances (after offset) for financial reporting purposes:
Deferred tax liabilities
2,000.9
1,692.3
Deferred tax assets
(156.4)
(155.5)
Net deferred tax liabilities
1,844.5
1,536.8
In total there are £20.6m (2024: £9.3m) of unrecognised deferred tax assets. The Group has not recognised a deferred tax asset of £2.9m
(2024: £5.6m) on trading losses of £23.7m (2024: £44.5m) in the Republic of Ireland. The Group has not recognised deferred tax assets
of £17.7m (2024: £3.5m) in respect of losses of £74.6m (2024: £14.4m) in Spain, France, Italy and Greece. These assets have not been
recognised as the Group is uncertain that there will be sufficient future profits against which to utilise the assets. There is no time limit for
expiry of the losses or allowances to which they relate.
No deferred tax is recognised on the unremitted earnings of overseas subsidiaries, associates and joint ventures. As the earnings are
continually reinvested by the Group, no tax is expected to be payable on them in the foreseeable future. Total unremitted earnings at
31 March 2025 were £971.1m (2024: £827.8m).
195 SSE plc Annual Report 2025
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11
Dividends and earnings per share
11.1 Ordinary dividends
2025
Total
2024
Total
Interim – year ended 31 March 2025
233.7
43.4
21. 2
–
–
–
Final – year ended 31 March 2024
437.3
225.5
40.0
–
–
–
Interim – year ended 31 March 2024
–
–
–
218.3
8.8
20.0
Final – year ended 31 March 2023
–
–
–
738.1
29.8
67.7
671.0
268.9
956.4
38.6
The final dividend of 40.0p per ordinary share declared in respect of the financial year ended 31 March 2024 (2023: 67.7p) was approved
at the Annual General Meeting on 18 July 2024 and was paid to shareholders on 19 September 2024. Shareholders were able to elect to
receive ordinary shares credited as fully paid instead of the cash dividend under the terms of the Company’s scrip dividend scheme.
For dividends paid in relation to the financial year ended 31 March 2022 and in relation to the subsequent years to 31 March 2027, the
Group’s approved policy is to repurchase shares to reduce the scrip’s dilutive effects, if the scrip take-up exceeds 25% of the full year
dividend in any given year. The overall scrip dividend take-up for the financial year ended 31 March 2024 was 35.7% (March 2023: 18.0%
– no scrip buyback) and therefore under the share buyback programme 3.8m of shares were repurchased during the year ended 31 March
2025 for total consideration of £71.7m (including stamp duty and commission).
An interim dividend of 21.2p per ordinary share (2024: 20.0p) was declared and paid on 27 February 2025 to those shareholders on the
SSE plc share register on 3 January 2025. Shareholders were able to elect to receive ordinary shares credited as fully paid instead of the
interim cash dividend under the terms of the Company’s scrip dividend scheme.
The proposed final dividend of 43.0p per ordinary share based on the number of issued ordinary shares at 31 March 2025 is subject to
approval by shareholders at the Annual General Meeting and has not been included as a liability in these financial statements. Based on
shares in issue at 31 March 2025, this would equate to a final dividend of £477 .8m.
11.2 Basic and adjusted earnings per share
The calculation of basic earnings per ordinary share at 31 March 2025 is based on the net profit attributable to ordinary shareholders and a
weighted average number of ordinary shares outstanding during the year ended 31 March 2025.
Adjusted earnings per share has been calculated by excluding the charge for deferred tax, retained Gas Production decommissioning costs,
the depreciation charged on fair value uplifts, the share of profit attributable to non-controlling interests and the impact of exceptional
items and certain re-measurements (note 7).
2025
2025
2024
2024
used to calculate adjusted EPS
1,189.4
108.2
1,710.5
156.7
Exceptional items and certain re-measurements (note 7)
341.4
31.1
(155.8)
(14.3)
Basic excluding exceptional items and certain re-measurements
1,530.8
139.3
1,554.7
142.4
Decommissioning Gas Production
(17.9)
(1.6)
9.9
0.9
Depreciation charge on fair value uplifts
20.1
1.8
19.0
1.7
Deferred tax
312.7
28.4
178.5
16.3
Deferred tax from share of joint ventures and associates
(36.1)
(3.2)
20.3
1.9
Deferred tax on non-controlling interest
(41.5)
(3.8)
(25.6)
(2.3)
Adjusted
APM
1,768.1
160.9
1,756.8
160.9
Reported earnings per share
2025
2025
2024
2024
Basic
1,189.4
108.2
1,710.5
156.7
Dilutive effect of outstanding share options
–
( 0 . 1 )
–
( 0 . 2 )
Diluted
1,189.4
108.1
1,710.5
156.5
Notes to the consolidated financial statements continued
for the year ended 31 March 2025
196 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

The weighted average number of shares used in each calculation is as follows:
For basic and adjusted earnings per share
1,099.2
1,091.8
Effect of exercise of share options
1.1
1.5
For diluted earnings per share
1,100.3
1,093.3
11.3 Dividend cover
The Group’s adjusted dividend cover metric is calculated by comparing adjusted earnings per share on continuing operations to the
projected dividend per share payable to ordinary shareholders.
Reported earnings per share (continuing operations)
108.2
64.2
1.69
156.7
60.0
2.61
Adjusted earnings per share (continuing
operations)
APM
(restated*)
160.9
64.2
2.51
160.9
60.0
2.68
* The comparative adjusted earnings per share and dividend cover (times) have been restated. See note 1.2.
12
Acquisitions and disposals
12.1 Acquisitions
Current year acquisitions
There have been no significant acquisitions in the current year.
Other asset acquisitions
During the year ended 31 March 2025, the Group made other smaller asset acquisitions (of special purpose vehicles as opposed to
businesses) for cash consideration of £17.1m.
Prior year acquisition
Enerveo acquisition
On 22 March 2024, the Group completed the acquisition of Enerveo Limited (‘Enerveo’) from Aurelius Antelope Limited (‘Aurelius’) for cash
consideration of £1.0m. Enerveo (formerly named SSE Contracting Limited) is a former subsidiary of the Group that was disposed to
Aurelius on 30 June 2021. The reacquisition of Enerveo resulted in a net gain of £4.6m, which was recognised as an exceptional item.
12.2 Disposals
(i) Significant disposals
Current and prior year disposals
There have been no significant disposals in the current and prior year.
197 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

13
Intangible assets
At 31 March 2023
1,150.5
682.4
681.6
1,199.5
3,714.0
Additions
–
7 7 4 . 5
3 6 9 . 7
1 7 0 . 0
1 , 3 1 4 . 2
Transfer (to)/from property plant and equipment (note 14)
–
–
(50.7)
1.7
(49.0)
Disposals/utilised
–
(474.3)
(3.9)
(1.1)
(479.3)
Exchange adjustments
(19.9)
(0.4)
(6.1)
–
(26.4)
At 31 March 2024
1,130.6
982.2
990.6
1,370.1
4,473.5
Additions
–
603.7
307.1
134.7
1,045.5
Transfer (to)/from property plant and equipment (note 14)
–
–
(170.0)
3.1
(166.9)
Disposals/utilised
(iii)
(0.5)
(965.6)
(22.1)
(25.6)
(1,013.8)
Exchange adjustments
(13.9)
(0.1)
(8.8)
2.2
(20.6)
At 31 March 2025
1,116.2
620.2
1,096.8
1,484.5
4,317.7
At 31 March 2023
(192.9)
(227.5)
(157.5)
(720.9)
(1,298.8)
Charge for the year
–
–
–
(63.3)
(63.3)
Transfer to property plant and equipment (note 14)
–
–
1.5
–
1.5
Disposals/utilised
–
–
–
0.1
0.1
Non-exceptional impairment charge
(i)
–
–
(15.4)
(18.3)
(33.7)
At 31 March 2024
(192.9)
(227.5)
(171.4)
(802.4)
(1,394.2)
Charge for the year
–
–
–
(89.8)
(89.8)
Disposals/utilised
(iii)
–
–
–
21.3
21.3
Exceptional impairment charge
(ii)
(195.2)
–
(74.8)
(3.8)
(273.8)
Non-exceptional impairment charge
(i)
–
–
(10.9)
(8.1)
(19.0)
Exchange adjustments
(0.4)
–
(0.3)
1.7
1.0
At 31 March 2025
(388.5)
(227.5)
(257.4)
(881.1)
(1,754.5)
At 31 March 2025
727.7
392.7
839.4
603.4
2,563.2
At 31 March 2024
937.7
754.7
819.2
567.7
3,079.3
At 1 April 2023
957.6
454.9
524.1
478.6
2,415.2
(i) The non-exceptional impairments in both years relate to assets where future development became uncertain or untenable in the year. The impairment of these items does not
meet the Group’s definition of an exceptional item, therefore they are included in the adjusted and reported results of the Group.
(ii) The exceptional impairment charge recognised during the current year primarily relates to the impairment of Southern Europe goodwill (£174.7m) and development assets
(£74.8m), and goodwill relating to The Energy Solutions Group Limited (£19.8m). Further commentary of the impairment charge is included in note 15.
(iii) Other intangible asset disposals in the current year primarily relate to the derecognition of Electric Vehicle charging hub development assets on the formation of the 50:50 Source
EV joint venture with TotalEnergies Marketing UK Limited (see note 16).
Intangible assets have been analysed as current and non-current as follows:
Current
392.7
754.7
Non-current
2,170.5
2,324.6
2,563.2
3,079.3
Notes to the consolidated financial statements continued
for the year ended 31 March 2025
198 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

(i) Goodwill
At inception, goodwill arising from business combinations is allocated to cash-generating units (CGUs) or groups of CGUs for impairment
testing purposes. Certain goodwill valuations have changed in the current year following retranslation. Commentary on the impairment
testing of the related CGUs, with the exception of two historic balances totalling £8.2m, is included in
note 15
.
A summary of the goodwill allocated to CGUs and the Group’s operating segments is presented below:
CGU group
Operating Segment
Great Britain and Ireland wind farms
SSE Renewables
287.0
288.8
SSE Pacifico
1
SSE Renewables
187.3
191.5
SSE Southern Europe
2
SSE Renewables
233.3
416.8
Energy Solutions
3
SSE Business Energy
11.9
32.4
Ireland Supply
4
SSE Airtricity
8.2
8.2
727.7
937.7
1 Relates to the acquisition on 29 October 2021 of an 80% equity interest in the Group’s Japanese offshore wind development platform.
2 The SSE Southern Europe CGU relates to the acquisition on 1 September 2022 of the Group’s renewable platform in Spain, France, Greece and Italy. The Group has assessed that
the four CGUs support the carrying value of the goodwill, which has been impaired by £174.7m (2024: £nil) in the current year (note 15).
3 Energy Solutions is the remaining goodwill that arose on the acquisition of The Energy Solutions Group Limited of £11.9m (2024: £31.7m), which was impaired by £19.8m in the
current year (see note 15.1). An impairment of £0.7m was recognised in relation to SSE Airtricity Energy Services (NI) Limited, following the announcement to close the business.
4 The value associated with the Ireland supply goodwill represents the difference between the fair value attributed to the Northern Ireland based Phoenix Energy business acquired
in 2012 and the book value of those assets. No impairment has been recognised during the year on this balance.
(ii) Allowances and certificates
Allowances and certificates consist of purchased carbon emissions allowances and generated or purchased renewable obligations
certificates (“ROCs”). These allowances and certificates will be utilised in settlement of environmental obligations incurred by the Group’s
SSE Thermal and SSE Business Energy supply business and are therefore distinct from allowances and certificates held in excess of the
Group’s environmental obligations which are recorded within inventories.
(iii) Development assets
Development costs primarily relate to the design, construction and testing of Thermal, Renewable and Solar and Battery assets, which the
Group believes will generate probable future economic benefits. Costs capitalised as development intangibles include options over land
rights, planning application costs, environmental impact studies and other costs incurred in bringing wind farms and other development
projects to the consented stage. These may be costs incurred directly or at a cost as part of the fair value attribution on acquisition.
At the point the development reaches the consent stage and is approved for construction, the carrying value is transferred to property,
plant and equipment (note 14). At the point a project is no longer expected to reach the consented stage, the carrying amount of the
project is impaired. During the year the Group has recognised exceptional impairment charges of £74.8m in relation to development assets
in SSE Southern Europe (note 15) and £10.9m of non-exceptional impairment charges relating to projects that are not expected to reach
the construction phase.
(iv) Software assets
Software assets include application software license fees, software development work, software upgrades and purchased PC software
packages. The Group also has a number of contracts for Software as a Service (“SaaS”) and Platform as a Service (“PaaS”) Cloud Computing
Arrangements which permit access to vendor-hosted software and platform services over the term of the arrangement. Where the Group
does not control the underlying assets in these arrangements, costs are expensed as incurred. The Group also incurs implementation costs
in respect of these contracts. Implementation costs are capitalised as intangible assets where costs meet the definition and recognition
criteria of an intangible asset under IAS 38 by being separable and controlled by the Group.
199 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

14
Property, plant and equipment
assets
(i)
assets
(i)
At 31 March 2023
3,671.5
4,652.7
9,997.7
5,642.1
591.4
768.7
1,347.3
26,671.4
Additions
–
–
91.3
1.0
34.3
1,803.1
41.7
1,971.4
A d j u s t m e n t t o d e c o m m i s s i o n i n g a s s e t
( 5 . 5 )
1 . 7
–
–
–
–
( 2 . 4 )
( 6 . 2 )
(note13)
(ii)
–
–
–
–
–
4 9 . 0
–
4 9 . 0
Transfer from assets under
construction
2.9
44.7
489.9
773.9
5.2
(1,352.8)
36.2
–
T r a n s f e r b e t w e e n c a t e g o r i e s
( 1 9 . 1 )
–
–
–
–
–
1 9 . 1
–
Disposals
–
–
(15.0)
–
(2.6)
(0.8)
(13.3)
(31.7)
Exchange rate adjustments
(15.9)
(26.0)
–
–
0.8
(3.3)
(0.3)
(44.7)
At 31 March 2024
3,633.9
4,673.1
10,563.9
6,417.0
629.1
1,263.9
1,428.3
28,609.2
Additions
33.9
20.5
103.3
1.7
77.2
2,503.1
51.8
2,791.5
asset
(12.8)
(2.5)
–
–
–
–
( 3 . 6 )
( 1 8 . 9 )
(note 13)
(ii)
–
–
–
–
–
1 7 0 . 0
( 3 . 1 )
1 6 6 . 9
Transfer from assets under
construction
(15.8)
103.2
579.9
1,243.7
16.6
(1,991.3)
63.7
–
Disposals
(iv)
(0.1)
–
(2.0)
–
(10.6)
(17.7)
(10.4)
(40.8)
Exchange rate adjustments
(10.5)
(18.4)
–
–
(1.6)
(6.3)
(0.3)
(37.1)
At 31 March 2025
3,628.6
4,775.9
11,245.1
7,662.4
710.7
1,921.7
1,526.4
31,470.8
At 31 March 2023
(2,497.7)
(2,095.3)
(4,537.7)
(869.5)
(237.1)
(9.4)
(1,028.8)
(11,275.5)
Charge for the year
(103.5)
(150.9)
(173.8)
(116.0)
(17.2)
–
(67.2)
(628.6)
T r a n s f e r b e t w e e n c a t e g o r i e s
1 . 2
–
–
–
–
–
( 1 . 2 )
–
Exceptional impairment charges
(iii)
–
–
–
–
–
–
( 1 3 4 . 1 )
( 1 3 4 . 1 )
reversals/(charges)
–
4.8
–
–
(1.1)
–
(3.0)
0.7
T r a n s f e r s t o i n t a n g i b l e a s s e t s
–
–
–
–
–
( 1 . 5 )
–
( 1 . 5 )
Disposals
–
–
6.7
–
1.0
–
12.5
20.2
Exchange rate adjustments
8.1
12.0
–
–
0.5
–
0.5
21.1
At 31 March 2024
(2,591.9)
(2,229.4)
(4,704.8)
(985.5)
(253.9)
(10.9)
(1,221.3)
(11,997.7)
Charge for the year
(85.0)
(175.6)
(188.3)
(135.3)
(18.0)
–
(63.4)
(665.6)
T r a n s f e r b e t w e e n c a t e g o r i e s
–
–
–
–
( 0 . 2 )
–
0 . 2
–
Exceptional impairment charges
(iii)
–
–
–
–
–
–
( 7 . 2 )
( 7 . 2 )
N o n - e x c e p t i o n a l i m p a i r m e n t c h a r g e s
–
–
–
–
( 0 . 1 )
( 0 . 4 )
( 1 . 2 )
( 1 . 7 )
Disposals
(iv)
–
–
0.2
–
0.5
–
9.0
9.7
Exchange rate adjustments
3.9
10.6
0.1
–
(0.2)
–
1.4
15.8
At 31 March 2025
(2,673.0)
(2,394.4)
(4,892.8)
(1,120.8)
(271.9)
(11.3)
(1,282.5)
(12,646.7)
At 31 March 2025
955.6
2,381.5
6,352.3
6,541.6
438.8
1,910.4
243.9
18,824.1
At 31 March 2024
1,042.0
2,443.7
5,859.1
5,431.5
375.2
1,253.0
207.0
16,611.5
At 1 April 2023
1,173.8
2,557.4
5,460.0
4,772.6
354.3
759.3
318.5
15,395.9
(i) Thermal and Renewable power generation assets includes plant and machinery and related land and buildings and decommissioning costs with a net book value of £137.3m and
£58.7m (2024: £119.0m and £68.1m) respectively. Additionally, Other assets includes £49.5m in relation to decommissioning costs for Gas Storage assets (2024: £55.3m).
(ii) Represents the carrying value of development assets transferred from intangible assets (note 13) which have reached the consent stage and have been approved for construction
and the reclassification of certain software assets to intangible assets.
(iii) Exceptional impairment charges of £7.2m relate primarily to the Group’s restructuring of SSE Enterprise (see note 7) (2024: exceptional impairment charge of £134.1m (relating to
the Group’s gas storage operations at Aldbrough and Atwick)).
(iv) Disposals in the current year primarily relate to the derecognition of assets associated with the formation of the 50:50 Source EV joint venture with TotalEnergies Marketing UK
Limited see note 16.
Notes to the consolidated financial statements continued
for the year ended 31 March 2025
200 SSE plc Annual Report 2025
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Included within property, plant and equipment are the following right of use assets for leased assets:
At 31 March 2023
369.6
247.5
12.2
115.9
745.2
Additions
–
32.4
–
40.6
73.0
Disposals
–
( 1 . 8 )
( 6 . 7 )
( 1 0 . 6 )
( 1 9 . 1 )
Exchange rate adjustments
–
4.3
–
–
4.3
At 31 March 2024
369.6
282.4
5.5
145.9
803.4
Additions
–
76.8
–
49.9
126.7
Disposals
–
( 1 1 . 6 )
–
( 9 . 2 )
( 2 0 . 8 )
Exchange rate adjustments
–
(0.8)
–
(0.5)
(1.3)
At 31 March 2025
369.6
346.8
5.5
186.1
908.0
At 31 March 2023
(252.1)
(43.2)
(12.2)
(43.9)
(351.4)
Charge for the year
(11.9)
(11.3)
–
(23.8)
(47.0)
Disposals
–
0.5
6.7
10.0
17.2
At 31 March 2024
(264.0)
(54.0)
(5.5)
(57.7)
(381.2)
Charge for the year
(18.4)
(16.1)
–
(31.2)
(65.7)
Disposals
–
0 . 8
–
7 . 1
7 . 9
At 31 March 2025
(282.4)
(69.3)
(5.5)
(81.8)
(439.0)
At 31 March 2025
87.2
277.5
–
104.3
469.0
At 31 March 2024
105.6
228.4
–
88.2
422.2
At 1 April 2023
117.5
204.3
–
72.0
393.8
15
Impairment testing
Goodwill and intangible assets that are not amortised are reviewed at least annually for impairment. Property, plant and equipment,
investments and other intangibles are assessed annually for triggers of impairment (or impairment reversal).
The Group’s accounting policies and methodologies for impairment testing are described at Accompanying Information sections A1.2
.
The key operating and valuation assumptions, specific considerations and outcome of tests for all impairment reviews are noted in the
following sections. The discount rates used are pre-tax real, except where noted, and reflect specific risks attributable to the relevant
assets subject to impairment review. The recoverable amounts derived from the value in use (‘VIU’) or fair value less costs to sell (‘FVLCS’)
calculations are compared to the carrying amount of each asset or cash generating unit (‘CGU’) to determine whether an impairment
charge requires to be recognised. The reviews carried out for the 2025 financial statements were carried out in the fourth quarter of the
year, which is consistent with previous reviews. Note that the actual outcomes may differ from the assumptions included in the assessments
at the balance sheet date.
15.1 Goodwill impairment reviews – CGUs testing
The Group has three goodwill balances within its SSE Renewables business (GB and Ireland, SSE Southern Europe and SSE Pacifico) that
are subject to annual goodwill impairment reviews. In addition, a legacy goodwill balance within the SSE Business Energy segment is also
subject to annual impairment review. The recoverable amounts of the CGUs supporting the goodwill balances are determined by reference
to either VIU or FVLCS calculations as noted below. The VIU calculations use, as a starting point, pre-tax cash flow projections based on
the Group’s ten-year Corporate Model as approved by the Board. The Group’s Corporate Model is based both on past experience and
reflects the Group’s forward view of markets, prices, risks and its strategic objectives. Commodity prices used are based on observable
market data and, where this is not available, on internal estimates. The FVLCS methodology also uses a present value technique, unless
there is a quoted price in an active market for that asset. The methodology is based on the post-tax cash flows arising from the specific
assets, underlying assets or CGUs, and discounted using a post-tax discount rate determined in the same manner as the rates used in the
VIU calculations, adjusted for the relevant taxation rate.
201 SSE plc Annual Report 2025
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assumption
Operating and other valuation assumptions
Commentary and impairment conclusions
15
Impairment testing continued
15.1 Goodwill impairment reviews – CGUs testing continued
Notes to the consolidated financial statements continued
for the year ended 31 March 2025
202 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

assumption
Operating and other valuation assumptions
Commentary and impairment conclusions
SSE Pacifico
Period to end
203 SSE plc Annual Report 2025
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assumption
Operating and other valuation assumptions
Commentary and impairment conclusions
5 years
Modelling methodology and assumptions
15
Impairment testing continued
15.1 Goodwill impairment reviews – CGUs testing continued
Notes to the consolidated financial statements continued
for the year ended 31 March 2025
204 SSE plc Annual Report 2025
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15.2 Property, plant and equipment, other intangibles and investment impairment reviews – asset testing
Where an indicator of impairment exists, the recoverable amounts of the Group’s property, plant and equipment, other intangible assets and
interests in joint ventures and associates are determined by reference to VIU or, where appropriate, FVLCS calculations. The calculations use,
as their starting point, pre-tax cash flow projections based on the Group’s ten-year Corporate Model as approved by the Board. The Group’s
Corporate Model is based on experience and reflects the Group’s forward view of markets, prices, risks and its strategic objectives.
Commodity prices used are based on observable market data and, where this is not available, on internal estimates. FVLCS valuations are
derived from market analysis for similar transactions, adjusted to specific circumstances of the Group’s investment to reflect the amount the
Group believes will be recoverable in a sale transaction. Note that the Group will expense any individual asset, investment or development
asset, should it clearly be damaged, obsolete or economically impaired, as part of its normal course of business.
Assets identified for review
The specific assets and investments identified for impairment reviews in the prior year (being the GB CCGTs; Great Island CCGT; Gas
Storage facilities at Aldbrough and Atwick; 50% joint venture investment in Triton Power; and 50% joint venture investment in Neos Networks)
all remained subject to impairment testing at 31 March 2025. All assets continued to display indicators of impairment with the exception
of the GB CCGTs. At March 2023 all historic impairments related to the GB CCGTs had been reversed and at 31 March 2024 there was
significant headroom on all GB assets. In the current year there were no further indicators of impairment, therefore no detailed impairment
test was performed for the GB CCGTs. No new assets were identified as displaying indicators of impairment or impairment reversal.
assumption
Operating and other valuation assumptions
Commentary and impairment conclusions
205 SSE plc Annual Report 2025
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assumption
Operating and other valuation assumptions
Commentary and impairment conclusions
2025,
the carrying value of Aldbrough is £3.6m
15
Impairment testing continued
15.2 Property, plant and equipment, other intangibles and investment impairment reviews – asset testing continued
Notes to the consolidated financial statements continued
for the year ended 31 March 2025
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assumption
Operating and other valuation assumptions
Commentary and impairment conclusions
207 SSE plc Annual Report 2025
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assumption
Operating and other valuation assumptions
Commentary and impairment conclusions
5 years
Modelling methodology and assumptions
2025
(2024: impairment of £73.6m).
2025.
The assessment was based on pre-tax
15
Impairment testing continued
15.2 Property, plant and equipment, other intangibles and investment impairment reviews – asset testing continued
Notes to the consolidated financial statements continued
for the year ended 31 March 2025
208 SSE plc Annual Report 2025
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16
Investments
16.1 Joint Ventures and associates
2025
2024
At 1 April
1,963.2
1,352.9
3,316.1
1,975.7
1,115.4
3,091.1
Additions
153.4
280.0
433.4
280.6
244.7
525.3
Repayment of shareholder loans
–
( 1 2 1 . 7 )
( 1 2 1 . 7 )
–
(14.6)
(14.6)
Dividends received
(200.6)
–
(200.6)
(223.7)
–
(223.7)
Share of profit after tax
(i)
– continuing operations
91.6
–
91.6
115.9
–
115.9
Share of other comprehensive income
(0.9)
–
(0.9)
(40.9)
–
(40.9)
Disposals
–
–
–
(3.0)
–
(3.0)
Transfer – equity to loans
–
–
–
(54.4)
54.4
–
Transfers – other investments
(4.6)
–
(4.6)
24.1
–
24.1
Impairments
(ii)
–
–
–
(90.8)
(46.0)
(136.8)
guarantees
(iii)
(12.1)
–
(12.1)
(18.9)
–
(18.9)
Exchange rate adjustments
(2.7)
(0.9)
(3.6)
(1.4)
(1.0)
(2.4)
At 31 March
1,987.3
1,510.3
3,497.6
1,963.2
1,352.9
3,316.1
(i) Of the £91.6m (2024: £115.9m) share of profits from continuing operations, only £89.9m (2024: £114.1m) is recognised through the income statement. The £1.7m (2024: £1.8m)
difference relates to profits earned from SSE Group companies where the costs have been capitalised. This profit has been eliminated on consolidation.
(ii) Impairments in the year ended 31 March 2024 of £136.8m included charges of £63.2m in relation to the Group’s Triton joint venture, and £73.6m in relation to the Group’s
investment in Neos Networks, which were treated as exceptional, see note 7.
(iii) The investment decrease in respect of financial guarantees relates to £12.5m (2024: £22.2m) of unwind and expiry of guarantee contracts, less £0.4m (2024: £3.3m) for the fair
value of fees receivable on guarantees granted to joint venture investments during the year.
16.2 Additions and disposals of equity in the current year
Additions and disposals in the year
On 10 September 2024 the Group sold a 50% equity share in SSE DE EV Hold Co Limited to form the 50:50 Source EV joint venture with
TotalEnergies Marketing UK Limited for cash consideration of £16.5m. Following the completion of the transaction, both shareholders
provided the joint venture with £5.1m of shareholder loans and £10.0m of equity funding.
During the year the Group provided equity and loans to its existing joint venture investments of £129.4m and £274.9m respectively,
primarily in relation to Seagreen Holdco 1 Energy Limited and Doggerbank Offshore Wind Farm Project 1 Projco Limited.
There were no significant disposals in the current year.
16.3 Acquisitions and disposals of equity in the previous year
Additions in the previous year
On 21 March 2024 the Group completed the purchase of 50% of the equity in eight onshore wind development projects in Ireland from
Bord na Mona Powergen Limited for cash consideration of £41.9m.
During the year ended 31 March 2024 the Group provided equity and loans to its existing joint venture investments of £237.9m and
£235.9m respectively, primarily in relation to Seagreen Wind Energy Limited and Dogger Bank A Offshore Wind Farm.
Disposals of equity in the previous year
The Group received £14.9m of cash and recognised a gain in the income statement of £9.0m in relation to the disposal of investments
in associates.
209 SSE plc Annual Report 2025
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16.4 Principal joint ventures and associates
Under IFRS 12 “Disclosure of Interests in Other Entities”, the Group has evaluated the key joint ventures and associates it holds with the
purpose of disclosing any which are materially significant in order to identify the impact on the Group’s financial position, performance and
cash flows, whilst identifying the nature of the risks associated with these interests. A full listing of the Group’s incorporated joint ventures,
joint operations, associates and investments are included in the Accompanying Information (A3 ).
Share of results of joint ventures and associates
2025
2025
2025
2025
2024
Other
(i)
Revenue
433.3
423.5
84.1
940.9
1,003.6
Other income
109.7
–
–
109.7
88.1
Depreciation and amortisation
(132.5)
(42.9)
(50.6)
(226.0)
(208.8)
Other operating costs
(125.2)
(351.4)
(63.7)
(540.3)
(645.4)
Operating profit
285.3
29.2
(30.2)
284.3
237.5
Interest expense
(147.4)
(5.3)
(11.6)
(164.3)
(110.7)
Changes in fair value of derivatives
(26.4)
(1.7)
–
(28.1)
61.4
Corporation tax
(1.0)
(0.7)
(0.3)
(2.0)
(74.1)
Share of post taxation results
110.5
21.5
(42.1)
89.9
114.1
Cashflow hedges
(22.8)
0.3
0.2
(22.3)
(54.5)
Taxation
5.7
–
(0.1)
5.6
13.6
Other
–
–
15.8
15.8
–
Total comprehensive income
93.4
21.8
(26.2)
89.0
73.2
Share of joint ventures and associates’ assets and liabilities
2025
2025
2025
2025
2024
Other
(i)
Non-current assets
6,468.5
441.9
353.5
7,263.9
6,909.7
Current assets
155.8
122.3
19.8
297.9
330.2
Cash and cash equivalents
253.4
53.6
22.2
329.2
373.0
Current liabilities
(242.7)
(73.5)
(73.0)
(389.2)
(496.0)
Non-current liabilities
(5,550.9)
(229.6)
(227.0)
(6,007.5)
(5,725.3)
1,084.1
314.7
95.5
1,494.3
1,391.6
Other adjustments
485.3
13.5
(5.8)
493.0
571.6
Share of net assets of joint ventures and associates
1,569.4
328.2
89.7
1,987.3
1,963.2
Shareholder loans
1,230.3
191.4
88.6
1,510.3
1,352.9
Interest in joint venture and associate
2,799.7
519.6
178.3
3,497.6
3,316.1
(i) Other comprises the investments the Group holds in Neos Networks Limited, Source EV Limited, Corran Environmental LP and Marron Activ8 Energies Limited.
Information on Group’s investments in joint ventures and associates is provided at A3, A4 and A5 .
16
Investments continued
Notes to the consolidated financial statements continued
for the year ended 31 March 2025
210 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

16.5 Joint operations
Listed are the incorporated joint operations that have a material impact on the financial position and financial results of the Group.
(%)
Year end
Greater Gabbard Offshore Winds Limited
Offshore Wind farm
UK
Ordinary
50.0
50.0
31 March
Eastern Green Link 2 Limited
Power Transmission
UK
Ordinary
50.0
37.5
31 March
The Group’s interest in Greater Gabbard Offshore Winds Limited is that of a joint operation designed to provide output to the parties
sharing control. The liabilities of the arrangement are principally met by the parties through the contracts for the output of the wind farm.
Eastern Green Link 2 Limited is a joint operation between SHET and National Grid Electricity Transmission plc to install a 2GW subsea
high-voltage connection.
The Group also has an unincorporated arrangement with Equinor under which it accounts for its 66.7% share of the Aldbrough gas storage
facility owned by SSE Hornsea Limited.
16.6 Other investments held at fair value through other comprehensive income
At 1 April
3.2
27.4
Additions in year
1.9
Disposals in year
(0.1)
(0.4)
Transfers from/(to) investments in joint ventures and associates
4.6
(24.1)
Fair value adjustment through other comprehensive income
(0.8)
0.3
At 31 March
8.8
3.2
17
Inventories
Fuel and consumables
170.9
155.3
Certificates and allowances
268.1
205.1
Gas held in storage
57.6
23.1
Less: provisions held
(33.7)
(40.5)
462.9
343.0
Where ROCs and Renewable Energy Guarantees of Origin (“REGOs”) certificates are self-generated or purchased to fulfil the Group’s
environmental obligations, they are recorded within intangible assets. The value of ROCs and REGOs held in excess of the Group’s
environmental obligations are recorded within inventories.
The Group has expensed inventories of £571.9m within cost of sales in the year (2024: £562.8m).
211 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

18
Trade and other receivables
Loan note receivable and other non-current receivable
199.9
170.1
Trade receivables
1,480.2
1,305.5
Unbilled energy income
521.1
663.7
Other receivables
56.2
82.6
Cash posted as collateral and other deposits
19.2
9.3
Other prepayments and accrued income
866.5
593.0
2,943.2
2,654.1
Total trade and other receivables
3,143.1
2,824.2
The non-current loan note receivable includes £193.5m (2024: £170.1m) payable by Ovo Holdings Limited by 2029 and £6.4m (2024: £nil)
recognised on the disposal of the Group’s gas metering business on 17 March 2025. The Ovo loan note carries interest of 13.25% and is
presented cumulative of accrued interest repayments, discounted at 13.25%.
Unbilled energy income represents an estimate of the value of electricity or gas supplied to customers between the date of the last meter
reading and the year end. Detail of the calculation applied to estimate this balance is included at note 4.1(iii). A 5% sensitivity on the unbilled
energy accrual would equate to an increase or decrease in the receivable balance of £14.6m (2024: £20.7m).
Cash posted as collateral includes amounts deposited on commodity trading exchanges of £9.6m (2024: £9.3m).
Trade receivables and other financial assets are part of the Group’s financial exposure to credit risk as explained in accompanying
information note A6 .
19
Trade and other payables
Trade payables
710.7
656.7
Contract related liabilities
(i)
127.9
95.2
Cash held as collateral
82.5
362.5
Other creditors
441.6
473.0
Other accruals
(ii)
1,535.2
1,735.1
2,897.9
3,322.5
Contract related liabilities
(i)
164.3
158.4
Deferred income and other accruals
(ii)
1,083.6
934.4
1,247.9
1,092.8
Total trade and other payables
4,145.8
4,415.3
(i) Current contract related liabilities includes customer contributions of £15.1m (2024: £15.7m) and non-current contract related liabilities includes customer contributions of
£164.3m (2024: £158.4m).
(ii) Non-current other accruals includes government grants of £5.6m (2024: £6.0m).
Cash held as collateral relates to amounts received from commodity trading exchanges of £82.5m (2024: £362.5m).
Notes to the consolidated financial statements continued
for the year ended 31 March 2025
212 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

20
Provisions
At 31 March 2023
712.1
20.3
20.9
18.8
772.1
Charged in the year
–
–
1.2
4.0
5.2
Increase in decommissioning provision
2.2
–
–
–
2.2
Unwind of discount
25.2
–
–
–
25.2
Acquired during the year
–
–
–
7.3
7.3
Released during the year
–
–
–
(4.3)
(4.3 )
Utilised during the year
(5.3)
(16.9)
(9.3)
(7.6)
(39.1 )
Transfers
5.0
(3.0)
–
(2.0)
–
Exchange rate adjustments
(3.5)
–
–
–
(3.5 )
At 31 March 2024
735.7
0.4
12.8
16.2
765.1
Charged in the year
–
2.4
6.5
10.9
19.8
Decrease in decommissioning provision
(25.5)
–
–
–
(25.5 )
Unwind of discount
27.2
–
–
–
27.2
Released during the year
–
–
(3.5)
–
(3.5 )
Utilised during the year
(17.6)
(0.4)
(0.4)
(5.3)
(23.7 )
Exchange rate adjustments
(2.8)
–
–
–
(2.8 )
At 31 March 2025
717.0
2.4
15.4
21.8
756.6
Non-current
656.3
–
8.9
10.9
676.1
Current
60.7
2.4
6.5
10.9
80.5
717.0
2.4
15.4
21.8
756.6
Non-current
688.8
0.4
12.5
10.7
712.4
Current
46.9
–
0.3
5.5
52.7
735.7
0.4
12.8
16.2
765.1
Decommissioning provisions
Provision has been made for the estimated net present value of decommissioning the Group’s Thermal and Renewable power generation
assets, Gas Storage facilities and the retained 60% share of decommissioning costs of the disposed Gas Production business. Cost
estimates are based on forecast remediation or clean-up costs based on current technology and prices for Renewable, Thermal and Gas
Storage assets and are reviewed by independent valuation experts every three years. In the intervening years, management update cost
estimates based on factors arising since the last formal valuation date. Retained decommissioning costs in relation to the disposed Gas
Production business are periodically agreed with the field operators. The cost estimates include a risk adjustment and are inflated to the
projected decommissioning date using a market observable inflation rate. This projection is discounted using a risk-free discount rate
based on UK gilt rates with maturity date similar to the expected decommissioning date.
There is a wide range of assumed decommissioning dates across the obligation due to the number of assets and their varying ages,
which is summarised in the table below. Decommissioning dates are based on the useful economic lives of the individual assets based
on technology and price forecasts at the balance sheet date. It is possible that the forecast decommissioning dates will change due to
technology advances or decisions to repower wind farms when the current turbines reach the end of their respective lives. The date of
decommissioning of the Gas Production business can vary based on hydrocarbon reserve estimates and market commodity prices,
which can shorten or lengthen the economic life of the field.
Renewables
236.3
58
2026 – 2064
230.7
52
2025 – 2065
Thermal
165.0
17
2025 – 2050
169.9
17
2024 – 2050
Gas Storage
114.1
18
1
2025 – 2049
115.4
18
1
Gas Production
201.6
4
2
2025 – 2040
219.7
4
2
Total
717.0
735.7
1 The Group has two Gas Storage assets at Aldbrough and Atwick. In total there are 18 caverns with varying economic lives, therefore the number of sites has been disclosed to
more accurately reflect the scale and expected timing of decommissioning activities.
2 The Group has retained a 60% share of the decommissioning obligation for four Gas Production fields, though each field has multiple wells and shared infrastructure that the
Group retains an obligation to remediate.
213 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

The Group’s decommissioning provision has decreased during the year from £735.7m to £717.0m, primarily due to the decrease in the risk
free discount rates and the impact of life extension to certain Thermal CCGT plants moving the expected timing of cash outflows further
into the future. While the long term inflation rate remains stable at 3.2% (2024: 3.2%), the increase in the risk free discount rates applied
of between 4.7%-5.2% (2024: 3.9%-4.4%) has resulted in a reduction in the present value of the decommissioning provision.
Impact of climate change on the Group’s decommissioning provisions
The Group has assessed the impact of climate change on its decommissioning provisions. The useful economic lives of Peterhead,
Medway and Keadby CCGTs have been extended during the year, following a technical assessment of their ability to continue to operate to
2035, and following the UK Government’s publication of its UK Clean Power 2030 Action Plan, reaffirming the role of unabated gas to the
security of energy supply during the energy transition. As a result, the transition risk in relation to the enactment of legislation that would
result in the earlier closure of its unabated gas fired power stations is no longer considered to be material. There is a physical risk that due
to changes in weather patterns, the projected costs in relation to decommissioning could increase. The decommissioning provision
included in the table above for these assets is based on a best estimate of the costs to be incurred at the balance sheet date. In the
sensitivity analysis below, a scenario has been included assuming costs will increase and this takes account of the physical climate
change risk.
Sensitivity analysis
Sensitivity analysis reflecting reasonably probable fluctuations to the main assumptions used in the calculation of the decommissioning
provisions is set out below:
Increasing the projected cost estimate by 10%
775.3
804.8
Increasing the inflation rate by 1.0%
774.2
808.7
Decreasing the discount rate by 0.5%
736.4
764.4
Employee related provisions
Employee related provisions include the Group’s employer financed retirement benefit provision for certain directors and former directors
and employees, which is valued in accordance with IAS 19 using assumptions consistent with the Scottish Hydro Electric Pension Scheme
(see note 23 for assumptions applied).
The Group is currently engaged in an Operating Model and Efficiency Review which is expected to conclude during the next financial year
as referred to at note 7. In accordance with IAS 37 the Group has provided for committed costs in relation to the review, with further costs
expected to be recognised during FY26. The increase in this provision relates primarily to the redundancy costs associated with this review.
Other provisions
Other provisions include onerous contract provisions, mutualisation obligations and other contractual obligations and are calculated based
on a best estimate basis. The timing of settlement of these provisions varies by obligation between 2025 and 2028.
21
Sources of finance
21.1 Capital management
The Board’s policy is to maintain a strong balance sheet and credit rating to support investor, counterparty and market confidence in the
Group and to underpin future development of the business. The Group’s credit ratings are also important in maintaining an efficient cost
of capital and in determining collateral requirements throughout the Group. As at 31 March 2025, the Group’s long term credit rating was
BBB+ stable outlook for Standard and Poor’s and Baa1 stable outlook for Moody’s. The Group is also BBB+ stable outlook with Fitch
however this rating is on an unsolicited basis.
The maintenance of a medium-term corporate model is a key control in monitoring the development of the Group’s capital structure and
allows for detailed scenarios and sensitivity testing. Key ratios drawn from this analysis underpin regular updates to the Board and include
the ratios used by the rating agencies in assessing the Group’s credit ratings.
The Group’s debt requirements are principally met through issuing bonds denominated in Sterling and Euros as well as private placements
and medium-term bank loans including those with the European Investment Bank. Details of debt issued by the Group and maturities in the
current year are included in note 21.3.
SSE’s adjusted net debt and hybrid capital was £10.2bn at 31 March 2025, compared with £9.4bn at 31 March 2024.
20
Provisions continued
Decommissioning provisions continued
Notes to the consolidated financial statements continued
for the year ended 31 March 2025
214 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Adjusted net debt and hybrid capital is stated after removing lease obligations, external net debt attributable to non-controlling interests
and cash held and posted as collateral and other deposits with a maturity of more than three months in line with the Group’s presentation
basis which is explained at note 3.1. The adjustment relating to the non-controlling interest share of Scottish Hydro Electric Transmission
plc external net debt is £817.9m at 31 March 2025 (2024: £490.2m) and relates to 25% of external loans of £3,278.8m (2024: £2,088.0m) net
of cash and cash equivalents of £7.3m (2024: £127.4m). Cash held and posted as collateral refers to amounts received and deposited on
commodity trading exchanges which are reported within “Trade and other payables” and “Trade and other receivables” respectively on the
face of the balance sheet.
At 31 March 2025 the collateral balance was a net liability of £72.9m (2024: £353.2m net liability), consisting of a liability of £82.5m (2024:
£362.5m) and an asset of £9.6m (2024: £9.3m). The movement in the current year reflects a reduction in the variation margin on “in the
money” positions due to higher commodity prices, along with “in the money” positions maturing during the period.
The Group has an established €1.5bn Euro commercial paper programme (paper can be issued in a range of currencies and swapped
into Sterling) and as at 31 March 2025 there was £891m commercial paper outstanding (2024: £840m). The Group also continues to have
access to £3.0bn of revolving credit facilities (2024: £3.5bn) following re-financing in the current year as detailed in note 21.3. The facilities
include £1.5bn relating to Scottish Hydro Electric Transmission plc (2024: £0.8bn) and £1.5bn relating to SSE plc (2024: £2.5bn). As at
31 March 2025 there were £340m drawings on the Scottish Hydro Electric Transmission plc facility being 23% utilisation (2024: nil utilisation)
and no drawings on the SSE plc facility (2024: nil utilisation).
The Group capital comprises:
Total borrowings (excluding lease obligations)
10,149.4
8,726.2
Less: Cash and cash equivalents
(1,090.5)
(1,035.9)
Net debt (excluding hybrid equity)
9,058.9
7,690. 3
Hybrid equity
1,882.4
1,882.4
External net debt attributable to non-controlling interests
(817.9)
(490.2)
Cash held/(posted) as collateral and other deposits
63.3
353.2
Adjusted net debt and hybrid capital
APM
10,186.7
9,435.7
Equity attributable to shareholders of the parent
10,181.6
9,365.8
Total capital excluding lease obligations
20,368.3
18,801.5
* The comparative has been restated. See note 1.2.
Under the terms of the revolving credit and private placement borrowing facilities, the Group is required to comply with the following
financial covenant:
– Interest Cover Ratio: The Group shall procure that the ratio of Operating Profit to Net Interest Payable for any relevant period is not less
than 2.5 to 1.
Under the terms of the Scottish Hydro Electric Transmission plc revolving credit facility and private placements the Group is required to
comply with the following financial covenant:
– Net debt to Regulatory Asset Value: Scottish Hydro Electric Transmission plc shall procure that the consolidated net debt to Regulatory
Asset Value does not at any time exceed 0.80 to 1.00 as assessed by their financial statements.
The following definitions apply in the calculation of these financial covenants:
– “Operating Profit” means, in relation to a relevant period, the profit on ordinary activities before taxation (after adding back Net Interest
Payable) of the Group for that relevant period but after adjusting this amount to exclude any exceptional profits (or losses) and, for the
avoidance of doubt, before taking account of any exceptional profits (or losses) and excluding the effect of IFRS 9 re-measurements.
– “Net Interest Payable” means, in respect of any relevant period, interest payable during that relevant period less interest receivable
during that relevant period.
– “Relevant period” means, covenant compliance is based on results for each financial year.
In summary, the Group’s intent is to balance returns to shareholders between current returns through dividends and long term capital
investment for growth. In doing so, the Group will maintain its capital discipline and will continue to operate within the current economic
environment prudently. There were no changes to the Group’s capital management approach during the year.
Under SSE plc’s articles of association, the borrowings of the Company are limited so as to ensure that the aggregate amount of all
borrowings by the Group outstanding at any time is not more than three times the capital and reserves of the Group.
215 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

21.2 Loans and other borrowings
Short term loans
1,895.5
1,044.5
Lease obligations
68.5
83.5
1,964.0
1,128.0
Loans
8,253.9
7,681.7
Lease obligations
386.5
324.0
8,640.4
8,005.7
Total loans and borrowings
10,604.4
9,133.7
Cash and cash equivalents
(1,090.5)
(1,035.9)
Unadjusted net debt
9,513.9
8,097.8
Hybrid equity
1,882.4
1,882.4
External net debt attributable to non-controlling interests
(817.9)
(490.2)
Lease obligations
(455.0)
(407.5)
Cash held/(posted) as collateral and other deposits
63.3
353.2
Adjusted net debt and hybrid capital
APM
10,186.7
9,435.7
Cash and cash equivalents (which are presented as a single class of asset on the face of the balance sheet) comprise cash at bank and short
term highly liquid investments with a maturity of three months or less.
21.3 Borrowing facilities
The Group has an established €1.5bn Euro commercial paper programme (paper can be issued in a range of currencies and swapped into
Sterling) and as at 31 March 2025 there was £891m commercial paper outstanding (2024: £840m).
The Group also has access to £3.0bn of revolving credit facilities (2024: £3.5bn). On 23 October 2024 the Group’s facilities were re-
financed with the £0.75bn facility relating to Scottish Hydro Electric Transmission plc being increased to £1.5bn, the £2.5bn of facilities
relating to SSE plc being reduced to £1.5bn by cancellation of a facility due to mature in February 2025, and the cancellation of the
Distribution facility of £0.25bn which is no longer required.
The details of the Group’s committed facilities as at 31 March 2025 are:
– a £1.5bn revolving credit facility for SSE plc maturing October 2029 with two 1 year extension options; and
– a £1.5bn revolving credit facility for Scottish Hydro Electric Transmission plc maturing October 2029 with two 1 year extension options.
The re-financing of the committed facilities was undertaken to ensure the Group is set up to meet its funding obligations over the next five
years, with available committed facilities on the entities that require them. The opportunity was also taken to increase the number of
relationship banks from 11 to 15, which supports the Group’s growth plans and funding requirements over the next five years. The £1.5bn
revolving credit facility for SSE plc is in place to provide back-up to the commercial paper programme and support the Group’s capital
expenditure plans. The Scottish Hydro Electric Transmission plc facility, was entered into to help cover the capital expenditure and working
capital of that business. The terms and conditions of the re-financed revolving credit facilities contain certain sustainability-linked features
which may or may not adjust the interest margin applicable to the revolving credit facilities. The rate of interest is calculated annually,
subject to fulfilling certain ESG KPIs and applied prospectively. At 31 March 2025, these terms had no impact on the carrying value of
the debt.
As at 31 March 2025 there were £340m drawings on the Scottish Hydro Electric Transmission plc facility being 23% utilisation (2024: nil
utilisation) and no drawings on the SSE plc facility (2024: nil utilisation).
During the year SSE plc issued a 7 year €600m Green Bond at a coupon of 3.5%. The bond has been predominantly left in Euros as a net
investment hedge for the Group’s Euro denominated subsidiaries. In the year, SSE plc also issued £0.9bn of debt and had £1.0bn of debt
maturities. The issued debt primarily relates to £0.8bn of Commercial Paper being rolled at maturity, which also accounts for £0.8bn of the
debt maturities, with the only additional debt maturity being €320m (£204m) of 12 year US Private Placements that matured in April 2024.
During the year Scottish Hydro Electric Transmission plc issued £0.9bn of new debt, in addition to the drawings on the committed facility.
The three issuances of new debt were as follows:
– August 2024 – €850m (£715m) 8 year green Eurobond maturing 4 September 2032 with a coupon of 3.375% and an all-in GBP cost of
4.9127% once swapped back to Sterling;
– June 2024 – 1.5bn NOK (£111m) 10 year private placement maturing 26 June 2034 with a coupon of 4.731% and an all-in GBP cost of
5.3315% once swapped back to Sterling; and
– July 2024 – £30m 15 year private placement maturing 19 July 2039 with a coupon of 5.591%.
21
Sources of finance continued
Notes to the consolidated financial statements continued
for the year ended 31 March 2025
216 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Analysis of borrowings
2025
2025
2025
2025
2024
2024
2024
2024
rate
(iv)
rate
(iv)
Other Short term loans – non amortising
(ii)
5.0%
901.7
906.6
890.5
5.8%
852.4
855.7
840.4
1.250% Eurobond repayable 16 April 2025
(vi)
1.3%
531.4
531.2
531.4
–
–
–
–
0.875% €600m Eurobond repayable 8 September 2025
(ix)
0.9%
502.6
499.2
502.4
–
–
–
–
US Private Placement 16 April 2024
–
-
-
-
4.4%
204.1
257.9
204.1
Within one year
1,935.7
1,937.0
1,924.3
1,056.5
1,113.6
1,044.5
Fair value adjustment
(iii)
(28.8)
–
Total current borrowings
1,935.7
1,937.0
1,895.5
1,056.5
1,113.6
1,044.5
Bank loans – non amortising
(i)
3.5%
500.0
493.1
500.0
3.5%
500.0
484.2
499.9
Other loans – non amortising
(ii)
4.8%
340.0
340.0
340.0
–
–
–
–
1.250% Eurobond repayable 16 April 2025
(vi)
–
–
–
–
1.3%
531.4
518.8
531.4
0.875% €600m Eurobond repayable 8 September 2025
(ix)
–
–
–
–
0.9%
513.0
493.0
512.2
US Private Placement 8 June 2026
3.1%
64.0
63.0
63.8
3.1%
64.0
48.7
63.6
US Private Placement 6 September 2026
3.2%
247.1
258.9
246.2
3.2%
247.1
242.1
245.6
US Private Placement 6 September 2027
3.2%
35.0
33.3
34.8
3.2%
35.0
25.9
34.7
1.375% €650m Eurobond repayable 4 September 2027
(v) (ix)
1.4%
591.4
573.7
590.9
1.4%
591.4
553.7
590.7
1.50% Eurobond repayable 24 March 2028
(ix)
1.5%
250.0
227.5
249.5
1.5%
250.0
221.5
249.3
8.375% Eurobond repayable on 20 November 2028
8.4%
500.0
554.3
498.5
8.4%
500.0
573.3
498.1
2.875% Eurobond repayable 1 August 2029
(ix)
2.9%
544.5
539.3
543.3
–
–
–
–
Between two and five years
3,072.0
3,083.1
3,067.0
3,231.9
3,161.2
3,225.5
2.875% Eurobond repayable 1 August 2029
(ix)
–
–
–
–
2.9%
555.7
543.3
554.3
1.750% Eurobond repayable 16 April 2030
(vii)
1.8%
442.9
413.9
442.9
1.8%
442.9
403.5
442.9
5.50% Eurobond repayable on 7 June 2032
5.5%
350.0
353.1
350.1
5.5%
350.0
368.1
350.1
Private Placement 30 June 2032
3.1%
175.0
152.1
175.0
3.1%
175.0
148.0
175.0
2.25% Eurobond repayable 27 September 2035
(ix)
2.3%
350.0
252.4
347.8
2.3%
350.0
266.3
347.6
2.125% Eurobond repayable 24 March 2036
(ix)
2.1%
250.0
175.4
248.7
2.1%
250.0
184.7
248.5
4.625% Eurobond repayable on 20 February 2037
4.6%
325.0
288.5
324.3
4.6%
325.0
312.4
324.3
Private Placement 30 June 2037
3.2%
175.0
135.5
175.0
3.2%
175.0
146.2
175.0
6.25% Eurobond repayable on 27 August 2038
6.3%
350.0
350.7
347.9
6.3%
350.0
386.3
347.7
4.454% Index linked loan repayable on 27 February 2044
4.5%
164.7
186.4
164.3
4.5%
169.4
212.6
169.0
1.429% Index linked bond repayable on 20 October 2056
1.4%
195.5
134.3
195.5
1.4%
188.8
145.5
188.8
4.00% €750m Eurobond repayable 5 September 2031
(viii) (ix)
4.0%
628.2
646.5
626.8
4.0%
641.2
661.7
639.5
5.50% £500m Eurobond maturing 15 January 2044
(ix)
5.5%
500.0
448.3
493.0
5.5%
500.0
500.8
492.6
3.375% €850m Eurobond repayable 4 September 2032
(ix)(x)
3.4%
715.3
702.7
713.6
–
–
–
–
Private Placement 26 June 2034
4.7%
111.3
107.8
111.3
–
–
–
–
Private Placement 19 July 2039
5.6%
30.0
28.4
30.0
–
–
–
–
3.50% €600m Eurobond repayable 18 March 2032
(ix)(xi)
3.5%
503.5
501.3
500.5
Over five years
5,266.4
4,877.3
5,246.7
4,473.0
4,279.4
4,455.3
Fair value adjustment
(iii)
(59.8)
0.9
Total non-current borrowings
8,338.4
7,960.4
8,253.9
7,704.9
7,440.6
7,681.7
Total borrowings
10,274.1
9,897.4
10,149.4
8,761.4
8,554.2
8,726.2
Note: The Sterling-equivalent fair value reflects the fair value of non-Sterling denominated borrowings, post the impact of the hedges noted below.
(i) Balances include term loans and EIB debt and is a mixture of fixed and floating rate debt.
(ii) Balances include Commercial Paper and facility advances (£891m of Commercial Paper). At 31 March 2025, Scottish Hydro Electric Transmission plc had drawn £340.0m of
borrowings under its £1.5bn revolving credit facility. The £340.0m has been classified as non-current within debt maturing in two to five years in accordance with IAS 1 paragraph
75A. The debt was repaid in April 2025, subsequent to the balance sheet date.
(iii)
The fair value adjustment relates to the change in the carrying amount of the borrowings as a result of fair value hedges that are in place. The movement in the fair value
adjustment is recognised in the income statement with a corresponding movement on the hedging instrument also being recognised in the income statement.
(iv) The weighted average interest rates (including the effect of interest rate swaps) for the year ended 31 March 2025 was 3.85% (2024: 3.40%).
(v) The 1.375% €650m Eurobond maturing 4 September 2027 has been swapped to Sterling giving an effective interest rate of 2.56%.
(vi) The 1.250% €600m Eurobond maturing 16 April 2025 has been swapped to Sterling giving an effective interest rate of 2.43%.
(vii) The 1.750% €500m Eurobond maturing 16 April 2030 has been swapped to Sterling giving an effective interest rate of 2.89%.
(viii) The 4.0% €750m Eurobond maturing 5 September 2031 has been left in Euros as a net investment hedge for the Group’s Euro denominated subsidiaries.
(ix) Bonds have been issued under the Group’s Green Bond Framework.
(x) The 3.375% €850m Eurobond maturing 4 September 2032 has been swapped to Sterling giving an effective interest rate of 4.91%.
(xi) The 3.50% €600m Eurobond maturing 18 March 2032 has predominantly been left in Euros as a net investment hedge for the Group’s Euro denominated subsidiaries. €200m has
been swapped to Sterling for a 1 year period giving an effective interest rate of 4.20%.
217 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements
– – –

Lease liabilities
Amounts charged under lease arrangements are detailed within note 6, and right of use assets recognised under lease arrangements are
detailed within note 14.
At 1 April
407.5
405.9
Additions during the year
139.8
75.6
Disposals during the year
(12.3)
(1.9)
Unwind of discount
26.9
25.8
Repayment in the year
(106.9)
(97.9)
At 31 March
455.0
407.5
The weighted average incremental borrowing rate applied to lease liabilities during the year was 4.95% (2024: 4.98%). Incremental
borrowing rates applied to individual lease additions in the year ranged between 3.85% to 7.46% (2024: 3.70% to 5.25%). The Group has
additional committed payments under short term and low value leases at 31 March 2024 of £14.3m (2024: £11.2m).
The maturity of future lease liabilities are as follows:
Within one year
75.2
91.8
Between one and five years
233.5
196.3
After five years
403.2
328.4
711.9
616.5
Less: future finance charge
(256.9)
(209.0)
Present value of lease obligations
455.0
407.5
21.4 Reconciliation of net increase in cash and cash equivalents to movement in adjusted net debt and hybrid capital
Increase in cash and cash equivalents
54.6
144.1
New borrowing proceeds
(2,592.2)
(1,982.2)
Repayment of borrowings
1,055.3
1,744.0
Non-cash movement on borrowings
113.7
166.0
Increase in external net debt attributable to non-controlling interests
327.7
56.0
Decrease/(increase) in cash held and posted as collateral and other deposits
289.9
(669.5)
Increase in adjusted net debt and hybrid capital
APM
(751.0)
(541.6)
Cash held and posted as collateral refers to amounts received and deposited on commodity trading exchanges which are reported within
“Trade and other payables” and “Trade and other receivables” respectively on the face of the balance sheet, as well as other deposits with a
maturity of more than 3 months.
21
Sources of finance continued
21.3 Borrowing facilities continued
Notes to the consolidated financial statements continued
for the year ended 31 March 2025
218 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

21.5 Reconciliation of movements in financing liabilities
Financing cash flows
Non-cash movements
Bank loans
499.9
–
–
–
–
–
–
–
0.1
500.0
Private placement
770.2
141.3
–
–
(60.2)
–
–
–
0.9
852.2
Fixed rate Eurobonds
6,059.7
1,220.4
–
–
(4.8)
(25.7)
–
(1,043.6)
(4.1)
6,201.9
Index linked loans
357.8
–
(10.8)
–
–
–
–
–
12.8
359.8
a m o r t i s i n g
–
3 4 0 . 0
–
–
–
–
–
–
–
3 4 0 . 0
Total long term borrowings
7,687.6
1,701.7
(10.8)
–
(65.0)
(25.7)
–
(1,043.6)
9.7
8,253.9
Fixed rate Eurobonds
–
–
–
–
(30.4)
(10.4)
–
1,043.6
2.2
1,005.0
non amortising
840.4
890.5
(840.4)
–
–
–
–
–
–
890.5
US private placement
198.2
–
(204.1)
–
5.9
–
–
–
–
–
Total short term borrowings
1,038.6
890.5
(1,044.5)
–
(24.5)
(10.4)
–
1,043.6
2.2
1,895.5
8,726.2
2,592.2
(1,055.3)
–
(89.5)
(36.1)
–
–
11.9
10,149.4
Lease liabilities
407.5
–
–
(106.9)
–
–
154.4
–
–
455.0
Total loans and borrowings
9,133.7
2,592.2
(1,055.3)
(106.9)
(89.5)
(36.1)
154.4
–
11.9
10,604.4
t e r m b o r r o w i n g s
1 8 . 5
–
–
–
2 9 . 7
–
–
–
–
4 8 . 2
9,152.2
2,592.2
(1,055.3)
(106.9)
(59.8)
(36.1)
154.4
–
11.9
10,652.6
Financing cash flows
Non-cash movements
Bank loans
499.9
–
–
–
–
–
–
–
–
499.9
Private placement
978.1
–
–
–
(4.5)
–
–
(204.1)
0.7
770.2
Fixed rate Eurobonds
5,098.9
1,141.8
–
–
(143.3)
(30.7)
–
–
(7.0)
6,059.7
Index linked loans
338.6
–
(5.2)
–
–
–
–
–
24.4
357.8
Total long term borrowings
6,915.5
1,141.8
(5.2)
–
(147.8)
(30.7)
–
(204.1)
18.1
7,687.6
Bank loans
50.0
–
(50.0)
–
–
–
–
–
–
–
Fixed rate Eurobonds
514.5
–
(514.6)
–
–
–
–
–
0.1
–
non amortising
1,019.2
840.4
(1,019.2)
–
–
–
–
–
–
840.4
US private placement
154.8
–
(155.0)
–
(5.9)
–
–
204.1
0.2
198.2
Total short term borrowings
1,738.5
840.4
(1,738.8)
–
(5.9)
–
–
204.1
0.3
1,038.6
8,654.0
1,982.2
(1,744.0)
–
(153.7)
(30.7)
–
–
18.4
8,726.2
Lease liabilities
405.9
–
–
(97.9)
–
–
99.5
–
–
407.5
Total loans and borrowings
9,059.9
1,982.2
(1,744.0)
(97.9)
(153.7)
(30.7)
99.5
–
18.4
9,133.7
t e r m b o r r o w i n g s
( 1 2 9 . 3 )
–
–
–
1 4 7 . 8
–
–
–
–
1 8 . 5
8,930.6
1,982.2
(1,744.0)
(97.9)
(5.9)
(30.7)
99.5
–
18.4
9,152.2
219 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

22
Equity
22.1 Share capital
2025
2024
(millions)
£m
At 1 April
548.1
1,096.2
1,093.9
547.0
Issue of shares
(i)
7.5
15.0
2.3
1.1
At 31 March
555.6
1,111.2
1,096.2
548.1
The Company has one class of ordinary share which carries no right to fixed income. The holders of ordinary shares are entitled to receive
dividends as declared and are entitled to one vote per share at meetings of the Company.
(i) Shareholders were able to elect to receive ordinary shares in place of the final dividend of 40.0p per ordinary share (in relation to year ended 31 March 2024) and the interim
dividend of 21.2p (in relation to the current year) under the terms of the Company’s scrip dividend scheme. This resulted in the issue of 12.2m and 2.8m new fully paid ordinary
shares respectively (2024: 1.8m and 0.5m). In addition, the Company issued 1.7m (2024: 0.8m) shares during the year to satisfy awards to employees under certain employee share
schemes (all of which were settled by shares held in Treasury) for a consideration of £17.8m (2024: £9.2m).
Under the share buyback programme in the year to 31 March 2025, 3.8m shares were repurchased for a total consideration of £71.7m
(including stamp duty and commission). The scrip dividend take-up for the prior financial year was 18.0%, which was below the 25.0%
required by the share buyback programme, therefore there were no share buybacks in the prior financial year ended 31 March 2024.
Of the 1,111.2m shares in issue, 4.9m are held as treasury shares. These shares will be held by SSE plc and used to satisfy awards to
employees under certain employee share schemes.
During the year, on behalf of the Company, the employee share trust purchased 0.8m shares for a total consideration of £14.1m
(2024: 1.3m shares, consideration of £21.8m) to be held in trust for the benefit of employee share schemes. At 31 March 2025, the trust
held 6.7m shares (2024: 6.9m) which had a market value of £107.1m (2024: £113.9m).
22.2 Capital redemption reserve
The capital redemption reserve comprises the value of shares redeemed or purchased and cancelled by the Company from
distributable profits.
22.3 Hedge reserve
The hedge reserve comprises the effective portion of the cumulative net change in the fair value of cash flow hedge derivative instruments
related to hedged transactions that have not yet occurred.
22.4 Translation reserve
Comprises exchange translation differences on foreign currency net investments offset by exchange translation differences on borrowings
and derivatives classified as net investment hedges under IAS 39.
22.5 Hybrid Equity
GBP 600m 3.74% perpetual subordinated capital securities
(i)
598.0
598.0
EUR 500m 3.125% perpetual subordinated capital securities
(i)
453.0
453.0
EUR 1,000m 4.00% perpetual subordinated capital securities
(ii)
831.4
831.4
1,882.4
1,882.4
(i) 2 July 2020 £600m and €500m Hybrid Capital Bonds
The hybrid capital bonds issued in July 2020 have no fixed redemption date, but the Company may, at its sole discretion, redeem all but not
part of the capital securities at their principal amount. The date for the first potential discretionary redemption of the £600m hybrid bond is
14 April 2026 and then every 5 years thereafter. The date for the first potential discretionary redemption of the €500m hybrid capital bond
is 14 July 2027 and then every 5 years thereafter. For the £600m hybrid the discretionary coupon payments are made annually on 14 April
and for the €500m hybrid the coupon payments are made annually on 14 July.
(ii) 12 April 2022 €1,000m Hybrid Capital Bonds
The hybrid capital bond issued in April 2022 has no fixed redemption date, but the Company may, at its sole discretion, redeem all but not
part of the capital securities at their principal amount. The date for the first potential discretionary redemption is 21 April 2028 and then
every 5 years thereafter. The discretionary hybrid coupon payments are made annually on 21 April.
Coupon payments
In relation to the £600m hybrid equity bond a discretionary coupon payment of £22.4m (2024: £22.4m) was made on 14 April 2024. For the
€500m hybrid equity bond a discretionary coupon payment of £16.5m (2024: £16.5m) was made on 14 July 2024 and for the €1bn hybrid
equity bond a discretionary coupon payment of £34.8m (2024: £34.2m) was made on 21 April 2024.
The coupon payments in the year to 31 March 2025 consequently totalled £73.7m (2024: £73.1m).
The Company has the option to defer coupon payments on the bonds on any relevant payment date, as long as a dividend on the ordinary
shares has not been declared. Deferred coupons shall be satisfied only on redemption; or on a dividend payment on ordinary shares, both
of which occur at the sole option of the Company. Interest will accrue on any deferred coupon.
Notes to the consolidated financial statements continued
for the year ended 31 March 2025
220 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

22.6 Equity attributable to non-controlling interests
This relates to equity attributable to non-wholly owned but controlled subsidiaries which are consolidated within the financial statements
of the Group. At 31 March 2025 the amount attributable to non-controlling interests is £628.8m (2024: £554.9m restated), which relates to
SHET of £589.6m (2024: £514.1m restated) and SSE Pacifico £39.2m (2024: £40.8m). The profit and loss attributable to non-controlling
interests for the year ended 31 March 2025 is £69.8m gain (2024: £100.8m gain), which relates to SHET £70.6m gain (2024: £101.5m gain)
and SSE Pacifico £0.8m loss (2024: £0.7m loss).
The comparative has been restated. See note 1.2.
Details regarding SHET’s principal activity and country of incorporation are included in
A3
.
SHET’s summary financial information is as follows:
Non-current assets
6,701.3
5,579.2
Current assets
444.9
337.0
Current liabilities
(405.5)
(509.0)
Non-current liabilities
(4,418.5)
(3,370.4)
2,322.2
2,036.8
Revenue
807.0
885.2
Operating profit
435.5
565.0
Net finance costs
(60.3)
(35.0)
Profit before taxation
375.2
530.0
Taxation
(110.8)
(132.5)
Profit after taxation
264.4
397.5
The summary financial information provided above is presented without Group eliminations, including £480.0m (2024: £780.0m) of
internal loans with related interest of £29.0m, other consolidation adjustments of £4.7m and related taxation, which have been eliminated
to calculate the non-controlling interest for adjusted profit.
Net profit
264.4
397.5
Interest elimination
29.0
16.2
Other consolidation adjustments
(4.7)
Current taxation on consolidation adjustments
(5.9)
(7.1)
Deferred taxation
165.4
102.0
448.2
508.6
Adjusted net profit attributable to 25% non-controlling interests
112.1
127.1
221 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

23
Retirement benefit obligations
The Group has two funded final salary pension schemes which provide defined benefits based on final pensionable pay. The schemes are
subject to independent valuations at least every three years. The future benefit obligations are valued by actuarial methods based on an
appropriate assessment of the relevant parameters.
The Group provides pension benefits to most UK colleagues through SSE Pensions+, a defined contribution master trust agreement
with Aviva. The Group generally matches employee contributions up to 6%, and provides additional contributions of 3% after two years
and a further 3% after ten years continuous Group service. The Group also operates other pension arrangements, including a defined
contribution master trust agreement with Zurich in the Republic of Ireland and an Unfunded Unapproved Retirement Benefit Scheme.
The Group presents its pension scheme valuations under two different measurement bases, an actuarial valuation and an IAS 19 valuation
as required by accounting standards. The IAS 19 valuation is used to determine the assets and obligations recognised in the Group’s
consolidated balance sheet and is calculated annually by scheme actuaries, whereas the formal actuarial valuation is used to determine
the contributions the Group makes to each scheme. The actuarial valuation is recalculated for each scheme every three years.
Actuarial valuations
The individual pension scheme details based on the latest formal actuarial valuations are as follows:
Scottish Hydro Electric
SSE Southern
Latest formal actuarial valuation
31 March 2024
31 March 2022
Valuation carried out by
Hymans Robertson
Aon
Value of assets based on valuation
£1,376.3m
£2,395.6m
Value of liabilities based on valuation
£1,146.1m
£2,475.2m
Valuation method adopted
Projected Unit
Projected Unit
Average salary increase
RPI+0.25%
RPI+0.25%
Average pension increase
RPI
RPI
Value of fund assets/accrued benefits
120.1%
96.8%
Future contributions
Scottish Hydro Electric Pension Scheme
The last triennial actuarial valuation of the scheme was carried out at 31 March 2024 and showed a surplus of £230.2m on a projected unit
basis. Following this valuation, the Group agreed to a new schedule of contributions which does not require contributions to be paid to the
scheme, unless there is a sustained deficit for two successive quarters on the trustees’ long term funding basis. Consequently, the Group
has not made contributions to the scheme in the year ending 31 March 2025 and does not expect to make any contributions during the
year ended 31 March 2026. The next triennial funding valuation will be carried out as at 31 March 2027.
SSE Southern Group of the Electricity Supply Pension Scheme
The last triennial actuarial valuation of the scheme was carried out at 31 March 2022 and showed a deficit of £79.6m on a projected unit
basis. Following this valuation, the Group agreed to a new schedule of contributions which, along with investment returns from return-
seeking assets, are expected to make good this shortfall by 31 March 2027. The next funding valuation will be carried out as at 31 March
2025. The Group also pays contributions in respect of current accrual. Total contributions of approximately £26.2m are expected to be paid
by the Group during the year ending on 31 March 2026, including deficit repair contributions of £16.0m. Under the current schedule of
contributions, the deficit repair contribution will be made until March 2027, increasing in line with inflation each year.
During the year ending 31 March 2025 the Group paid deficit contributions of £15.5m (2024: £16.3m).
Pension summary as measured under IAS 19:
of comprehensive income
Net pension asset
Scottish Hydro Electric
Defined benefit
7.7
(37.1)
353.7
339.3
SSE Southern
Defined benefit
45.1
(118.1)
148.1
82.3
52.8
(155.2)
501.8
421.6
Notes to the consolidated financial statements continued
for the year ended 31 March 2025
222 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

IFRC 14 surplus restrictions
As a result of the Group and the trustees to the Scottish Hydro Electric Pension Scheme agreeing in 2016/17 to an amendment to the
scheme rules to clarify that the Company has a clear right to any surplus upon final winding up of the scheme, there are no restrictions
on recognition of the scheme surplus. The net pension asset of the Scottish Hydro Electric Scheme at 31 March 2025 was £353.7m
(2024: £339.3m).
At 31 March 2025, the SSE Southern Pension Scheme has a net surplus of £148.1m (2024: £82.3m), and unrecognised future contributions
of £32.0m (2024: £46.8m), subject to increases in line with inflation. The Group has assessed that it has the right to recognise the current
and any future surpluses on the scheme, therefore has not recognised a liability for future unrecoverable contributions.
Other matters
In July 2024 the Court of Appeal upheld the 16 June 2023 High Court ruling in respect of Virgin Media v NTL Pension Trustees II Limited
(and others) calling into question the validity of rule amendments made to defined benefit pension schemes contracted-out on a
Reference Scheme Test basis between 6 April 1997 and 5 April 2016. Relevant amendments to these pension schemes over this time
required confirmation from the Scheme Actuary that the Reference Scheme Test would continue to be met. In the absence of such a
confirmation, the Rule amendment would be void. This ruling could have wide ranging implications for many UK pension schemes.
A further related case Verity Trustees v Wood is currently awaiting judgement, which is anticipated in the summer of 2025.
At 31 March 2025, the trustees of the Scottish Hydro Electric Pension Scheme and the trustees of the SSE Southern Pension Scheme
have engaged legal advisers to review relevant rule amendments and Section 37 Confirmations, but have not yet have made a detailed
assessment of the potential impact of these rulings. The defined benefit obligation for the Group’s schemes has been calculated on the
basis of the pension benefits currently being administered. Any subsequent developments are being monitored by the Group and the
pension scheme trustees.
23.1 Pension scheme assumptions
Both schemes have been updated to 31 March 2025 by qualified independent actuaries. The valuations have been prepared for the
purposes of meeting the requirements of IAS 19. The major assumptions used by the actuaries in both schemes were:
Rate of increase in pensionable salaries
3.3%
3.4%
Rate of increase in pension payments
3.0%
3.1%
Discount rate
5.8%
4.8%
Inflation rate
3.0%
3.1%
The assumptions relating to longevity underlying the pension liabilities at 31 March 2025 are based on standard actuarial mortality tables,
and include an allowance for future improvements in longevity. The assumptions, equivalent to future longevity for members in normal
health at age 65, are as follows:
Scottish Hydro Electric
At 31 March 2025
At 31 March 2024
Male
Female
Male
Female
Currently aged 65
22
24
22
24
Currently aged 45
24
26
24
26
SSE Southern
At 31 March 2025
At 31 March 2024
Male
Female
Male
Female
Currently aged 65
22
25
22
25
Currently aged 45
24
25
24
26
223 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

23.2 Sensitivity analysis
The impact on the schemes’ liabilities of changing certain of the major assumptions is as follows:
Scottish Hydro Electric
At 31 March 2025
At 31 March 2024
Rate of increase in pensionable salaries
0.1%
+/– 0.1%
0.1%
+/– 0.1%
Rate of increase in pension payments
0.1%
+/– 0.6%
0.1%
+/– 0.7%
Discount rate
0.1%
+/– 0.6%
0.1%
+/– 0.7%
Longevity
1 year
+/– 1.9%
1 year
+/– 2.0%
SSE Southern
At 31 March 2025
At 31 March 2024
Rate of increase in pensionable salaries
0.1%
+/– 0.1%
0.1%
+/– 0.1%
Rate of increase in pension payments
0.1%
+/– 1.2%
0.1%
+/– 1.2%
Discount rate
0.1%
+/– 1.2%
0.1%
+/– 1.3%
Longevity
1 year
+/– 3.0%
1 year
+/– 3.5%
23.3 Valuation of combined pension schemes
Equities
173.2
–
173.2
196.9
–
196.9
Government bonds
1,180.6
–
1,180.6
1,215.3
–
1,215.3
Insurance contracts
(i)
–
4 5 4 . 4
4 5 4 . 4
–
5 0 0 . 3
5 0 0 . 3
Other investments
942.1
–
942.1
1,102.7
–
1,102.7
Total fair value of plan assets
2,295.9
454.4
2,750.3
2,514.9
500.3
3,015.2
Present value of defined benefit obligation
(2,248.5)
(2,593.6)
Surplus in the schemes
501.8
421.6
Deferred tax thereon
(ii)
(125.5)
(105.4)
Net pension asset
376.3
316.2
(i) See details of valuations of insurance contracts in note 23.7(ii) .
(ii) Deferred tax rate of 25% (2024: 25%) applied to net pension surplus position.
23
Retirement benefit obligations continued
Notes to the consolidated financial statements continued
for the year ended 31 March 2025
224 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

23.4 Movements in the combined defined benefit assets and obligations during the year
2025
2024
At 1 April
3,015.2
(2,593.6)
421.6
3,188.6
(2,647.5)
541.1
Current service cost
–
(15.0)
(15.0)
–
(16.2)
(16.2)
Past service cost
–
( 4 . 7 )
( 4 . 7 )
–
( 2 . 4 )
( 2 . 4 )
Interest income/(cost)
141.3
(120.6)
20.7
148.5
(122.3)
26.2
141.3
(140.3)
1.0
148.5
(140.9)
7.6
Demographic assumptions
–
20.9
20.9
–
29.3
29.3
Financial assumptions
–
2 8 8 . 5
2 8 8 . 5
–
53.7
53.7
Experience assumptions
–
1 . 9
1 . 9
–
(46.2)
(46.2)
Return on plan assets excluding interest income
(258.5)
–
(258.5)
(192.0)
–
(192.0)
(258.5)
311.3
52.8
(192.0)
36.8
(155.2)
Other
Contributions paid by the employer
26.4
–
26.4
28.1
–
28.1
Scheme participant’s contributions
0.1
(0.1)
–
0.1
(0.1)
–
Benefits paid
(174.2)
174.2
–
(158.1)
158.1
–
(147.7)
174.1
26.4
(129.9)
158.0
28.1
Balance at 31 March
2,750.3
(2,248.5)
501.8
3,015.2
(2,593.6)
421.6
23.5 Pension scheme contributions and costs
Charges/(credits) recognised:
Service costs (charged to operating profit)
19.7
18.6
Interest from pension scheme assets
(141.3)
(148.5)
Interest on pension scheme liabilities
120.6
122.3
(20.7)
(26.2)
The return on pension scheme assets is as follows:
Return on pension scheme assets
(117.2)
(43.5)
Defined contribution scheme
The total contribution paid by the Group to defined contribution pension schemes was £98.8m (2024: £90.5m).
Unfunded Unapproved Retirement Benefit Scheme (“UURBS”) pension costs
The decrease in the year in relation to UURBS was £3.6m (2024: decrease of £6.1m). This is included in Employee related provisions (note 20
).
Staff costs analysis
The pension costs in note 8 can be analysed as follows:
Service costs
19.7
18.6
Defined contribution scheme payments
98.8
90.5
118.5
109.1
225 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

23.6 Pension scheme risk assessment and mitigation
Risks to which the Pension Schemes exposes the Group
The nature of the Group’s defined benefit pension schemes expose the Group to the risk of paying unanticipated additional contributions
to the schemes in times of adverse experience. The most financially significant risks are likely to be:
(i) Asset volatility
The liabilities are calculated using a discount rate set with reference to corporate bond yields; if assets underperform this yield, this will
create a deficit. The schemes hold a proportion of growth assets (equities and property) which, though expected to outperform corporate
bonds in the long term, create volatility and risk in the short term. The allocation to growth assets is monitored to ensure it remains
appropriate given the schemes’ long term objectives. The SHEPS has a much lower proportion of growth assets than the SSE Southern
Pension Scheme reflecting the maturity of each scheme.
(ii) Changes in bond yields
A decrease in corporate bond yields will increase the value placed on the schemes’ liabilities for accounting purposes. However, this will be
partially offset by an increase in the value of the schemes’ bond holdings and its interest rate hedging in both schemes.
(iii) Inflation risk
The majority of the schemes’ benefit obligations are linked to inflation, and higher inflation will lead to higher liabilities (although, in most
cases, caps on the level of inflationary increases are in place to protect against extreme inflation). However, this will be substantially offset
by the inflation hedging in both schemes.
(iv) Life expectancy
The majority of the schemes’ obligations are to provide benefits for the life of the members, so an increase in the life expectancy will result
in an increase in the liabilities. The sensitivity analysis disclosed is intended to provide an indication of the impact on the value of the
schemes’ liabilities of the risks highlighted.
(v) Liability versus asset risk
The risk that movement in the value of the schemes’ liabilities are not met by corresponding movements in the value of the schemes’ assets
will expose the Group to movements in the overall funding surplus.
23.7 Risk mitigation
(i) De-risking
The trustees have taken a number of steps to control the level of investment risk including reducing the Schemes’ exposures to higher risk
assets and increasing the level of protection against adverse movements in interest rates and inflation. The trustees of both schemes
continue to review the risk exposures in light of the longer term objectives of the respective schemes, including consideration of the
impact of climate-related risk. Detailed below are further details on the hedging of pensioner longevity risk.
(ii) Asset buy-in
On 1 October 2019, the Scottish Hydro Electric Pension Scheme entered into an asset buy-in, transferring the risk of volatility in the
assumptions used to calculate the obligation for 1,800 pensioners and 567 dependants (covering c£800m of the scheme’s funding
liabilities) to a third party. The asset buy-in is valued under the accounting principles of IFRS 13 and is considered a Level 3 instrument in the
fair value hierarchy. This is in addition to a previous buy-in completed during the year ended 31 March 2018 when c.£250m of the scheme’s
assets and liabilities related to 617 pensioners and 190 dependants were transferred to a third party. The Group has now insured against
volatility in obligations related to pensioners who retired before 1 October 2019 to third parties (insurer PIC) and is now only exposed to
valuation fluctuations related to active and deferred members and any members who retired after 1 October 2019.
(iii) Asset-liability matching strategies used by the Scheme
The Group and trustees of the schemes have agreed a long term investment strategy that seeks to reduce investment risk as and when
appropriate. The asset-liability matching strategy is part of this approach which aims to reduce the volatility of the funding level of the
pension schemes by investing in assets which perform in line with the liabilities of the schemes so as to protect against inflation being
higher than expected. This has been adopted for a proportion of the schemes’ assets, which is designed to provide partial protection
against adverse movements in interest rates and inflation. The trustees of the respective schemes review the schemes’ asset allocation on
an ongoing basis in light of changes in the funding position and market opportunities.
23.8 Risk assessment
(i) Maturity profile of the defined benefit obligations
The weighted average duration of the defined benefit obligation is 14 years (2024: 17 years) for the Scottish Hydro Electric Pension Scheme
and 12 years (2024: 13 years) for the SSE Southern Pension Scheme.
(ii) Information about the defined benefit obligations
Status of members is weighted by the liabilities of each scheme
Active members
17
16
Deferred members
12
8
Pensioners
71
76
100
100
23
Retirement benefit obligations continued
Notes to the consolidated financial statements continued
for the year ended 31 March 2025
226 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

23.9 Pension scheme policies
(i) Recognition of gains and losses
The Group recognises actuarial gains and losses in the statement of other comprehensive income following the re-measurement of the
net defined benefit liabilities of the schemes.
(ii) Methods and assumptions used in preparing the sensitivity analyses
The sensitivities disclosed are calculated using approximate methods taking into account the duration of the schemes’ liabilities. While
these have been calculated consistently with the previous financial year, the method applied may change over time with financial
conditions and assumptions.
(iii) Asset recognition
The Group has recognised net pension assets in relation to the Scottish Hydro Electric and SSE Southern pension schemes due to a surplus
existing under IAS 19 accounting. The Group will only recognise a surplus should it have rights to that surplus under the rules of the
pension scheme. The Group no longer applies the “asset ceiling” restriction mandated by IFRIC 14. Details on this key accounting
consideration are provided above.
(iv) Fair value assessment of scheme assets
The Group seeks to assess whether there is a quotable market value (referenced as “quotable” above) in relation to pension scheme assets
held. This assessment is based on regular reviews conducted in conjunction with the trustees of the schemes. For assets where no
quotable market value exists, these assets will be valued based on a set methodology agreed by trustees and scheme advisors and then
regularly assessed.
Currently only one unquotable value exists within the two pension schemes of the Group, this being qualifying insurance contracts (or
“buy-in”) held by the Scottish Hydro Electric Pension Scheme. These assets are currently valued consistently with the scheme’s liabilities
with the expected return on these assets being set equal to the discount rate.
24
Financial instruments
For financial reporting purposes, the Group has classified derivative financial instruments into two categories, operating derivatives and
financing derivatives. Operating derivatives include all qualifying commodity contracts including those for electricity, gas, oil, and carbon
and the post-day 1 fair value movements on non-government backed contracts for difference in SSE Renewables. Financing derivatives
include all fair value and cash flow interest rate hedges, non-hedge accounted (mark-to-market) interest rate derivatives, cash flow foreign
exchange hedges and non-hedge accounted foreign exchange contracts. Non-hedge accounted contracts are treated as held for trading.
The Group provides guarantees in respect of certain activities of former subsidiaries and to certain current joint venture investments.
As permitted by IFRS 17 “Insurance Contracts”, the Group elected to apply the valuation principles of IFRS 9 to these contracts.
24.1 Financial instruments – income statement
Total result on operating derivatives
(i)
92.9
(573.1)
Less: amounts settled
(ii)
(141.9)
1,025.3
Movement in unrealised derivatives
(49.0)
452.2
Total result on financing derivatives
(i)
63.6
370.6
Less: amounts settled
(ii)
(50.8)
(364.5)
Movement in unrealised derivatives
12.8
6.1
Total result on financial guarantee liabilities
(iii)
1.9
12.5
Net income statement impact
(34.3)
470.8
(i) Total result on derivatives in the income statement represents the total amounts credited (or charged) to the income statement in respect of operating and financial derivatives,
and is shown as certain re-measurements in
note 7
.
(ii) Amounts settled in the year represent the result on derivatives transacted which have matured or been delivered and have been included within the total result on derivatives, and
is shown as certain re-measurements in note 7
.
(iii) Total result on financial guarantee liabilities in the income statement represents the total amounts credited or (charged) to the income statement in respect of the unwind of the
financial liabilities and recognition of new or expiring contracts.
The movement in unrealised operating derivative excludes a £11.1m loss (2024: £8.8m loss) on proprietary trades, which has been
recognised in the underlying profit of the Group.
227 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

24.2 Financial instruments – balance sheet
The derivative financial assets/(liabilities) are represented as follows:
Non-current
63.5
64.2
Current
178.4
536.1
Total derivative assets
241.9
600.3
Non-current
(167.7)
(222.2)
Current
(126.3)
(345.2)
Total derivative liabilities
(294.0)
(567.4)
Net derivative (liability)/asset
(52.1)
32.9
The financial guarantee liabilities are represented as follows:
Non-current
(23.1)
(36.4)
Current
(2.4)
(3.1)
Total guarantee liabilities
(25.5)
(39.5)
Information on the Group’s financial risk management and the fair value of financial instruments is available at A6 and A7
.
25
Commitments and contingencies
25.1 Capital commitments
Contracted for but not provided
4,438.3
1,389.2
Contracted for but not provided capital commitments include the fixed contracted costs of the Group’s major capital projects. In practice
contractual variations may arise on the final settlement of these contractual costs. The increase from the prior year relates primarily to
Transmission projects.
25.2 Contingent liabilities
Contingent liabilities for the Group solely relate to SSE plc, and have been disclosed within note 13 to the Company Financial Statements.
24
Financial instruments continued
Notes to the consolidated financial statements continued
for the year ended 31 March 2025
228 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

A1
Basis of consolidation and significant
accounting policies
A1.1 Basis of consolidation
The financial statements consolidate the results of the Company
and its subsidiaries together with the Group’s share of the results
and net assets of its interests in joint arrangements and associates.
Where necessary to ensure consistency, the accounting policies
of the subsidiaries, joint arrangements or associates have been
adjusted to align to the accounting policies of the Group. Intra-
Group balances and any unrealised gains and losses or income and
expenses arising from Intra-Group transactions are eliminated in
preparing the consolidated financial statements. Unrealised gains
and losses arising from transactions with joint arrangements
and associates are eliminated to the extent of the Group’s interest
in the entity. Non-controlling interests represent the equity in
subsidiaries that is not attributable, either directly or indirectly,
to SSE plc shareholders.
Subsidiaries (Accompanying Information A3)
Subsidiaries are those entities controlled by the Group or the
Company. Control exists when the Group has the power, directly or
indirectly, to govern the financial and operating policies of an entity
in order to obtain variable returns from its activities. In assessing
control, potential voting rights that are currently exercisable or
convertible are taken into account. The financial statements of
subsidiaries acquired are consolidated in the financial statements
of the Group from the date that control commences until the date
control ceases. Transactions with non-controlling interests that
relate to their ownership interests and do not result in a loss of
control are accounted for as equity transactions.
Interests in joint arrangements and associates (note 16 and
Accompanying Information A3)
Joint arrangements, as defined by IFRS 11 “Joint Arrangements”,
are those arrangements that convey to two or more parties “joint
control”. Joint control exists when decisions about the “relevant
activities”, being the financial, operational or strategic policies of the
arrangement, are made with the unanimous consent of the parties
sharing control. Whilst this assessment is principally focused on
any “reserved matters”, being the material activities that typically
require all significant shareholders to approve, other contractual
agreements such as Power Purchase Agreements and Management
Services Agreements are also considered. The Group’s investments
in joint arrangements are classified as either joint operations or joint
ventures depending on the investee’s legal form and the investor’s
contractual rights and obligations over the assets and liabilities of
the investee.
Associates are those investments over which the Group has
significant influence but neither control nor joint control.
The Group’s interests in its joint operations are accounted for by
recognising its share of the assets, liabilities, revenue and expenses
of the operation. The Group’s share of revenue from Greater
Gabbard is eliminated on consolidation due to the offtake
agreement where the Group purchases its share of the output
from the arrangement.
The Group’s joint ventures and associates are accounted for using
the equity method of accounting where the joint venture and
associate net investments (comprising both equity and long term
loans) are carried at historical cost plus the Group’s share of
post-acquisition results, less any impairment in value. Where
an impairment is recognised against the carrying value of an
investment, it is recognised within the operating costs line of the
consolidated financial statements. For those investments that were
formerly subsidiaries of the Group, this will also include any fair
value uplift arising from loss of control. The Group recognises its
share of the results of these equity-accounted operations after tax
and interest in the income statement.
Foreign currencies
The consolidated financial statements are presented in pounds
Sterling, which is the functional currency of the parent. Each entity
in the Group determines its own functional currency and items
included in the financial statements of each entity are measured
accordingly.
Transactions in foreign currencies are recorded at the rate ruling
at the date of the transaction. Monetary assets and liabilities
denominated in foreign currencies are translated at the rate of
exchange ruling at the balance sheet date. Any gain or loss arising
on the restatement of such items is taken to the income statement
as a finance cost, with the exception of exchange gains or losses on
foreign currency borrowings that provide a hedge against a net
investment in a foreign entity or exchange gains or losses incurred
as part of a qualifying cash flow hedge. These exchange gains or
losses are transferred to the translation reserve to the extent the
hedge is effective. Non-monetary assets that are measured in terms
of historical cost in a foreign currency are translated at the historic
rate at the date of transaction.
For the purpose of presenting the consolidated financial
statements, the assets and liabilities of the Group’s foreign
operations are translated into pounds Sterling at the balance sheet
closing rate. The results of these operations are translated at the
average rate in the relevant period. Exchange differences on
retranslation of the opening net assets and the results of foreign
operations are transferred to the translation reserve and are
reported in the consolidated statement of comprehensive income.
The average and spot rates for the principal functional currencies
that the Group’s foreign operations are denominated in are shown
in the table below.
2025
2024
Change
EUR v GBP
Year end
1.1938
1.1697
2.1%
1.1946
1.1694
2.2%
US$ v GBP
Year end
1.2907
1.2623
2.2%
1.2915
1.2710
1.6%
JPY v GBP
Year end
193.4770
191.0290
1.3%
192.5154
190.4400
1.1%
A1.2 Significant accounting policies
Revenue (note 5)
Revenue from contracts with customers is recognised to the
extent that it reflects the expected consideration for goods or
services provided to the customer under contract, over the
performance obligations they are being provided. For each
separable performance obligation identified, the Group determines
whether it is satisfied at a “point in time” or “over time” based upon
an evaluation of the receipt and consumption of benefits, control
of assets and enforceable payment rights associated with that
obligation. If the criteria required for “over time” recognition are
not met, the performance obligation is deemed to be satisfied at
a “point in time”.
Revenue principally arises as a result of the Group’s activities in
energy production, storage, transmission, distribution, supply and
related services in the energy markets in Great Britain and Ireland.
The key policies applied by each Business Unit are as follows:
Accompanying information
229 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Accompanying information continued
A1
Basis of consolidation and significant
accounting policies continued
A1.2 Significant accounting policies continued
Transmission
Use of electricity transmission networks
Revenue from use of electricity transmission networks is derived
from the allowed revenue as defined by the parameters in the
relevant electricity transmission licence, which informs the tariffs set.
Electricity transmission revenue is determined in accordance with
the regulatory licence, based on an Ofgem approved revenue
model and is recognised “over time” as charged to National Grid.
Where this revenue differs from the allowed revenue, there may be
an over- or under-recovery of revenue which will be reflected in
future financial years’ allowed revenue as set out in the regulatory
licence. No accounting adjustments are made for over- or under-
recoveries in the year that they arise as they are contingent on
future events (being the transmission of electricity in a future
period). The over or under recovery adjustment is recognised in
the subsequent period when included within the tariffs that form
allowed revenue under the regulatory agreement.
Transmission network contracted services
Where the Group has an ongoing obligation to provide contracted
services (transmission network connections), revenues are
recognised “over time” consistent with the customer receiving
and consuming the benefits of that service across the expected
contractual service period. Any assets constructed in order to
deliver the service are capitalised and depreciated over their useful
life. Payments are typically received from customers in advance of
providing the contracted service and are deferred on balance sheet.
No extended warranty periods are offered.
Distribution
Use of electricity distribution networks
Revenue from use of electricity distribution networks is derived
from the allowed revenue as defined by the parameters in the
relevant electricity distribution licence, which informs the tariffs set.
Electricity distribution revenue is recognised based on the volume
of electricity distributed “over time”, as use of distribution service is
determined by the customer, and the set customer tariff. As with
electricity transmission revenue, any over- or under-recovery of
revenue is reflected in future financial years’ allowed revenue as set
out in the regulatory licence. No accounting adjustments are made
for over- or under-recoveries in the year that they arise as they are
contingent on future events (being the distribution of electricity in a
future period). The over or under recovery adjustment is recognised
in the subsequent period when included within the tariffs that form
allowed revenue under the regulatory agreement. The policy also
applies to the Group’s independent network business reported
within Thermal.
Distribution network contracted services
Where the Group has an ongoing obligation to provide contracted
services (such as for distribution network connections), revenues
are recognised “over time” consistent with the customer receiving
and consuming the benefits of that service across the expected
contractual service period. Any assets constructed in order to
deliver the service are capitalised and depreciated over their useful
life. Payments are typically received from customers in advance of
providing the contracted service and are deferred on balance sheet.
The release of deferred income on customer or third party funded
additions is removed from the Group’s adjusted EBITDA measure.
No extended warranty periods are offered.
Renewables
Electricity generation
Revenue from the physical generation of electricity is recognised
“point in time” as generated and supplied to the national
settlements body. Revenue is measured at either the spot price
at the time of delivery, or trade price where that trade is eligible
for “own use” designation.
Renewables contracted services
Revenue from national support schemes, such as Renewable
Obligation Certificates, is recognised at the point the performance
obligation has been met. This is typically considered to be either
at the point electricity has been physically generated or over the
contractual period, depending on the underlying performance
obligation. Revenue is measured either at the market rate at the
point of generation, or at the fixed contractual consideration,
depending on the individual scheme mechanic.
Revenue from other ancillary generation services is recognised
“over time” consistent with the customer receiving and consuming
the benefits of those services across the expected contractual
service period, and at the contracted consideration.
Thermal
Electricity generation
Revenue from the physical generation of electricity is recognised
“point in time” as generated and supplied to the national
settlements body. Revenue is measured at either the spot price at
the time of delivery, or trade price where that trade is eligible for
“own use” designation.
Gas storage
Revenue from gas storage trading activities is recognised “point in
time” as injected back into the gas network. Revenue is measured at
the spot price at the time of delivery.
Thermal Generation contracted services
Revenue from national support schemes, such as the Capacity
Market mechanism, is recognised at the point the performance
obligation has been met. This is typically considered to be either
at the point electricity has been physically generated or over the
contractual period, depending on the underlying performance
obligation. Revenue is measured either at the market rate at the
point of generation, or at the fixed contractual consideration,
depending on the individual scheme mechanic.
Revenue from other ancillary generation services is recognised
“over time” consistent with the customer receiving and consuming
the benefits of those services across the expected contractual
service period, and at the contracted consideration.
Customers
Supply of energy
Revenue on the supply of energy comprises sales to domestic (in
Ireland) and business end-user customers (in GB and Ireland) is
based on actual energy consumption including an estimate of the
value of electricity and gas supplied to customers between the date
of the last meter reading and the year end. Revenue is recognised
“over time” consistent with the delivery of energy to the customer
as the receipt and consumption of the benefits of the energy is
considered to be simultaneous. Revenue is measured based on the
applicable customer tariff rate and after deduction of any applicable
contractual discounts.
Details of the judgements involved in the estimation process for the
value of electricity and gas supplied to GB Business customers is
given within note 4.1(iii)
.
Payments from customers may be received in advance of providing
the contracted service and are deferred on balance sheet. Amounts
received from customers in relation to energy management
services provided by Third Party Intermediaries (“TPIs”) are offset
against payments to those TPIs, reflecting the responsibility for
providing the energy management service.
230 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Energy related services
Where the Group has an ongoing obligation to provide contracted
energy related services, revenues are recognised “over time”
consistent with the customer receiving and consuming the benefits
of that service across the expected contractual service period at
the fixed contracted rate. Where the Group has an obligation to
perform a specific service, revenues are recognised “point in time”,
following performance of the service at the fixed contracted
consideration. No extended warranty periods are offered.
SSE Energy Markets
Commodity optimisation and other services
Income from sales commodity optimisation trading occurring
in any business unit is presented net in cost of sales alongside
purchase commodity optimisation trades. Revenue on physical
power and gas supplied is recognised “point in time” as delivered to
the national settlements body or third parties. Revenue is measured
at either the spot price at the time of delivery, or trade price where
that trade is eligible for “own use” designation.
Revenue arising on commodities purchased in excess of the
Group’s requirements and recorded as inventory assets, such as
Renewables Obligation Certificates, REGOs or carbon allowances,
is recognised “point in time” on disposal of these inventory assets
to third parties.
Revenue from other ancillary services is recognised “over time”
consistent with the customer receiving and consuming the benefits
of those services across the expected contractual service period,
and at the contracted consideration.
Aside from where specifically noted above, consideration is due
when the performance obligation has been satisfied. As the period
between satisfaction of the performance obligation and receipt of
consideration from the customer is expected to be less than a year,
the Group has applied the practical expedient not to adjust revenue
for the effect of any financing components.
Revenue from sources other than the Group’s contracts with
customers principally comprise meter rental income included
within Corporate unallocated (previously within the SSE Enterprise
business), and Contract for Difference income.
Income on meter rental agreements, which are classified as
operating leases, are presented as revenue where they relate to
the core operating activities of that business. Lease payments are
recognised as income on a straight-line basis over the lease term.
Where the Group earns income from an asset during the
commissioning period, the income is recognised in the income
statement as revenue in accordance with the relevant asset
accounting policy set out above.
Other operating income – Government Grants (note 6)
Under government customer support schemes, licensed energy
suppliers are required to provide a discount on gas and electricity
prices to customers. The level of discount applied to each customer
varies dependent upon energy tariff and support scheme applicable
to each customer. Where SSE provided a discount to customer
through reduction of energy bill, the cost of applying these
discounts is recovered from the Government. The amounts
reclaimed under this scheme are recognised as government grant
income within Other Operating Income in the consolidated
income statement.
For the year ended 31 March 2025 the most significant customer
support scheme administered by the Group was the Irish
Government Electricity Costs Emergency Benefit Scheme IV
applicable to eligible domestic electricity customers in the Republic
of Ireland. The scheme was administered by SSE Airtricity with
credits applied to customers’ accounts, following receipt of funding
from the Irish Government (see note 6).
Contracts for Difference (“CfD”) are agreements between a low
carbon electricity generator and the Low Carbon Contracts
Company (“LCCC”), a UK Government owned entity responsible
for delivering support mechanisms for low-carbon electricity
generation. These agreements are not considered to be contracts
with a customer, as the LCCC does not receive any goods or
services from the generator. These arrangements are instead
considered to be Government Grants, with income arising from
these grants recognised in the income statement in the period in
which generation takes place. In the year, the Group recognised no
income or expense (2024: none) related to Contracts for Difference
with the LCCC within its wholly owned subsidiaries. The Group’s
joint venture investment, Beatrice Offshore Windfarm Limited, has
a CfD with the LCCC which resulted in payments from the LCCC
of £245.7m in the year with SSE’s share of £98.3m recognised
within share of profit (2024: £217.3m, with SSE’s share of £86.9m
recognised within share of profit). The Group’s wholly owned Viking
wind farm and joint venture investments Seagreen Wind Energy
Limited, and Doggerbank A & B, which are currently under
construction, also have a CfD arrangement in place with the LCCC.
The LCCC government agreements for Viking, Seagreen and
Doggerbank are not yet effective and as such no income or cost
was recognised during the year.
Where the CfD strike price falls below the spot price of generation
and payments are made to the LCCC, these payments are expensed
as incurred within operating costs. See “financial instruments”
below for the Group’s policy in relation to commercial Contracts
for Difference.
Presentation of grants related to assets
Income received from Government towards the capital cost of
an asset are deducted from the carrying value presented in the
financial statements.
Cost of sales (note 6)
Cost of sales includes fuel and energy purchases, direct employee
benefits, and depreciation of electricity generation property, plant
and equipment.
The net result from sales and purchases of commodity optimisation
trades – comprising both realised and unrealised gains and losses
arising from optimisation trading activities – is also presented within
cost of sales, reflecting the underlying economic purpose of this
trading activity.
Finance income and costs (note 9)
Interest income and costs are recognised in the income statement
as they accrue, on an effective interest method. The issue costs
and interest payable on bonds and all other interest payable and
receivable is reflected in the income statement on the same basis.
Interest on the funding attributable to major capital projects is
capitalised during the period of construction and depreciated as
part of the total cost over the useful life of the asset.
The accounting policy for foreign exchange translation of monetary
assets and liabilities is described on page 229
and for lease
liability charges on
page 234 .
231 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Accompanying information continued
A1
Basis of consolidation and significant
accounting policies continued
A1.2 Significant accounting policies continued
Taxation (note 10)
Taxation on the profit for the year comprises current and deferred
tax. Taxation is recognised in the income statement unless it relates
to items recognised directly in equity, in which case it is recognised
in other comprehensive income.
Current tax is the expected tax payable on the taxable income for
the year, using tax rates enacted or substantively enacted at the
balance sheet date, and any adjustment to tax payable in respect
of previous years.
Deferred tax is calculated using the balance sheet liability method,
providing for temporary differences between the carrying amounts
of assets and liabilities for financial reporting purposes and the
amounts used for taxation purposes. The following temporary
differences are not provided for: goodwill not deductible for tax
purposes, the initial recognition of assets or liabilities other than in
business combinations that affect neither accounting nor taxable
profit, and differences relating to investments in subsidiaries to the
extent that they will probably not reverse in the foreseeable future.
The amount of deferred tax provided is based on the expected
manner of realisation or settlement of the carrying amount of
assets and liabilities, using tax rates enacted or substantively
enacted at the balance sheet date.
Deferred tax assets and liabilities are offset where there is a legally
enforceable right of offset within the same tax authority and where
the Group intends to either settle them on a net basis, or to realise
the asset and settle the liability simultaneously. A deferred tax asset
is recognised only to the extent that it is probable that future taxable
profits will be available against which the asset can be utilised.
Deferred tax assets are reduced to the extent that it is no longer
probable that the related tax benefit will be realised.
During the previous financial year, Finance (No.2) Act 2023 was
enacted, bringing the Electricity Generator Levy (“EGL”) into force,
which is effective for periods from 1 January 2023 to 31 March
2028. The Group has assessed that the EGL has the characteristics
of a levy rather than an income tax. The Group therefore recognises
the costs associated with the levy for within cost of sales.
Business Combinations (note 12)
The acquisition of subsidiaries, and joint operations that meet the
definition of a business, is accounted for under the acquisition
method as defined by IFRS 3 “Business Combinations”.
The cost of acquisition is measured as being the aggregate fair
value of consideration to be transferred at the date control is
obtained. Goodwill is measured at the acquisition date as the fair
value of consideration transferred, plus non-controlling interests,
less the net recognised amount (which is generally fair value) of the
identifiable assets and liabilities assumed. Goodwill is subject to
an annual review for impairment (or more frequently if necessary)
in accordance with the Group’s impairment accounting policy.
Contingent consideration is classified as a liability and subsequently
re-measured through the income statement. Acquisition costs are
expensed as incurred.
Changes in ownership that do not result in a change of control are
accounted for as equity transactions.
Held for sale assets and liabilities and discontinued operations
Non-current assets are classified as held for sale if their recoverable
value is likely to be recovered via a sale or distribution as opposed to
continued use by the Group. In order to be classified as assets held
for sale, assets must meet all of the following conditions: the sale is
highly probable; it is available for immediate sale; it is being actively
marketed; and the sale is likely to occur within one year.
Assets that qualify as held for sale and related liabilities are disclosed
separately from other assets and liabilities in the balance sheet
prospectively from the date of classification. Non-current assets
determined as held for sale are measured at the lower of carrying
value and fair value less costs to sell, no depreciation is charged in
respect of these assets after classification as held for sale.
Assets or groups of assets and related liabilities that qualify
as held for sale are classified as discontinued operations when
they represent a separate major line of business or geographical
area, are part of a single plan to dispose of a separate major line
of business or geographical area or are acquired exclusively
with a view to resale. Income and expenses relating to these
discontinued operations are disclosed in a single net amount
after taxes in the income statement, with comparative amounts
re-presented accordingly.
Intra-Group balances and any unrealised gains and losses or
income and expenses arising from trading between continuing
and discontinued operations continue to be eliminated in preparing
the consolidated financial statements.
Intangible assets (note 13)
Goodwill and impairment testing
Goodwill arising on a business combination represents the excess
of the cost of acquisition over the Group’s interest in the fair value
of the identifiable assets, liabilities and contingent liabilities of a
subsidiary, associate or joint venture at the date of acquisition.
Following initial recognition, goodwill is measured at cost less
any accumulated impairment losses. Goodwill is reviewed for
impairment at least on an annual basis.
For the purpose of impairment testing, goodwill is allocated on
initial recognition to the cash-generating units or groups of CGUs
expected to benefit from the combination’s synergies. The CGUs
(or groups of CGUs) used for goodwill impairment testing purposes
will represent how goodwill was attributed but may not represent
reportable business segments.
Goodwill may also arise upon investments in joint arrangements
and associates. Goodwill arising on a joint operation is recorded
as a separate asset and any impairment loss is recognised in the
income statement. Goodwill arising on a joint venture or associate
is recorded within the carrying amount of the Group’s investment
and any impairment loss is included within the share of result from
joint ventures and associates. On disposal or closure of a previously
acquired investment or business, any attributed goodwill will be
included in determining the profit or loss on disposal.
Allowances and certificates
Allowances and certificates consist of purchased carbon emissions
allowances and generated or purchased obligations certificates.
These allowances and certificates will be utilised in settlement of
environmental obligations incurred by the Group’s Thermal and
SSE Business Energy businesses.
The EU Emissions Trading Scheme (“EU ETS”) has been in
operation since 1 January 2005, with the Group operating under
the established EU ETS carbon pricing system from that date.
Since 1 January 2021, following Brexit, the UK Government has
established a UK Emissions Trading Scheme (“UK ETS”) to replace
232 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

the EU ETS with the Group’s UK generation assets now operating
under the UK ETS carbon pricing system. The Group continues
to hold EU ETS certificates to settle obligations arising through
the activities of its Irish Thermal generation assets. Carbon
allowances purchased are recorded at cost within intangible assets.
Forward carbon contracts are measured at fair value with gains or
losses arising on re-measurement being recognised in the income
statement. A liability is recognised based on the level of emissions
recorded. Up to the level of allowances held, including forward
carbon contracts, the liability is measured at the cost of purchase.
When the carbon emission liability exceeds the carbon allowances
held, the difference is measured at market value selling price.
Subsequent movements in market value are prospectively
recognised in operating profit.
The carbon allowance intangible asset is surrendered at the end
of the compliance period to the extent requested reflecting the
consumption of the economic benefit and is recorded as being
utilised. As a result, no amortisation is booked but an impairment
charge may be recognised should the carrying value of allowances
exceed market or fair value.
Under the Renewable Obligations Certificates scheme, certificates
obtained from own generation are awarded by a third party, Ofgem.
ROCs can be traded with third parties and are ultimately used
by suppliers to demonstrate to Ofgem that they have met their
obligation to source a set proportion of the electricity they supply
from renewable sources. The value of a ROC to a supplier
comprises two elements: the “buy-out” price which is set annually
in advance of the compliance period by Ofgem; and the “recycle”
price which is determined after the compliance period by Ofgem.
The recycle price element is estimated at the balance sheet date
based on assumptions at that point in time around likely levels of
renewable generation and supply over the remaining compliance
period, and is therefore subject to possible future variation.
Where ROCs are self-generated or purchased to fulfil the Group’s
liability under the renewable obligation, they are recorded at market
value at the point of generation or purchased within intangible
assets. The Group can hold ROCs in excess of the Group’s
renewables obligation, which, due to limited evidence of liquidity or
net settlement for ROC trades, are recorded at the lower of cost or
net realisable value within inventories. Similarly, the fair value of any
forward contracts entered into at the balance sheet date for the
purchase or sale of ROCs in future periods are not recognised, as
there is insufficient liquidity for net settlement. The Group’s liability
under the renewable obligation is recognised based on electricity
supplied to customers, the obligation level set by Ofgem and the
prevailing market price.
The Group’s SSE Business Energy segment has a requirement under
certain customer supply agreements to demonstrate the origin of
electricity supplied to customers generated by renewable sources.
Renewable Energy Guarantees of Origin certificates (“REGOs”) are
procured from third parties or generated by the Group’s Renewable
accredited assets and retained for surrender under the scheme.
Tickets that are held to be surrendered are recorded as intangible
assets at the prevailing market rate in line with the external
obligation. Excess tickets held by the Group are held in inventories
at the lower of cost or net realisable value.
The ROCS and REGO intangible assets are surrendered at the end
of the compliance period reflecting the consumption of economic
benefit and release of the associated liability. As a result, no
amortisation is recorded during the period.
Research and development
Expenditure on research activities is charged to the income
statement as incurred.
Expenditure on development activities is capitalised as intangible
assets if the project or process is considered to be technically and
commercially feasible and the Group intends to complete the
project or process for use or for sale. Development projects include
wind farm developments, battery storage and solar developments,
thermal generation projects and other developments relating to
proven technologies. Costs incurred in bringing these projects to
the consent stage include options over land rights, planning
application costs and environmental impact studies and may be
costs incurred directly or part of the fair value exercise on
acquisition of an interest in a project. At the point that the project
reaches the consent stage and is approved by the Board, the
carrying value of the project is transferred to property, plant and
equipment as assets under construction. Revenue and costs
incurred through pre-commissioning testing activities are reflected
in the income statement. Once in operation, depreciation will be
charged over the expected useful life of the asset. The asset is
derecognised on disposal, or when no future economic benefits
are expected to arise.
Software assets
Software assets that have been acquired separately by the Group
are stated at cost less accumulated amortisation and impairment
losses. Expenditure on internally developed software assets and
application software licences includes contractors’ fees and directly
attributable labour and overheads. Amortisation is charged to the
income statement on a straight-line basis over the estimated useful
life of these assets. The amortisation periods utilised are as follows:
software licences
3–15
The useful lives of all the intangible assets are reviewed annually
and amended, as required, on a prospective basis. Intangible assets
are derecognised on disposal, or when no future economic benefits
are expected from their use.
Cloud computing arrangements
The Group has contracts for Software as a Service (“SaaS”) and
Platform as a Service (“PaaS”) Cloud Computing Arrangements.
Where the Group does not control the underlying assets in these
arrangements, costs are expensed as incurred. Implementation
costs in respect of these contracts are capitalised when the
definition and recognition criteria of an intangible asset under
IAS 38 are met.
Property, plant and equipment (note 14)
Owned assets
Items of property, plant and equipment are stated at cost less
accumulated depreciation and impairments. The cost of self-
constructed assets includes the cost of materials, direct labour and
other directly attributable costs. Where the asset is a qualifying
asset, for which a considerable period of time is required to prepare
the asset for use or sale, borrowing costs will be capitalised as part
of the asset’s cost. Where an item of property, plant and equipment
comprises major components having different useful lives, the
components are accounted for as separate items of property, plant
and equipment, and depreciated accordingly. An item of property,
plant and equipment is derecognised on disposal or when no future
economic benefits are expected to arise from the continued use of
the asset.
233 SSE plc Annual Report 2025
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Accompanying information continued
A1
Basis of consolidation and significant
accounting policies continued
A1.2 Significant accounting policies continued
Property, plant and equipment (note 14) continued
Right of use assets
Right of use assets are measured at cost, less any accumulated
depreciation and impairment losses, and adjusted for any
re-measurement of lease liabilities. The cost of right of use assets
includes the amount of lease liabilities recognised, initial direct
costs incurred, and lease payments made at or before the
commencement date less any lease incentives received. Where a
modification to a lease agreement decreases the scope of the lease,
the carrying amount of the right of use asset is adjusted and a gain
or loss is recognised in proportion to the decrease in scope of the
lease. All other modifications to lease agreements are accounted
for as a reassessment of the lease liability with a corresponding
adjustment to the right of use asset.
Hydro civil assets
The Group is obliged under the Reservoirs Act 1975 to maintain its
hydro infrastructure network, including its dams, tunnels and other
hydro civil engineering structures (hydro civil assets). All items of
property, plant and equipment within hydro civil assets, with the
exception of land, are subject to depreciation.
In accordance with the transition provisions of IFRS 1 “First-time
Adoption of IFRS”, the Group identified the carrying value of these
assets at privatisation and has treated this value as deemed cost.
Following this assessment, the assets, and all subsequent
enhancement and replacement expenditure, has been subject
to depreciation over a useful economic life of 75 years. All
subsequent maintenance expenditure is chargeable directly to
the income statement.
Depreciation
Depreciation is charged to the income statement to write off cost,
less residual values, on a straight line basis over their estimated
useful lives. Heritable and freehold land is not depreciated.
Depreciation policy, useful lives and residual values are reviewed at
least annually, for all asset classes to ensure that the current method
is the most appropriate. Depreciation commences following the
asset commissioning period and when the asset is available for
commercial operation. The estimated useful lives for assets
depreciated on a straight line basis are as follows:
generation assets)
75 to 100
power generation assets)
20 to 60
power generation assets)
20 to 25
power generation assets)
23 to 30
Gas storage facilities (classified within Other assets)
25 to 50
Overhead lines, underground cables and other
network assets (classified within Distribution or
Transmission network assets)
5 to 80
Office buildings (classified within Land and buildings)
30 to 40
Assets held under leases are depreciated over their expected useful
lives on the same basis as owned assets or, where shorter, over the
term of the relevant lease agreement.
Subsequent expenditure
It is the Group policy to capitalise qualifying replacement
expenditure and depreciate it over the expected useful life of the
replaced asset. Replaced assets are derecognised at this point and
the costs recorded as costs of disposal. Where an item of property,
plant and equipment is replaced and it is not practicable to
determine the carrying amount of the replaced part, the cost of the
replacement adjusted for inflation will be used as an approximation
of the cost of the replaced part at the time it was acquired or
constructed.
Expenditure incurred to replace a component of an item of
property, plant and equipment that is accounted for separately is
capitalised. Other subsequent expenditure is capitalised only when
it increases the future economic benefits of the item of property,
plant and equipment to which it relates. Maintenance and repair
costs are expensed as incurred.
Derecognition
An item of property, plant or equipment is derecognised upon
disposal or when no future economic benefits are expected to arise
from the continued use of the asset. Gains and losses on disposals
are determined by comparing the proceeds received with the
carrying amount of the asset and are included in the income
statement. Any gain or loss on derecognition of the asset is
included in the income statement in the period of derecognition.
Lease arrangements (note 21)
Lease arrangements are separately distinguished from service
contracts based on whether the contract conveys the right to
control the use of an identified asset for a period of time in
exchange for consideration. If the Group is deemed to control the
use of an identified asset, a right of use asset and a corresponding
lease liability are recognised on the balance sheet.
Right of use assets are capitalised and held as part of property,
plant and equipment. The accounting policy for such arrangements
is described above.
Lease liabilities are initially measured at the present value of the
future lease payments discounted using the rate implicit in the lease
if that can be readily determined. If the interest rate implicit in the
lease cannot be readily determined the incremental borrowing rate
is used. Where the interest rate implicit in the lease is not readily
determinable, the Group has applied the intercompany borrowing
rate which is based on the Group’s external medium-term
borrowing rates with premia adjustments for any subsidiary specific
risk factors.
In determining whether any break and/or extension clauses should
be included within the lease term, the Group has considered that
where an internal decision has been made to break or extend the
lease agreement, that decision shall be applied in determining the
appropriate lease term. Where an internal decision has not been
made, and where the non-cancellable element of the lease term
has longer than five years remaining, it is considered that any
clauses will not be triggered as any decision beyond that date is not
reasonably certain. For all leases with less than five years remaining,
an assessment is made at each reporting period on a lease-by-lease
basis on whether the clause is reasonably certain to be triggered.
Reassessment of break and/or extension judgements made in prior
periods could result in recalculation of the lease liability and
adjustments to associated balances.
The lease liability is subsequently adjusted for the unwind of
discounting, repayments and other modifications to the
underlying agreement. Lease modifications are accounted for
as a separate lease where the scope of the lease increases
through the right to use one or more underlying assets and
where the consideration of the lease increases by an amount
that is equivalent to the standalone price of the increase in scope.
Where a modification decreases the scope of the lease, the carrying
amount of the right of use asset is adjusted and a gain or loss is
recognised in proportion to the decrease in scope of the lease.
234 SSE plc Annual Report 2025
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All other modifications are accounted for as a reassessment of
the lease liability with a corresponding adjustment to the right of
use asset.
Leases with a duration of 12 months or less and leases for assets
which are deemed “low value” are expensed to the income
statement on a straight-line basis over the lease term.
Impairment review (note 15)
The carrying amounts of the Group’s property, plant and equipment
and other intangible assets and the Group’s investments in joint
ventures and associates, are reviewed for impairment whenever
events or changes in circumstances indicate that the carrying
amount may not be recoverable, or where there are indications that
a previously recognised impairment loss has reduced. For property,
plant and equipment assets that have previously been identified as
exhibiting indications of impairment, the review of impairment will be
performed annually until there is sufficient evidence to confirm that
any potential impairment loss has been appropriately recognised, or
until previously recognised impairment losses have been fully written
back. For goodwill and other intangible assets with an indefinite life
or which are not yet ready for use, the test for impairment is carried
out annually. In addition, financial assets measured at amortised cost
are also reviewed for impairment annually.
For assets subject to impairment testing, the asset’s carrying value
is compared to the asset’s (or cash-generating unit’s, in the case
of goodwill), recoverable amount. The recoverable amount is
determined to be the higher of the fair value less costs to sell
(“FVLCS”) and the value-in-use (“VIU”) of the asset or cash-
generating unit (“CGU”). For financial assets measured at amortised
cost the impairment is measured as the difference between the
asset’s carrying amount and the present value of estimated future
cash flows discounted at the financial asset’s original effective
interest rate.
If the carrying amount of the asset or CGU exceeds its recoverable
amount, an impairment charge will be recognised immediately in
the income statement. Reversals of previous impairment charges
are recognised if the recoverable amount of the asset or CGU
significantly exceeds the carrying amount. Previous impairments
of goodwill are not reversed.
VIU calculations require the estimation of future cash flows to be
derived from the respective assets (or CGUs) and the selection of
an appropriate discount rate in order to calculate their present
value. The VIU methodology is consistent with the approach taken
by management to evaluate economic value and is deemed to be
the most appropriate for reviews of property, plant and equipment
assets and the Group’s identified goodwill-related CGUs.
The methodology is based on the pre-tax cash flows arising from
the specific assets, underlying assets or CGUs, and discounted
using a pre-tax discount rate based on the Group’s cost of funding
and adjusted for any specific risks. The estimation of the timing
and value of underlying projected cash flows and the selection
of appropriate discount rates involves management judgement.
Subsequent changes to these estimates or judgements may impact
the carrying value of the assets.
The fair value less costs to sell methodology also uses a present
value technique, unless there is a quoted price in an active market
for that asset. The methodology is based on the post-tax cash flows
arising from the specific assets, underlying assets or CGUs, and
discounted using a post-tax discount rate determined in the same
manner as the rates used in the VIU calculations, adjusted for the
relevant taxation rate.
Any impairment charge identified will initially be adjusted against
the goodwill allocated to the cash-generating unit. Any excess
charge will be allocated against the remaining assets of the
cash-generating unit. Reversals of previous impairment charges
are allocated against the carrying value of assets previously subject
to an impairment charge.
Inventories (note 17)
Inventories – aside from inventory purchased by the Gas Storage
business for trading activities – are valued at the lower of cost and
net realisable value. Net realisable value is the estimated selling
price in the ordinary course of business, less the estimated costs
of completion and selling expenses.
Gas inventory purchased by the Gas Storage business for trading
activities is held at fair value with reference to the forward month
market price. Gains and losses on re-measurement at fair value are
recognised within the income statement, as a “certain re-
measurement” item.
Provisions (note 20)
A provision is recognised in the balance sheet when the Group has
a present legal or constructive obligation as a result of a past event,
it can be measured reliably, and it is probable that an outflow of
economic benefits will be required to settle the obligation.
If the effect is material, provisions are determined by discounting
the expected future cash flows at a pre-tax rate that reflects current
market assessments of the time value of money and, where
appropriate, the risks specific to the liability.
Decommissioning
The Group engages independent experts to estimate the cost to
decommission its Renewable (Wind, Solar and Battery assets),
Thermal and Gas Storage assets every three years. In the
intervening years, management updates the external valuation
based on factors arising since the last formal valuation date.
Provision is made for the net present value of the estimated cost
of decommissioning gas storage facilities, wind farms and power
stations at the end of the useful life of the facilities. This includes
development assets, where if a present obligation exists, a provision
is recognised during construction and prior to commencement of
operations from the site. The estimates are based on technology
and prices at the balance sheet date and exclude any salvage value
related to those assets. A corresponding decommissioning asset is
recognised and is included within property, plant and equipment
when it gives access to future economic benefits, and is
depreciated on a straight-line basis over the expected useful
life of the asset. Changes in these provisions are recognised
prospectively. The unwind of discounting of the provision is
included in finance costs.
The Group retained a decommissioning obligation following the
disposal of its Gas Production business. The decommissioning
cost estimates are updated periodically by field operators based
on current technology and prices. Field operators also provide
estimated end of field life dates for each field, which can change
based on market commodity prices.
Retirement benefit obligations (note 23)
Defined benefit pension schemes
The Group operates two defined benefit pension schemes, one of
which is operated by the Company. Pension scheme assets are
measured using bid market values. Pension scheme liabilities are
measured using the projected unit credit actuarial method and are
discounted at the current rate of return on a high-quality corporate
bond of equivalent term and currency to the liability.
Any increase in the present value of liabilities within the Group’s
defined benefit pension schemes expected to arise from employee
service in the year is charged as service costs to operating profit.
Net interest costs are based on net scheme assets or liabilities,
adjusted for minimum funding requirement and pension surplus
restrictions under IFRIC 14 “IAS 19—The Limit on a Defined Benefit
Asset, Minimum Funding Requirements and their Interaction”.
Actuarial gains and losses are recognised in full in the consolidated
statement of comprehensive income. Pension scheme surpluses,
to the extent that they are considered recoverable, or deficits are
recognised in full and presented on the face of the balance sheet.
235 SSE plc Annual Report 2025
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Accompanying information continued
A1
Basis of consolidation and significant
accounting policies continued
A1.2 Significant accounting policies continued
Retirement benefit obligations (note 23) continued
Defined contribution pension schemes
The Group also operates a number of defined contribution pension
schemes. The assets of the schemes are held separately from those
of the Group in independently administered funds. The amounts
charged represent the contributions payable to the schemes in the
year and are charged directly to the income statement.
Equity and equity-related compensation benefits
The Group operates a number of employee share schemes as
described in the Remuneration Report. These schemes enable
Group employees to acquire shares of the Company.
The exercise prices of the sharesave scheme are set at a discount to
market price at the date of the grant. The fair value of the sharesave
scheme option granted is measured at the grant date by use of a
Black-Scholes model. The fair value of the options granted is
recognised as an expense on a straight-line basis over the period
that the scheme vests. Estimates are updated for non-market
conditions at each balance sheet date with any adjustment in
respect of the current and prior years being recognised in the
income statement. The costs associated with the other main
employee schemes are recognised over the period to which they
relate. The charge related to the equity shares in the Company
awarded under the share schemes is treated as an increase in the
cost of investment held by the Company in the subsidiary
companies of the Group. The disclosures on equity and equity-
related compensation benefits have been removed on the grounds
of materiality in relation to the Group.
Financial instruments (note 24)
The Group uses a range of financial instruments to hedge
exposures to financial risks, such as interest rate, foreign exchange
and energy price fluctuations in its normal course of business and
in accordance with the Group’s risk management policies. The
Group’s risk management policies are further explained in A6.
The Group’s review of the IFRS 9 hedge accounting model
concluded that, whilst adoption would not change the treatment of
existing hedging arrangements, the changes made would not result
in any additional hedge designations either. As such, the existing
hedge accounting model under IAS 39 appropriately reflects the
Group’s risk management activities in the financial statements.
Therefore, as permitted by IFRS 9, the Group has elected to
continue to apply the hedge accounting requirements of IAS 39.
This policy choice will be periodically reviewed to consider any
changes in our risk management activities.
Interest rate and foreign exchange derivatives
Financial derivative instruments are used by the Group to hedge
interest rate and currency exposures. All such derivatives are
recognised at fair value and are re-measured to fair value each
reporting period. Certain derivative financial instruments are
designated as being held for hedging purposes. The designation of
the hedge relationship is established at the inception of the hedge
and procedures are applied to ensure the derivative is highly
effective in achieving its objective and that the effectiveness of the
hedge can be reliably measured. The treatment of gains and losses
on re-measurement is dependent on the classification of the hedge
and whether the hedge relationship is designated as either a “fair
value” or “cash flow” hedge. Derivatives that are not designated
as hedges are treated as if held for trading, with all fair value
movements being recorded through the income statement.
A derivative classified as a “fair value” hedge recognises gains and
losses from re-measurement immediately in the income statement.
Loans and borrowings are measured at cost except where they
form the underlying transaction in an effective fair value hedge
relationship. In such cases, the carrying value of the loan or
borrowing is adjusted to reflect fair value movements with the gain
or loss being reported in the income statement.
A derivative classified as a “cash flow” hedge recognises the portion
of gains or losses on the derivative which are deemed to be
effective directly in equity in the hedge reserve. Any ineffective
portion of the gains or losses is recognised in the consolidated
income statement. When hedged cash flows result in the
recognition of a non-financial asset or liability, the associated gains
or losses previously recognised in equity are included in the initial
measurement of the asset or liability. For all other cash flow hedges,
the gains or losses that are recognised in equity are transferred to
the income statement in the same period in which the hedged cash
flows affect the income statement.
Hedge accounting is discontinued when the hedging instrument
expires, or is sold, terminated or exercised, or no longer qualifies for
hedge accounting. At the point of discontinuation, any cumulative
gain or loss on the hedging instrument recognised in equity remains
in equity until the forecast transaction affects profit or loss. On
settlement, the cumulative gain or loss recognised in equity is
recognised in the income statement.
Commodity derivatives
Within its regular course of business, the Group routinely enters into
sale and purchase derivative contracts for commodities such as
electricity, gas, carbon allowances and oil. Where the contract was
entered into and continues to be held for the purpose of receipt or
delivery in accordance with the Group’s expected sale, purchase or
usage requirements, the contracts are designated as “own use”
contracts and are measured at cost. These contracts are not within
the scope of IFRS 9.
Derivative commodity contracts which are not designated as own
use contracts are accounted for as trading derivatives and are
recognised in the balance sheet at fair value. Where a hedge
accounting relationship is designated and is proven to be effective,
the changes in fair value will be recognised in accordance with the
rules noted above. There are currently no designated hedge
relationships in relation to commodity contracts.
Other commodity contracts, where own use is not established and
a hedge accounting relationship is not designated, are measured
at fair value with gains and losses on re-measurement being
recognised in the income statement in cost of sales.
Embedded derivatives
Derivatives embedded in other financial instruments or other
host contracts are treated as separate derivatives where the
characteristics of the derivatives are not closely related to those
of the host contracts.
Net investment hedges
Hedges of net investments in foreign operations are accounted in
a manner similar to effective cash flow hedges. Any gain or loss on
the effective portion of the hedge is recognised in equity, in the
translation reserve, and any gain or loss on the ineffective portion
of the hedge is recognised in the income statement. On disposal of
the foreign operation, the cumulative value of any gains or losses
recognised directly in equity is transferred to the income statement.
Cash and cash equivalents
Cash and cash equivalents comprise cash balances and call
deposits with a maturity of three months or less. Bank overdrafts
that are repayable on demand and form an integral part of the
Group’s cash management are included as a component of cash
and cash equivalents for the purpose of the statement of cash flows.
236 SSE plc Annual Report 2025
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Trade receivables
Trade receivables do not carry any interest and are measured at
cost less an appropriate allowance for lifetime expected credit
losses.
At the end of each reporting period a review of the allowance
for impairment of trade receivables (or bad debt provision) is
performed by the respective businesses. Trade receivables do not
contain a significant financing element, and therefore expected
credit losses are measured using the simplified approach permitted
by IFRS 9, which requires lifetime expected credit losses to be
recognised on initial recognition. A provision matrix is utilised to
estimate the lifetime expected credit losses, based on the age,
status and risk of each class of receivable, which is updated
periodically to include changes to both forward-looking and
historical inputs.
Interest-bearing loans and borrowings
All such loans and borrowings are initially recognised at fair value
including transaction costs and are subsequently measured at
amortised cost, except where the loan or borrowing is the
hedged item in an effective fair value hedge relationship.
Commercial (and affiliate) contracts for difference
The Group has commercial Contracts for Difference (“CfD”)
arrangements in place where the Group has agreed to provide a
revenue support contract. Where the Group has entered into these
arrangements and there is no relationship with a government
entity, the instruments are classified as derivatives and accounted
for under IFRS 9. The Group has assessed that due to the valuation
complexity of these arrangements, they are Level 3 financial
instruments in the fair value hierarchy. On day 1, the Group
recognises no gain or loss arising from the instrument, but instead
defers this gain or loss and recognises it progressively over the life
of the instrument. At each balance sheet date the fair value of the
instrument is assessed with any movement in fair value recognised
in the income statement in the period it arises.
Financial guarantee liabilities
The Group issues financial guarantee contracts to make specified
payments to reimburse holders for losses incurred if certain former
subsidiaries and certain current joint venture investments fail to
make payments when due in accordance with the original or
modified terms of a debt instrument.
As permitted by IFRS 17, the Group has elected to apply IFRS 9
“Financial Instruments” to these contracts, as available under the
transition arrangements of the standard. Financial guarantee
contracts are initially measured at fair value and subsequently
measured at the higher of the loss allowance for expected credit
losses and the initial fair value less any income recognised.
Share capital
Ordinary shares are accounted for as equity. Incremental costs
directly attributable to the issue of new shares are shown in
equity as a deduction from the proceeds received. Own equity
instruments that are reacquired are deducted from equity. No gain
or loss is recognised in the Group income statement on the
purchase, sale, issue or cancellation of the Group’s own equity
instruments.
Hybrid equity
Hybrid equity comprises issued bonds that qualify for recognition
as equity. Accordingly, any coupon payments are accounted for
as dividends and are recognised directly in equity at the time the
payment obligation arises. This is because the coupon payments
are discretionary and relate to equity. Coupon payments
consequently do not have any impact on the income statement.
Coupon payments are recognised in the cash flow statement in
the same way as dividends to ordinary shareholders. Tax credits in
relation to the coupon payments are linked to the past transactions
or events that support the coupon payments and consequently the
tax credits are reported in the income statement.
237 SSE plc Annual Report 2025
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Accompanying information continued
A2
Taxation
The Group’s primary tax disclosures are included at note 10 . The following tables represent enhanced disclosures adopted in order
to assist stakeholder understanding of the Group’s tax position and policies as part of the Group’s commitment to its Fair Tax Mark
accredited status.
Reconciliation of tax charge to adjusted underlying current tax
Group profit before tax
1,850.9
2,495.1
Less: share of results of associates and jointly controlled entities
(89.9)
(114.1)
Profit before tax
1,761.0
2,381.0
tax rate of 25% (2024: 25%)
440.3
25.0
595.3
25.0
Capital allowances less than depreciation
(216.8)
(12.3)
(55.7)
(2.3)
Impairment of investments
65.1
3.7
–
–
Movement in restructuring and settlement provisions
(4.4)
(0.2)
(0.6)
–
Non-taxable gain on sale of assets
–
–
(4.5)
(0.2)
Fair value movements on derivatives
7.3
0.4
(123.3)
(5.2)
Pension movements
(8.0)
(0.5)
(8.9)
(0.4)
Relief for capitalised interest and revenue costs
(37.9)
(2.2)
(38.0)
(1.6)
Hybrid equity coupon payments
(18.4)
(1.0)
(18.3)
(0.8)
Expenses not deductible for tax purposes
15.2
0.9
54.9
2.3
Utilisation of tax losses brought forward
(1.2)
(0.1)
(3.7)
(0.2)
Impact of foreign tax rates
(15.3)
(0.9)
(36.8)
(1.5)
Electricity Generator Levy not deductible for tax purposes
19.8
1.1
1.0
–
Adjustments to tax charge in respect of previous years
(8.3)
(0.5)
(25.6)
(1.0)
Other items
(3.7)
(0.1)
–
–
Reported current tax charge and effective rate
233.7
13.3
335.8
14.1
Depreciation in excess of capital allowances
217.8
12.4
74.5
3.1
Movement in provisions
4.4
0.2
0.6
–
Fair value movements on derivatives
(7.3)
(0.4)
123.3
5.2
Pension movements
8.0
0.5
8.9
0.4
Relief for capitalised interest and revenue costs
37.9
2.2
38.0
1.6
Impact of foreign tax rates
3.5
0.1
1.8
0.1
Adjustments to tax charge in respect of previous years
19.1
1.1
23.2
0.9
Unwind of tax on financial guarantee liabilities
1.1
–
–
–
Tax losses utilised
–
–
5.1
0.2
Other items
(0.2)
–
(0.5)
–
Reported deferred tax charge and effective rate
284.3
16.1
274.9
11.5
Group tax charge and effective rate
518.0
29.4
610.7
25.6
As noted at note 3
to the accounts, the Group’s results are reported on an “adjusted” basis in order to allow focus on underlying business
performance. The adjusted profit before tax is the measure utilised in calculation of the Group’s “adjusted effective rate of tax”.
238 SSE plc Annual Report 2025
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The adjusted current tax charge can be reconciled to the adjusted profit before tax as follows:
(restated
*
)
(restated
*
)
Adjusted profit before tax
2,138.2
2,200.9
Tax on profit on ordinary activities at standard UK corporation tax rate
534.6
25.0
550.2
25.0
Capital allowances in excess of depreciation
(224.7)
(10.5)
(107.5)
(4.9)
Non-taxable gain on sale of assets
7.6
0.4
(4.7)
(0.2)
Non qualifying depreciation
25.2
1.2
12.5
0.6
Adjustment for profit on internal trading
4.3
0.2
2.5
0.1
Movement in restructuring and settlement provisions
(2.9)
(0.1)
0.8
–
Pension movements
(8.0)
(0.4)
(8.9)
(0.4)
Relief for capitalised interest and revenue costs
(21.9)
(1.0)
(23.2)
(1.1)
Hybrid equity coupon payments
(18.4)
(0.9)
(18.3)
(0.8)
Expenses not deductible for tax purposes
8.4
0.4
23.6
1.1
Fair value movements on derivatives
9.9
0.5
–
–
Permanent benefit of super-deduction capital allowances
–
–
1.4
0.1
Electricity Generator Levy not deductible for tax purposes
19.8
0.9
–
–
Discount on losses on Scottish Hydro Electric Transmission plc
(4.3)
(0.2)
–
–
Share-based payments
(2.6)
(0.1)
–
–
Losses carried back to earlier years
–
–
7.2
0.3
Adjustments to tax charge in respect of previous years
(10.7)
(0.5)
(25.6)
(1.2)
Impact of foreign tax rates
(20.6)
(1.0)
(37.9)
(1.7)
Other
0.7
–
(1.1)
–
Adjusted current tax charge and effective rate
APM
296.4
13.9
371.0
16.9
* The comparative adjusted effective rate of tax been restated. See note 1.2.
The reconciling adjustments differ from those analysed in the Group tax charge reconciliation above because they include SSE’s share of
associates and joint ventures, and are based on adjusted profit before tax.
The majority of the Group’s profits are earned in the UK, with the standard rate of UK corporation tax being 25% for the year to 31 March
2025 (2024: 25%). Profits earned by the Group in the Republic of Ireland are taxable at either 12.5% or 25%, depending upon the nature of
the income.
Capital allowances are tax reliefs provided in law for the expenditure the Group makes on property, plant and equipment. The rates are
determined by Parliament annually and spread the tax relief due over a number of years. This contrasts with the accounting treatment for
such spending, where the expenditure on property, plant and equipment is treated as an asset with the cost being depreciated over the
useful life of the asset, or impaired if the value of such assets is considered to have reduced materially.
The different accounting treatment of property, plant and equipment for tax and accounting purposes means that the taxable income
of the Group is not the same as the profit reported in the financial statements. The substantial reversals of impairments and impairments
undertaken in previous years in relation to certain property, plant and equipment assets, result in the depreciation or impairment charge
to profit for the year differing to the amount of capital allowances due to the Group.
Short term temporary differences arise on items such as provisions for restructuring costs and onerous contracts, and retirement benefit
obligations, because the treatment of such items is different for tax and accounting purposes. These differences usually reverse in the year
following that in which they arise, as is reflected in the deferred tax charge in these financial statements. Where interest charges or other
costs are capitalised in the accounts, tax relief is either given as the charges are incurred or when the costs are taken to the income statement.
As explained at Accompanying Information
A1 and A6
, the Group measures its operating and financing derivatives at fair value under IFRS
9. As a result of the Group’s subsidiaries applying the HMRC’s “disregard regulations”, the vast majority of the re-measurement movements
have no current tax effect impacting only the deferred tax position.
As detailed at
note 22
and explained in the Accompanying Information A1 , the Group has issued Hybrid equity securities which are
treated as a component of equity. While the coupon payments relating to these securities are treated as distributions to the holders of the
equity instruments, tax relief is allowed on the amount paid in the year. These tax credits are linked to the past transactions or events that
support the coupon payments and consequently the tax credits are reported in the income statement.
239 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Accompanying information continued
A3
Related undertakings
A3.1.1 Subsidiary undertakings
Details of the Group’s subsidiary undertakings at 31 March are as follows:
Aberarder Wind Farm (Scotland) Limited
A
100.0
Aberarder Wind Farm LLP
B
100.0
Abernedd Power Company Limited
B
100.0
Aegletes III Holdco Limited
B
100.0
Aldbrough Pathfinder Limited
B
100.0
Berwick Bank A Limited
B
100.0
Berwick Bank B Limited
B
100.0
Berwick Bank C Limited
B
100.0
Berwick Bank Holdings A Limited
B
100.0
Berwick Bank Holdings B Limited
B
100.0
Berwick Bank Holdings C Limited
B
100.0
Berwick Bank Wind Farm Limited
A
100.0
Bhlaraidh Extension Wind Farm Limited
A
100.0
Bhlaraidh Wind Farm Limited
A
100.0
Building Automation Solutions Limited
D
100.0
By-Pass Farm Solar Limited
B
100.0
Coire Glas Hydro Pumped Storage Limited
A
100.0
Eastern Green Link 3 Limited
B
75.0
Enerveo Limited
T
100.0
Ferrybridge Hydrogen Limited
B
100.0
Fibre Fuel Limited
B
100.0
Fibre Power (Slough) Limited
B
100.0
Griffin Wind Farm Limited
A
100.0
A
100.0
Keadby Developments Limited
E
100.0
Keadby Generation Limited
E
100.0
B
100.0
Keadby Wind Farm Limited
B
100.0
LG-B-300 Limited
A
100.0
Littleton Pastures Solar Limited
B
100.0
Medway Power Limited
B
100.0
Optimal Power Networks Limited
B
100.0
Power from Waste Limited
B
100.0
A
100.0
Scottish Hydro Electric Power Distribution plc
A
100.0
Scottish Hydro Electric Transmission plc
A
75.0
Slough Domestic Electricity Limited
B
100.0
Slough Electricity Contracts Limited
B
100.0
Slough Energy Supplies Limited
B
100.0
Slough Heat & Power Limited
B
100.0
Slough Utility Services Limited
B
100.0
Southern Electric Power Distribution plc
B
100.0
SSE Airtricity Energy Services (NI) Limited
Q
100.0
SSE Airtricity Energy Supply (NI) Limited
F
100.0
SSE Airtricity Gas Supply (NI) Limited
F
100.0
SSE Battery Monk Fryston Limited
B
100.0
SSE Battery Salisbury Limited
B
100.0
A
100.0
SSE BTM HoldCo Limited
B
100.0
SSE BTM Operational Assets Limited
B
100.0
SSE Contracting Group Limited
B
100.0
SSE Cottered Solar Limited
B
100.0
SSE Daines BESS Limited
B
100.0
SSE DE Solar Holdco Limited
B
100.0
F
100.0
SSE Digital Services Limited
B
100.0
SSE Eggborough Limited
B
100.0
SSE Energy Markets Limited
B
100.0
SSE Energy Supply Limited
B
100.0
SSE Enterprise Limited
B
100.0
SSE Ewerby Solar Holdco Limited
B
100.0
SSE Ewerby Solar Limited
B
100.0
SSE Fancott BESS Limited
B
100.0
SSE Ferrybridge Battery Limited
B
100.0
SSE Fiddlers Ferry Battery Limited
B
100.0
SSE Foxholes Solar Limited
B
100.0
SSE Generation Limited
B
100.0
SSE Group Limited
A
100.0
SSE Heat Networks (Battersea) Limited
B
100.0
SSE Heat Networks Limited
A
100.0
SSE Hornsea Limited
B
100.0
B
100.0
SSE Hydrogen Holdings Limited
B
100.0
SSE Hydrogen Developments Limited
B
100.0
SSE IAMP Microgrid Limited
B
100.0
SSE Imperial Park PN Limited
B
100.0
SSE Knapthorpe Solar Limited
B
100.0
SSE Low Carbon Developments Limited
B
100.0
SSE Low Carbon Holdings Limited
B
100.0
SSE Maple Limited
B
100.0
SSE Medway Operations Limited
B
100.0
SSE Micro Renewables Limited
A
100.0
SSE Multifuel Generation Holdings Limited
B
100.0
SSE Muskham Solar Limited
B
100.0
SSE Newchurch Solar Limited
B
100.0
SSE OWS Glasgow Limited
A
100.0
SSE Private Networks Holdco Limited
B
100.0
SSE Production Services Limited
B
100.0
SSE Renewables Holdings (UK) Limited
F
100.0
SSE Renewables International Holdings Limited
A
100.0
SSE Renewables Limited
A
100.0
A
100.0
F
100.0
240 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Ganderoy Limited
C
100.0
Gartnaneane Limited
C
100.0*
C
100.0
Green Wind Energy (Wexford) Limited
C
100.0
Leanamore Wind Farm Limited
C
100.0
Limerick West Windfarm Limited
C
100.0
March Winds Limited
C
100.0
Meentycat Limited
C
100.0
Milane Holdings Limited
C
100.0
Mullananalt Wind Farm (ROI) Limited
C
100.0
Platin Power Limited
C
100.0
Richfield Windfarm (ROI) Limited
C
100.0
C
100.0
SSE Airtricity Distributed Energy Limited
C
100.0
SSE Airtricity Energy Services Limited
C
100.0
SSE Airtricity Limited
C
100.0
SSE Cumarsáid Teoranta
C
100.0
SSE Generation Ireland Limited
C
100.0
SSE Renewables (Ireland) Limited
C
100.0
SSE Renewables Generation Ireland Limited
C
100.0
SSE Renewables Holdings (Europe) Limited
C
100.0
SSE Renewables Holdings Limited
C
100.0
SSE Renewables Off Shore Limited
C
100.0
C
100.0
SSE Renewables Wind Farms (Ireland) Limited
C
100.0
Sure Partners Limited
C
100.0
C
100.0
Tournafulla Windfarm (ROI) Limited
C
100.0
AE
100.0
AE
100.0
AE
100.0
AE
100.0
AE
100.0
AE
100.0
AE
100.0
AE
100.0
AE
100.0
AE
100.0
AE
100.0
AE
100.0
SSE Renewables Poland Holdings Limited
A
100.0
SSE Renewables Services (UK) Limited
F
100.0
B
100.0
SSE Renewables UK Limited
F
100.0
SSE Renewables Wind Farms (UK) Limited
A
100.0
SSE Retail Limited
A
100.0
SSE Seabank Investments Limited
B
100.0
SSE Seabank Land Investments Limited
B
100.0
SSE Services plc
B
100.0
SSE Southern Group Trustee Limited
B
100.0
SSE Staythorpe Battery Limited
B
100.0
SSE Staythorpe Power Limited
B
100.0
SSE Staythorpe SGT Limited
B
100.0
SSE Staythorpe Solar Limited
B
100.0
SSE Southery Solar Limited
B
100.0
SSE Stock Limited
A
100.0
SSE Thermal Energy Holdings Limited
B
100.0
SSE Thermal Energy Operations Limited
B
100.0
SSE Thermal Generation (Scotland) Limited
A
100.0
SSE Thermal Generation Holdings Limited
B
100.0
SSE Toddleburn Limited
A
100.0
SSE Trading Limited
B
100.0
SSE Trustees Limited
B
100.0
SSE Utility Services Limited
B
100.0
SSE Utility Solutions Limited
B
100.0
SSE Venture Capital Limited
A
100.0
SSE Viking Limited
B
100.0
SSE(SE) Quest Trustee Limited
B
100.0
SSEN Distribution Limited
A
100.0
SSEPG (Operations) Limited
B
100.0
Strathy Wind Farm Limited
A
100.0
Tealing Solar Park Limited
B
100.0
TESGL Limited
D
100.0
The Energy Solutions Group Bidco Limited
D
100.0
The Energy Solutions Group Midco Limited
D
100.0
The Energy Solutions Group Topco Limited
D
100.0
Viking Energy (Scottish Partnership)
A
100.0
Viking Energy Wind Farm LLP
A
100.0
Airtricity Windfarm Finance Limited
C
100.0
Arklow Offshore Phase II Company Limited
C
100.0
Bindoo Windfarm (ROI) Limited
C
100.0
Brickmount Limited
C
100.0
Comhlacht Gaoithe Teoranta
C
100.0
Coomacheo Wind Farm Limited
C
100.0
Coomatallin Windfarm (ROI) Limited
C
100.0*
Curragh Mountain Windfarm Limited
C
100.0
Dedondo Limited
C
100.0
Dromada Windfarm (ROI) Limited
C
100.0
C
100.0
Enerveo Ireland Limited
Z
100.0
C
100.0
241 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

A3
Related undertakings continued
A3.1.1 Subsidiary undertakings continued
Accompanying information continued
AE
100.0
SARL
AE
100.0
AE
100.0
AE
100.0
AE
100.0
AE
100.0
AE
100.0
AE
100.0
AE
100.0
AE
100.0
AE
100.0
AE
100.0
Société du Poste Privé (SPP) de la Cuesta SARL
AE
100.0
AE
100.0
Société du Poste Privé (SPP) du Tonnerrois
AE
100.0
SSE Renewables France SARL
AE
100.0
GmbH
U
100.0
AB
100.0
Energiaki Kleidi Single Member S.A.
AB
100.0
AB
100.0
Energiaki Mesovouniou Single Member S.A.
AB
100.0
Energiaki Platorrachis Single Member S.A.
AB
100.0*
Energiaki Velanidias Single Member S.A.
AB
100.0
SSE Renewables Hellas Single Member S.A.
AB
100.0
SSE Insurance Limited
G
100.0
SPV Parco Eolico Libeccio S.r.l.
AC
100.0
SPV Parco Eolico Maestrale S.r.l.
AC
100.0
SPV Parco Eolico Tramontana S.r.l.
AC
100.0
AC
100.0
Aichi Offshore Wind Power No. 1 G.K.
Y
80.0
Aichi Offshore Wind Power No. 2 G.K.
Y
80.0
Enshunada Offshore Wind Power No. 1 G.K.
Y
80.0
Goto-Fukue Offshore Wind Power G.K.
Y
80.0
Izu Islands Offshore Wind Power No. 1 G.K.
Y
80.0
Minami-Izu Offshore Wind Power No. 1 G.K.
Y
80.0
Niigata Offshore Wind Power No.1 G.K.
Y
80.0
Oki Islands Offshore Wind Power G.K.
Y
80.0
SSE Pacifico K.K.
Y
80.0
SSE Yuza Offshore Wind Power G.K.
Y
80.0
Tokushima Offshore Wind Power G.K.
Y
80.0
Y
80.0
Y
80.0
SSE Renewables (Netherlands) Holdings B.V.
AA
100.0
SSE Renewables Developments (The
Netherlands) B.V.
AA
100.0
SSE Sunflower Offshore Wind Holdco B.V.
AA
100.0
AA
100.0
AA
100.0
3 B.V.
AA
100.0
AA
100.0
SSE Tulip Offshore Wind Holdco B.V.
AA
100.0
SSE Tulip Offshore Wind Limited Partner 1 B.V.
AA
100.0
SSE Tulip Offshore Wind Limited Partner 2 B.V.
AA
100.0
SSE Tulip Offshore Wind Limited Partner 3 B.V.
AA
100.0
IBC SE PL3 sp. z o.o
AJ
100.0
IBC SE PL20 sp. z o.o.
AJ
100.0
IBC SE PL22 sp. z o.o.
AJ
100.0
IBC SE PL23 sp. z o.o.
AJ
100.0
IBC SE PL24 sp. z o.o.
AJ
100.0
IBC SE PL34 sp. z o.o.
AJ
100.0
Pomerania PV sp z.o.o.
AJ
100.0
SSE Renewables Poland sp z.o.o.
X
100.0
Sistemas Energéticos Ábrego S.L.U.
AD
100.0
Sistemas Energéticos Ariel S.L.U.
AD
100.0
Sistemas Energéticos Boreas S.L.U.
AD
100.0
Sistemas Energéticos Céfiro S.L.U.
AD
100.0
Sistemas Energéticos del Sur S.A.U.
AD
100.0
Sistemas Energéticos Eolo S.L.U.
AD
100.0
Sistemas Energéticos Erbania 1 S.L.U.
AD
100.0
Sistemas Energéticos Erbania 2 S.L.U.
AD
100.0
Sistemas Energéticos Gregal S.L.U.
AD
100.0
Sistemas Energéticos Júpiter S.L.U.
AD
100.0
Sistemas Energéticos Marte S.L. U.
AD
100.0
Sistemas Energéticos Mercurio S.L.U.
AD
100.0
242 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Sistemas Energéticos Neptuno S.L.U.
AD
100.0
Sistemas Energéticos Oberón S.L.U.
AD
100.0
Sistemas Energéticos Plutón S.L.U.
AD
100.0
Sistemas Energéticos Tablero Tabordo, S.L.U.
AD
100.0
Sistemas Energéticos Terral S.L.U.
AD
100.0
Sistemas Energéticos Titán S.L.U.
AD
100.0
Sistemas Energéticos Urano S.L.U.
AD
100.0
AD
100.0
AD
100.0
SSE Renewables North America Inc.
W
100.0
Wind LLC.
W
100.0
SSE Renewables North America Services Inc
W
100.0
All shares in subsidiary companies are ordinary share capital, unless otherwise stated.
* 100% of voting rights held.
Aberarder Wind Farm LLP
OC398487
Aegletes III Holdco Limited
13665453
Aldbrough Pathfinder Limited
15238323
Bhlaraidh Wind Farm Limited
SC663027
By-Pass Farm Solar Limited
12558977
Fibre Power (Slough) Limited
02902170
Griffin Wind Farm Limited
SC245113
Keadby Wind Farm Limited
06852112
LG-B-300 Limited
SC765613
Littleton Pastures Solar Limited
12638974
Slough Utility Services Limited
03486590
SSE Airtricity Energy Services (NI) Limited
NI056373
SSE Beatrice Offshore Windfarm Holdings Limited
SC436255
SSE BTM Operational Assets Limited
14885059
SSE Contracting Group Limited
02471438
SSE Cottered Solar Limited
15346645
SSE Daines BESS Limited
15344013
SSE DE Solar HoldCo Limited
14189570
SSE Digital Services Limited
14621186
SSE Eggborough Limited
14939853
SSE Enterprise Limited
10060563
SSE Group Limited
SC126049
SSE Hydrogen Developments Limited
15238086
SSE Hydrogen Holdings Limited
15231331
SSE IAMP Microgrid Limited
15333093
SSE Imperial Park PN Limited
02631510
SSE Low Carbon Developments Limited
15069108
SSE Maple Limited
10604848
SSE Medway Operations Limited
02647585
SSE Micro Renewables Limited
SC386017
SSE Multifuel Generation Holdings Limited
12661566
SSE Newchurch Solar Limited
15348120
SSE OWS Glasgow Limited
SC228283
SSE Private Networks Holdco Limited
14921243
SSE Production Services Limited
02499702
SSE Renewables Holdings (UK) Limited
NI043239
SSE Renewables Offshore Windfarm Holdings Limited
SC436251
SSE Renewables Onshore Windfarm Holdings Limited
NI049557
SSE Renewables Poland Holdings Limited
SC723844
SSE Renewables Solar & Battery Holdings Limited
13561962
SSE Renewables UK Limited
NI048447
SSE Renewables Wind Farms (UK) Limited
SC654502
SSE Retail Limited
SC213458
SSE Seabank Investments Limited
02631512
SSE Seabank Land Investments Limited
07877772
SSE Southery Solar Limited
14953142
SSE Staythorpe Battery Limited
14046860
SSE Staythorpe Power Limited
14043534
SSE Staythorpe Solar Limited
14046913
SSE Thermal Energy Holdings Limited
12650549
SSE Thermal Generation Holdings Limited
12662248
SSE Toddleburn Limited
SC259104
SSE Viking Limited
06021053
SSE(SE) Quest Trustee Limited
03487059
SSEPG (Operations) Limited
02764438
Strathy Wind Farm Limited
SC663103
Tealing Solar Park Limited
08783684
Statutory audit exemptions
SSE plc parent company has provided guarantees under section 479C of the Companies Act 2006 over the liabilities of the following
companies, which are therefore exempt from audit under the requirements of s479A-479C of the Companies Act 2006.
243 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

%
Company
AtlasConnect Limited
A
50.0
H2Northeast Limited
H
50.0
Baglan Pipeline Limited
K
50.0
Indian Queens Power Limited
AF
50.0
Beatrice Offshore Windfarm Holdco Limited
A
40.0
Marchwood Power Limited
N
50.0
Beatrice Offshore Windfarm Limited
A
40.0
Neos Networks Limited
A
50.0
Clyde Windfarm (Scotland) Limited **
A
50.1
NNXYZ Limited
B
50.0
DB Operational Base Limited
J
40.0
North Falls Offshore Wind Farm Holdco Limited AG
50.0
Deeside Power (UK) Limited
AF
50.0
North Falls Offshore Wind Farm Limited
AG
50.0
Deeside Power Operations Limited
AF
50.0
Ossian Offshore Wind Farm Holdings Limited
A
40.0
Digital Reach Partners Limited
A
50.0
Ossian Offshore Wind Farm Limited
A
40.0
B
40.0
Pride (SERP) Limited
AI
50.0
B
40.0
Saltend Cogeneration Company Limited
AF
50.0
B
40.0
Saltend Operations Company Limited
AF
50.0
B
40.0
SCCL Holdings Limited
AF
50.0
B
40.0
Seabank Power Limited
O
50.0
B
40.0
Seagreen 1A (Holdco) Limited
B
49.0
Doggerbank Offshore Wind Farm Project 3 And
4 Holdco Limited
B
50.0
Seagreen 1A Limited
B
49.0
Doggerbank Offshore Wind Farm Project 3 And
4 Leaseco Limited
B
50.0
Seagreen Alpha Wind Energy Limited
B
49.0
B
50.0
Seagreen Bravo Wind Energy Limited
B
49.0
B
50.0
Seagreen Holdco 1 Limited
B
49.0
Dunmaglass Wind Farm Limited
A
50.1
Seagreen Wind Energy Limited
B
49.0
Eastern Green Link 2 Limited ***
B
50.0
Source EV Limited (formerly SSE DE EV
AK
50.0
Fearna PSH Limited
B
50.0
Source EV UK Limited (formerly SSE EV
AK
50.0
Greater Gabbard Offshore Winds Limited ***
B
50.0
SSE Slough Multifuel Holdco Limited
B
50.0
Green H2 Developments Hold Co Limited
B
50.0
SSE Slough Multifuel Limited
B
50.0
Green H2 Developments Project Co Limited
B
50.0
Stronelairg Wind Farm Limited
A
50.1
H2NE Parentco Limited
H
50.0
Allbrite Heatpump Specialists Limited
R
25.0
Green Way Energy Limited
M
50.0
Bellair Wind Farm Designated Activity Company I
50.0
Kerry Power Limited
M
49.0
L
25.0
Kilberry Wind Farm Designated Activity
I
50.0
L
25.0
Lemanaghan Wind Farm Designated Activity
I
50.0
I
50.0
Lenalea Wind Farm Designated Activity
C
50.0
I
50.0
Littleton Wind Farm Designated Activity
I
50.0
I
50.0
Marron Activ8 Energies Limited
R
50.0
Everwind Limited
S
49.0
Midas Energy Limited
M
49.0
I
50.0
Source EV Ireland Limited (formerly SSE EV
C
50.0
Green Energy Company Limited
M
47.5
Accompanying information continued
A3
Related undertakings continued
A3.1.2 Joint arrangements (incorporated)
244 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

%
Company
Triton Power Holdings Limited
AH
50.0
Triton Power Limited
AH
50.0
Triton Power Intermediate Holdings Limited
AH
50.0
Lely Alpha Offshore Wind General Partner B.V.
AA
50.0
Lely Alpha Offshore Wind Projco C.V.
AA
50.0
ICE Santa Engracia, S.L.U.
V
44.6
** 50.1% of voting rights held
*** Joint Operation
A3.1.3 Associates
%
Company
Corran Environmental LP
AL
100.0
St Clements Services Limited
P
25.0
A3.1.4 Registered address key
Reference
Company registered address
A
Inveralmond House, 200 Dunkeld Road, Perth PH1 3AQ
B
No 1 Forbury Place, 43 Forbury Road, Reading RG1 3JH
E
Keadby Power Station, Trentside, Keadby, Scunthorpe, North Lincs DN17 3AZ
F
3rd Floor, Millennium House, 25 Great Victoria Street, Belfast, BT2 7AQ
G
Tower House, Loch Promenade, Douglas, Isle of Man
H
Suite 1 7th Floor, 50 Broadway, London, United Kingdom, SW1H 0BL
J
One Kingdom Street, London, United Kingdom, W2 6BD
K
10 Fleet Place, London, EC4M 7QS
N
Oceanic Way, Marchwood Industrial Park, Marchwood, Southampton SO40 4BD
O
Severn Road, Hallen, Bristol, BS10 7SP
P
4 – 6 Church Walk, Daventry, NN11 4BL
Q
Unit 14 Maryland Industrial Estate, Ballygowan Road, Belfast
R
Nexus N2 Business Park, Carrickmacross, Monaghan, A81 XK73, Ireland
S
Gorthleahy, Macroom, Co Cork, Ireland
T
Second Floor Eagle Court 2, Hatchford Way, Birmingham B26 3RZ
U
c/o Bird & Bird LLP, Maximiliansplatz 22, Munich 80333
W
United Agent Group Inc, 1521 Concord Pike, Suite 201, Wilmington DE 19803
Y
Roppongi Grand Tower, 3-2-1 Roppongi, Minato-ku, Tokyo, Japan
Z
Unit 42 Block 528, Grants View, Greenogue Business Park, Rathcoole, Dublin, Ireland
AA
Hofplein 20, Rotterdam, 3032 AC, Netherlands
AB
16 Kifissias
Ave, 1
1526,
Athens, Greece
AC
Viale Luca Gaurico, 91/93, 00143, Rome, Italy
AD
Spain: calle Buenos Aires, 12, 48.001, Bilbao, Spain
AE
97 allée Alexandre Borodine, Immeuble Cèdre 3, 69800, Saint Priest, France
AF
Saltend Power Station Saltend Chemicals Park, Hedon Road, Hull, East Riding of Yorkshire, England, HU12 8GA
AG
Windmill Hill Business Park, Whitehill Way, Swindon, Wiltshire, United Kingdom, SN5 6PB
AH
22 Grenville Street, St Helier, Jersey, JE4 SPX
AI
Level 12, The Shard, 32 London Bridge Street, London, SE1 9SG
AJ
Plac Marszałka Józefa Piłsudskiego 2 00-073 Warsaw
AK
19th Floor 10 Upper Bank Street, London, England, E14 5BF
AL
4th Floor, 7 Castle Street, Edinburgh, EH2 3AH
245 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

A4
Joint ventures and associates
The Directors have assessed that the investments in the following equity accounted joint ventures and associates are of a sufficiently
material impact to warrant additional disclosure on an individual basis. Details of the financial position and financial results of the Group:
shares held %
Group Interest %
Year end date
Consolidation basis
Seabank Power Limited
Ordinary
50.0
50.0
31 December
Equity
Marchwood Power Limited
Ordinary
50.0
50.0
31 December
Equity
SSE Slough Multifuel Holdco Limited
Ordinary
50.0
50.0
31 March
Equity
Clyde Windfarm (Scotland) Limited
Ordinary
50.1
50.1
31 March
Equity
Seagreen Holdco 1 Limited
Ordinary
49.0
49.0
31 March
Equity
Beatrice Offshore Windfarm Holdco Limited
Ordinary
40.0
40.0
31 March
Equity
Dunmaglass Wind Farm Limited
Ordinary
50.1
50.1
31 March
Equity
Stronelairg Wind Farm Limited
Ordinary
50.1
50.1
31 March
Equity
Neos Networks Limited
Ordinary
50.0
50.0
31 March
Equity
Ordinary
40.0
40.0
31 March
Equity
Triton Power Holdings Limited
Ordinary
50.0
50.0
31 December
Equity
Accompanying information continued
246 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Summary information for material joint ventures and associates from unaudited financial statements is as follows:
Other
(i)
Revenue
288.1
96.3
60.0
194.6
354.0
171.1
37.7
106.6
402.6
128.9
14.8
83.2
1,937.9
Other income
–
–
–
–
2 3 . 2
2 4 5 . 7
–
–
–
–
–
0.1
269.0
Depreciation and
amortisation
(7.0)
(35.0)
(8.4)
(29.2)
(98.6)
(88.0)
(8.0)
(13.7)
(34.5)
(98.6)
(2.2)
(36.1)
(459.3)
costs
(241.9)
(19.5)
(21.0)
(41.4)
(89.6)
(94.8)
(8.1)
(20.4)
(420.3)
(74.7)
(6.8)
(59.4)
(1,097.9)
Movement on
Derivatives
–
–
–
–
(53.8)
–
–
–
(3.4)
–
–
–
(57.2)
Operating profit
39.2
41.8
30.6
124.0
135.2
234.0
21.6
72.5
(55.6)
(44.4)
5.8
(12.2)
592.5
Interest expense
1.4
(1.6)
(15.2)
(18.5)
(209.3)
(59.3)
(6.2)
(11.9)
5.1
(22.3)
(1.5)
(8.7)
(348.0)
Profit before tax
40.6
40.2
15.4
105.5
(74.1)
174.7
15.4
60.6
(50.5)
(66.7)
4.3
(20.9)
244.5
Corporation tax
(11.1)
(9.2)
3.8
(26.9)
63.5
(22.7)
(3.4)
(14.8)
14.9
–
(1.1)
(0.7)
(7.7)
Profit after tax
29.5
31.0
19.2
78.6
(10.6)
152.0
12.0
45.8
(35.6)
(66.7)
3.2
(21.6)
236.8
Recognised in
other
comprehensive
income
Cash flow hedges
–
–
0.6
–
(3.3)
(12.8)
–
–
–
–
(49.8)
9.7
(55.6)
Taxation
–
–
–
–
0 . 8
3 . 3
–
–
–
–
1 2 . 5
(2.6)
14.0
Other
–
–
–
–
–
–
–
–
–
–
–
15.8
15.8
–
–
0 . 6
–
( 2 . 5 )
( 9 . 5 )
–
–
–
–
( 3 7 . 3 )
22.9
(25.8)
comprehensive
income/(loss)
29.5
31.0
19.8
78.6
(13.1)
142.5
12.0
45.8
(35.6)
(66.7)
(34.1)
1.3
211.0
SSE share of
profit (based on
% equity)
14.8
15.5
9.6
39.4
(5.2)
60.8
6.0
22.9
(17.8)
(33.4)
1.3
(24.0)
89.9
Dividends paid to
shareholders
47.0
44.2
–
102.0
38.9
119.3
12.4
55.0
–
–
–
11.1
429.9
assets
82.8
114.1
471.4
510.1
3,027.6
1,750.4
165.2
304.7
184.1
493.9
3,670.4
5,966.4
16,741.1
Current assets
56.7
8.5
14.9
86.8
47.2
62.7
16.7
49.8
164.1
26.3
21.6
68.4
623.7
equivalents
51.8
20.7
21.9
45.1
95.3
104.0
18.4
27.7
5.1
23.1
60.6
255.7
729.4
Current liabilities
(44.9)
(18.2)
(11.1)
(42.8)
(13.0)
(199.7)
(7.3)
(25.5)
(68.7)
(121.2)
(86.7)
(227.5)
(866.6)
liabilities
(26.3)
(29.5)
(370.6)
(431.7)
(2,424.9)
(1,619.6)
(144.8)
(262.5)
(12.3)
(373.0)
(3,042.7)
(5,276.7)
(14,014.6)
Net assets
120.1
95.6
126.5
167.5
732.2
97.8
48.2
94.2
272.3
49.1
623.2
786.3
3,213.0
interest
50.0%
50.0%
50.0%
50.1%
49.0%
40.0%
50.1%
50.1%
50.0%
50.0%
40.0%
–
–
Group’s share of
ownership
interest
60.1
47.8
63.3
83.9
358.8
39.1
24.1
47.2
136.2
24.6
249.3
359.9
1,494.3
Other
adjustments
(20.4)
(0.3)
31.7
39.9
100.3
(1.1)
65.5
202.9
1.6
(23.3)
2.4
93.8
493.0
Carrying value of
Group’s equity
interest
39.7
47.5
95.0
123.8
459.1
38.0
89.6
250.1
137.8
1.3
251.7
453.7
1,987.3
247 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Other
(i)
Revenue
258.8
56.3
0.9
168.3
282.0
155.1
37.1
90.7
811.5
122.3
0.5
69.3
2,052.8
Other income
–
–
–
–
–
220.3
–
–
–
–
–
–
220.3
and
amortisation
(6.9)
(39.7)
–
(29.0)
(81.5)
(87.8)
(7.7)
(13.7)
(34.6)
(93.2)
(0.4)
(26.7)
(421.2)
costs
(197.0)
(28.8)
(4.4)
(38.3)
(36.1)
(112.1)
(7.3)
(19.5)
(750.9)
(93.7)
(2.8)
(28.0)
(1,318.9)
Movement on
D e r i v a t i v e s
–
–
–
–
1 6 7 . 4
–
–
–
( 4 1 . 2 )
–
–
–
1 2 6 . 2
Operating profit
54.9
(12.2)
(3.5)
101.0
331.8
175.5
22.1
57.5
(15.2)
(64.6)
(2.7)
14.6
659.2
Interest expense
0.8
(3.2)
(0.5)
(16.8)
(121.0)
(62.2)
(5.8)
(10.8)
8.4
(20.4)
–
(8.0)
(239.5)
Profit before tax
55.7
(15.4)
(4.0)
84.2
210.8
113.3
16.3
46.7
(6.8)
(85.0)
(2.7)
6.6
419.7
Corporation tax
(13.9)
1.0
(4.1)
(21.9)
(55.3)
(38.8)
(4.2)
(12.0)
(4.2)
–
(0.7)
(3.8)
(157.9)
Profit after tax
41.8
(14.4)
(8.1)
62.3
155.5
74.5
12.1
34.7
(11.0)
(85.0)
(3.4)
2.8
261.8
Recognised in
other
comprehensive
income
Cash flow hedges
–
–
0.2
–
(46.3)
(1.4)
–
–
–
–
(31.9)
(46.6)
(126.0)
Taxation
–
–
(0.1)
–
11.6
0.4
–
–
–
–
8.0
11.7
31.6
–
–
0.1
–
(34.7)
(1.0)
–
–
–
–
(23.9)
(34.9)
(94.4)
comprehensive
income/(loss)
41.8
(14.4)
(8.0)
62.3
120.8
73.5
12.1
34.7
(11.0)
(85.0)
(27.3)
(32.1)
167.4
SSE share of
profit (based on
% equity)
20.9
(7.2)
(4.0)
31.2
76.2
29.8
6.1
17.4
(5.5)
(42.5)
(1.4)
(6.9)
114.1
Dividends paid to
shareholders
38.0
14.3
–
146.0
42.8
34.3
33.0
70.0
65.0
–
–
18.4
461.8
assets
89.5
124.1
192.5
537.9
3,556.6
1,873.1
173.3
316.3
432.9
538.0
3,115.0
4,866.1
15,815.3
Current assets
37.3
37.4
229.2
80.8
47.8
70.9
19.3
41.9
3.6
32.0
34.2
57.8
692.2
equivalents
70.8
19.6
5.0
40.6
245.7
102.3
8.6
29.1
4.6
22.0
87.4
187.8
823.5
Current liabilities
(14.0)
(34.6)
(77.3)
(12.7)
(309.0)
(181.3)
(3.1)
(10.6)
(18.6)
(131.0)
(65.6)
(225.1)
(1,082.9)
liabilities
(46.0)
(37.7)
(20.6)
(434.4)
(3,005.8)
(1,752.9)
(145.4)
(261.4)
(328.9)
(346.0)
(2,726.1)
(4,138.2)
(13,243.4)
Net assets
137.6
108.8
328.8
212.2
535.3
112.1
52.7
115.3
93.6
115.0
444.9
748.4
3,004.7
interest
50.0%
50.0%
50.0%
50.1%
49.0%
40.0%
50.1%
50.1%
50.0%
50.0%
40.0%
–
–
Net assets
137.6
108.8
328.8
212.2
535.3
112.1
52.7
115.3
93.6
115.0
444.9
748.4
3,004.7
Group’s share of
ownership
interest
68.8
54.4
164.4
106.1
262.3
44.8
26.4
57.8
46.8
57.5
178.0
324.3
1,391.6
Other
adjustments
(20.4)
(0.3)
(79.1)
32.6
224.8
(16.0)
66.9
208.3
108.8
(22.9)
2.3
66.6
571.6
Carrying value of
Group’s equity
interest
48.4
54.1
85.3
138.7
487.1
28.8
93.3
266.1
155.6
34.6
180.3
390.9
1,963.2
(i) In addition to the above the following joint ventures and associates have an equity carrying value that constitutes a material investment of the Group: Doggerbank Offshore Wind
Farm Project 2 Projco Limited £118.8m (2024: £119.2m): Doggerbank Offshore Wind Farm Project 3 Projco Limited £90.6m (2024: £87.3m) and Ossian Offshore Wind Farm Limited
£60.8m (2024: £55.3m).
Accompanying information continued
A4
Joint ventures and associates continued
248 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

In addition to the above at 31 March 2025, the Group was owed the following loans from its principal joint ventures: Marchwood Power
Limited £nil (2024: £12.2m); Clyde Windfarm (Scotland) Limited £127.1m (2024: £127.1m); Dunmaglass Wind Farm Limited £46.6m (2024:
£46.6m); Stronelairg Wind Farm Limited £88.7m (2024: £88.7m); Neos Networks Limited £83.5m (2024: £57.7m); Seagreen Wind Energy
Limited £646.0m (2024: £686.4m); SSE Slough Multifuel Limited £181.3m (2024: £157.8m) and Doggerbank A Offshore Windfarm Limited
£188.3m (2024: £87.7m).
This represents 92% (2024: 93%) of the loans provided to equity-accounted joint ventures and associates.
A5
Related party transactions
The immediate parent and ultimate controlling party of the Group is SSE plc (incorporated in Scotland). Balances and transactions between
the Company and its subsidiaries, which are related parties of the Company, have been eliminated on consolidation and are not disclosed
in this note. Details of transactions between the Group and other related parties are disclosed below.
Trading transactions
The following transactions took place during the year between the Group and entities which are related to the Group, but which are not
members of the Group. Related parties are defined as those in which the Group has control, joint control or significant influence over.
2025
2025
2025
2025
2024
2024
2024
2024
Marchwood Power Limited
111.2
(116.1)
–
(5.0)
42.6
(63.2)
–
(13.0)
Limited
5.6
(187.6)
0.1
(51.6)
5.6
(153.9)
–
(48.7)
Limited
6.3
(86.1)
1.2
(7.1)
4.8
(75.5)
2.0
(6.8)
Stronelairg Wind Farm Limited
2.6
(88.4)
0.1
(25.1)
2.5
(75.6)
–
(20.8)
Dunmaglass Wind Farm Limited
1.2
(32.6)
–
(9.0)
1.1
(32.2)
–
(8.6)
Neos Networks Limited
6.8
(28.2)
2.1
(4.0)
3.8
(28.5)
6.1
(4.7)
Seagreen Wind Energy Limited
54.6
(171.5)
13.6
(16.8)
19.8
(113.4)
11.3
(11.7)
Doggerbank A, B, C and D
47.7
(2.8)
36.5
(1.0)
36.5
–
10.7
–
Other joint arrangements
31.4
(172.1)
13.1
(54.3)
18.0
(209.4)
6.7
(63.9)
The transactions with Marchwood Power Limited relate to the contracts for the provision of energy or the tolling of energy under power
purchase arrangements.
Details of the Group’s 15-year Affiliate Contract for Difference agreement with Seagreen Wind Energy Limited are included in
note A7.2
.
The amounts outstanding are trading balances, are unsecured and will be settled in cash. Aggregate capital loans to joint ventures and
associates are shown in note 16.
A6
Financial risk management
This note presents information about the fair value of the Group’s financial instruments, the Group’s exposure to the risks associated with
those instruments, the Group’s objectives, policies and processes for measuring and managing risk, and the Group’s management of
capital. Further qualitative disclosures are included throughout these consolidated financial statements.
The Group has exposure to the following risks from its use of financial instruments:
– Credit risk
– Liquidity risk
– Commodity risk
– Currency risk
– Interest rate risk
The Board has overall responsibility for the establishment and oversight of the Group’s risk management framework. The Group’s policies
for risk management are established to identify the risks faced by the Group, to set appropriate risk limits and controls, and to monitor risks
and adherence to limits. Exposure to commodity, currency and interest rate risks arise in the normal course of the Group’s business and
derivative financial instruments are entered into to hedge exposure to these risks.
SSE has a Group wide Risk Committee reporting to the Group Executive Committee, which is responsible for reviewing the strategic,
market, credit, operational and liquidity risks and exposures that arise from the Group’s operating activities. In addition, the Group has two
dedicated Energy Market risk committees reporting to the Group Executive Committee and Board respectively, with the Group Executive
Sub-committee chaired by the Group Chief Commercial Officer (the “Group Energy Markets Exposures Risk Committee”) and the Board
Sub-committee chaired by Non-Executive Director Tony Cocker (the “Energy Markets Risk Committee (EMRC)”). These Committees
oversee the Group’s management of its energy market exposures, including its approach to hedging.
249 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

During the year ended 31 March 2025, the Group continued to be exposed to the economic conditions impacting the primary
commodities to which it is exposed (Gas, Carbon and Power). The Group’s approach to hedging, and the diversity of its energy portfolios
(across Wind, Hydro, Thermal and Customers) has provided certain mitigation of these exposures.
At 31 March, the Group’s collateral position was as follows:
Collateral posted included within trade and other receivables
18
9.6
9.3
Collateral held included within trade and other payables
19
(82.5)
(362.5)
Net collateral held
(72.9)
(353.2)
Exposure to the commodity, currency and interest rate risks noted arise in the normal course of the Group’s business and derivative financial
instruments are entered into to hedge exposure to these risks. The objectives and policies for holding or issuing financial instruments and
similar contracts, and the strategies for achieving those objectives that have been followed during the year are explained below.
A6.1 Credit risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty fails to meet its contractual obligations.
Credit risk arising from the Group’s normal commercial operations is controlled by individual business units operating in accordance with
Group policies and procedures. Generally, for significant contracts, individual business units enter into contracts or agreements with
counterparties having investment grade credit ratings only, or where suitable collateral or other security has been provided. Counterparty
credit validation is undertaken prior to contractual commitment.
Credit risk management for the Group’s SSEN Transmission and SSEN Distribution businesses is performed in accordance with industry
standards as set out by the Regulator and is financially controlled by the individual business units. The Group’s greatest credit risks lie
with the operations of the Customers business, the wholesale procurement activities conducted by SSE Energy Markets under a trust
arrangement and the activities carried out by the Group’s Treasury function. In all cases, specific credit risk controls that match the risk
profile of those activities are applied. Exposure to credit risk in the retail supply of electricity and gas to end user customers arises from
the potential of a customer defaulting on their invoiced payables. The Group exposure to domestic retail supply customers is limited to
customers of the Group’s Airtricity business. The creditworthiness of these customers is reviewed from a variety of internal and external
information. The financial strength and creditworthiness of business customers is assessed prior to commencing, and for the duration of,
their contract of supply.
Exposure to credit risk in the procurement of wholesale energy and fuel is managed by reference to agreed transaction credit limits which
are determined by whether the counterparty:
– holds an investment grade credit rating; or
– can be assessed as adequately creditworthy in accordance with internal credit rules using information from other external credit
agencies; or
– can provide a guarantee from an investment grade rated entity or post suitable collateral or provide other acceptable assurances in
accordance with group procedures where they have failed to meet the above conditions; or
– can be allocated a non-standard credit limit approved by the relevant authority as delegated by the Group Board.
Credit support clauses and Master Netting Agreements are typically included or entered into in order to mitigate the impact to the Group
against counterparty failure or non-delivery. As part of its normal activities, SSE Energy Markets transacts significant volumes of commodity
derivative products through cleared exchanges to mitigate credit risk. Such exchanges are subject to strict regulation by the UK Financial
Conduct Authority (FCA) and participants in these exchanges are obliged to meet rigorous capital adequacy requirements.
Individual counterparty credit exposures are monitored regularly and are subject to approved limits. At 31 March 2025, SSE Energy Markets
had pledged no cash collateral (2024: £nil) and £494.9m (2024: £459.9m) of letters of credit, and had received £72.9m (2024: £353.2m) of
cash collateral and £77.8m (2024: £130.8m) of letters of credit principally to reduce exposures on credit risk.
Bank credit exposures, which are monitored and reported on daily, are calculated on a mark-to-market basis and adjusted for future
volatility and probability of default. Any issues relating to these credit exposures are presented for discussion and review by the Tax and
Treasury Committee.
Credit exposure also exists in relation to financial guarantees issued by Group companies under which the total outstanding exposure
at 31 March 2025 was £339.9m (2024: £684.9m) in respect of liabilities of joint ventures and associates and £479.3m (2024: £479.3m)
in respect of the liabilities of former subsidiaries. An amount of £25.5m (2024: £39.5m) is recorded as a liability at 31 March 2025 in respect
of the carrying value of these guarantees. Expected loss allowances for financial guarantee contracts have been reviewed at the balance
sheet date and will be reviewed on an annual basis.
Cash and cash equivalents comprise cash in hand and deposits of three months or less which are readily convertible to cash. These are
subject to insignificant risk of change in value or credit risk.
Derivative financial instruments are entered into to cover the Group’s market risks – commodity risk, interest rate risk, currency risk – and
are consequently covered elsewhere in this note.
Trade receivables represent the most significant exposure to credit risk and are stated after an allowance for impairment.
A6
Financial risk management continued
Accompanying information continued
250 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

A6.2 Concentrations of risk
Trade receivables recorded by reported segment held at the 31 March were:
SSEN Transmission
14.0
5.9
SSEN Distribution
181.1
133.5
SSE Renewables
100.3
97.9
SSE Thermal
66.5
43.6
Gas Storage
1.0
1.0
SSE Business Energy
505.8
553.2
SSE Airtricity
172.2
115.5
SSE Energy Markets
423.8
311.7
Corporate Unallocated
15.5
43.2
Total SSE Group
1,480.2
1,305.5
* The comparative has been restated to reallocate £12.3m trade receivables from SSE Enterprise to SSE Business Energy (£7.8m) and SSE Thermal (£4.5m).
Energy Customer Solutions (SSE Business Energy and SSE Airtricity) accounts for 45.8% (2024: 50.6%) of the Group’s trade receivables from
continuing operations. Trade receivables associated with the Group’s 1.1 million electricity and gas customers are recorded within this
business unit. The Group also has significant trade receivables associated with its SSE Energy Markets activities which are generally settled
within two to four weeks from invoicing. The Group’s exposure to credit risk is therefore subject to diversification with no exposure to
individual retail customers totalling >10% of trade receivables. The largest customer balance, due from a SSE Energy Markets customer (also
a SSE Energy Markets supplier), is 4% (2024: 3%) of the total trade receivables.
The ageing of trade receivables at the reporting date was:
Not past due
1,081.0
962.6
0 – 30 days
140.0
132.5
31 – 90 days
142.7
119.9
Over 90 days
332.0
343.9
1,695.7
1,558.9
Less: allowance for impairment
(215.5)
(253.4)
Net trade receivables
1,480.2
1,305.5
The Group has past due debt which has not had an impairment allowance set aside to cover potential credit losses. The Group has certain
procedures to pursue customers in significant arrears and believes its impairment policy in relation to such balances is appropriate. The
level of aged debt across all periods remains consistent with the prior year, supported by the operational stability of SSE Business Energy’s
new billing platform, alongside decreasing levels of government support available to customers. The Group also considers various risk
factors when assessing the level of provision to recognise. Trade receivables and contract assets are written off when there is no
reasonable expectation of recovery.
The debt impairment charge of £47.1m per the income statement (2024: £128.8m), primarily includes the write-off of £85.0m of trade
receivables (2024: £44.6m) offset by a decrease in the bad debt provision of £37.9m (2024: £84.2m increase).
The Group has other receivables which are financial assets totalling £6.6m (2024: £4.1m).
The movement in the allowance for impairment of trade receivables was:
Balance at 1 April
253.4
169.2
Increase in allowance for impairment
48.8
121.5
Impairment losses recognised
(86.7)
(37.3)
Balance at 31 March
215.5
253.4
251 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

A6.3 Liquidity risk and Going Concern
Liquidity risk, the risk that the Group will have insufficient funds to meet its liabilities, is managed by the Group’s Treasury function. The
Group can be exposed to significant movements in its liquidity position due to changes in commodity prices, working capital requirements,
the impact of the seasonal nature of the business and phasing of its capital investment programme.
Treasury is responsible for managing the banking and liquidity requirements of the Group, risk management relating to interest rate and
foreign exchange exposures, and for managing the credit risk relating to the banking counterparties with which it transacts. Short term
liquidity is reviewed daily by Treasury, while the longer-term liquidity position is reviewed on a regular basis by the Board. The department’s
operations are governed by policies determined by the Board and any breaches of these policies are reported to the Tax and Treasury
Committee and Audit Committee.
In relation to the Group’s liquidity risk, the Group’s policy is to ensure, as far as possible, that it will always have sufficient liquidity to meet
its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the
Group’s reputation.
During the year, the Group’s internal approach to managing liquidity was to seek to ensure that the Group had available committed
borrowings and facilities equal to at least 105% of forecast borrowings over a rolling 6 month period.
The Group uses cash flow forecasts to monitor its ongoing borrowing requirements. Typically, the Group will fund any short term
borrowing positions by issuing commercial paper or borrowing from committed and uncommitted bank lines and will invest in money
market funds when it has a cash surplus. Details of the Group’s borrowings are disclosed at
note 21
. In addition to the borrowing facilities
listed at note 21.3 , the Group has a £21m overdraft facility.
The refinancing requirement in the 25/26 financial year is £1.9bn, being the £0.9bn of short term Commercial Paper that matures between
April and June, and £1.0bn of medium to long term debt maturing being the €600m (£531m) Eurobond maturing 16 April 2025 and €600m
(£503m) Eurobond maturing 8 September 2025. The Directors are confident in the ability of the Group to maintain a funding level above
105% for the Going Concern assessment period based on the strong credit standing and borrowing history of the Group for both fixed debt
and commercial paper, as discussed more fully below.
Given the committed bank facilities of £3.0bn, £1.5bn excluding Scottish Hydro Electric Transmission plc facilities, maintained by the Group
and the current commercial paper market conditions, the Directors have concluded that both the Group and SSE plc as parent company
have sufficient headroom to continue as a Going Concern. In coming to this conclusion, the Directors have taken into account the Group’s
credit rating and the successful issuance of £16.9bn of medium to long term debt and Hybrid equity since February 2012, including £1.4bn
of long term funding in the current financial year.
The Group’s period of Going Concern assessment is performed to 31 December 2026, 21 months from the balance sheet date, which
is at least 12 months from the filing deadline of its subsidiary companies. While the formal assessment period was to the period ending
31 December 2026, a period of three months beyond this date was reviewed for significant events that may result in a change to the
conclusion of the assessment. No events or circumstances were identified in that period beyond the formal assessment. As well as taking
account of the factors noted, the Going Concern conclusion is arrived at after applying stress testing sensitivities to the Group’s cash flow
and funding projections including removal of proceeds from unconfirmed future divestments, negative and positive sensitivities on
operating cash flows and uncommitted capex and other adjustments. The Group has also considered its obligations under its debt
covenants. There have been no breaches of covenants in the year and the Group’s projections support the expectation that there will be
no breach of covenants over the period to 31 December 2026. The statement of Going Concern is included in the Audit Committee Report.
As at 31 March 2025, the net value of outstanding cash collateral held in respect of mark-to-market related margin calls on exchange
traded positions was £72.9m (2024: £353.2m).
The contractual cash flows shown in the following tables are the contractual undiscounted cashflows under the relevant financial
instruments. Where the contractual cashflows are variable based on a price, foreign exchange rate or index in the future, the contractual
cashflows in the following tables have been determined with reference to the relevant price, foreign exchange rate, interest rate or index
as at the balance sheet date. In determining the interest element of contractual cashflows in cases where the Group has a choice as to the
length of interest calculation periods and the interest rate that applies varies with the period selected, the contractual cashflows have been
calculated assuming the Group selects the shortest available interest calculation periods. Where the holder of an instrument has a choice
of when to redeem, the amounts in the following tables are on the assumption the holder redeems at the earliest opportunity.
A6
Financial risk management continued
Accompanying information continued
252 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

The following are the undiscounted contractual maturities of financial liabilities, including interest and excluding the impact of netting
agreements:
2025
2025
2025
2025
2025
2025
Commercial paper and cash advances
1,230.5
(1,243.0)
(1,243.0)
–
–
–
Loans – floating
200.0
(233.3)
(11.1)
(11.1)
(211.1)
–
Loans – fixed
1,300.4
(1,669.0)
(54.6)
(346.7)
(459.1)
(808.6)
Unsecured bonds – fixed
7,507.1
(10,125.6)
(777.9)
(792.8)
(1,999.5)
(6,555.4)
Fair value adjustment
( 8 8 . 6 )
–
–
–
–
–
10,149.4
(13,270.9)
(2,086.6)
(1,150.6)
(2,669.7)
(7,364.0)
Lease liabilities
455.0
(711.9)
(75.2)
(64.4)
(169.1)
(403.2)
10,604.4
(13,982.8)
(2,161.8)
(1,215.0)
(2,838.8)
(7,767.2)
Operating derivatives designated at fair value
162.1
387.3
(81.1)
205.9
92.4
170.1
Interest rate swaps used for hedging
76.8
(76.8)
(45.5)
(17.4)
(12.6)
(1.3)
Interest rate swaps designated at fair value
31.0
(31.0)
(7.4)
(7.5)
(5.5)
(10.6)
Forward foreign exchange contracts held for hedging
19.9
(975.4)
(258.1)
(171.8)
(545.5)
–
Forward foreign exchange contracts designated at fair
value
4.2
(474.0)
(413.6)
(56.2)
(4.2)
–
294.0
(1,169.9)
(805.7)
(47.0)
(475.4)
158.2
Trade payables
710.7
(710.7)
(710.7)
–
–
–
Financial guarantee liabilities
25.5
(25.5)
(2.4)
(7.8)
(3.6)
(11.7)
736.2
(736.2)
(713.1)
(7.8)
(3.6)
(11.7)
Total
11,634.6
(15,888.9)
(3,680.6)
(1,269.8)
(3,317.8)
(7,620.7)
Financing derivatives
(83.7)
793.5
544.2
172.9
70.9
5.5
Operating derivatives designated at fair value
(158.2)
366.5
304.6
26.0
24.0
11.9
(241.9)
1,160.0
848.8
198.9
94.9
17.4
Net total
(i)
11,392.7
(14,728.9)
(2,831.8)
(1,070.9)
(3,222.9)
(7,603.3)
253 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

2024
2024
2024
2024
2024
2024
Commercial paper and cash advances
840.4
(852.4)
(852.4)
–
–
–
Loans – floating
200.0
(244.3)
(11.1)
(11.1)
(222.1)
–
Loans – fixed
1,367.0
(1,883.2)
(255.7)
(47.1)
(445.5)
(1,134.9)
Unsecured bonds – fixed
6,317.9
(8,964.7)
(218.8)
(1,174.7)
(856.4)
(6,714.8)
F a i r v a l u e a d j u s t m e n t
0 . 9
–
–
–
–
–
8,726.2
(11,944.6)
(1,338.0)
(1,232.9)
(1,524.0)
(7,849.7)
Lease liabilities
407.5
(616.5)
(91.8)
(54.1)
(142.1)
(328.5)
9,133.7
(12,561.1)
(1,429.8)
(1,287.0)
(1,666.1)
(8,178.2)
Operating derivatives designated at fair value
428.4
(904.4)
(1,239.2)
(73.2)
90.2
317.8
Interest rate swaps used for hedging
57.4
(57.4)
(26.1)
(10.6)
(16.9)
(3.8)
Interest rate swaps designated at fair value
38.4
(38.4)
(5.2)
(5.2)
(9.8)
(18.2)
Forward foreign exchange contracts held for hedging
30.5
(1,340.9)
(557.7)
(99.8)
(647.6)
(35.8)
Forward foreign exchange contracts designated at fair
value
12.7
377.1
352.2
22.1
2.8
–
567.4
(1,964.0)
(1,476.0)
(166.7)
(581.3)
260.0
Trade payables
656.7
(656.7)
(656.7)
–
–
–
Financial guarantee liabilities
39.5
(39.5)
(2.9)
(2.7)
(7.8)
(26.1)
696.2
(696.2)
(659.6)
(2.7)
(7.8)
(26.1)
Total
10,397.3
(15,221.3)
(3,565.4)
(1,456.4)
(2,255.2)
(7,944.3)
Financing derivatives
(120.5)
(168.3)
(179.7)
(1.3)
12.7
–
Operating derivatives designated at fair value
(479.8)
761.6
756.7
6.6
(1.7)
–
(600.3)
593.3
577.0
5.3
11.0
–
Net total
(i)
9,797.0
(14,628.0)
(2,988.4)
(1,451.1)
(2,244.2)
(7,944.3)
(i) The Group believes the liquidity risk associated with out-of-the-money operating derivative contracts needs to be considered in conjunction with the profile of payments or
receipts arising from derivative financial assets. It should be noted that cash flows associated with future energy sales and commodity contracts which are not IFRS 9 financial
instruments are not included in this analysis, which is prepared in accordance with IFRS 7 “Financial Instruments: Disclosures”.
A6
Financial risk management continued
A6.3 Liquidity risk and Going Concern continued
Accompanying information continued
254 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

A6.4 Commodity risk
The Group’s Energy Markets business implements the hedging policy through trading in the commodity markets and manages the
requirement for the delivery of the Group’s physical commodity needs as part of its normal course of business. The risk management
activity carried out by SSE Energy Markets arises from the Group’s requirement to source gas, electricity or other commodities such as
renewable obligation certificates for SSE Business Energy and SSE Airtricity, and to procure fuel and other commodities and provide a
route-to-market and risk management services for SSE Renewables, SSE Thermal, and Gas Storage.
Current hedging approach
The Group has traded in three principal commodities during the year, as well as the spreads between two or more commodity prices:
power (baseload and other products); gas; and carbon (emissions allowances). Each commodity has different liquidity characteristics,
which impacts on the degree of hedging possible. Similarly, each of the Group’s assets carries different exposures to the commodity
market and thus requires a different approach to hedging. As such, the Group’s current hedging approach varies by each class of asset
as follows:
Asset class
Minimum Hedge Target
Principal Commodity Exposures
GB Wind
Target to hedge less than 100% of anticipated wind energy output for the
Hydro
80% of forecast generation 12 months in advance of delivery, progressively
GB Thermal
100% of expected output 6 months in advance of delivery, progressively
Gas Storage
The assets were commercially operated throughout the year and the business
SSE Business Energy
Sales to contract customers are 100% hedged: at point of sale for fixed, upon
However, there are three principal areas where significant variations in earnings cannot be fully mitigated through hedging:
– The impact of the weather on the volume of electricity produced from renewable sources;
– The impact of operational matters such as unplanned outages; and
– The ability of flexible thermal power stations to earn extrinsic income by providing services to the electricity system and by responding
to shorter-term electricity market conditions.
Hedging is carried out by each asset class trading internally with SSE Energy Markets to affect these hedges and SSE Energy Markets then
trading onwards with external counterparties and markets. SSE Energy Markets is only able to accept internal trades when there is sufficient
liquidity to offset them in the external market or they can be offset with internal trades from other asset classes. In this way, the commodity
risks to which SSE Energy Markets is individually exposed, are minimised.
The volumetric extent to which assets are hedged are reported monthly to the Group Energy Markets Exposures Risk Committee, and to
the Energy Markets Risk Committee (“EMRC”) on at least a quarterly basis. Variations to the hedging approach above will be required as
markets and other factors (such as asset disposals) change. The EMRC also receives reporting on credit risk, other risk measures, and
market liquidity in assessing whether any variations to the hedging approach are required.
The Group measures and manages the Commodity Risk associated with the financial and non-financial commodity contracts it is exposed
to. However, within the Group’s financial statements only certain commodity contracts are designated as financial instruments under IFRS
9. As a result, it is only the fair value of those IFRS 9 financial instruments which represents the exposure of the Group’s commodity price
risk under IFRS 7. This is a consequence of the Group’s accounting policy which stipulates that commodity contracts which are designated
as financial instruments under IFRS 9 should be accounted for on a fair value basis with changes in fair value reflected in profit or equity.
Conversely, commodity contracts that are not designated as financial instruments under IFRS 9 will be accounted for as “own use”
contracts. As fair value changes in own use contracts are not reflected through profit or equity, these do not represent the IFRS 7
commodity price risk. Furthermore, other physical contracts can be treated as the hedging instrument in documented cash flow hedging
relationships where the hedged item is the forecast future purchase requirement to meet production or customer demand. The accounting
policies associated with financial instruments are explained in the Accompanying Information section
A1
.
Sensitivity analysis
The Group’s exposure to commodity price risk according to IFRS 7 is measured by reference to the Group’s IFRS 9 commodity contracts.
IFRS 7 requires disclosure of a sensitivity analysis for market risks that is intended to illustrate the sensitivity of the Group’s financial position
and performance to changes in market variables impacting upon the fair value or cash flows associated with the Group’s financial instruments.
Therefore, the sensitivity analysis provided discloses the effect on profit or loss and equity at the balance sheet date assuming that a
reasonably possible change in the relevant commodity price had occurred and been applied to the risk exposures in existence at that date.
The reasonably possible changes in commodity prices used in the sensitivity analysis were determined based on calculated or implied
volatilities where available, or historical data.
255 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

The sensitivity analysis has been calculated on the basis that the proportion of commodity contracts that are IFRS 9 financial instruments
remains consistent with those at that point. Excluded from this analysis are all commodity contracts that are not financial instruments
under IFRS 9.
2025
2024
Base Price
(i)
variable
Base Price
(i)
UK gas (p/therm)
89
+50 / –40
91
+73 / –54
EU gas (€/MWh)
34
+19 / –15
–
–
UK power (£/MWh)
88
+39 / –34
72
+43 / –34
UK carbon (£/tonne)
45
+23 / –19
37
+31 / –22
EU carbon (€/tonne)
71
+40 / –32
40
+20 / –16
IRL power (€/MWh)
123
+59 / –48
106
+86 / –63
EU power (€/MWh)
31
+11 / –10
24
+12 / –10
(i) The base price represents the weighted average forward market price over the duration of the active market curve used to calculate the sensitivity analysis. The reasonably
possible increase/decrease in market prices has been determined via SSE Energy Markets price model simulations and the volatility assumptions of the model have been calibrated
from a look-back analysis over the previous 12 month period.
The impacts of reasonably possible changes in commodity prices on profit after taxation based on the rationale described are as follows:
Commodity prices combined – increase
(287.1)
(7.1)
Commodity prices combined – decrease
212.6
(0.4)
The sensitivity analysis provided is hypothetical and is based on the exposure to energy-related commodities, and their corresponding
valuation under IFRS 9, that the Group has at each year end. This analysis should be used with caution as the impacts disclosed are not
necessarily indicative of the actual impacts that would be experienced given it does not consider all interrelationships, consequences and
effects of such a change in those prices.
A6.5 Currency risk
The Group publishes its consolidated financial statements in Sterling but also conducts business in foreign currencies. As a result, it is
subject to foreign currency exchange risk arising from exchange rate movements which will be reflected in the Group’s transaction costs or
in the underlying foreign currency assets of its foreign operations.
The Group’s policy is to use forward contracts, swaps and options to manage its exposures to foreign exchange risk. All such exposures are
transactional in nature, and relate primarily to procurement contracts, commodity purchasing and related freight requirements, commodity
hedging, long term plant servicing and maintenance agreements and the purchase and sale of carbon emission certificates. The policy is
to seek to hedge 100% of its currency requirements arising under all committed contracts excepting commodity hedge transactions, the
requirements for which are significantly less predictable. The policy for these latter transactions is to assess the Group’s requirements on a
rolling basis and to enter into cover contracts as appropriate.
The Group has foreign operations with significant Euro-denominated and JPY-denominated net assets. The Group’s policy is to hedge
its net investment in its foreign operations by ensuring the net assets whose functional currency cash flows are denominated in foreign
currencies are matched by borrowings in the same currency. For SSE Pacifico, whose functional currency is JPY but which presently has
limited capital commitments, SSE has no JPY denominated borrowings and hence has no current net investment hedge. For the acquired
net assets whose functional cash flows are in Sterling, the Group will ensure Sterling denominated borrowings are in place to minimise
currency risk.
Significant exposures are reported to, and discussed by, the Tax and Treasury Committee on an ongoing basis and additionally form part
of the bi-annual Treasury report to the Audit Committee.
At the balance sheet date, the total nominal value of outstanding forward foreign exchange contracts that the Group has committed to is:
Forward foreign exchange contracts
4,086.1
3,197.1
Accompanying information continued
A6
Financial risk management continued
A6.4 Commodity risk continued
256 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

The Group’s exposure to foreign currency risk was as follows:
2025
2024
Loans and borrowings
–
2 4 4 . 0
5 , 2 0 0 . 0
–
–
–
564.0
3,750.0
–
–
contract commitments
4,881.7
33.8
1,743.7
–
10.4
5,344.7
10.7
1,296.1
530.0
10.4
Gross exposure
4,881.7
277.8
6,943.7
–
10.4
5,344.7
574.7
5,046.1
530.0
10.4
contracts
4,881.7
277.8
4,028.9
–
10.4
5,344.7
574.7
2,671.3
530.0
10.4
Net exposure (in currency)
–
–
2 , 9 1 4 . 8
–
–
–
–
2 , 3 7 4 . 8
–
–
Net exposure (in £m)
–
–
2 , 4 4 1 . 6
–
–
–
–
2 , 0 3 0 . 2
–
–
This represents the net exposure to foreign currencies, reported in pounds Sterling, and arising from all Group activities. All sensitivity
analysis has been prepared on the basis of the relative proportions of instruments in foreign currencies being consistent as at the balance
sheet date. This includes only monetary assets and liabilities denominated in a currency other than Sterling and excludes the translation
of the net assets of foreign operations but not the corresponding impact of the net investment hedge.
The following sensitivity analysis is provided for monetary assets in Euro only, as the only currency with significant net exposure as at the
current and prior year end, as noted above. The sensitivity analysis is indicative only and it should be noted that the Group’s exposure to
such market rate changes is continually changing. The calculations are based on linear extrapolations of rate changes which may not
reflect the actual result which would impact upon the Group.
The majority of these contracts are held to limit exposure to foreign currency movements on asset procurement contracts. A 10% change
in foreign currency exchange rates would have had the following impact on profit after taxation, based on the assumptions presented above:
Equity
Income statement
Euro
167.5
142.5
35.9
26.7
167.5
142.5
35.9
26.7
The impact of a decrease in rates would be an identical reduction in the annual charge.
A6.6 Interest rate risk
Interest rate risk derives from the Group’s exposure to changes in the value of an asset or liability or future cash flows through changes in
interest rates.
The Group’s policy is to manage this risk by stipulating that a minimum of 50% of Group borrowings be subject to fixed rates of interest,
either directly through the debt instruments themselves or through the use of derivative financial instruments. The floating rate borrowings
are provided by banks including the European Investment Bank (EIB). Such instruments include interest rate swaps and options, forward
rate agreements and, in the case of debt raised in currencies other than Sterling, cross currency swaps. These practices serve to reduce the
volatility of the Group’s financial performance.
Although interest rate derivatives are primarily used to hedge risk relating to current borrowings, under certain circumstances they may
also be used to hedge future borrowings. Any such pre-hedging is unwound at the time of pricing the underlying debt, either through cash
settlement on a net present value basis or by transacting offsetting trades. The floating rate borrowings mainly comprise cash advances
from the European Investment Bank (EIB), however the Group is currently carrying a surplus cash position of £1,090.5m (2024: £1,035.9m).
257 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

The impact of a change in interest rates is dependent on the specific details of the financial asset or liability in question. Changes in fixed
rate financial assets and liabilities, which account for the majority of cash, loans and borrowings, are not measured at fair value through
the income statement. In addition to this, changes to fixed-to-floating hedging instruments which are recorded under cash flow hedge
accounting also do not impact the income statement. Changes in hedged items and hedging instruments recorded under fair value hedge
accounting are recorded through the income statement. The exposure measured is therefore based on variable rate debt and instruments.
The net exposure to interest rates at the balance sheet date can be summarised thus:
–fixed
(9,901.8)
(8,766.1)
–floating
349.1
685.5
(9,552.7)
(8,080.6)
Cash and cash equivalents
1,090.5
1,035.9
Derivative financial (liabilities)/assets
(38.8)
17.2
Loans and borrowings
(10,149.4)
(8,726.2)
Lease liabilities
(455.0)
(407.5)
(9,552.7)
(8,080.6)
Following from this, the table below represents the expected impact of a change of 100 basis points in short term interest rates at the
reporting date in relation to equity and income statement. The analysis assumes that all other variables, in particular foreign currency rates,
remain constant. An increase in exchange rates would be a change to either the income statement or equity. The assessment is based on a
revision of the fair value assumptions included in the calculated exposures in the previous table.
All sensitivity analysis has been prepared on the basis of the proportion of fixed to floating instruments being consistent as at the balance
sheet date and is stated after the effect of taxation.
The sensitivity analysis is indicative only and it should be noted that the Group’s exposure to such market rate changes is continually
changing. The calculations are based on linear extrapolations of rate changes which may not reflect the actual result which would impact
upon the Group.
Income statement
5.6
2.6
The impact of a decrease in rates would be an equal reduction in the annual charge. There is no impact on equity as the analysis relates to
the Group’s net exposure at the balance sheet date. Contracts qualifying for hedge accounting are, by definition, part of the Group’s
covered position.
Accompanying information continued
A6
Financial risk management continued
A6.6 Interest rate risk continued
258 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

A7
Fair value of financial instruments
A7.1 Fair value of financial instruments within the Group
The fair values of the primary financial assets and liabilities of the Group together with their carrying values are as follows:
2025
2025
2025
2025
2024
2024
2024
2024
cost
(i)
FVTOCI
(ii)
cost
(i)
FVTOCI
(ii)
Trade receivables
1,480.2
–
1,480.2
1,480.2
1,305.5
–
1,305.5
1,305.5
Other receivables
6.6
–
6.6
6.6
4.1
–
4.1
4.1
Cash collateral and
other deposits
19.2
–
19.2
19.2
9.3
–
9.3
9.3
equivalents
1,090.5
–
1,090.5
1,090.5
1,035.9
–
1,035.9
1,035.9
Derivative financial assets
–
178.4
178.4
178.4
–
536.1
536.1
536.1
2,596.5
178.4
2,774.9
2,774.9
2,354.8
536.1
2,890.9
2,890.9
investments
–
8.8
8.8
8.8
–
3.2
3.2
3.2
Loan note receivable
193.5
–
193.5
193.5
170.1
–
170.1
170.1
Loans to associates and
jointly controlled entities
1,510.3
–
1,510.3
1,510.3
1,352.9
–
1,352.9
1,352.9
Derivative financial assets
–
63.5
63.5
63.5
–
64.2
64.2
64.2
1,703.8
72.3
1,776.1
1,776.1
1,523.0
67.4
1,590.4
1,590.4
4,300.3
250.7
4,551.0
4,551.0
3,877.8
603.5
4,481.3
4,481.3
Trade payables
(710.7)
–
(710.7)
(710.7)
(656.7)
–
(656.7)
(656.7)
Outstanding liquid funds
(82.5)
–
(82.5)
(82.5)
(362.5)
–
(362.5)
(362.5)
Loans and borrowings
(iii)
(1,924.3)
28.8
(1,895.5)
(1,937.0)
(1,044.5)
–
(1,044.5)
(1,113.6)
Lease liabilities
(68.5)
–
(68.5)
(68.5)
(83.5)
–
(83.5)
(83.5)
liabilities
–
(2.4)
(2.4)
(2.4)
–
(3.1)
(3.1)
(3.1)
liabilities
–
(126.3)
(126.3)
(126.3)
–
(345.2)
(345.2)
(345.2)
(2,786.0)
(99.9)
(2,885.9)
(2,927.4)
(2,147.2)
(348.3)
(2,495.5)
(2,564.6)
Loans and borrowings
(iii)
(8,313.7)
59.8
(8,253.9)
(7,960.4)
(7,680.8)
(0.9)
(7,681.7)
(7,440.6)
Lease liabilities
(386.5)
–
(386.5)
(386.5)
(324.0)
–
(324.0)
(324.0)
liabilities
–
(23.1)
(23.1)
(23.1)
–
(36.4)
(36.4)
(36.4)
liabilities
–
(167.7)
(167.7)
(167.7)
–
(222.2)
(222.2)
(222.2)
(8,700.2)
(131.0)
(8,831.2)
(8,537.7)
(8,004.8)
(259.5)
(8,264.3)
(8,023.2)
(11,486.2)
(230.9)
(11,717.1)
(11,465.1)
(10,152.0)
(607.8)
(10,759.8)
(10,587.8)
Net financial liabilities
(7,185.9)
19.8
(7,166.1)
(6,914.1)
(6,274.2)
(4.3)
(6,278.5)
(6,106.5)
(i) Financial assets and liabilities that are measured at amortised cost.
(ii) Financial assets and liabilities that are measured at either Fair Value through Profit and Loss (Derivative Financial Assets and Liabilities) or Fair Value through other comprehensive
income (Unquoted Equity Investments)
(iii) The fair value through profit or loss attributable to loans and borrowings totalling £88.6m (2024: (£0.9m)) relates to fair value hedges that are in place against the Group’s loans
and borrowings. At 31 March 2025, Scottish Hydro Electric Transmission plc had drawn £340.0m of borrowings under its £1.5bn revolving credit facility. The £340.0m has been
classified as non-current within debt maturing in two to five years in accordance with IAS 1 paragraph 75A. The debt was repaid in April 2025, subsequent to the balance sheet date.
259 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

A7.1.1 Basis of determining fair value
Certain assets and liabilities have been classified and carried at amortised cost on inception in line with IFRS 9 criteria. The carrying value
of these assets are approximately equivalent to fair value due to short term maturity aside from loans and borrowings which are subject to
longer maturity dates.
All other financial assets and liabilities are measured at either Fair Value through Profit and Loss (“FVTPL”) or Fair Value through Other
Comprehensive Income (“FVTOCI”). Fair values for energy derivatives are based on unadjusted quoted market prices, where actively traded.
For energy derivatives that are not actively traded, interest rate instruments, foreign currency hedge contracts and cross currency swap
contracts associated with foreign currency denominated long term fixed rate debt, the fair values are determined by reference to closing
rate market prices for similar instruments. Fair values for unquoted equity instruments are derived from venture capital or growth equity
firm valuation statements. Fair values for financial guarantee contracts are equal to the premium or fee received/charged.
The fair values are stated at a specific date and may be different from the amounts which will actually be paid or received on settlement of
the instruments. The fair value of items such as property, plant and equipment, internally generated brands or the Group’s customer base
are not included as these are not considered financial instruments.
A7.2 Fair value hierarchy
The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped
into Levels 1 to 3 based on the degree to which the fair value is observable.
– Level 1 fair value measurements are those derived from unadjusted quoted market prices for identical assets or liabilities.
– Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for
the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices)
– Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not
based on observable market data.
2025
2024
Energy derivatives
71.5
80.9
5.8
158.2
357.7
121.6
0.5
479.8
Interest rate derivatives
–
6 8 . 9
–
6 8 . 9
–
1 1 3 . 0
–
1 1 3 . 0
Foreign exchange derivatives
–
1 4 . 8
–
1 4 . 8
–
7 . 5
–
7 . 5
Unquoted equity investments
–
–
8 . 8
8 . 8
–
–
3 . 2
3 . 2
71.5
164.6
14.6
250.7
357.7
242.1
3.7
603.5
Energy derivatives
–
( 8 0 . 8 )
( 8 1 . 3 )
( 1 6 2 . 1 )
–
( 3 2 7 . 1 )
( 1 0 1 . 3 )
( 4 2 8 . 4 )
Interest rate derivatives
–
( 1 0 7 . 8 )
–
( 1 0 7 . 8 )
–
( 9 5 . 8 )
–
( 9 5 . 8 )
Foreign exchange derivatives
–
( 2 4 . 1 )
–
( 2 4 . 1 )
–
( 4 3 . 2 )
–
( 4 3 . 2 )
Loans and borrowings
*
–
8 8 . 6
–
8 8 . 6
–
( 0 . 9 )
–
( 0 . 9 )
–
( 1 2 4 . 1 )
( 8 1 . 3 )
( 2 0 5 . 4 )
–
(467.0)
(101.3)
(568.3)
* The £88.6m relates to fair value hedges that are in place against the Group’s loans and borrowings and has been included in the table above within financial liabilities, as it is
presented in loans and borrowings liabilities in the balance sheet.
The table above excludes financial guarantee liabilities measured in accordance with IFRS 17. There were no significant transfers out of
Level 1 into Level 2 and out of Level 2 into Level 1 during the current and prior year. There were no significant transfers out of Level 2 into
Level 3 or out of Level 3 into Level 2 during the current and prior year.
In the prior year, the Group entered into an additional Affiliate Contract for Difference (“ACfD”) agreement with Seagreen Wind Energy
Limited (“SWEL”) with a 5 year term. SWEL is a wholly owned subsidiary of Seagreen Holdco 1 Limited, a joint venture between the Group
(49%) and TotalEnergies (25.5%) and PTT Exploration & Production Public Company Limited (PTTEPP) (25.5%) (2024: TOTAL SE (51%)) and
TOTAL SE entered into an equivalent ACfD with SWEL. In the period to 31 March 2025, the SWEL ACfD agreement was amended and under
IFRS 9, the original agreement was de-recognised and then re-recognised on the amended basis. The Group also has some smaller
commercial CfD arrangements entered into with non-government third parties that are also classified as derivatives. The ACfD and the
commercial CfDs meet the definition of financial instruments and are classified as Level 3 on the fair value hierarchy due to significant
unobservable inputs in the determination of fair value.
The fair value measurement impact in the income statement attributable to Level 3 CfDs was a gain of £23.9m (2024: £99.0m loss).
The fair value was determined using the income approach with reference to future market prices which are beyond the liquid period in the
forward market.
The non-government CfDs were issued for £nil consideration, being the deemed transaction price. The Group has calculated that the
contracts had a fair value on day 1, being the difference between the strike price per the contract and the forward market spot price. This
valuation is based on unobservable inputs and is considered judgemental. Key assumptions applied when deriving the fair value are related
to discount rates; electricity volumes; and electricity prices. In line with IFRS 9, the day 1 gain is deferred and will be recognised over the life
of the contract.
Accompanying information continued
A7
Fair value of financial instruments continued
A7.1 Fair value of financial instruments within the group continued
260 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

The following table represents the difference between the Level 3 financial instruments at fair value at the start of the reporting period and
at the reporting date:
Level 3 financial instrument fair value at 1 April
(97.6)
25.6
Additions
3.4
Transfer to/(from) financial assets
4.6
(24.1)
Disposals in year
(0.1)
(0.4)
Cash settlement
(38.5)
(0.4)
Re-measurement gain/(loss) recognised in income statement
5.2
(106.0)
Re-measurement (loss)/gain recognised in other comprehensive income
(0.8)
0.3
Additions – new instruments entered in the year
342.3
11.5
Deferred day 1 gains on instruments entered in the year
(342.3)
(11.5)
Instruments derecognised in the year
(342.0)
–
Deferred day 1 gains derecognised in the year
370.7
–
Amortisation of day 1 gains in the year
28.4
7.4
Level 3 financial instrument fair value at 31 March
(66.7)
(97.6)
The following table details the valuation technique, significant unobservable inputs and the range of values for the energy derivatives
measured at fair value on a recurring basis and classified as Level 3.
£m
Valuation technique
31 March 2025
75.5
Discounted cash flow
Generation volumes
49 – 99
31 March 2024
100.8
Discounted cash flow
Generation volumes
53 – 147
Deferred measurement differences
Deferred measurement difference at 1 April
413.5
400.1
Deferred measurement difference adjustment in the year
–
9.3
Deferred measurement difference arising during the year on new instruments
342.3
11.5
Deferred measurement differences derecognised in the year
(370.7)
–
Deferred measurement difference recognised during the year
(28.4)
(7.4)
Deferred measurement difference at 31 March
356.7
413.5
The following table shows the impact on the fair value of the Level 3 energy derivatives when applying reasonably possible alternative
assumptions to the valuation obtained using the discounted cash flow model.
Assumption
At 31 March 2025
At 31 March 2024
Discount rate
+1%/-1%
(12.8)/13.9
+1%/–1%
(22.2)/19.9
Volumes
+10%/-10%
26.5/(28.7)
+10%/–10%
29.3/(31.3)
Prices
+10%/-10%
87.5/(87.5)
+10%/–10%
135.7/(135.7)
261 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

A8
Hedge accounting
A8.1 Cash flow hedges
The Group designates contracts which qualify as hedges for accounting purposes either as cash flow hedges or fair value hedges. Cash
flow hedges are contracts entered into to hedge a forecast transaction or cash flow risk generally arising from a change in interest rates or
foreign currency exchange rates and which meet the effectiveness criteria prescribed by IFRS 9. The Group’s accounting policy on cash
flow hedges is explained in the Accompanying Information section A1 .
The following table indicates the contractual maturities of the expected transactions and the qualifying cash flow hedges associated.
Non-Sterling denominated contractual cash flows have been converted at the forward foreign exchange rate.
2025
2025
2025
2025
2025
2025
2024
2024
2024
2024
2024
2024
Assets
15.4
16.5
5.9
5.3
5.3
–
19.7
21.4
7.3
5.3
8.8
–
Liabilities
–
–
–
–
–
–
–
–
–
–
–
–
15.4
16.5
5.9
5.3
5.3
–
19.7
21.4
7.3
5.3
8.8
–
Assets
32.7
48.5
7.9
7.2
(46.1)
79.5
71.7
72.4
51.4
1.5
19.5
–
Liabilities
(74.2)
(75.4)
(43.2)
(13.4)
(37.1)
18.3
(57.4)
(57.6)
(19.3)
(23.3)
(30.6)
15.6
(41.5)
(26.9)
(35.3)
(6.2)
(83.2)
97.8
14.3
14.8
32.1
(21.8)
(11.1)
15.6
Assets
9.6
584.8
292.9
133.5
158.4
–
0.5
35.0
34.6
0.4
–
–
Liabilities
(19.7)
861.1
234.8
182.2
444.1
–
(30.5)
(1,340.9)
(557.7)
(99.8)
(647.6)
(35.8)
(10.1)
1,445.9
527.7
315.7
602.5
–
(30.0)
(1,305.9)
(523.1)
(99.4)
(647.6)
(35.8)
A8.2 Net investment hedge
The Group’s net investment hedge consists of debt issued in the same currency (€) as the net investment in foreign subsidiaries with €
denominated functional currencies being the Airtricity Supply business, the thermal plants in Ireland and wind farms in Ireland and
Southern Europe. The hedge compares the element of the net assets whose functional cash flows are denominated in € to the matching
portion of the € borrowings held by the Group. This therefore provides protection against movements in foreign exchange rates. There is
no net investment hedge in relation to SSE Pacifico as the Group has no JPY denominated debt.
Gains and losses in the hedge are recognised in equity and will be transferred to the income statement on disposal of the foreign operation
(2025: £36.0m gain, 2024: £30.9m gain). Gains and losses on the ineffective portion of the hedge are recognised immediately in the
income statement (2025: £nil, 2024: £nil).
Accompanying information continued
262 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Note
2025
£m
2024
£m
Assets
Equity investments in joint ventures and associates 3 4.0 34.6
Loans to joint ventures and associates 3 83.5 69.8
Investments in subsidiaries 4 1,976.2 1,963.6
Trade and other receivables 5 9,412.2 10,948.8
Derivative financial assets 11 25.1 35.7
Retirement benefit assets 10 353.7 339.3
Non-current assets 11,854.7 13,391.8
Trade and other receivables 5 2,317.8 1,056.1
Cash and cash equivalents 987.6 796.9
Derivative financial assets 11 22.1 67.3
Current assets 3,327.5 1,920.3
Total assets 15,182.2 15,312.1
Liabilities
Loans and other borrowings 8 1,895.5 1,044.5
Trade and other payables 6 1,638.6 2,827.2
Current tax liability 7 36.5 26.3
Financial guarantee liabilities 12 9.3 9.3
Provisions 14 23.9 19.7
Derivative financial liabilities 11 53.6 32.7
Current liabilities 3,657.4 3,959.7
Loans and other borrowings 8 3,940.7 4,561.7
Deferred tax liabilities 7 83.5 82.5
Financial guarantee liabilities 12 90.8 107.3
Provisions 14 177.7 200.0
Derivative financial liabilities 11 53.0 64.1
Non-current liabilities 4,345.7 5,015.6
Total liabilities 8,003.1 8,975.3
Net assets 7,179.1 6,336.8
Equity:
Share capital 9 555.6 548.1
Share premium 812.6 820.1
Capital redemption reserve 52.6 52.6
Hedge reserve 37.3 17.0
Retained earnings 3,838.6 3,016.6
Equity attributable to ordinary shareholders of the parent 5,296.7 4,454.4
Hybrid equity 9 1,882.4 1,882.4
Total equity 7,179.1 6,336.8
Result for the year
In accordance with the concession granted under section 408 of the Companies Act 2006, the income statement and statement of
comprehensive income of the Company have not been separately presented in these Financial Statements. The profit for the year
attributable to ordinary shareholders dealt with in the financial statements of the Company was £1,338.2m (2024:£554.6m) including
dividends received from subsidiaries of £1,615.0m (2024: £992.6m).
These financial statements were approved by the Board of Directors on 20 May 2025 and signed on their behalf by
Barry O’Regan, Sir John Manzoni,
Chief Financial Officer Chairman
SSE plc
Registered No: SC117119
Company balance sheet
as at 31 March 2025
263 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Share capital
£m
Share
premium
£m
Capital
redemption
reserve
£m
Hedge reserve
£m
Retained
earnings
£m
Total
attributable to
ordinary
shareholders
£m
Hybrid
equity
£m
Total
equity
£m
At 1 April 2024 548.1 820.1 52.6 17.0 3,016.6 4,454.4 1,882.4 6,336.8
Profit for the year ––––1,264.51,264.573.71,338.2
Other comprehensive
income – – – 20.3 5.3 25.6 – 25.6
Total comprehensive
income for the year – – – 20.3 1,269.8 1,290.1 73.7 1,363.8
Dividends to shareholders ––––(671.0)(671.0)–(671.0)
Scrip dividend related
shareissue 7.5 (7.5) – – 268.9 268.9 – 268.9
Issue of treasury shares ––––17.817.8–17.8
Distributions to Hybrid
equity holders ––––––(73.7)(73.7)
Share buyback – – – – (71.7) (71.7) – (71.7)
Credit in respect of
employee share awards ––––22.322.3–22.3
Investment in own shares
(i)
––––(14.1)(14.1)–(14.1)
At 31 March 2025 555.6 812.6 52.6 37.3 3,838.6 5,296.7 1,882.4 7,179.1
for the year ended 31 March 2024
Share capital
£m
Share
premium
£m
Capital
redemption
reserve
£m
Hedge reserve
£m
Retained
earnings
£m
Total
attributable to
ordinary
shareholders
£m
Hybrid
equity
£m
Total
equity
£m
At 1 April 2023 547.0 821.2 52.6 (3.0) 3,473.0 4,890.8 1,882.4 6,773.2
Profit for the year ––––481.5 481.5 73.1 554.6
Other comprehensive
income/(loss) – – – 20.0 (27.7) (7.7) – (7.7)
Total comprehensive
income for the year – – – 20.0 453.8 473.8 73.1 546.9
Dividends to shareholders ––––(956.4)(956.4)–(956.4)
Scrip dividend related
shareissue 1.1 (1.1) – – 38.6 38.6 – 38.6
Issue of treasury shares ––––9.2 9.2 –9.2
Distributions to Hybrid
equity holders ––––––(73.1)(73.1)
Credit in respect of
employee share awards ––––20.2 20.2 –20.2
Investment in own shares
(i)
––––(21.8)(21.8)–(21.8)
At 31 March 2024 548.1 820.1 52.6 17.0 3,016.6 4,454.4 1,882.4 6,336.8
(i) Investment in own shares is the purchase of own shares less the settlement of Treasury shares for certain employee share schemes.
Company statement of changes in equity
for the year ended 31 March 2025
264 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Critical accounting judgements and estimation uncertainty
In the process of applying the Company’s accounting policies,
management necessarily makes judgements and estimates that
have a significant effect on the amounts recognised in the financial
statements. Changes in the assumptions underlying the estimates
could result in a significant impact to the financial statements. The
Group’s key accounting judgement and estimation areas are noted
in
note 4.1
of the consolidated financial statements, with the
most significant financial judgement areas as specifically discussed
by the Audit Committee being highlighted separately. In particular,
note4.1(ii) Retirement benefit obligations, and the related
disclosures in note 23, note 4.1(iv) Valuation of other receivables
and note 4.3 Decommissioning costs, of the consolidated
financial statements are relevant to the Company.
Significant accounting policies
The significant accounting policies applied in the preparation of
these individual financial statements are set out below. These
policies have been applied consistently to all the years presented,
unless otherwise stated.
Investments in subsidiaries
Investments in subsidiaries are carried at cost less any impairment
charges.
Interests in joint arrangements and associates
Associates are those investments over which the Company has
significant influence but neither control nor joint control.
The Company’s joint ventures and associates are stated at cost less
any impairment.
Applicable Group accounting policies
The following significant accounting policies are consistent with
those applied for the Group consolidated financial statements:
– Equity and equity-related compensation benefits
(Supplementary information
A1.2
)
– Defined benefit pension scheme (Supplementary information
A1.2 )
– Taxation (Supplementary information A1.2 )
– Financial instruments (Supplementary information A1.2 and A6 )
– Financial guarantee liabilities (Supplementary information A1.2 )
2
Supplementary financial information
2.1 Auditor’s remuneration
The amounts paid to the Company’s auditor in respect of the audit
of these financial statements was £0.4m (2024: £0.4m).
Amounts paid to the Company’s auditor in respect of services
totheCompany other than the audit of the Company’s financial
statements have not been disclosed as the information is required
instead to be disclosed on a consolidated basis.
2.2 Employee numbers
The average number of people employed by the Company
(including Executive Directors) during the year was 3 (2024: 3).
The costs associated with the employees of the Company, who
arethe Executive Directors of the Group, are borne by Group
companies. No amounts are charged to the Company.
2.3 Directors’ remuneration and interests
Information concerning Directors’ remuneration, shareholdings,
options, long term incentive schemes and pensions is shown in the
Remuneration Report on
pages 126 to 153
. No Director had,
during or at the end of the year, any material interest in any other
contract of significance in relation to the Group’s business.
1
Principal accounting policies
1.1 General information
SSE plc (the “Company”) is a company domiciled in Scotland.
Theaddress of the registered office is given on the back cover.
TheCompany financial statements present information about
theCompany as a separate entity and not about the Group.
1.2 Basis of preparation
The financial statements have been prepared in accordance with
United Kingdom Generally Accepted Accounting Practice (United
Kingdom Accounting Standards and applicable law) including
Financial Reporting Standard 101, “Reduced Disclosure Framework”.
Under section 408 of the Companies Act 2006 the Company is
exempt from the requirement to present its own income statement
and related notes.
It has also taken advantage of the following disclosure exemptions
available under FRS 101.
– A cash flow statement and related notes;
– Related party disclosures;
– Disclosures in respect of capital management; and
– The effects of new but not yet effective IFRSs.
As the consolidated financial statements of SSE plc include the
equivalent disclosure, the Company has also taken advantage of the
exemptions, under FRS 101, available in respect of the following
disclosure:
– Certain disclosures required by IFRS 13 “Fair value measurement”
and the disclosures required by IFRS 7 “Financial instrument
disclosures”.
The Company previously assessed that, on the basis of materiality,
the disclosures required under IFRS 2 “Share-based Payment”
should be removed. The Company has assessed that at 31 March
2025 these disclosures continue to be immaterial to the Company’s
financial statements.
New standards, amendments and interpretations effected or
adopted by the Company
During the year ended 31 March 2025, the Company adopted the
amendment to IAS 1 “Presentation of Financial Statements” in
relation to non-current liabilities with covenants. Adoption of this
amendment had no material impact on these financial statements.
There were no other standards, amendments to standards or
interpretations relevant to the Company’s operations which were
adopted during the year.
Going Concern
The Directors consider that the Company has adequate resources
to continue in operational existence for the foreseeable future
(further details are contained in A6 Accompanying Information of
the consolidated financial statements). The financial statements are
therefore prepared on a Going Concern basis.
Basis of measurement
The financial statements of the Company are prepared on the
historical cost basis except for derivative financial instruments and
assets of the Company pension scheme which are stated at their
fair value, and liabilities of the Company pension scheme which are
measured using the projected unit credit method. The Directors
believe the financial statements present a true and fair view. The
financial statements of the Company are presented in pounds
Sterling and all values are rounded to the nearest million to one
decimal place (£m), unless otherwise stated.
Notes to the Company financial statements
for the year ended 31 March 2025
265 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

3
Investments in associates and jointventures
2025 2024
Equity
£m
Loans
£m
Total
£m
Equity
£m
Loans
£m
Total
£m
Share of net assets/cost
At 1 April 34.6 69.8 104.4 50.4 81.6 132.0
Additions – 25.9 25.9 30.0 47.7 77.7
Repayment of shareholder loans – (12.2) (12.2) – (13.4) (13.4)
Impairment (30.6) – (30.6) (45.8) (46.1) (91.9)
At 31 March 4.0 83.5 87.5 34.6 69.8 104.4
The impairment recognised in the current and prior year relates to the investment in Neos Networks Limited. The current year impairment
of £30.6m (2024: £91.9m) aligns the Company’s investment value (cost less impairment) with the carrying value in the Group financial
statements, where the investment is equity accounted.
4
Subsidiary undertakings
Details of the Company’s subsidiary undertakings are disclosed in the Accompanying Information section (A3) .
Investment in subsidiaries
2025
£m
2024
£m
At 1 April 1,963.6 1,958.1
Increase in existing investments
(i)
24.5 22.1
Investment decrease in respect of financial guarantees
(ii)
(11.9) (16.6)
At 31 March 1,976.2 1,963.6
(i) The overall increase in investments held by the Company primarily relates to equity shares in the Company awarded to the employees of the subsidiaries of the Group under the
Group’s share schemes, which are recognised as an increase in the cost of investment in those subsidiaries as directed by IFRIC 11 (2025: £24.5m; 2024: £22.1m (both before tax)).
(ii) The investment decrease in respect of financial guarantees relates to £18.6m (2024: £19.6m) of unwind and expiry of guarantee contracts, less £6.7m (2024: £3.0m) for the fair
value of fees receivable on guarantees granted to subsidiary investments during the year.
5
Trade and other receivables
The balances of current and non-current trade and other receivables in the current and prior financial year predominantly consists of
amounts owed by subsidiary undertakings. At 31 March 2025 the Company assessed its exposure to expected credit losses on related party
receivables under IFRS 9 and held a provision against future losses of £54.3m (2024: £59.2m).
During the year ended 31 March 2025 the Company waived £510.3m (2024: £624.0m) of intercompany funding receivables due from other
SSE Group companies, with the related charge being expensed in the income statement.
6
Trade and other payables
The balances of current trade and other payables in the current and prior financial year predominantly consists of amounts due to
subsidiary undertakings.
7
Taxation
Current tax liability
2025
£m
2024
£m
Corporation tax liability 36.5 26.3
Notes to the Company financial statements continued
for the year ended 31 March 2025
266 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Deferred taxation
The following are the deferred tax liabilities and assets recognised by the Company and movements thereon during the current and prior
reporting periods:
Fair value
gains/(losses)
on derivatives
£m
Retirement
benefit
obligations
£m
Other
£m
Total
£m
At 31 March 2023 (7.6) 91.6 (5.7) 78.3
Charge to income statement 3.3 2.5 – 5.8
Charge/(credit) to other comprehensive income/(loss) 5.9 (9.3) – (3.4)
Charge to equity ––1.81.8
At 31 March 2024 1.6 84.8 (3.9) 82.5
Charge/(credit) to income statement 0.8 1.7 (8.7) (6.2)
Charge to other comprehensive income 3.1 1.9 – 5.0
Charge to equity – – 2.2 2.2
At 31 March 2025 5.5 88.4 (10.4) 83.5
Certain deferred tax assets and liabilities have been offset, including the asset balances analysed in the tables above. The following is an
analysis of the deferred tax balances (after offset) for financial reporting purposes:
2025
£m
2024
£m
Deferred tax liabilities 94.3 86.8
Deferred tax assets (10.8) (4.3)
Net deferred tax liability 83.5 82.5
The deferred tax assets/liabilities disclosed include the deferred tax relating to the Company’s pension scheme liabilities.
8
Loans and borrowings
2025
£m
2024
£m
Current
Other short term loans 1,895.5 1,044.5
1,895.5 1,044.5
Non-current
Loans 3,940.7 4,561.7
3,940.7 4,561.7
Total loans and borrowings 5,836.2 5,606.2
8.1 Borrowing facilities
The Company has an established €1.5bn Euro commercial paper programme (paper can be issued in a range of currencies and swapped
into Sterling) and as at 31 March 2025 there was £891m commercial paper outstanding (2024: £840m).
During the year the Company issued a 7 year €600m Green Bond at a coupon of 3.5%. The bond has been predominantly left in Euros as a
net investment hedge for the Group’s Euro denominated subsidiaries. In the year, the Company also issued £0.9bn of debt and had £1.0bn
of debt maturities. The £0.9bn of issued debt relates to Commercial Paper being rolled at maturity, which also accounts for £0.8bn of the
debt maturities, with the only additional debt maturity being €320m (£204m) of 12 year US Private Placements that matured in April 2024.
The Company also has £1.5bn (2024: £2.5bn) of a revolving credit facility (see note 21.3). On 23 October 2024 the Company’s facilities
were re-financed with the £2.5bn of facilities being reduced to £1.5bn by cancellation of a facility due to mature in February 2025. This
facility provides back-up to the commercial paper programme and supports the Group’s capital expenditure plans. As at 31 March 2025 this
facility was undrawn (2024: undrawn).
267 SSE plc Annual Report 2025
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Analysis of borrowings
2025 2025 2025 2025 2024 2024 2024 2024
Weighted
average
interest rate
Face value
£m
Fair value
£m
Carrying
amount
£m
Weighted
average
interest rate
Face value
£m
Fair value
£m
Carrying
amount
£m
Current
Other short term loans –
non-amortising
(ii)
5.0% 901.7 906.6 890.5 5.8% 852.4 855.7 840.4
1.25% Eurobond repayable 16 April
2025
(v)
1.3% 531.4 531.2 531.4 ––––
0.875% €600m Eurobond repayable
8September 2025
(viii)
0.9% 502.6 499.2 502.4 ––––
US Private Placement 16 April 2024 ––––4.4% 204.1 257.9 204.1
Within one year 1,935.7 1,937.0 1,924.3 1,056.5 1,113.6 1,044.5
Fair value adjustment
(iii)
(28.8) –
Total current borrowings 1,935.7 1,937.0 1,895.5 1,056.5 1,113.6 1,044.5
Non-current
Bank loans – non amortising
(i)
5.5% 100.0 102.5 100.0 5.5% 100.0 102.5 100.0
1.25% Eurobond repayable 16 April
2025
(v)
––––1.3% 531.4 518.8 531.4
0.875% €600m Eurobond repayable
8September 2025
(viii)
––––0.9% 513.0 493.0 512.2
US Private Placement 8 June 2026 3.1% 64.0 63.0 63.8 3.1% 64.0 48.7 63.6
US Private Placement 6 September
2026 3.2% 247.1 258.9 246.2 3.2% 247.1 242.1 245.6
US Private Placement 6 September
2027 3.2% 35.0 33.3 34.8 3.2% 35.0 25.9 34.7
1.375% €650m Eurobond repayable
4September 2027
(iv)(viii)
1.4% 591.4 573.7 590.9 1.4% 591.4 553.7 590.7
8.375% Eurobond repayable on
20November 2028 8.4% 500.0 554.3 498.5 8.4% 500.0 573.3 498.1
2.875% Eurobond repayable on
1August 2029
(viii)
2.9% 544.5 539.3 543.3 ––––
Between two and five years 2,082.0 2,125.0 2,077.5 2,581.9 2,558.0 2,576.3
2.875% Eurobond repayable on
1August 2029
(viii)
––––2.9% 555.7 543.3 554.3
1.750% Eurobond repayable 16 April
2030
(vi)
1.8% 442.9 413.9 442.9 1.8% 442.9 403.5 442.9
6.25% Eurobond repayable on
27August 2038
6.3% 350.0 350.7 347.9 6.3% 350.0 386.3 347.7
4.00% €750m Eurobond repayable
5September 2031
(vii)(viii)
4.0% 628.2 646.5 626.8 4.0% 641.2 661.7 639.6
3.50% €600m Eurobond repayable
18 March 2032
(viii)(ix)
3.5% 503.5 501.3 500.5 ––––
Over five years 1,924.6 1,912.4 1,918.1 1,989.8 1,994.8 1,984.5
Fair value adjustment
(iii)
(54.9) 0.9
Total non-current borrowings 4,006.6 4,037.4 3,940.7 4,571.7 4,552.8 4,561.7
Total borrowings 5,942.3 5,974.4 5,836.2 5,628.2 5,666.4 5,606.2
(i) Balances include term loans and EIB debt and is a mixture of fixed and floating rate debt.
(ii) Balances include Commercial Paper and facility advances (£891m of Commercial Paper outstanding at 31 March 2025).
(iii) The fair value adjustment relates to the change in the carrying amount of the borrowings as a result of fair value hedges that are in place. The movement in the fair value
adjustment is recognised in the income statement with a corresponding movement on the hedging instrument also being recognised in the income statement.
(iv) The 1.375% €650m Eurobond maturing 4 September 2027 has been swapped to Sterling giving an effective interest rate of 2.56%.
(v) The 1.250% €600m Eurobond maturing 16 April 2025 has been swapped to Sterling giving an effective interest rate of 2.43%.
(vi) The 1.750% €500m Eurobond maturing 16 April 2030 has been swapped to Sterling giving an effective interest rate of 2.89%.
(vii) The 4.0% €750m Eurobond maturing 5 September 2031 has been left in Euros as a net investment hedge for the Group’s Euro denominated subsidiaries.
(viii) Bonds have been issued under the Group’s Green Bond Framework.
(ix) The 3.50% €600m Eurobond maturing 18 March 2032 has predominantly been left in Euros as a net investment hedge for the Group’s Euro denominated subsidiaries. €200m has
been swapped to Sterling for a one year period giving an effective interest rate of 4.20%.
8
Loans and borrowings continued
Notes to the Company financial statements continued
for the year ended 31 March 2025
268 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

9
Equity
Details regarding SSE plc’s share capital, hybrid equity and capital redemption reserve can be found in note 22 of the Group consolidated
financial statements. The Company’s hedge reserve comprises the effective portion of the cumulative net change in the fair value of cash
flow hedge derivative instruments related to hedging transactions that have not yet occurred.
10
Retirement benefit obligations
Defined benefit scheme
The Company has a funded final salary pension scheme (“Scottish Hydro Electric Pension Scheme”) which provides defined benefits based
on final pensionable pay. The scheme is subject to an independent valuation at least every three years. The future benefit obligations are
valued by actuarial methods on the basis of an appropriate assessment of the relevant parameters. Further details regarding SSE plc’s
defined benefit pension scheme can be found in note 23 of the Group consolidated financial statements, including details of the latest
actuarial valuation, contributions, valuation assumptions, sensitivity analysis, and discussion of the pension scheme assets, obligations,
polices, risks and strategy.
10.1 Valuation of pension scheme
Quoted
£m
Unquoted
£m
Value at
31March 2025
£m
Quoted
£m
Unquoted
£m
Value at
31March 2024
£m
Equities –––30.7 – 30.7
Government bonds 396.0 – 396.0 333.5 – 333.5
Insurance contracts –454.4454.4 –500.3500.3
Other investments 373.1 – 373.1 464.1 – 464.1
Total fair value of plan assets 769.1 454.4 1,223.5 828.3 500.3 1,328.6
Present value of defined benefit obligation (869.8) (989.3)
Surplus in the scheme 353.7 339.3
Deferred tax thereon
(i)
(88.4) (84.8)
Net pension asset 265.3 254.5
(i) Deferred tax is recognised at 25% (2024: 25%) on the surplus.
10.2 Movements in the defined benefit assets and obligations during the year
2025 2024
Assets
Obligations
£m
Total
£m
Assets
£m
Obligations
£m
Total
£m
At 1 April 1,328.6 (989.3) 339.3 1,389.5 (1,022.9) 366.6
Included in income statement
Current service cost –(6.7)(6.7) –(7.3)(7.3)
Past service cost – (3.8) (3.8) –(1.4)(1.4)
Interest income/(cost) 62.4 (46.1) 16.3 64.7 (47.2) 17.5
62.4 (56.6) 5.8 64.7 (55.9) 8.8
Included in other comprehensive income
Actuarial (loss)/gain arising from:
Demographic assumptions –3.83.8 – 13.4 13.4
Financial assumptions –108.6108.6 – 14.1 14.1
Experience assumptions –3.83.8 –3.73.7
Return on plan assets excluding interest income (108.5) – (108.5) (68.3) – (68.3)
(108.5) 116.2 7.7 (68.3) 31.2 (37.1)
Other
Contributions paid by the employer 0.9 – 0.9 1.0 – 1.0
Benefits paid (59.9) 59.9 – (58.3) 58.3 –
(59.0) 59.9 0.9 (57.3) 58.3 1.0
At 31 March 1,223.5 (869.8) 353.7 1,328.6 (989.3) 339.3
The return on pension scheme assets is as follows:
2025
£m
2024
£m
Return on pension scheme assets (46.1) (3.6)
269 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

11
Financial instruments
For financial reporting purposes, the Company has classified derivative financial instruments as financing derivatives. Financing derivatives
include all fair value and cash flow interest rate hedges, non-hedge accounted (mark-to-market) interest rate derivatives, cash flow foreign
exchange hedges and non-hedge accounted foreign exchange contracts. Non-hedge accounted contracts are treated as held for trading.
The derivative financial assets and liabilities are represented as follows:
2025
£m
2024
£m
Derivative assets
Non-current 25.1 35.7
Current 22.1 67.3
Total derivative assets 47.2 103.0
Derivative liabilities
Non-current (53.0) (64.1)
Current (53.6) (32.7)
Total derivative liabilities (106.6) (96.8)
Net (liability)/asset (59.4) 6.2
Information on the Group’s Financial risk management and the fair value of financial instruments is available at A6 and A7
.
12
Financial guarantee liabilities
2025
£m
2024
£m
Non-current liabilities
Financial guarantee liabilities 90.8 107.3
Current liabilities
Financial guarantee liabilities 9.3 9.3
Total financial guarantee liabilities 100.1 116.6
SSE plc has provided guarantees in respect of certain activities of subsidiaries, former subsidiaries and to certain current joint venture
investments both held directly and indirectly by the Company’s subsidiaries with carrying values as follows:
2025 2024
SSE on behalf
of subsidiary
£m
SSE on behalf
of joint
operations and
ventures
£m
SSE on behalf
of 3rd parties
£m
Total
£m
Total
£m
Financial guarantee liabilities 75.3 14.5 10.3 100.1 116.6
On transition to IFRS 17 on 1 April 2023, the Company elected to apply IFRS 9 “Financial Instruments” to the in scope financial guarantee
contracts and the contracts were valued on initial recognition and subsequently measured at the higher of the loss allowance for expected
credit loss and the initial value less any income recognised.
The decrease in financial guarantee liabilities during the year is primarily driven by the unwind and expiry of guarantee contracts of £23.3m,
relating to guarantees entered into on behalf of subsidiaries of £9.0m, joint ventures of £13.1m and former subsidiaries of £1.2m. During the
year, the Company provided new guarantees with a value of £6.4m on behalf of its subsidiaries and £0.4m on behalf of its joint ventures.
The Company continues to provide a guarantee to Group Trustee Independent Trustees in respect of SSE Southern Group of the Electricity
Supply Pension Scheme in respect of funding required by the scheme.
On behalf of Scottish Hydro Electric Transmission plc, SSE plc continues to provide a guarantee to ABB Limited in connection with the use
of HVDC Replica Control Panels for Caithness-Moray Project.
Furthermore, on behalf of SSE E&P (UK) Limited, previously a wholly owned subsidiary of the Company, now owned by a third party, SSE plc
has provided the following three guarantees: a guarantee to Hess Limited in respect of decommissioning liabilities, a guarantee to Britoil
Limited and Arco British Limited in respect of the acquisition of the Sean Field and also a guarantee to Perenco UK Limited in respect of a
Sale and Purchase Agreement for the Minerva, Apollo and Mercury Fields.
Notes to the Company financial statements continued
for the year ended 31 March 2025
270 SSE plc Annual Report 2025
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13
Commitments and contingencies
Guarantees, indemnities and other contingent liabilities
Internal guarantees
The Company has in issue perpetual and long term guarantees of £2.3bn (2024: £10.4bn) in order to maintain the stand-alone credit
ratings of certain subsidiaries and to support electricity distribution licence conditions. These guarantees are not expected to be called.
Letters of credit
The Company indemnifies letters of credit issued to the following:
2025
£m
2024
£m
UK subsidiaries and certain joint ventures 949.3 849.9
European subsidiaries and certain joint ventures 162.4 119.7
Former UK subsidiaries 182.0 189.3
1,293.7 1,158.9
Letters of credit in substitution of cash collateral
The Company provides standby letters of credit in substitution for cash covering initial and delivery margins for exchange traded
productsand is repayable on demand. As at 31 March 2025, there were letters of credit covering £100.0m (2024: £100.0m) of initial and
variation margins.
Subsidiaries have provided guarantees on behalf of the Company as follows:
2025
£m
2024
£m
Bank borrowings 447.8 656.0
14
Provisions
2025
£m
2024
£m
At 1 April 219.7 201.4
(Decrease)/increase in decommissioning provision (17.9) 9.9
Unwind of discount 8.9 8.9
Utilised during the year (9.1) (0.5)
At 31 March 201.6 219.7
Non-current 177.7 200.0
Current 23.9 19.7
201.6 219.7
Decommissioning provision
The Company recognises a provision for the estimated net present value of decommissioning of Gas Production assets (retained as
partofthe disposal agreement for this business). Estimates are based on the forecast remediation or clean-up costs at the projected
dateof decommissioning and are discounted for the time value of money. Within the agreement for the disposal of its Gas Production
assets toViaro Energy through its subsidiary RockRose Energy Limited on 14 October 2021, the Company agreed to retain 60% of the
decommissioning provision within the business. £17.9m (2024: £9.9m added to) has been removed from decommissioning during the
current year due to reassessment, movements in inflation and discounting assumptions. It is expected that the costs associated with
decommissioning of these Gas Production assets will be incurred between 2025 and 2040.
271 SSE plc Annual Report 2025
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Opinion
In our opinion:
– SSE plc’s group financial statements and parent company financial statements (the “financial statements”) give a true and fair view of
thestate of the group’s and of the parent company’s affairs as at 31 March 2025 and of the group’s profit for the year then ended;
– the group financial statements have been properly prepared in accordance with UK adopted international accounting standards;
– the parent company financial statements have been properly prepared in accordance with United Kingdom Generally Accepted
Accounting Practice, including FRS 101 “Reduced Disclosure Framework”; and
– the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
We have audited the financial statements of SSE plc (the ‘parent company’) and its subsidiaries (the ‘group’) for the year ended 31 March
2025 which comprise:
Group Parent company
Consolidated income statement for the year then ended
Consolidated statement of comprehensive income for the year then ended
Consolidated balance sheet as at 31 March 2025 Balance sheet as at 31 March 2025
Consolidated statement of changes in equity for the year then ended Statement of changes in equity for the year then ended
Consolidated cash flow statement for the year then ended
Related notes 1 to 25 and A1 to A8 to the financial statements,
including material accounting policy information
Related notes 1 to 14 to the financial statements including
material accounting policy information
The financial reporting framework that has been applied in the preparation of the group financial statements is applicable law and UK
adopted international accounting standards. The financial reporting framework that has been applied in the preparation of the parent
company financial statements is applicable law and United Kingdom Accounting Standards, including FRS 101 “Reduced Disclosure
Framework” (United Kingdom Generally Accepted Accounting Practice).
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities
under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence
We are independent of the group and parent in accordance with the ethical requirements that are relevant to our audit of the financial
statements in the UK, including the FRC’s Ethical Standard as applied to listed public interest entities, and we have fulfilled our other ethical
responsibilities in accordance with these requirements.
The non-audit services prohibited by the FRC’s Ethical Standard were not provided to the group or the parent company and we remain
independent of the group and the parent company in conducting the audit.
Conclusions relating to Going Concern
In auditing the financial statements, we have concluded that the directors’ use of the Going Concern basis of accounting in the preparation
of the financial statements is appropriate. Our evaluation of the directors’ assessment of the group and parent company’s ability to
continue to adopt the Going Concern basis of accounting included:
– Confirming our understanding of management’s Going Concern process as well as the review of controls in place over the preparation
of the group’s Going Concern model and the memorandum on Going Concern;
– Engaging early with management to ensure all key matters were considered in their assessment;
– Obtaining management’s board approved forecast cash flows, covenant forecasts and sensitivities prepared by management to
31December 2026, ensuring the same forecasts are used elsewhere within the group for accounting estimates and that the forecasts
reflect the spend on the committed part of the NZAP+ programme. We tested the models for arithmetical accuracy, as well as checking
the net debt position at the year end date which is the starting point for the model. We assessed the reasonableness of the cashflow
forecasts by analysing management’s historical forecasting accuracy. We also ensured climate change considerations were factored
into future cash flows. We performed reverse stress testing to understand how severe the downside scenarios would need be to result
innegative liquidity or a covenant breach and the plausibility of the scenarios. Both management’s and EY’s assessment included
consideration of all maturing debt through to 30 June 2027 to consider any post Going Concern significant repayments;
– Reviewing management’s assessment of mitigating options potentially available to the group to reduce cash flow spend in the Going
Concern period, to determine their plausibility and whether such actions could be implemented by management. We have obtained
support to determine whether these are within the control of management and evaluated the impact of these mitigations in light of our
understanding of the business and its cost structures;
– Reading the borrowing facilities agreements to assess their continued availability to the group and to ensure completeness of covenants
identified by management;
– Assessing the appropriateness of the ability of management to refinance debt through to the period of 30 June 2027;
– Reviewing market data for indicators of potential contradictory evidence to challenge the company’s Going Concern assessment
including review of profit warnings within the sector and review of industry analyst reports. We held discussions with the Audit
Committee to confirm the Going Concern position prepared by management; and
– Considering whether management’s disclosures in the financial statements sufficiently and appropriately reflect the Going Concern
assessment and outcomes.
The audit procedures performed in evaluating the directors’ assessment were performed by the group audit team. We also considered the
financial and non-financial information communicated to us from our component teams for sources of potential contrary indicators which
may cast doubt over the Going Concern assessment.
Independent Auditor’s Report to the Members of SSE plc
272 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Our key observations
The group is forecast to continue to be profitable and generate positive cashflows during the Going Concern period. Our reverse stress test
scenario indicated that the group would need to be exposed to severe downside events impacting profitability and cash flows in order to
breach liquidity or covenants. The severe downside scenario assumed full repayment of debt maturing over the Going Concern period and
extended to 30 June 2027, no new refinancing over the Going Concern period, no uncommitted disposal proceeds, a £262m group
contingency to mitigate any downside performance against budget, offset by mitigating actions within management’s control. We consider
such a scenario to be highly unlikely, however, in unlikely events, including the business not performing in line with budget, management
consider that the impact can be mitigated by further cash and cost saving measures, which are within their control, or through external
fund raising, or a combination of both during the Going Concern period.
Having considered our severe downside and reverse stress test scenarios, we have not identified a plausible scenario where the group
would be unable to maintain cash flow liquidity and covenant headroom during the Going Concern period.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually
or collectively, may cast significant doubt on the group and parent company’s ability to continue as a Going Concern for a period to
31December 2026.
In relation to the group and parent company’s reporting on how they have applied the UK Corporate Governance Code, we have nothing
material to add or draw attention to in relation to the directors’ statement in the financial statements about whether the directors
considered it appropriate to adopt the Going Concern basis of accounting.
Our responsibilities and the responsibilities of the directors with respect to Going Concern are described in the relevant sections of this
report. However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the group’s ability to
continue as a Going Concern.
Overview of our audit approach
Audit scope – We performed an audit of the complete financial information of 17 components and audit procedures on specific
balances for a further 20 components and central procedures on pensions, derivatives, payroll, loans and
taxation
Key audit matters
(KAM)
– Impairment of specific non-current assets (being Southern Europe development assets and goodwill, Pacifico
development assets and goodwill, Great Island and Equity investment in Triton Power Holdings Limited (“Triton”))
– Group and parent pension obligation
– Accounting for estimated revenue recognition
Materiality – Overall group materiality of £111.8m which represents 5% of adjusted profit before tax.
An overview of the scope of the parent company and group audits
Tailoring the scope
In the current year our audit scoping has been updated to reflect the new requirements of ISA (UK) 600 (Revised). We have followed a
risk-based approach when developing our audit approach to obtain sufficient appropriate audit evidence on which to base our audit
opinion. We performed risk assessment procedures, with input from our component auditors, to identify and assess risks of material
misstatement of the group financial statements and identified significant accounts and disclosures. When identifying components at which
audit work needed to be performed to respond to the identified risks of material misstatement of the group financial statements, we
considered our understanding of the group and its business environment, the potential impact of climate change, the applicable financial
framework, the group’s system of internal control at the entity level, the existence of centralised processes, applications and any relevant
internal audit results.
We determined that following components are subject to centralised procedures
Key audit area on which procedures were performed centrally Component subject to central procedures
Pensions 2
Derivatives 17
Payroll 31
Loans 11
Taxation All
We then identified 23 components as individually relevant to the group due to relevant events and conditions underlying the identified risks
of material misstatement of the group financial statements being associated with the reporting components (or a pervasive risks of material
misstatement of the group financial statements or a significant risk or an area of higher assessed risk of material misstatement of the group
financial statements being associated with the components). In addition we have identified an additional 3 components of the group as
individually relevant due to materiality or financial size of the component relative to the group.
For those individually relevant components, we identified the significant accounts where audit work needed to be performed at these
components by applying professional judgement, having considered the group significant accounts on which centralised procedures will
be performed, the reasons for identifying the financial reporting component as an individually relevant component and the size of the
component’s account balance relative to the group significant financial statement account balance.
We then considered whether the remaining group significant account balances not yet subject to audit procedures, in aggregate, could
give rise to a risk of material misstatement of the group financial statements. We selected a further 11 components of the group to include
in our audit scope to address these risks.
Having identified the components for which work will be performed, we determined the scope to assign to each component
273 SSE plc Annual Report 2025
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Of the 37 components selected, we designed and performed audit procedures on the entire financial information of 17 components (“full
scope components”). For 15 components, we designed and performed audit procedures on specific significant financial statement account
balances or disclosures of the financial information of the component (“specific scope components”). For the remaining 5 components,
weperformed specified audit procedures to obtain evidence for one or more relevant assertions.
Our scoping to address the risk of material misstatement for each key audit matter is set out in the Key audit matters section of our report.
Involvement with component teams
In establishing our overall approach to the group audit, we determined the type of work that needed to be undertaken at each of the
components by us, as the group audit engagement team, or by component auditors operating under our instruction.
The group audit team interacted regularly with the component teams where appropriate during various stages of the audit. For the full and
specific scope components there were regular calls held between the lead audit engagement partner and component partners, with file
reviews performed by the group audit team over audit documentation that has not been retained within the group audit file, or retention
ofkey audit documentation within the group audit file. In total out of the 37 components, this split into a total of 9 component teams.
This was the third year where a non-EY auditor was involved in a full scope component, being the group’s equity investment in Triton
Power Holdings Limited. We issued instructions, held regular calls with them and attended an on-site file review and closing meeting.
Other than the Irish Airtricity and Triton entities in scope, all other entities in scope were based within Scotland (Perth and Glasgow), where
lead audit partner William Binns visited UK component teams throughout the year end audit. Management meetings were held in person
and remotely throughout the year across both the UK and Ireland. Members of the group audit team also visited the non-EY component
auditors of Triton.
The component teams and non-EY component team visits involved discussion of audit approach, attending planning and closing meetings
(some of which were held virtually), meeting with local management and reviewing relevant audit working papers on risk areas. The group
audit team interacted regularly with the component teams where appropriate during various stages of the audit, reviewed relevant working
papers and were responsible for the scope and direction of the audit process.
This, together with the additional procedures performed at group level, gave us appropriate evidence for our opinion on the group
financialstatements.
Climate change
The financial statement and audit risks related to climate change and the energy transition remain an area of audit focus in 2025.
Stakeholders are increasingly interested in how climate change will impact SSE plc. SSE operates principally within the UK and Ireland and
both are seeking to achieve net zero across their economies by 2050.
SSE has determined that the most significant future impacts from climate change on its operations will be from variable wind generation
risk caused by changes in climate patterns and storm damage network risk through increased severity of extreme weather events. These
are explained on
pages 71 to 78
in the required Climate-related financial disclosures and on pages 64 to 65 in the principal risks and
uncertainties. These disclosures form part of the “Other information,” rather than the audited financial statements. Our procedures
onthese unaudited disclosures therefore consisted solely of considering whether they are materially inconsistent with the financial
statements, or our knowledge obtained in the course of the audit or otherwise appear to be materially misstated, in line with our
responsibilities on “Other information”. As described in note 4 , the financial statement impact of climate is considered to have the most
impact on the valuation of property, plant and equipment, impairment assessment of goodwill, valuation of decommissioning provisions,
defined benefit schemes and Going Concern and viability statement.
In planning and performing our audit we assessed the potential impacts of climate change on the group’s business and any consequential
material impact on its financial statements. The group has explained in Note 4 how they have reflected the impact of climate change in
their financial statements including where assumptions applied align with their commitment to the aspirations of the Paris Agreement to
achieve net zero emissions by 2050.
Significant judgements and estimates relating to climate change are included in note 4
.
Independent Auditor’s Report to the Members of SSE plc continued
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Government and societal responses to climate change risks are still developing, and are interdependent upon each other, and
consequently financial statements cannot capture all possible future outcomes as these are not yet known. The degree of certainty of
these changes may also mean that they cannot be taken into account when determining asset and liability valuations and the timing of
future cash flows under the requirements of IAS 36. Budgets and forecasts for SSE plc reflect the spend to come on the NZAP + investment
programme. In
notes 15 and 20 to the financial statements, supplementary sensitivity disclosures reflecting the impact of climate with
regards to valuation of property, plant and equipment, impairment assessment of goodwill and valuation of decommissioning provisions
and the impact of reasonably possible changes in key assumptions have been provided and significant judgements and estimates relating
to climate change have been described within the aforementioned notes. We have ensured the completeness of climate consideration as
part of our impairment and Going Concern audit procedures, including those referred to within our impairment KAM below.
In order to respond to the impact of climate change, we ensured we had the appropriate skills and experience on the audit team, utilising
climate change internal specialists. Our audit team included professionals with significant experience in climate change and energy
valuations. Our audit procedures were carried out by the group and component teams, with the component teams working under the
direction of the group team.
Our audit effort in considering climate change focused on ensuring that the effects of material climate risks disclosed on pages 71 to 78
have been appropriately reflected within the Going Concern cashflows, asset values and useful life and associated disclosures where
valuesare determined through modelling future cash flows, being impairment considerations over Intangible assets and Property, Plant
&Equipment and in the timing and nature of liabilities recognised, being decommissioning provisions. In addition, we performed detailed
testing of the sensitivities noted in the accounts. Details of our procedures and findings on impairment are included in our KAMs below.
In FY25 as in the previous year SSE conducted scenario analysis of its material climate related opportunities and risks. With the support of our
climate change internal specialists, we considered management’s scenario planning and modelling of the three risks and five opportunities
disclosed on pages 71 to 78
. We reviewed and challenged the impact pathways developed and basis of the key assumptions included
within these scenarios. We verified the transition risk scenario frameworks used within the modelling to challenge the appropriateness,
applicability to SSE’s current and future business model to ensure the accuracy of the financial impact ranges disclosed on pages 71 to 78 .
We challenged the directors’ considerations of climate change in their assessment of Going Concern and viability and associated
disclosures. We also read the Other information in the annual report, and in doing so, considered whether the Other information, which
includes SSE’s climate targets, is materially consistent with the financial statements. We also considered consistency with other areas of
assumptions, judgements and estimates and where applicable the procedures performed have been included within our KAMs below.
Based on our work, whilst we have not identified the impact of climate change on the financial statements to be a standalone key audit
matter, we have considered the impact on the following key audit matters: Impairment of specific non-current assets (being Southern
Europe development assets and goodwill, Pacifico development assets and goodwill, Great Island and Equity investment in Triton Power
Holdings Limited (“Triton”)). Details of the impact, our procedures and findings are included in our explanation of KAMs below.
Key audit matters (KAMs)
Key audit matters (KAMs) are those matters that, in our professional judgement, were of most significance in our audit of the financial
statements of the current period and include the most significant assessed risks of material misstatement (whether or not due to fraud)
thatwe identified. These matters included those which had the greatest effect on: the overall audit strategy, the allocation of resources
inthe audit; and directing the efforts of the engagement team. These matters were addressed in the context of our audit of the financial
statements as a whole, and in our opinion thereon, and we do not provide a separate opinion on these matters.
275 SSE plc Annual Report 2025
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Risk Our response to the risk
Key observations communicated to the
Audit Committee
Impairment of specific non-
current assets (Southern Europe
development assets and
goodwill, Pacifico development
assets and goodwill, Great Island
and Equity investment in
TritonPower Holdings Limited
(“Triton”) (Impairment charge
£249.5m; Impairment charge
2024: £212.7m)
Refer to the Audit Committee
Report (page 115 ); Accounting
policies – significant judgements
(page 176 ); and Note 15
of the Consolidated Financial
Statements (page 201 )
Renewables developments –
Southern Europe and Pacifico
There is a risk that due to the early
stage of the SSE Southern Europe
and SSE Pacifico developments,
there could be an impairment
charge over the goodwill and
development assets.
This is due to the early stages
ofdevelopment, the passage of
time between acquisition date,
development progress and full
operationalisation, and the high
sensitivity of models to changes
inkey assumptions.
For SSE Southern Europe, the
keyassumptions are power price,
discount rate and the development
probability of success, including
greenfield.
For SSE Pacifico, the key
assumptions include revenue
support contract price, generation
volumes, the proportion of external
funding achievable, discount rate
and projected probability
ofsuccess.
Great Island CCGT and
Investment in Triton
We determined that Great Island
CCGT and the investment in
Tritonare at risk of impairment or
impairment reversal. This is due to
a number of global and national
factors reducing or increasing
theirvalue in use or fair value less
costs of disposal, triggering an
impairment assessment.
The key assumptions include
future power prices, price volatility,
forecast power demand, carbon
prices, load factors, discount rate,
useful economic life and operating
expenditure.
The estimated recoverable amount
is subjective due to the inherent
uncertainty involved in forecasting
and discounting future cash flows
as a result of the above factors.
Scoping:
Testing was performed over this risk area, covering both full and
specific scope components (covering three components), which
represented 100% of the risk amount.
All audit work in relation to this key audit matter was undertaken
by the component audit teams, with oversight from the group
audit team.
We obtained management’s assessment of potential impairment
indicators in accordance with IAS 36 for each of these risk areas.
Audit procedures included:
We have understood management’s process and methodology
forassessing assets for indicators of impairment, including
indicators of reversal and, where applicable, we have understood
management’s modelling of cash flows including the source of
the key input assumptions.
We checked the historical accuracy of management’s forecasting
and verified that the assumptions are consistent with those used
inother areas such as fixed asset useful life and decommissioning
provision. We also considered contradictory indicators and any
external facts and circumstances to assist us in challenging
management’s assessment.
Renewables developments – Southern Europe and Pacifico
Due to the early stage of development of both the SSE Southern
Europe and SSE Pacifico platforms, a fair value less costs to sell
(‘FVLCS’) assessment was performed for each, based on
discounted post-tax cash flows.
We engaged EY specialists in our assessment: a discount rate
specialist and a specialist with experience of assessing forward
prices in the overseas market. We consulted with colleagues in
Japan and in Southern Europe, with deep experience of the
renewables sector. Using our sector experience and our
specialists, we assessed any unusual or unexpected trends
identified within the cashflows year on year and assessed the
impact on the overall forecasted position.
We assessed the appropriateness of the model parameters and
clerical accuracy of the models used.
We applied sensitivities to management’s models to evaluate
headroom. For SSE Southern Europe, this included sensitivities
relating to discount rate, merchant price exposure, and the
probability of success of each project. In performing our
procedures, we independently calculated an estimated range
forthe recoverable amount of the CGU. For SSE Pacifico, this
included sensitivities relating to discount rate, fixed prices,
generation volumes and the debt-to-equity funding ratio.
Renewables developments –
Southern Europe and Pacifico
We confirmed that the
impairment charge of £249.5m
recognised for SSE Southern
Europe is appropriately
recognised, with no impairment
charge recorded for SSE Pacifico,
which we also concluded is
appropriately recognised.
We have concluded that the
methodology applied is reasonable,
the forecast period is appropriate,
and the impairment models are
mathematically accurate.
We considered the
appropriateness of the related
disclosures provided in note 15,
considering whether any
reasonably possible change
disclosures were required based
upon the headroom within the
sensitivity analysis. We are
satisfied that management’s
disclosures are aligned with the
requirements of IAS36.
Great Island CCGT and
Investment in Triton
We confirmed that no impairment
charge or reversal was required to
be recognised for the Great Island
CCGT, the equity investment in
Triton.
We communicated that the
pricing assumptions applied were
appropriate. We communicated
that the discount rates used sat
within our comparative range
determined by our specialist.
We also noted that we are
satisfied with the adequacy of
disclosure within the group
financial statements including
climate related disclosures.
Independent Auditor’s Report to the Members of SSE plc continued
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Risk Our response to the risk
Key observations communicated to the
Audit Committee
Impairment of specific non-
current assets (Southern Europe
development assets and
goodwill, Pacifico development
assets and goodwill, Great Island
and Equity investment in
TritonPower Holdings Limited
(“Triton”) (Impairment charge
£249.5m; Impairment charge
2024: £212.7m)
continued
Great Island CCGT and Investment in Triton
We considered prior period impairments for indication of reversal.
This involved considering indicators of reversal, focussed on
demand, load factors and prices.
We involved two EY specialists in our assessment: a discount rate
specialist and a specialist with industry experience of assessing
forward energy prices. Using our sector experience and our
specialists, we assessed any unusual or unexpected trends
identified within the cashflows year on year and assessed the
impact on the overall forecasted position.
We considered incremental repairs and committed capital
expenditure on commenced projects and obtained management’s
assessment of the technical feasibility of useful life extensions and
reviewed the extensions to contracted power contracts.
We assessed the appropriateness of the model parameters and
clerical accuracy of the models used. We considered load factors
relative to the UK Governments as yet unlegislated target of no
unabated gas post 2030 and reviewed impact on carrying values
included within the disclosures should this legislation arise.
We applied sensitivities to management’s models to evaluate
headroom, including sensitivities relating to climate change
reflecting useful life assessment versus climate commitments
andprice and margin sensitivities.
Key assumptions (all relevant assets):
Using our sector experience and our specialists, we benchmarked
to industry sources, where appropriate, the directors’ judgement
on the key assumptions.
For SSE Southern Europe this included power price, discount rate,
and the development probability of success, including, greenfield.
For SSE Pacifico, this included revenue support contract price,
generation volumes, the proportion of external funding
achievable, discount rate and projected probability of success
For Thermal assets, this included future power prices, price
volatility, mean reversion rate (MRR), forecast power demand,
carbon prices, load factors, discount rate, useful economic life
and operating expenditure.
We verified that the assumptions are consistent with those used
inother areas.
Disclosures
We assessed the accuracy and adequacy of the disclosures in line
with IAS 36, ensuring key assumptions are included and that the
disclosures adequately reflect the risks inherent in the valuation
ofnon-current assets and the impact of changes in assumptions
on the impairment booked.
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Risk Our response to the risk
Key observations communicated to the
Audit Committee
Group and parent pension
obligation (2025: £501.8m
surplus, 2024: £421.6m surplus)
Refer to the Audit Committee
Report (page 116 ); Accounting
policies – significant judgements
(page 177 ); and Note 23 of
thegroup financial statements
(page222 )
Subjective valuation:
Small changes in the assumptions
and estimates used to value
thegroup and parent company
pension obligations (before
deducting scheme assets)
wouldhave a significant effect
onthe carrying value of those
pension obligations.
The effect of these matters is that,
as part of our risk assessment, we
determined that the group and
parent company pension obligation
has a high degree of estimation
uncertainty, with a potential range
of reasonable outcomes greater
than our materiality for the
financial statements as a whole.
The principal assumptions
considered include rate of increase
in pensionable salaries and pension
payments, discount rate and
mortality rates.
There has been no change in this
risk from the prior year.
Scoping:
We performed audit procedures over this risk area centrally
bythe group team, which covered 100% of the risk amount.
Ourprocedures included:
Assessing management process:
We have understood management’s process and methodology
for calculating the pension liability for each scheme, including
discussions with management’s external actuaries, walkthrough
of the processes, understanding the key inputs and the design
and implementation of key controls. We performed a fully
substantive audit approach rather than testing the operating
effectiveness of key controls.
Assessing management experts:
We have assessed the independence, objectivity and
competence of the group’s external actuaries, which included
understanding the scope of services being provided and
considering the appropriateness of the qualifications of the
external actuary.
Assessing source data:
We tested a sample of the membership data used by the
actuaries to the group’s records.
Benchmarking assumptions:
With the support of our pension actuarial specialists, we
assessed the appropriateness of the assumptions adopted by
thedirectors by comparing them to the expectations of our
pension actuarial specialists which they derived from broader
market data.
Disclosure:
We considered the adequacy of IAS 19 disclosures, including
presentation of commitments associated with deficit recovery
plans and in respect of sensitivity of the defined benefit
obligation to changes in the key assumptions.
We further considered the response and disclosure in relation
tothe Virgin Media ruling (note 23).
We conclude that management’s
actuarial assumptions are
appropriate and sit within our
independently determined range.
We are satisfied with the
adequacy of disclosure within
thefinancial statements.
Independent Auditor’s Report to the Members of SSE plc continued
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Risk Our response to the risk
Key observations communicated to the
Audit Committee
Accounting for estimated
revenue recognition
Unbilled revenue (2025:
£521.1m, 2024: £663.7m)
Refer to the Audit Committee
Report (page 116 ); Accounting
policies – significant judgements
(page 177 ); and Note 18 of
thegroup financial statements
(page 212 )
Subjective estimate:
56% of the unbilled revenue year
end balance is recognised within
the Business Energy division and is
based on estimates of values and
volumes of electricity and gas
supplied to the year end date,
lessinvoices raised.
The method of estimating such
revenues is complex and
judgemental for UK business
customers.
The key estimates and assumptions
are in relation to:
1. the volumes of electricity and
gas supplied to the customers
between the meter reading and
year end;
2. the value attributed to those
volumes in the range of tariffs;
and
3. embedded impairment risk over
the unbilled revenue.
As a result of the estimation
uncertainty this has been
identifiedas a significant risk.
Scoping:
The balance subject to the
significant risk relates to one
component, Business Energy.
Testing was performed covering
100% of the unbilled balance in
Business Energy. Unbilled revenue
in Airtricity in the Republic of
Ireland and Northern Ireland was
not included in the scope of this
KAM due to reduced estimation
complexity and materiality
respectively.
All audit work in relation to this
keyaudit matter was undertaken
bythe component audit team
withoversight from the group
auditteam.
Audit methodology:
Our response to the assessed risk included understanding the
process for estimating unbilled revenue, testing selected IT
general and key application controls, and undertaking substantive
audit procedures and revenue data analytics.
Tests of detail:
We agreed the opening unbilled revenue to the closing
31March2024 balance sheet.
We agreed the volume data for customer usage of energy in the
year used in the calculation to external settlement systems and
agreed the volume data in relation to customer billings for the
year to SSE’s internal billing systems to assess consistency and to
understand remaining estimation risk. We have understood and
tested the historical accuracy of management’s forecasting of
final settlement volumes
We have tested the unbilled unit pricing by agreeing historical
pricing to sample bills, tested a sample of billing dates from the
listing to confirm billing frequency and agreeing to post year end
billing prices.
We have also obtained and tested post year end billings to
substantiate the basis of the unbilled revenue estimate at
31March2025.
Within the unbilled revenue balance, we estimated the impact
ofoperational billing delays.
Analytical Review:
We set benchmark expectations as to the likely level of total
unbilled revenue, and compared this with actual unbilled
revenueaccrual, obtaining explanation for significant variances.
Benchmark expectation was derived from the external
settlementsdata combined with billing frequency, usage and price
movement from last billing date to year end. We also tested the
appropriateness of manual adjustments made by management.
Disclosure:
We assessed the adequacy of the group’s disclosures about the
degree of estimation and judgement involved in arriving at the
estimated revenue.
Overall, through procedures
performed within Business
Energy, we are satisfied that the
unbilled revenue is appropriately
recognised by management.
We are satisfied with the
adequacy of disclosure within
thefinancial statements.
279 SSE plc Annual Report 2025
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In the prior year, our auditor’s report included a key audit matter in relation to the ‘Business Energy Evolve system migration’. As a result of
this migration completing by 31 March 2024, this has not been included as a Key Audit Matter for the current financial year. We have also
refined the Impairment KAM, removing the following power stations: Peterhead, Keadby, Keadby 2, Medway, Marchwood and the 2 Gas
Storage locations (Atwick and Aldbrough). This reflects the increased headroom in the UK CCGTs, with no remaining impairment reversal
available, and reflecting the low remaining carrying value of Gas storage assets.
Our application of materiality
We apply the concept of materiality in planning and performing the audit, in evaluating the effect of identified misstatements on the audit
and in forming our audit opinion.
Materiality
The magnitude of an omission or misstatement that, individually or in the aggregate, could reasonably be expected to influence the
economic decisions of the users of the financial statements. Materiality provides a basis for determining the nature and extent of our
auditprocedures.
We determined materiality for the group to be £111.8 million (2024: £115.3 million), which is 5% (2024: 5%) of adjusted profit before tax.
Ourkey criterion in determining materiality remains our perception of the needs of SSE’s stakeholders. We consider which earnings,
activity or capital-based measure aligns best with their expectations.
We determined materiality for the Parent Company to be £143.6 million (2024: £127.1 million), which is 2% (2024: 2%) of net assets.
Themateriality has been capped at the group materiality of £111.8m.
– Profit before tax – £1,850.9m
– Totals £2,235.0m adjusted profit before tax
– Materiality of £111.8m (5% of materiality basis)
– Movement on operating and financing derivatives – £65.7m
– Non-recurring exceptional items – £309.4m
– JV Tax – £9.0m
Starting basis
Materiality
Starting
basis
Adjustments
Materiality
During the course of our audit, we reassessed initial materiality and amended it for final adjusted profit before tax figures.
Performance materiality
The application of materiality at the individual account or balance level. It is set at an amount to reduce to an appropriately low level the
probability that the aggregate of uncorrected and undetected misstatements exceeds materiality.
On the basis of our risk assessments, together with our assessment of the group’s overall control environment, our judgement was that
performance materiality was 75% (2024: 75%) of our planning materiality, namely £83.8m (2024: £86.5m). We have set performance
materiality at this percentage due to a low number and value of corrected and uncorrected misstatements in the prior year audit, with
misstatements in the current year relating to one-off matters or having an immaterial impact on the consolidated income statement.
Audit work at component locations for the purpose of obtaining audit coverage over significant financial statement accounts is undertaken
based on a percentage of total performance materiality. The performance materiality set for each component is based on the relative scale
and risk of the component to the group as a whole and our assessment of the risk of misstatement at that component. In the current year,
the range of performance materiality allocated to components was £13.0m to £36m (2024: £12.8m to £30.2m).
Reporting threshold
An amount below which identified misstatements are considered as being clearly trivial.
We agreed with the Audit Committee that we would report to them all uncorrected audit differences in excess of £5.6m (2024: £5.8m),
which is set at 5% of planning materiality, as well as differences below that threshold that, in our view, warranted reporting on
qualitativegrounds.
We evaluate any uncorrected misstatements against both the quantitative measures of materiality discussed above and in light of other
relevant qualitative considerations in forming our opinion.
Independent Auditor’s Report to the Members of SSE plc continued
280 SSE plc Annual Report 2025
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Other information
The other information comprises the information included in the annual report set out on pages 1 to 160 , including the strategic report
and the directors’ report (Governance section) set out on
pages 1-83 and 84 to 160 respectively other than the financial statements and
our auditor’s report thereon. The directors are responsible for the other information contained within the annual report.
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in this
report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with
the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify
such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material
misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material
misstatement of the other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, the part of the directors’ remuneration report to be audited has been properly prepared in accordance with the Companies
Act 2006.
In our opinion, based on the work undertaken in the course of the audit:
– the information given in the strategic report and the directors’ report for the financial year for which the financial statements are
prepared is consistent with the financial statements; and
– the strategic report and the directors’ report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the
audit, we have not identified material misstatements in the strategic report or the directors’ report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if,
inour opinion:
– adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from
branches not visited by us; or
– the parent company financial statements and the part of the Directors’ Remuneration Report to be audited are not in agreement with
the accounting records and returns; or
– certain disclosures of directors’ remuneration specified by law are not made; or
– we have not received all the information and explanations we require for our audit.
Corporate Governance Statement
We have reviewed the directors’ statement in relation to Going Concern, longer-term viability and that part of the Corporate Governance
Statement relating to the group and company’s compliance with the provisions of the UK Corporate Governance Code specified for our
review by the UK Listing Rules.
Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the Corporate Governance
Statement is materially consistent with the financial statements or our knowledge obtained during the audit:
– Directors’ statement with regards to the appropriateness of adopting the Going Concern basis of accounting and any material
uncertainties identified set out on page 83
;
– Directors’ explanation as to its assessment of the company’s prospects, the period this assessment covers and why the period is
appropriate set out on page 83 ;
– Directors’ statement on whether it has a reasonable expectation that the group will be able to continue in operation and meets its
liabilities set out on page 83 ;
– Directors’ statement on fair, balanced and understandable set out on page 114 ;
– Board’s confirmation that it has carried out a robust assessment of the emerging and principal risks set out on pages 61 to 69 ;
– The section of the annual report that describes the review of effectiveness of risk management and internal control systems set out
onpages 118 to 119 ; and
– The section describing the work of the Audit Committee set out on pages 113 to 119 .
Responsibilities of directors
As explained more fully in the directors’ responsibilities statement set out on page 160 , the directors are responsible for the preparation
of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine
is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the group and parent company’s ability to continue as a
Going Concern, disclosing, as applicable, matters related to Going Concern and using the Going Concern basis of accounting unless the
directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.
281 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement,
whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these financial statements.
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our
responsibilities, outlined above, to detect irregularities, including fraud. The risk of not detecting a material misstatement due to fraud is
higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or
intentional misrepresentations, or through collusion. The extent to which our procedures are capable of detecting irregularities, including
fraud is detailed below.
However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the
company and management.
– We obtained an understanding of the legal and regulatory frameworks that are applicable to the group and determined that the most
significant are IFRS, FRS 101, the Companies Act 2006 and UK Corporate Governance Code and relevant tax compliance regulations in
the jurisdictions in which the group operates. We also considered non-compliance of regulatory requirements, including the Office of
Gas and Electricity Markets (Ofgem) and regulations levied by the UK Financial Conduct Authority and Prudential Regulatory Authority.
We confirmed our understanding with the Internal Head of Regulation.
– We understood how SSE plc is complying with those frameworks by making enquiries of management, internal audit, those responsible
for legal and compliance procedures and the Company Secretary. We verified our enquiries through our review of board minutes and
papers provided to the Audit Committee.
– We assessed the susceptibility of the group’s financial statements to material misstatement, including how fraud might occur by
meetingwith management from various parts of the business to understand where it considered there was susceptibility to fraud.
Wealso considered performance targets and their propensity to influence on efforts made by management to manage earnings.
Weconsidered the programmes and controls that the group has established to address risks identified, or that otherwise prevent, deter
and detect fraud; and how senior management monitors those programmes and controls. Where the risk was considered to be higher,
we performed audit procedures to address each identified fraud risk.
– Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our
procedures involved: journal entry testing, with a focus on consolidation journals and journals indicating large or unusual transactions
based on our understanding of the business; enquiries of legal counsel, group management, internal audit, business area management
at all full and specific scope components; and focused testing. In addition, we completed procedures to conclude on the compliance of
the disclosures in the annual report and accounts with all applicable requirements.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website
at
https://www.frc.org.uk/auditorsresponsibilities
. This description forms part of our auditor’s report.
Other matters we are required to address
– Following the recommendation from the Audit Committee we were appointed by the company on 18 July 2019 to audit the financial
statements for the year ended 31 March 2020 and subsequent financial periods.
– The period of total uninterrupted engagement including previous renewals and reappointments is 6 years, covering the years ended
31March 2020 to 31 March 2025.
– The audit opinion is consistent with the additional report to the Audit Committee.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006.
Ouraudit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in
an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone
other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
William Binns (Senior statutory auditor)
for and on behalf of Ernst & Young LLP, Statutory Auditor
London
20 May 2025
Independent Auditor’s Report to the Members of SSE plc continued
282 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Glossary
AIP
Annual Incentive Plan that applies to salaries
AGM
Annual General Meeting
APM
Alternative Performance Measures used to
track financial performance
ASTI
Ofgem’s Accelerated Strategic Transmission
Investment framework
CAGR
Combined Annual Growth Rate
Capex
Capital expenditure
CCGT
Combined Cycle Gas Turbine
CCS
Carbon capture and storage
CfD
Contract for Difference
CHP
Combined Heat and Power
COP29
The 29th Conference of Parties climate
summit held in Baku in November 2024
DNO
Distribution Network Operator
DSO
Distribution System Operator
EBITDA
Earnings before interest, taxes, depreciation,
and amortisation
EBRS
The UK Government’s Energy Bill Relief
Scheme
EGL
The UK Government’s Energy Generator
Levy
EGL2
The planned HVDC undersea transmission
link from Peterhead to Yorkshire
EPS
Earnings Per Share
ESG
Environment, Social and Governance
ETS
Emissions Trading Scheme
EV
Electric Vehicle
FID
Final Investment Decision
FFO
Funds From Operations
GAAP
Generally Accepted Accounting Principles
GDPR
General Date Protection Regulation
GHG
Greenhouse gas, used in relation to GHG
emissions
GW
Gigawatt
HVDC
High Voltage Direct Current
HVO
Hydrotreated Vegetable Oil, a fossil-free
alternative to diesel
IEA
International Energy Agency
IPCC
International Panel on Climate Change
KPI
Key Performance Indicator
kV
Kilovolt
LOTI
Ofgem’s Large Onshore Transmission
Investment plan
LTI
Lost Time Incidents
MW
Megawatt
NESO
National Energy System Operator
Net zero
Cutting greenhouse gas emissions to a level
that is equal to or less than the emissions
removed from the environment
NIC
National Infrastructure Commission
NZAP
SSE’s Net Zero Acceleration Programme,
updated in May 2023 to “NZAP Plus”
OCGT
Open-cycle Gas Turbine
ORESS
Ireland’s Offshore Renewable Energy
Support Scheme
PSR
Priority Services Register
RAV
Regulated Asset Value as applies to SSE’s
networks businesses
RCF
Retained Cash Flow
REFIT
Renewable Energy Feed-in Tariffs
REGO
Renewable Energy Guarantee of Origin
REMA
The UK Government’s Review of Electricity
Market Arrangements
RIIO
The “Revenue = Incentives + Innovation +
Outputs” regulatory framework by which
SSE’s networks businesses are remunerated.
Scope 1, 2 and 3 emissions
Scope 1 and 2 are those emissions that
areowned or controlled by SSE. Scope 3
emissions are from sources not directly
owned or controlled by SSE.
Spark spread
The difference between the price received
by SSE for electricity produced and the cost
of the natural gas needed to produce that
electricity
SSESET
Safety, Service, Efficiency, Sustainability,
Excellence, Teamwork. SSE core values
TCFD
Task Force on Climate-related Financial
Disclosures
tCO
2
e
Tonnes of carbon dioxide equivalent
Totex
Total expenditure
TRIR
Total Recordable Injury Rate (SSE’s preferred
measure of safety performance)
TWh
Terawatt-hour
VaR
Value at Risk
WACC
Weighted Average Cost of Capital
283 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

Shareholder information
Shareholder enquiries
The Company’s register of members is
maintained by our Registrar, Computershare
Investor Services PLC (Computershare).
Forqueries about shareholdings, contact
Computershare directly at:
Computershare Investor Services PLC,
ThePavilions, Bridgwater Road, Bristol
BS996ZZ
Phone: +44 (0) 345 143 4005
Web:
www-uk.computershare.com/
investor/#contact/enquiry
Investor Centre
Manage your shares online at
www.sse-shares.com
You can manage your holdings online
usingInvestor Centre, the free and secure
online portal provided by Computershare.
It’s easy to register for Investor Centre:
logon to www.sse-shares.com
, enter
your postcode and Shareholder Reference
Number (SRN) which can be found on any
recent communications from SSE, and
follow the instructions. Once registered,
you can:
– View, update and calculate the market
value of your shareholdings;
– Change address details and dividend
payment instructions; and
– See share price data and trading graphs
of listed companies.
Website
SSE’s website, sse.com , provides
shareholders with information about the
Company and its performance. It includes a
dedicated Investors section where you can
find electronic copies of Company reports
and a wide range of other information
including:
– share price information;
– regulatory news;
– dividend history and trading graphs;
– terms and conditions of the Scrip
Dividend Scheme; and
– Registrar contact details.
Digital news
SSE uses a dedicated news and views website
(available at
www.sse.com/news-and-views )
and LinkedIn (www.linkedin.com/company/
sse-plc ) to keepshareholders, investors,
journalists, employees and other interested
parties up to date with news from the
Company.
It’s also possible to sign up for email alerts
for regulatory news and press releases
relating to SSE at www.sse.com/investors/
regulatory-news/
.
Electronic communications
Receiving electronic communications from
SSE is better for shareholders, SSE and the
environment:
– Fast access: immediate notification
byemail when new shareholder
documentation is available – nothing
lost or delayed in the post.
– Cost-effective: reduced printing and
postage costs saves the Company and
itsshareholders money.
– Environmentally friendly: reducing the
environmental impact of printing and
delivering paper documents aligns with
SSE’s commitment to sustainability.
You must actively choose to receive SSE
investor communications electronically.
Youcan easily do this and change your
communication preferences in the online
Investor Centre,
www.sse-shares.com
orby contacting Computershare.
All new shareholders are automatically
registered to access shareholder
documentation through the Investors
section of our website, but will be
notifiedby post when new shareholder
documentation is available. SSE only sends
printed copies of documentation where
shareholders specifically request a copy.
Financial calendar
Publication of Annual Report 13 Jun 2025
Q1 Trading Statement 17 Jul 2025
AGM 17 Jul 2025
Ex-dividend date for final
dividend
24 Jul 2025
Record date for final
dividend
25 Jul 2025
Final date for Scrip elections 21 Aug 2025
Payment date 18 Sept 2025
Notification of Close Period
for six months to
30September
Around
30 Sept 2025
Results for six months to
30September
12 Nov 2025
Dividend payments direct to your
bank account
The Company typically pays dividends
twiceyearly. Interim dividends are paid in
February/March, and final dividends are
paidin September once approved by
shareholders at the AGM. All dividends are
credited to a shareholder’s nominated UK
bank/building society account. You can
register or change your UK bank/building
society account details on the online
Investor Centre, www.sse-shares.com ,
orby contacting Computershare.
If you don’t have a UK bank or building
society account, you can have your
dividends paid directly into a non-UK
bankaccount using Computershare’s
International Funds Transfer (IFT).
Formore information, please visit
www.sse-shares.com
or contact
Computershare.
SSE shareholder tracing programme
in association with Georgeson
SSE has engaged Georgeson (a trading
name of Computershare) to locate and
unite gone-away and lost shareholders with
their outstanding dividends and/or shares.
Itis important that shareholders who are
contacted either respond to Georgeson’s
correspondence or contact Computershare
in their capacity as Registrar to reclaim
theirdividends and/or shares. Fees apply
should shareholders wish to use
Georgeson’s services.
In accordance with SSE’s Articles of
Association, SSE may in certain
circumstances forfeit the shares of
shareholders who have been uncontactable
for over 12 years. To ensure the efficient
management of the Register of Members,
SSE may do so in circumstances
whereGeorgeson are unable to locate
suchshareholders. Further details on the
programme are available on the Company’s
website, sse.com
.
Scrip dividend
You can choose to join SSE’s Scrip Dividend
Scheme to receive future dividends as
additional new shares. Details of the
Scheme are available at https://www.sse.
com/investors/shareholder-services/
dividends-and-scrip-scheme/ .
Shareholders who choose this Scheme
should also complete a bank mandate to
make sure they continue to receive future
dividend payments should they withdraw
from theScheme.
Share dealing
Please go to www.computershare.com/
dealing/uk
for a range of dealing services
provided by Computershare. To speak to
the Computershare Dealing Services team
directly, please call +44 (0) 370 703 0084.
American Depositary Receipts
SSE has established a sponsored Level I
American Depositary Receipt (ADR)
program with Deutsche Bank Trust
Company Americas (Deutsche Bank).
EachADR represents one SSE Ordinary
Share. More information and Deutsche
Bank’s contact details can be found at
https://www.sse.com/investors/adrs .
284 SSE plc Annual Report 2025
Strategic Report Governance Financial Statements

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Printed on material from well-managed, FSC®-certified
forests and other controlled sources.
This publication was printed with vegetable oil based inks
by an FSC®-recognised printer that holds an ISO 14001
certification.
The outer cover of this report has been laminated with a
biodegradable film. Around 20 months after composting,
an additive within the film within the film will initiate the
process of oxidation.
Designed and produced by
SSE PLC Publication
INV458339

For further information
about SSE, please contact:
SSE plc
Corporate Affairs
Inveralmond House
200 Dunkeld Road
Perth PH1 3AQ
UK
+44 (0)1738 456000
info@sse.com
Registered in Scotland No. 117119
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