SSE said in a financial update that work on the future options for its U.K. retail supplier SSE Energy Services (see prior story here for previous discussion of such options) is continuing, "including progress on potential external collateral arrangements that may support the opportunities for a future outside the SSE Group."

"Should these options not be viable, SSE would expect to retain Energy Services as a separate entity within the SSE Group.," the company said

"All options are being assessed with the interests of customers, employees and shareholders being given full consideration. SSE intends to provide an assessment of the preferred option by the end of May 2019," the company said

SSE said that SSE Energy Services is expected to be profitable and cash flow positive (excluding working capital movements) in fiscal 2018/19 and 2019/20. Within this, in FY18/19 its household Energy Supply Business is still expected to report an adjusted operating margin of 2-3% compared to 6.8% in the previous year, reflecting the introduction of the Default Tariff Cap and lower customer numbers.

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