Scottish & Southern Energy plc Case Study Example | Topics and Well Written Essays - 1500 words

Scottish & Southern Energy plc - Case Study Example "SSE's strategy is to deliver sustained real growth in the dividend payable to shareholders through the efficient operation of, and investment in, a balanced range of regulated and non-regulated energy-related businesses. The successful implementation of this strategy in 2006/07 delivered another year of excellent financial performance, with profit before tax exceeding 1 billion for the first time, and strong operational performance, with our policy of responsible pricing helping us to gain more than one million additional customers" (Miranda.com, 2007). "We are committed to offering customers a combination of price, service and products which will enable us to achieve further growth during the rest of the financial year and beyond" (Ian Marchant, as quoted by Hamish Rutherford, The Scotsman, 2007). Scottish and Southern Energy plc, believe that the company's rapid growth has been due to a consistent and continuing focus on four essential areas: the maintenance and investment in present energy networks; continued investment in SSE's "leading-edge portfolio" (Annual Review, 2006, p.1); increasing and developing energy supply; and through the development of a strong presence in businesses such as gas storage, contracting connections, and telecoms. As a result of the achievements and progress made within these central goals, the company's 2006 reported its financial performance, with adjusted profit before tax, as being at approximately 858.2 million (Annual Review, 2006). Scottish and Southern Energy was formed in 1998, following the no-premium merger of Southern Electric and Scottish Hydro Electric, and required Connect South West contracting business just a year later. Following this Scottish Hydro Electric Contracting was launched, while by 2000, the company had acquired the energy supply business, SWALEC, it had completed its 50% investments into the Seabank 2 gas-fired power station, and the number of customers had exceeded more than four million. Then, in 2001, SSE began operating Cuilieg, the corporation's hydro election power station - it's first in forty years - and in 2002, the company's Annual Report showed profits of some 597.2 million (Annual Report, 2002). SSE's growth continued in 2003, the year in which the company acquired Neos Telecom, and customers passed the five million mark. It was also during this period that Scottish and Southern Energy announced its plans to construct the Glendoe hydro-electric power station, while also acquiring the balance of equity for the