Holding company for SSEN
SSE has incorporated in Switzerland a direct and wholly-owned subsidiary company to acquire, oversee and hold investments or other financial assets. The company has become the holding company for SSE’s electricity transmission and distribution networks through a share-for-share exchange. This is intended to support long term investment in low carbon infrastructure in SSE’s core businesses - there are no profit or tax advantages and it is fully consistent with SSE’s commitment to fair tax.
Switzerland is a party to the Energy Charter Treaty, and the incorporation of a Swiss company is also an additional safeguard, which SSE does not believe would be required in practice, should SSE’s electricity networks businesses and interests in SGN become the subject of proposed legislation for nationalisation. In practice, SSE expects that precedent, the principle of fairness and the need to secure future investor confidence in the UK economy means it should be possible to secure fair value from nationalisation for the electricity networks businesses without recourse to treaty protection.