British power utility SSE has decided to freeze domestic gas and electricity prices until January 2016, as soaring energy bills by the "Big Six" - the six largest energy companies in the UK, sharing around 95% of the retail market - over the last years prompted a review of competition in the energy sector. The British regulator Ofgem is about to decide this week whether a full antitrust investigation is needed, and the Energy Ministry called on the Ofgem to consider breaking up energy companies if they were found to be abusing monopoly positions. SSE's decision also pre-empts a proposition from the Labour party to freeze energy bills if it wins elections in 2015.
The price freeze is expected to cost £100m (€120m) in profits. SSE will sell its street lighting contracts and other assets and cut 500 jobs in the UK.
In addition, SSE will focus on the development of the 750 MW Beatrice offshore wind project (75:25 partnership between SSE and Repsol), whose Final Investment Decision is expected in early 2016. The company will continue to support the development of the 3.5 GW SeaGreen offshore wind project (50:50 partnership with Fluor) and of the 7.2 GW Forewind offshore wind project (in partnership with RWE Innogy, Statoil and Statkraft). However, SSE will discontinue its 340 MW Galloper project (50% owned by RWE Innogy) and stop investing in the proposed 690 MW Islay project.