Evo Energy Enterprise Agreement
The agreement with OVO is in line with SSE`s view that the best future for its Energy Services business is outside the SSE group. The transaction anticipates that SSE Energy Services customers and employees will come to an innovative player in the market, focusing on exceptional customer experiences and an accelerated transition to a smarter, less carbon-efficient energy system. SSE plc (“SSE”) has entered into an agreement to sell its SSE Energy Services business to OVO Energy Limited, a wholly owned subsidiary of OVO Group Limited, for an enterprise value of $500 million, with $400 million in cash and $100 million in bonds (the “transaction”). “After the transaction, SSE will be able to put more emphasis on providing the low-carbon infrastructure needed to help the UK achieve zero net emissions. We have a clear strategy for the development, operation and ownership of renewable energy facilities and power grids, as well as growing companies that complement this core. We are well positioned to create added value through the low-carbon transition through a renewable energy pipeline, and a leading position on power grids to reliably provide low-carbon energy to households and businesses in an increasingly electrified economy. With a clear vision of being “a leading energy company in a low-carbon world” and an economic model gearing towards “net zero” CO2 emissions by 2050, the future SSE is well positioned to derive added value from the low-carbon energy transition. Evoenergy is the name used by pylons and electrical wires as well as the pipeline sector, which is part of the ActewAGL distribution partnership. Evoenergy owns and operates more than 2,000 km of electricity network and more than 4,500 km of gas network.  In 2000, ActewAGL entered into a contract with ACTEW Corporation to manage and operate the ACT water and sanitation system and surrounding areas. In February 2004, ActewAGL entered into a management agreement with TransACT Capital Communications Pty Ltd. The transaction has a long term until May 31, 2020.
SSE`s strategy is to create added value for shareholders and society through sustainable development, operation and ownership of energy and related infrastructure. SSE clearly focuses on renewable energy and electricity grids, supported by companies that complement them. In March 2020, Evoenergy received $2.05 million in funding from the Australian Renewable Energy Agency (ARENA) to study and test the impact of distributed energy resources on the Canberra energy market. The project includes close collaboration with Schneider Electric, GreenSync and Withywindle and will study the impact on the electricity grid of distributed energy resources, such as photovoltaic (PV), battery installations and electric vehicles, and how these resources can be fully exploited by customers.  The 2014 agreement (won by ETU members and supported by Neville Betts) was already a cracker with 15% super, layoffs up to a potential salary of 96 weeks and a number of other worker-friendly provisions.