By Arriva436 [GFDL or CC BY 3.0] via Wikimedia Commons
This week, investors will keep a close watch on SSE, a Big Six energy supplier, as the firm updates the market during a time of uncertainty for the top energy suppliers of the United Kingdom.
The government is pushing forward with its plan to introduce a cap on energy prices by next winter. According to a draft legislation, standard variable tariffs (SVTs) and some other default tariffs which can cost hundreds of pounds more as compared to cheaper deals would be capped until at least 2020.
The FTSE 100 utility has around 71 percent of its customers on SVTs, the highest percentage of any supplier.
Big Six suppliers have argued against the said proposals, which would affect their revenues, insisting that the market has become more competitive during the recent years and that a price cap would stop that progress.
The shares of SSE have been under pressure over the last year, declining by around 14 percent. Last Friday, shares closed up by 1.5 percent at 1,281.5p.
The energy company is also in the middle of a merger with German-owned Npower. However, the Beis committee has written to the Competition and Markets Authority (CMA) to ask for an investigation into the planned merger, saying that it could reduce competition.
The third-quarter trading statement of SSE is scheduled to be published on Wednesday, January 31.