SSE will focus more on the renewable energy business following an agreement to sell its retail business to OVO Energy.

The sale of SSE Energy Services with an enterprise value of £ 500m is expected to close later this year or early 2020 and is subject to regulatory approvals.

Alistair Phillips-Davies, CEO of SSE, said, "Following the transaction, SSE will be able to focus even more on delivering the low-carbon infrastructure needed to help Britain reduce net emissions to zero to reach.

"We have a clear strategy for the development, operation and ownership of renewable energy and power grids and for the growth of companies that complement this core.

"With a large and growing renewable energy pipeline and a leading position in the power grids needed to reliably supply low-carbon energy to homes and businesses in an increasingly electrified economy, we are well positioned to deliver value through low carbon conversion create."

He added that SSE "has long believed that a dedicated, focused and independent retailer will ultimately serve customers, employees and other stakeholders best – and this is a great opportunity to do so".

The enterprise value includes £ 400 million in cash and £ 100 million in loan notes, SSE said.

The company announced that it has submitted renewable energy certificates in August 2019 to meet SSE Energy Services' commitment to renewable energy for the period ended March 31, 2019, the last full fiscal year that SSE owns.

OVO is liable for all subsequent renewable obligations.

Upon completion of the transaction, the approximately 8,000 employees of SSE Energy Services will switch to OVO.

Stephen Fitzpatrick, CEO and founder of OVO, said: "This transaction is a significant moment for the energy industry.

"Advances in technology, falling costs for renewable energy and battery storage, the explosion of data and the urgent need for decarbonization are fundamentally changing the global energy system.

"Over the past three years, OVO has invested heavily in scalable operating platforms, intelligent data capabilities and connected home services to ensure that we are well positioned to grow in a changing market and seize new opportunities.

"SSE and OVO are a perfect match. They share our values ​​in terms of sustainability and customer service. They have built an excellent team that makes me very much looking forward to working with them. "