Big names have submitted non-binding offers today (15 September) for a minority stake in the UK power grid.  

Scottish and Southern Energy Networks (SSE) is selling its 25% stake in the UK’s electricity transmission and distribution networks.

According to a source, one of the bidders is the consortium that had planned to take over UK Power Networks from CKI – before the deal collapsed in the final stages of negotiations after a last-minute increase in price. 

The consortium is led by KKR and Macquarie, also comprising: 

• APG
• China Investment Corporation 
• Ontario Teachers' Pension Plan 
• PSP Investments 

The process was due to start earlier this year but had until now been delayed – as reported on by IJGlobal in July (2022). Morgan Stanley and Rothschild are acting as advisers on the sell side.

SSE is understood to be finalising the structure of the sale and is considering splitting the transaction into 2 separate deals for its transmission and distribution assets. The combined regulatory asset base of the 25% stake is £7.5 billion ($8.7bn).

With operations in northern Scotland, SSE is one of 3 electricity transmission companies in mainland UK. National Grid and SP Energy Networks are the other 2 operators.

In total, 5 other companies are involved in electricity distribution:

• Electricity North West
• Northern Powergrid
• ScottishPower Energy Networks
• UK Power Networks
• Western Power Distribution

SSE was contacted for comment but had not replied by the time of publication.