SSE is considering selling its retail operation after its planned merger with Npower was abandoned last year.
It said it was working on "external collateral arrangements that may support the opportunities for a future outside the SSE Group" for the division and was looking at "all options".
But it said if these options were not workable, it would look to keep the division as a separate business within the wider group.
It plans to report back on its preferred option by the end of May.
The group said SSE Energy Services is set to be profitable in 2018-19 and the following year despite expecting profit margins to more than halve in the household supply division as a result of the default tariff price cap.
Retail margins are set to fall to 2-3% in the year to March from 6.8% in 2017-18.
