SSE is considering the sale of all or part of its stake in gas firm SGN, as part of its £2bn disposals programme.
SGN - formerly Scotia Gas Networks - owns and manages gas distribution to almost six million households in Scotland and the south of England.
SSE owns a third of the business, and in a trading update today, said banks had been appointed to review divestment options, with an approach and timings set to be decided before the end of this financial year.
The group has recently shifted strategy from providing power to homes to focus on renewable energy generation, so far completing around £1.5bn in disposals to this end, including the sale of its gas exploration and production assets in December.
The third quarter trading statement showed that SSE was maintaining its financial guidance for the year, with adjusted earnings per share expected in the 85 to 90 pence range.
However, the company revealed it is likely to lose between £150m to £250m due to the impact of Covid-19 - broadly in line with estimates made last summer.
SSE's finance director Gregor Alexander said: "Our robust business model is mitigating the impact of coronavirus, our disposal programme is proceeding at pace and at Dogger Bank we have shown yet again that we can develop opportunities and create value from world-class assets.
"With a number of uncertainties lifting and an increasingly supportive policy environment which further underpins our clear strategic focus on the transition to net zero, SSE is on a strong strategic footing for the rest of 2020/21 and beyond."
Commenting on the update, Brewin Dolphin senior investment manager Donald Brown said that SSE continues to make progress in re-shaping its business, with a greater focus on renewables and the disposal of non-core assets.
“The ‘green recovery’ from Covid-19 prioritised by governments should play to SSE’s strengths and shareholders will be pleased to see continued commitment to RPI-linked dividend increases over the next couple of years – particularly with income remaining precarious elsewhere.
“The company’s shares are basically unchanged over the year, which is a decent barometer of its success in managing the many challenges of 2020 and compares favourably to the FTSE 100, which is down 11% since January 2020.”
