SSE is scheduled to issue a trading statement on 18th July, ahead of its AGM Wholesale – Hedging protects against recent wholesale price pressure, but wind output could disappoint 100% of its GB wind and hydro expected output is hedged for FY20, insulating SSE from recent power price pressure. However, UK wind conditions are likely to disappoint in Apr-June 19, while run-of-river output could again be below plan. Consequently, there could be an indication of a risk to FY20 guidance of £525m adjusted operating profit for the renewables business. SSE has announced that it intends to close Fiddler’s Ferry by March 2020 and exit coal. The Capacity Market remains suspended (SSE guidance includes £148m for FY20 incl. the FY19 shortfall), although BEIS has announced that it will hold T-1 (delivery 2020/21) & T-4 (delivery 2023/24) auctions, and that it is minded to hold a T-3 auction for 2022/23. CFD Allocation Round 3 is underway, and applicants were notified of the outcome of Qualification Assessment by 9 July. We look for SSE to provide visibility on which projects of the previously indicated 3.1GW (on & offshore) are competing for contracts. As of 31/3, SSE had hedged 95% of FY20 expected gas production at 46p/therm, which should protect against material negative impact from lower gas prices in this financial year. Networks – Draft business plan published Since FY19, Ofgem has published its RIIO-2 Sector Specific Methodology Decision with a working assumption of a CPHI real cost of equity of 4.8% (allowed return of 4.3%). SSE has published its draft business plan for RIIO-T2, with Certain View totex of £2.2bn (11% ahead of our estimates) & a promotion of a cost of equity of 6.9% CPIH real. We expect that SSE will highlight the plan, its key parameters, and the longer-term growth it could deliver. Retail – Expectation of further customer loss A discontinued business, but we look for an update on progress to deliver a future for SSE Energy Services outside the SSE group. The new ownership structure is not expected before the second half of 2020, but we look for an update on customer numbers which we expect to decline given high switching levels in April/May, against a backdrop of a tough market. Reiteration of intention to pay 80p dividend We expect a reiteration of the intention to recommend an 80p dividend for FY20, capex of c£1.5bn, and a year-end net debt target of £10bn.