EY to replace KPMG as SSE auditor
FTSE 100 energy provider SSE has appointed EY as its external auditor, subject to approval by shareholders, ending a 20-year relationship with KPMG
8 Jan 2019
EY will take over auditing the Scottish energy company for the year ending 31 March 2020, subject to approval by shareholders at the 2019 annual general meeting.
The appointment follows a competitive tender process overseen by the audit committee, as first announced in the 2015 annual report. The selection process included members of the audit committee as well as the chairman of the board and the finance director.
KPMG will undertake the audit for the year ending 31 March 2019, having been re-appointed at the 2018 annual general meeting. The firm was first appointed in 1999 and was not invited to join the tender process, given the length of its existing contract and SSE’s stated desire to meet UK and EU regulations regarding auditor rotation.
According to SSE’s 2018 annual report, KPMG was paid £1.3m in fees for audit and audit-related services during the year amounted and £800,000 for permitted non-audit services.
Peter Lynas, chairman of the audit committee, said: ‘We thank KPMG for their excellent contribution as SSE's auditor for many years and we look forward to working with EY in the future.’
Report by Pat Sweet