Scottish Hydro-Electric and Southern Electric have announced that the two companies will merge to form a major energy group called Scottish and Southern Energy. The merger is set to create one of the largest energy supply businesses in the UK.

The new company will generate a power output of 13.2TWh in Scotland and 23.2TWh in England and Wales by 1999/2000. The company will be headquartered in Perth, Scotland.

Hydro power will still continue to play an important role in the new company’s portfolio. It is reported that the merger will not affect the operation of Scottish Hydro-Electric’s hydro plants, and the company will still continue to produce power as before. Currently, Hydro-Electric’s hydro stations have an installed capacity of 1300MW.

Hydro-Electric’s major refurbishment programme, which is encompassing many of its power stations, will still continue as planned.