Perth-headquartered SSE has just reported full year pre-tax earnings grow of 19.2% to GBP858.2 million largely thanks to its gas storage and power generations assets. However, the company appears interested in buying Thames Water, the Daily Mail has reported.

German energy outfit RWE is keen to offload the southeast English water supplier, while SSE is keen to grow its business domestically as it looks to ward off potential takeover moves on itself.

According to the Daily Mail article, SSE chief executive Ian Marchant said a move for Thames is a possibility, no more than that.

The news comes as the Evening Standard has reported that city analysts believe the UK water utility sector will soon reveal annual profits of GBP2 billion. This is despite the fact that water companies are lobbying for rate rises and some are imposing usage restrictions on customers.