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| SSE fuels consumer anger as retail profits rise 30% to £410m | SSE fuels consumer anger as retail profits rise 30% to £410m |
| (about 1 hour later) | |
| Scottish and Southern Energy saw a near 30% rise in profits from its retail customers last year, fuelling accusations that the big energy firms are profiteering at the expense of UK households. | Scottish and Southern Energy saw a near 30% rise in profits from its retail customers last year, fuelling accusations that the big energy firms are profiteering at the expense of UK households. |
| Under the heading Earning the Right to Make a Profit, SSE announced operating profits of £410m from its retail arm in the year to the end of March. | Under the heading Earning the Right to Make a Profit, SSE announced operating profits of £410m from its retail arm in the year to the end of March. |
| The huge rise in profits will cause further outrage among fuel poverty campaigners and householders struggling to pay their bills. It will also heap more pressure on both the government and Ofgem, who have been accused of standing by as the big six suppliers profit at their customers' expense. | |
| SSE tried to deflect criticism of its profits, taking out full-page advertisements in newspapers ahead of the results. "That profit is paying taxes, improving services, investing in the future and creating jobs – all here in the UK," it said. | |
| But Ann Robinson at uSwitch.com said: "These profits will be seen as a smoking gun, making it difficult for any supplier to justify last winter's price hikes and the pressure they have placed on consumers. People have been going cold for fear of the cost of turning their heating on – in these circumstances a price cut or a price freeze is the only suitable peace offering and would go some way to helping and reassuring consumers." | |
| Last October SSE, which supplies 9.6m households with gas and electricity, raised domestic energy prices by 9% to coincide with the start of the coldest and longest winter of recent years. The company said on Wednesday that average household gas consumption in the UK rose by 21% last year, while electricity consumption was 5% higher. | Last October SSE, which supplies 9.6m households with gas and electricity, raised domestic energy prices by 9% to coincide with the start of the coldest and longest winter of recent years. The company said on Wednesday that average household gas consumption in the UK rose by 21% last year, while electricity consumption was 5% higher. |
| The retail business helped drive adjusted profits before tax for the group – which includes SSE's networks and wholesale units – up 5.6% to £1.4bn. | The retail business helped drive adjusted profits before tax for the group – which includes SSE's networks and wholesale units – up 5.6% to £1.4bn. |
| The company did, however, write down the value of certain investments by almost £400m and was hit with charges related to claims from outages in prior years, while movements in derivative contracts dented profits by around £200m. That left total profits before tax at £601m for the year. | The company did, however, write down the value of certain investments by almost £400m and was hit with charges related to claims from outages in prior years, while movements in derivative contracts dented profits by around £200m. That left total profits before tax at £601m for the year. |
| SSE upped its full-year dividend by 5.1% to 84.2p. It added that it will maintain annual dividend increases above inflation – as measured by the retail prices index – this year and beyond. Data out on Tuesday showed annual RPI fell from 3.3% to 2.9% last month. | SSE upped its full-year dividend by 5.1% to 84.2p. It added that it will maintain annual dividend increases above inflation – as measured by the retail prices index – this year and beyond. Data out on Tuesday showed annual RPI fell from 3.3% to 2.9% last month. |
| SSE was hit by a mis-selling scandal that saw it fined a record £10.5m in April. The SSE chairman, Lord Smith of Kelvin, said on Wednesday: "Like everyone else associated with SSE I have no hesitation in apologising unequivocally for the breaches that occurred; but while the breaches were clearly wrong, the response has been absolutely right." | |
| He said the company had reformed its retail operations since 2011 and introduced a sales guarantee to reimburse any losses experienced by customers joining the company. | |
| The company confirmed that chief executive Ian Marchant would step down at the end of next month, after a decade at the helm of the company. He will be replaced by his deputy, Alistair Phillips-Davies. | The company confirmed that chief executive Ian Marchant would step down at the end of next month, after a decade at the helm of the company. He will be replaced by his deputy, Alistair Phillips-Davies. |
| • You can compare and switch energy tariffs with the Guardian's Money Deals service | • You can compare and switch energy tariffs with the Guardian's Money Deals service |