This article is from the source 'independent' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.independent.co.uk/news/business/news/sse-set-for-huge-profit-jump-after-hiking-energy-bills-9079667.html
The article has changed 3 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| SSE set for huge profit jump after hiking energy bills | SSE set for huge profit jump after hiking energy bills |
| (35 minutes later) | |
| Energy giant SSE is on track to make a profit of £1.54 billion this year two months after it announced a sharp hike in prices. | |
| The news is likely to spark fresh anger following Labour calls for a cap on household gas and electricity bills as incomes continue to be squeezed. | The news is likely to spark fresh anger following Labour calls for a cap on household gas and electricity bills as incomes continue to be squeezed. |
| SSE, which trades as Southern Electric, Swalec and Scottish Hydro, raised tariffs by an average of 8.2 per cent from November, blaming Government green levies as well as rising network costs and wholesale energy prices. | SSE, which trades as Southern Electric, Swalec and Scottish Hydro, raised tariffs by an average of 8.2 per cent from November, blaming Government green levies as well as rising network costs and wholesale energy prices. |
| Bills will be cut by 3.5 per cent for all of the group's nine million residential customers from March 24 after the group passed on savings from the Government's green levy shake-up but it still means an overall above-inflation rise for hard-pressed households. | Bills will be cut by 3.5 per cent for all of the group's nine million residential customers from March 24 after the group passed on savings from the Government's green levy shake-up but it still means an overall above-inflation rise for hard-pressed households. |
| In a trading update, SSE's chief executive Alistair Phillips-Davies said that despite the "difficult business environment", it was encouraging that the group was on course to deliver more profits and cash for shareholders. | In a trading update, SSE's chief executive Alistair Phillips-Davies said that despite the "difficult business environment", it was encouraging that the group was on course to deliver more profits and cash for shareholders. |
| It said its full-year dividend would be up by 3 per cent and its adjusted profit before tax for the year ending on March 31 was likely to rise in line with market expectations to £1.54 billion - an increase of 8.8 per cent on 2012/13. | It said its full-year dividend would be up by 3 per cent and its adjusted profit before tax for the year ending on March 31 was likely to rise in line with market expectations to £1.54 billion - an increase of 8.8 per cent on 2012/13. |
| This was despite the number of electricity and gas customer accounts in Britain and Ireland falling from 9.47 million to 9.22 million, while average consumption of electricity in Britain fell by 4.3 per cent and gas by 9.5 per cent - when comparing the nine months to the end of December last year to 2012. | This was despite the number of electricity and gas customer accounts in Britain and Ireland falling from 9.47 million to 9.22 million, while average consumption of electricity in Britain fell by 4.3 per cent and gas by 9.5 per cent - when comparing the nine months to the end of December last year to 2012. |
| SSE also said there was uncertainty over the future of its investment programme, with the prospects for new power generation assets in Britain "not encouraging". It has argued it needs to make money to fund such projects. | SSE also said there was uncertainty over the future of its investment programme, with the prospects for new power generation assets in Britain "not encouraging". It has argued it needs to make money to fund such projects. |
| The group said the failure of two offshore wind farm projects it had a stake in to be chosen for a Government investment short-list was disappointing and that it was reviewing its offshore portfolio. | The group said the failure of two offshore wind farm projects it had a stake in to be chosen for a Government investment short-list was disappointing and that it was reviewing its offshore portfolio. |
| This added to uncertainty about its investment programme in the five years from 2015, which SSE said was likely to be lower than the £1.5 billion - £1.7 billion range invested annually since 2010. | This added to uncertainty about its investment programme in the five years from 2015, which SSE said was likely to be lower than the £1.5 billion - £1.7 billion range invested annually since 2010. |
| The group's statement also addressed the question of Scottish independence, saying that while it did not have a view on the matter, it reiterated that the uncertainty over the future "increased legislative and regulatory risk". | The group's statement also addressed the question of Scottish independence, saying that while it did not have a view on the matter, it reiterated that the uncertainty over the future "increased legislative and regulatory risk". |
| Meanwhile, the company said it restored electricity supplies to 130,000 homes following storms and flooding before Christmas. | Meanwhile, the company said it restored electricity supplies to 130,000 homes following storms and flooding before Christmas. |
| Mr Phillips-Davies said: "Despite what is clearly a difficult business environment, the overall performance of the company has been solid in 2013/14 and the efforts of employees, shown recently in the response to the Christmas week storms, have been excellent. | Mr Phillips-Davies said: "Despite what is clearly a difficult business environment, the overall performance of the company has been solid in 2013/14 and the efforts of employees, shown recently in the response to the Christmas week storms, have been excellent. |
| "It is encouraging that SSE is on course to deliver real growth in the dividend and increases in adjusted earnings per share and adjusted profit before tax." | "It is encouraging that SSE is on course to deliver real growth in the dividend and increases in adjusted earnings per share and adjusted profit before tax." |
| Mr Phillips-Davies said the Government's decision last month to remove some of the costs of its green policies from energy bills was "an important step in the right direction". | Mr Phillips-Davies said the Government's decision last month to remove some of the costs of its green policies from energy bills was "an important step in the right direction". |
| But he said more needed to be done "to shift the full cost burden of environmental and social policies from the energy bill to the taxpayer". | But he said more needed to be done "to shift the full cost burden of environmental and social policies from the energy bill to the taxpayer". |
| SSE said a shake-up at the top of the company hierarchy will see its management board replaced by a slimmed-down six-strong executive committee. | SSE said a shake-up at the top of the company hierarchy will see its management board replaced by a slimmed-down six-strong executive committee. |
| Additional reporting agencies | Additional reporting agencies |