SSE profits hit 8-year-high…after April’s energy price hike
SSE quietly revealed yesterday its profits had tripled to an 8-year-peak.
April’s price rise added £73 onto the typical dual fuel household’s bill.
The disclosure that, in the year to 31 March, SSE boasted underlying group profits of £1.5 billion was buried in its annual accounts.
The supplier, the second biggest in the UK, said that despite losing 190,000 customers to rival suppliers in 2016-17, domestic retail profits soared 5 per cent to £261 million.
Pre-tax profits trebled from £593 million to £1.8 billion.
If you’re with SSE, don’t line its ever-growing pockets without first comparing cheap energy deals.
SSE’s margins rose from 6.2 to 6.9 per cent – the highest since the figures were first disclosed in 2010 and five times the 1.25 per cent deemed fair by the Competition & Markets Authority.
It all means a healthy payout for top brass at SSE: dividends are to be increased for the 18th year on the trot.
SSE hit out at Theresa May’s energy price cap policy, arguing it would have “unintended consequences” and moved to reassure investors it could survive any cap.
The Conservative’s claim the policy would save 17 million households £100 a year.
SSE said around 70 per cent of its 6.8 million customer accounts would be affected by a cap,
A flat cut of £100 would cut SSE’s income by more the £200 million a year, Alistair Phillips-Davies, the company’s chief executive, insisted, although he added that it was too early to tell the financial impact of the cap.
Citizens Advice’s chief executive, Gillian Guy, said “SEE’s rising profits will be hard to understand for the millions of their loyal customers whose bills have recently gone up.”
The supplier’s annual accounts also showed it was making more money per dual fuel domestic customer than previously, explaining how it can generate more revenue with fewer customers.
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