SSE profits rise 38%

SSE, one of the big six energy firms, has revealed a 38% rise in profits in their half year results. The company says supplying energy only accounts for 8% of the figure.

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Energy prices 'need greater scrutiny'

The Executive Director of consumer group Which? says the latest profits show why the Government needs to set up an independent review to look at whether recent price increases are justified.

Richard Lloyd said: "Without greater scrutiny of energy prices, consumers simply will not believe that they're getting a good deal."

SSE customers were hit with bill rises of 9% last month
SSE customers were hit with bill rises of 9% last month Credit: Press Association

Energy customers need protection from being 'ripped off'

Labour's Shadow Energy and Climate Change Secretary, Caroline Flint, says customers will not understand how energy companies can get away with inflation-busting price rises when their profits are already increasing. She said:

"In the wake of the allegations this week about price fixing in the electricity and gas markets, the time has come for a complete overhaul of our energy market.

"We need a One Nation government to break the dominance of the energy giants, open up the energy market, protect vulnerable customers from being ripped off and create a tough new energy regulator with the power to force energy companies to pass on savings to consumers."

SSE revealed profits are up by around 40%
SSE revealed profits are up by around 40% Credit: Press Assocation

Energy market 'challenging' despite SSE profit rise

SSE's focus is always on full-year results, because the potential for volatility is always much greater in a half-year period, but it is obviously encouraging that adjusted profit before tax in the first six months has been restored to a level around that achieved in 2010. This does not hide the fact, however, that energy market conditions remain challenging.

The prices achieved for generating electricity have been weak, and higher gas and non-energy costs unfortunately had to be reflected in the increase in household energy prices which SSE implemented last month. The energy supply business accounted for 8.1% of SSE's adjusted operating profit in the period and its profit margin was 1.5%.

– Lord Smith of Kelvin, Chairman of SSE

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Jump in profits for energy firm SSE

by - Former Business Editor

SSE, one of the energy big 6, just announced a 41% rise in profits after tax in their half year results, leaving consumer groups on the warpath. SSE says actually supplying energy only accounts for 8% of the profit, and claims they only have a margin of 1.5% in that bit of the firm.

An SSE Training Centre in Perth
An SSE Training Centre in Perth Credit: Press Association