11/11/2009 - Checked Energy supplier improves profits
A major energy supplier has revealed that it may have to raise prices next year, despite revealing a sharp increase in its profits.
The 36% increase in profits to £410.5 million was flattered by comparisons to the year's previous figures, where delayed price rises hit the margins of Scottish & Southern Energy (SSE), owner of Scottish Hydro Electric, Swalec and Southern Electric.
SSE said the figures were on target to hit its overall goal of "moderate, single-digit increase" in profits for the entire year. The company said pressure was being put on the business by rising distribution and environmental costs and higher forward annual wholesale prices.
"While SSE would like to follow the reduction in energy prices it implemented in March with a further reduction if it were possible, it is not able to commit to do so," said the company. "It remains committed, however, to ensuring its prices and, more importantly, bills, are as low as possible over the medium term.
"Given the upward pressures on energy prices, avoiding an increase between now and the end of 2010 remains an important goal."
Copyright © Press Association 2009
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