Big Six energy giant SSE lashes out at planned bills cap despite revealing profits have TRIPLED to £1.8billion
SSE quietly revealed its earnings had tripled – as it made more money from each of its domestic customers
BIG Six energy supplier SSE revealed yesterday its earnings had tripled.
The gas and electricity giant made a whopping £1.8billon in pre-tax profit overall in the year to March 31.
It compares with the £593.3million it made the year before.
SSE also increased its share dividend payout for the 18th year in a row - a boost for shareholders, but likely to irriate customers who are struggling to pay bills.
The figures were buried in its annual accounts, as was the revelation it is now making more per dual fuel domestic customer than previously.
SSE said in the year to March its annual operating profit margin for each household it supplies with gas and electricity was around 6.9 per cent - compared to 6.2 per cent the year before.
This allowed it to make more money with fewer customers, after 210,000 left it for rival suppliers during the year.
It said its UK household supply business recorded a “small overall increase” in adjusted operating profit.
SSE said the desertions were “disappointing” but the rate at which customers were leaving was slowing.
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The company also took the opportunity of its results to lash out at Theresa May’s plans to enforce an energy bill cap on suppliers.
It warned of the “unintended consequences” of a price cap on standard variable tariffs, the basic price plan option which suppliers offer to domestic customers.
SSE said some 70 per cent of its 6.76 million UK domestic customer accounts could be affected by a cap.
It went on to say it “would caution against potential unintended consequences of any proposed intervention in what is a rapidly changing and increasingly competitive market”.
Other suppliers have slammed the government’s proposals previously, arguing there should be a free market.
SSE raised its electricity prices at the end of April by 14.9 per cent.
With gas prices unchanged, it meant a typical dual-fuel household would see its bill rise by 6.9 per cent, or £73 a year.