Scottish and Southern Energy Warn of Future Price Rise

The power company, Scottish and Southern Energy issued a rather solemn statement to its 9 million subscribers, warning of gas and electricity price hikes. Ian Merchant, who heads the energy supply company that is based at Perth addressed the yearly meeting of shareholders.He expressed the company’s failing battle to contain domestic electricity costs. This statement coincided with the declaration of profits from Spain’s Iberdola owned ScottishPower. It declared a rise upto £708m in half-yearly pre-tax profits. These profits, the company claimed would have crossed €1bn if not for the pound’s depreciation against the euro.

Energy providers are unanimous in foreseeing price hikes in the coming winter season, especially gas costs. Centrica that owns British Gas predicted a price hike of 705, causing alarm about the growing number of consumers to be categorised under ‘fuel poor’, from 41/2 million to approximately 6 million numbers.

It is a fact that energy costs in Britain have risen sharply. The facts show that the average consumer pays double the cost annually at £646 since five years ago for gas and £412 for electricity as compared to £244. However, these figures are the lowest across the European Union, according to facts laid out by the European Commission. SSE due to release its profit figures in November has talked about expecting a reasonable but unremarkable increase in profits only by year end in March. Spanish concern, Iberdola stated that ScottishPower had enjoyed the rewards of minimal operating costs and hike in customer prices.

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