Scottish & Southern To Announce Huge Profit Increases for 2009

Scottish & Southern Energy, a large utility giant which serves mostly the UK, is nearing an announcement which will show that the energy company has more than doubled its profits next month. The announcement is anticipated to insight many of their customers with anger, as the company has not reduced rates, despite doubling it’s earnings.

In fact, the profits are expected to be a great deal higher than market analysts had previously anticipated causing Scottish & Southern to publish a trading update indicating that their profit margins would be considerably higher than the same time last year. The company’s pre-tax profits are going to be reported in the range of £600 million, which compared to last year’s £302.6 million, is considerable. Scottish & Southern Energy boasts nine million customers across the UK.

The announcement will come in the wake of rising oil and gas prices, despite the reality that wholesale prices have decreased. Last month Ofgem asked industry leaders like Scottish & Southern Energy to consider lowing their prices. Many of those companies indicated that lowering customer prices would not be a possibility. However, in light of this recent news, many of Scottish & Southern Energy’s customers are outraged.

McKinnon & Clarke, the largest energy consultancy firm in the UK, is reporting that Scottish & Southern Energy’s profit announcement is just the first in a series of large utilities which will have the public questioning whether or not current energy prices are fair.

Since last summer, 2008, wholesale gas prices are continuing to drop, however energy consumers have yet to see any of those effects trickle down as utilities have failed to drop their prices. The government and Ofgem are continuing to pressure large energy utilities such as E.ON, EDF, and Scottish & Southern to reconsider their prices to reflect a more fair market in light of falling wholesale figures.