SSE to increase energy price despite £410 million revenue

Despite declaring a sharp growth in profits earlier, the Scottish and Southern Energy (SSE), a leading energy supplier in the UK, has informed that it might increase its prices next year.

The revenue of SSE climbed 36 per cent over the previous year, from £302 million to about £410 million. However, the energy firm deducted only £67 to an average standard annual dual fuel bill when it cut charges earlier in 2009. In the company’s biannual report, SSE declined to agree on further rate cuts, leaving energy consumers fearing more price hikes before the end of next year.

In 2008, an average household pays 42 per cent extra for electricity and gas due to crippling rises. SSE raised its gas bills by 50 per cent and charged 36 per cent more in electricity, a trend followed by five other energy providers in the UK.

Ann Robinson from uSwitch, an energy price comparison website, argued that an increase of 36 per cent in revenues suggests that SSE could afford to implement a price cut. Similarly, Mark Todd, Director of Energyhelpline, said that SSE’s increasing profits leaves the company in a strong position to cut rates in the New Year.

However, Joe Malinowski, Founder of TheEnergyShop, informed consumers not to expect any price cut from SSE, unless the firm will be forced by other energy suppliers who would make the first move.

Several energy analysts are also cynical about winter price cuts from any UK energy supplier. Market analyst Inenco even warned households that next year’s energy bills could increase as much as 10 per cent.