SSE profits up 2.1% in last business year

SSE’s pre-tax profits hit £1,546 million in the 2016/2017 business year, an increase of 2.1%. The Big Six firm, which is the only UK business to be involved in electricity […]

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By Jonny Bairstow

SSE’s pre-tax profits hit £1,546 million in the 2016/2017 business year, an increase of 2.1%.

The Big Six firm, which is the only UK business to be involved in electricity transmission, electricity distribution and gas distribution, today published preliminary financial results for the period ending the 31st of March 2017.

The success is largely a result of the Wholesale segment’s operating profit reaching £514.6 million, up 16.3% from last year’s £442.5 million.

This boost occurred primarily due to improved financial performance in thermal generation and energy portfolio management.

Operating profit from the company’s Networks division was up 1.1% to £936.5 million, due to an increase in distribution profits offsetting reductions in transmission.

SSE’s Retail segment supplies electricity and gas to eight million household and business accounts.

The department’s operating profit was down 7.2% to £422.3 million from last year’s £455.2 million, due to increases in non-energy costs, the impact of the household gas tariff reduction in March 2016 and falling customer numbers.

SSE has announced it plans to make investments totalling around £6 billion before 2020.

Alistair Phillips-Davies, Chief Executive of SSE, said: “2016/17 was a particularly strong year, with a £9.3 billion contribution to the UK economy, representing 0.5% of the entire UK’s entire Gross Domestic Product in the same year.

“We have been clear for some time that 2017/18 presents challenges and the need to engage constructively with a new UK Government as it takes forward energy policy will be a key priority for the year ahead and beyond.”