Wednesday, 12 September 2018

'Big six' energy firm SSE issues price cap profit warning

SSE, the "big six" energy firm, has issued a profit warning amid Theresa May's looming price cap on the industry's default tariffs.
The company said earnings at its household supply business for the year to 31 March will likely be "significantly lower" if Ofgem implements its curbs on standard variable tariffs (SVTs) as expected in January.

The wider business, SSE said, had already endured a £190m hit on adjusted operating profit for the first five months of the financial year.

It cited lower than expected renewable energy output among several factors.

The trading statement said: "Relatively dry, still and warm weather has continued as have persistently high gas prices.

"This has continued to result in a higher cost of energy than expected, lower than expected output from renewable sources, lower volumes of energy being consumed and a negative impact in relation to energy portfolio management."

Energy shares led the fallers when the FTSE 100 opened on Wednesday - with SSE down 8%. It closed the session down 8.3%.

SSE had forecast adjusted operating profit for the six months to 30 September to be around half the £586m reported in the same period last year.

SKY     News.

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