SSE Expects Retail Loss For Half-Year

Energy firm SSE has said it expects to report a loss at its retail arm for the first half of the financial year.

The company said higher wholesale gas prices, an increase in costs and a lower energy consumption were to blame for the loss.

The figures compare with an operating profit at its retail arm of £75.7m in the same period last year, and a £101.4m loss the year before.

SSE did however, say it was on target to increase payouts to its shareholders by more than inflation.


Elsewhere in the half-year report, SSE said its wholesale and networks divisions were expected to be profitable in the six months to the end of September 2013.

Gregor Alexander, SSE's finance director, said the business had made "solid progress" in recent months.

He added: "Despite the intensifying political debate, we will maintain our operational and financial discipline, to enable us to deliver an above-inflation increase in the dividend for this financial year and beyond."

SSE's half-year report follows an announcement by the Labour Party that it plans to freeze gas and electricity bills for 20 months – if it wins the 2015 election, but energy firms have warned that the move could lead to blackouts.

(JP/MH)