Scottish & Southern Electricity counts cost as profits tumble

Scottish & Southern Energy was the first energy group to raise its gas prices this year, and today it showed why, posting a 6% fall in half-year profits to £385.5 million and reporting "challenging" trading conditions.

SSE — the UK's second-biggest energy supplier — blamed the "continuing losses" sustained by its gas supply business, Southern Electric Gas, for its decision to raise gas prices by nearly 10% from next month.

It then blamed a lack of wind for a 16% fall in output from hydro-electric schemes and wind farms. But the group still raised its dividend 6.7% to 22.4p.

Chairman Lord Smith of Kelvin said: "The past six months have not been easy."