Watchdog criticises profitable SSE for delaying price cut

SSE should cut energy prices sooner in light of its “generous” profit forecast, Consumer Futures has argued.

The energy company is in line to increase full year profits by 8.8 per cent to some £1.5 billion and raise dividends by 3 per cent, it indicated on Thursday.

Like all major suppliers, SSE has promised to pass on savings from government “green levy” cuts to customers. It also committed to cap prices until spring 2015, as long as there is “no marked and sustained increase” in costs.

However, the watchdog criticised SSE for delaying its price cut, of around 4 per cent, until March.

Richard Hall, Consumer Futures’ director of strategic infrastructure, said: “While we welcome SSE’s commitment to ‘cap energy prices at their new level until at least the spring of 2015’ and that they will be passing on recent cuts in levies to all of their customers, we note that it is doing so much later than some of its rivals.

“SSE is forecasting a generous 8.8% increase in its full year profits and a 3% increase in its annual dividend pay-outs to its shareholders. The increase in SSE profits contrasts with declining affordability. The sector is riding out tough economic times better than its customers are, so there’s a pressing need to help the latter. It should offer their customers respite by bringing forward its price cut to an earlier date.”