Electricity pylons

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PA

Dividends of SSE may very well be threatened by “challenges” going through the sector within the coming 12 months, the “large six” vitality firm has mentioned.

It has warned in regards to the “unintended penalties” of a worth cap on normal variable tariffs proposed by the Conservatives.

Some 70% of its 6.76 million UK home buyer accounts may very well be affected by a cap, it mentioned.

The corporate introduced a 2.1% rise in adjusted pre-tax earnings.

It made £1.5bn for the 12 months to the top of March. Revenue margin per twin gas family buyer – a key measure within the trade – was round 6.9% in contrast with 6.2% the earlier 12 months.

Dividend cowl for the subsequent monetary 12 months can be “inside, however in the direction of the underside of the anticipated vary of round 1.2 instances to round 1.four instances”, the corporate mentioned, marking decrease earnings per share in contrast with the earlier 12 months.

Concerning the proposed cap, SSE mentioned it “would warning towards potential unintended penalties of any proposed intervention in what’s a quickly altering and more and more aggressive market”.

Business figures have criticised the plan, saying it might result in larger costs.

Prime Minister Theresa Could mentioned 17 million households would profit by as much as £100 from the cap on poor worth normal variable tariffs.

SSE raised its electrical energy costs on the finish of April by 14.9% for two.eight million clients. With gasoline costs unchanged, the consequence was typical dual-fuel family would see its annual invoice rise by 6.9%, or £73.

The variety of SSE clients fell by 210,000 throughout the course of the final monetary 12 months, though the speed of decline has slowed.