Scottish & Southern Energy to cut 2009 Fuel Bills
November 14, 2008
On Wednesday, Scottish & Southern Energy, the second biggest energy supplier in the United Kingdom, said that customers will need to wait until next year before they see any of their household bills reduced, even though the price of oil has fallen 62.3% for 4 months.
Ian Marchant, Scottish & Southern Energy Chief Executive, said that he has confidence that the fall in oil prices, which has dropped to just slightly more than $50 per barrel from the $147 of July, is going to be passed onto the customers of Scottish & Southern Energy early next year. A big issue for their domestic customers is when the costs are going to decrease, Marchant added, and he is optimistic that they will be providing reduced prices early in the year.
Scottish & Southern Energy, which has nearly 9 million customers via the Southern Electric, Scottish Hydro Electric, and Swalec brands, said that profits before tax for the first 6 months of the year dropped to £302.6 million, which is by 54%, following their delay of increasing prices until August. The decision for raising prices on electricity customers by 19.2% on average and on gas customers by 29.1% on average came after the company said that they sustained major losses in the business.
Scottish & Southern Energy issued warnings during July about the profits of their first 6-month figures. The company’s dramatic decline in profitability was caused by many different factors. However, they said on Wednesday that they anticipate decent growth in profits for the whole year.
Learn more about Scottish & Southern Energy at: www.scottish-southern.co.uk
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