Profit doubling expected for major energy supplier - 05/10/2009
Customers may choose to switch energy companies in light of news that major power firm Scottish and Southern Energy is expected to announce a doubling of profits.
The company is expected to announce pre-tax profits of almost £600 million for the second half of this year, double the figure recorded for the end of 2008, reports the Daily Mail.
This could anger many consumers, who may ask why the company has not introduced more substantial price cuts in the last few months, given its increase in profits. In addition, wholesale energy prices have fallen considerably since the summer of 2008.
David Hunter, an energy consultant at independent consultancy McKinnon and Clarke, told the paper: "The failure of the suppliers to pass on the massive reductions in energy prices, which they have been enjoying for nearly a year, is approaching scandalous proportions."
In the past, energy suppliers have responded to criticism by saying they buy their stocks in advance and price reductions can take several months to reach the consumer, while in addition they need capital to fund developments in renewable energy.
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