Profits at Perth energy giant SSE have more than tripled as the Government is expected to announce a new windfall tax on the power sector on Thursday.
As the cost of power hit record highs, the business reported pre-tax profits of £559.4m for the six months to September. This compares to profits of £174.2m for the same period last year.
The UK Government has intervened in the energy market by introducing a cap on prices as the fall out from the Russian invasion of Ukraine led to soaring costs.
SSE, which is developing several offshore wind projects, is stressing that it is investing several times its profits.
Investment in the financial period was £1.7 billion, compared to £1bn last year.
It has started generating power from the Seagreen wind farm off the coast of Angus.
It has also completed foundations at Dogger Bank, which will be the world’s largest offshore wind farm when completed.
Reasons for SSE profits tripling
The group’s financial results benefited from a good performance from its flexible gas-fired power stations and gas storage facilities.
SSE has approximately 40% of the UK’s onshore underground gas storage capacity.
It says this has provided “vital security of supply and flexibility” in more volatile market conditions.
SSE chief executive Alistair Phillips-Davies said: “We have delivered a good strategic and financial performance reflecting the strength of our business model.
“This has enabled us to invest far more than we earn – building and operating the clean homegrown energy infrastructure that will provide a sustainable solution to the current energy crisis.”
The chief executive said the firm’s investment means “cheaper, cleaner and more secure energy is coming”.
He adds: “It just needs to be built and SSE is building at pace.
“With a supportive government policy environment, SSE alone could invest more than £24bn in Great Britain by the end of this decade.
“We therefore welcome the Prime Minister’s commitment at COP27 to go faster in deploying clean energy infrastructure.”
The financial update comes as Chancellor Jeremy Hunt prepares to give his first budget on Thursday.
According to reports, he is preparing to hit electricity generation companies with a 40% windfall tax on their “excess returns” as he attempts to fund measures to ease the cost of living crisis.
