SSE hikes profits to £1.3bn

The company also revealed it has bought a 34-turbine wind farm project in Keadby, North Lincolnshire, its first wind farm in England.

SSE did not disclose the price it paid for the 68-85 mega watt (MW) scheme from RES, which has consent for construction. It expects to begin building it in 2012/13, with work expected to take up to 18 months.

The 1.7 per cent profits increase to £1.31bn in the year to March 31 means that the supply and generation firm, which owns Southern Electric, Swalec and Scottish Hydro, has lifted annual adjusted profits for 12 years in row.

SSE, which owns Ferrybridge power station in West Yorkshire, was helped by changes in electricity distribution prices following a regulatory review, offsetting higher-than-forecast wholesale gas prices and disappointing output from renewable energy and hydro electric schemes. Electricity consumption by households fell by 2.5 per cent, it added.

In line with rival Centrica, the company signalled that domestic customers were facing the possibility of further hikes in bills.

It said that since announcing a December rise in household gas prices of 9.4 per cent, annual wholesale prices for electricity and gas have risen by around one quarter and one third respectively.