Winter price freeze costs SSE £400m in potential revenue

A DECISION by Scottish and Southern Energy (SSE) to hold out against industry-wide price increases this winter has cost the company £400 million in lost potential revenues, the Sunday Herald has learned.

But even as energy suppliers anticipate punitive Budget measures next week in response to consumer outcry over perceived excessive profits, Scotland's last remaining energy utility is expected to raise its prices later this month.

Pressure on the Treasury to deliver a windfall tax has mounted after average rises of 15% by ScottishPower, British Gas, npower, E.ON and EDF Energy were followed by stellar full-year profits from British Gas owner Centrica. Its residential arm saw a fivefold increase in pre-tax profits to £570m.

"Scottish and Southern promised not to raise its prices until the end of March when British Summer Time begins, but everybody expects it to increase its prices after that," said Angelos Anastasiou, an analyst at Pali Capital.

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