Demand for competition inquiry after Scottish & Southern pays £700m dividend but claims it may be forced to raise gas prices.

The row over "rip-off" energy companies intensified on Friday when one of the UK's largest utilities reported a 50% increase in profits but warned it may be "forced" to put up domestic prices.

Scottish & Southern Energy (SSE) further angered consumer groups by deciding to reward its investors with a £700m dividend for the 12 months to 31 March.

Ian Marchant, chief executive at SSE, said the increase in after-tax profits to £607m from £403m was the result of an "accounting entry for financial derivatives" and said that adjusted profit before tax of £1.3bn – up only 1.6% on the previous 12 months – was a more realistic figure and the one used by the City.

But he admitted that a surge in the wholesale price of gas might have an impact on future bills for householders: "I hope we don't have to put them up but we may be forced to. We don't enjoy doing that but you can only defy the market for so........Read more HERE