The energy company behind Scottish Hydro has announced a jump in profits of nearly 40%.

The news from SSE comes just a month after it announced a 9% increase in bills.

SEE also owns Southern Electric and Swalec and is the UK's second-largest generator of electricity.

It said the £398m half-year profit was necessary to "make investments that keep the lights on".

But Richard Lloyd, executive director of Which? consumer magazine, said the news furthered the case for an independent review of gas and electricity charges.

"Without greater scrutiny of energy prices, consumers simply will not believe that they're getting a good deal," he said.


Cooperative energy released a statement following SSE’s announcement.

"Announcements of huge profit increases for shareholders do nothing to help the tarnished image of UK energy industry or get to grips with consumer concerns," said Nigel Mason, of Co-operative Energy.

"This profit announcement off the back off a 9% bill increase will be a bitter pill for SSE customers to swallow."

SSE has announced a 5% increase in its shareholders payout.

But the UK’s biggest energy companies, including SSE, are keen to play down accusations of gas price manipulation.

The Unite union has hit out at the announcement of SSE’s profits.

Kevin Coyne, Unite national officer for energy, said: "These profits are excessive, especially when price increases have caused more hardship for those customers already struggling to get by.

"The government has washed its hands of all responsibility and left it to the market, which is clearly failing to deliver on price. This Tory government stubbornly refuses to properly regulate the energy industry."

(IT/GK)