Alistair Philips-Davies

Energy firms have increasingly come under fire from the British public as they face rising energy costs. The publication of the soaring financial performance at the firm, arrives as day Chancellor Jeremy Hunt announced in parliament this morning that energy companies will be subjected to an expanded windfall tax of 35%, signalling a 10% rise from the 25% tax announced earlier this year. 

For the six months to September 30th 2022, SSE reported adjusted earnings per share rose by 298% to reach 41.8p.

The firm’s operating profit reached £716m, up from £174.2m in 2021, marking a 90% increase in the last year. Investments, capital and acquisition at the firm also rose by 67%, rising from 1.7m to 1.04m.

Announcing SSE’s interim results, chief executive Alistair Philips-Davies, chose to stress that the firm was investing in its Net Zero Acceleration Programme, stating that this has “never been more relevant to society.”

He said: “We are investing around £12.5bn in the five years to March 2026, with further opportunities that could take the total to over £25bn this decade in the UK and Ireland alone. This direct investment primarily in offshore wind, UK electricity networks and flexible thermal will create the technologies to support long-term energy security.”

He added: “The strength and optionality of our resilient mix of market-based and regulated businesses have shone through in this period, with recent trading conditions highlighting the true value to society of a portfolio that balances intermittent renewables with flexible generation when the system needs it most. Our business model and strategy are delivering for our stakeholders today, whilst creating future long-term societal value.”

When asked by The Guardian about his view on the potential windfall tax, he said: “In terms of levies, caps, windfall taxes – if they’re fair and reasonable, fine. One of the things we’ve got to be careful of in the UK…we’ve got one of the best renewable green investment markets in the world, we’ve created the biggest offshore wind market in the world, it’s critical that we don’t endanger that.

“Particularly when all of that investment is going to be delivering energy through this decade at far, far lower costs than we’re currently importing energy.”