Customer numbers dip at Scottish Hydro owner SSE

Energy group SSE has unveiled a dip in customer numbers and electricity demand since the start of its new financial year, but said it was in a “good position” to continue delivering above-inflation dividend increases.

In a trading update ahead of its annual meeting, the Perth-based firm said electricity and gas customer numbers across the UK and Ireland dipped to 9.46 million during the three months to the end of June, from 9.47 million a year ago.

Overall electricity consumption fell slightly, while gas demand was unchanged on last year.

SSE, which owns the Scottish Hydro brand, was fined a record £10.5m by industry regulator Ofgem in April for mis-selling energy contracts to as many as 23,000 residential customers.

Today the firm said it was concerned that reforms being ushered in by Ofgem to limit the number of tariffs offered to customers will “add cost and complexity to energy suppliers’ relationships with customers”.

Chief executive Alistair Phillips-Davies added: “Nevertheless, the reforms that SSE itself has undertaken in the past two years mean it is in a relatively good position to implement as effectively as possible the new licence conditions.”

He added: “We are in a good position to focus on our key operational and investment priorities for the year, including achieving further improvements in standards of customer service and further additions through investment to the asset base of the company.

“I am therefore confident that we will achieve our key financial goal for this year, and the years ahead, of an above-inflation increase in the dividend.”

SSE last week appointed Sue Bruce, the chief executive of Edinburgh City Council, as a non-executive director.