ONE of the UK’s big six energy suppliers will hand shareholders a bonus potentially worth £50million – just weeks after increasing gas and electricity bills.
Scottish and Southern Energy, owners of Scottish Hydro Electric, put up gas prices by an average of 18% and electricity prices by 11% on September 14.
Last night, bosses told the stock market that the firm will press ahead with plans to pay shareholders a full-year dividend at least 2% above inflation.
Based on current figures, the payout would rise 5.4p per share and increase the dividend by £50.6million to more than £750million.
Consumer groups reacted angrily to the news yesterday, saying customers are struggling to trust their energy providers.
Scottish and Southern Energy chief executive Ian Marchant said the projected payout – due next September – underlined the company’s continued growth.
He said: “Our commitment to above-inflation dividend growth is as strong as ever and I am pleased with the significant progress of our investment programme.”
Last night, Consumer Focus Scotland said the dividends were a bitter pill for customers to swallow.
A spokesman said: “It is very difficult for consumers struggling to pay the increased bills not to feel they are being overcharged when a company can pay big dividends to its shareholders.
“While we recognise that energy companies are businesses and need to attract investment, the balance is not being struck fairly when millions are being given out to shareholders at the same time as customers are being asked to pay a lot more.”
Elizabeth Gore, deputy director of fuel poverty charity Energy Action Scotland, said: “It is increasingly difficult for customers to understand and trust the fuel companies when on the one hand they claim the need to impose big price rises, while on the other hand they return healthy profits and give shareholder payouts.”
The company has pledged it will not raise prices again for households until August 1, 2012.
Industry regulator Ofgem will publish plans to reform the market later this year.
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