Scottish and Southern Energy: dividend goes up, will a price cut follow?

Scottish and Southern Energy’s results today show that it is possible to be one of the cheapest suppliers, give good customer service and deliver a good return to shareholders, says uSwitch.com, the independent online comparison and switching service.

However, even though Scottish and Southern Energy can be considered the ‘good guys’ of the energy industry, they have yet to strike the perfect balance between customers and shareholders.

Geoff Slaughter, Energy Product Manager at uSwitch.com, says: “Profits are up, the dividend is up and customer numbers and satisfaction are up – Scottish and Southern Energy’s results today have something for everyone. This company is rock solid proof that it is possible to give good value to customers and a good return to shareholders.

“Scottish and Southern Energy has revealed ambitious growth plans and its customers will play a key part if it is to achieve them. The company will be fully aware that much of its success last year – gaining over 1 million new customers, hitting the £1 billion profit mark and getting its move into water rubberstamped by regulators – was made possible by its customers.

“Now that it is poised to go on to bigger and better things it is vital that it rewards customers for their loyalty and support as well as shareholders. All the suppliers still owe around £200 per household in price reductions so Scottish and Southern Energy should swiftly follow the good news of an increased dividend with even better news of a second price cut for customers. If it is able to strike the right balance between customers and shareholders then it will really begin motoring.”