Scottish and Southern Energy promises rise in divi

Scottish and Southern Energy, the energy supply giant that raised gas prices for consumers by 18% and electricity prices by 11% this month, today said shareholders can expect an inflation-busting dividend this year.

The country's second-largest energy supplier said first-half profits for the six months that end today would be "significantly lower" than the same period last year and in 2009. But it added that this would not effect the outcome for the year to next March as the price hikes kicked in.

It went on to reassure shareholders: "SSE remains on course to achieve an increase of at least 2% more than RPI inflation in the dividend payable to shareholders, and expects to maintain a dividend cover around its established range."

That pledge is bound to infuriate consumer groups who have accused the big energy suppliers of pushing thousands more people into fuel poverty with their recent price rises.

Chief executive Ian Marchant said: "This year has been characterised by volatile wholesale energy markets and rapidly changing retail markets, which makes it all the more important that companies have a long-term view. Our commitment to above-inflation dividend growth is as strong as ever."