The UK’s second largest energy firm announces a sharp increase in profits, attributed largely to a drop in wholesale prices.

Scottish and Southern Energy (SSE) has reported a 36% increase in its half-year profits for the six months to 20 September 2009 compared to the same period a year ago.

The half-yearly profit for the energy firm is £410.5 million, and has provided shareholders with a dividend up 6.1% to 21 pence per share. This is compared to a figure of £302.6m in September 2008.

Lower wholesale prices have contributed largely to the increase in profits at the UK’s second largest energy supplier, after British Gas.

Lord Smith of Kelvin, Chairman of SSE, commented on the interim results: “SSE’s focus is always on full-year results, but it is clearly encouraging that financial performance in the first six months is consistent with our goal of a moderate, single digit increase in adjusted profit before tax for the financial year as a whole.”

Lord Smith added that although the profit is a marked increase on the same period in 2008, it is still well below the figures from 2007 and 2006.

Ann Robinson, Director of Consumer Policy at uSwitch.com, said: “Energy companies have enjoyed a long period of low wholesale prices – these results give a clear indication of the beneficial impact it is having on their bottom lines.

“A 36% increase in half year profits suggests plenty of scope for a further price cut – we urge suppliers to act now so that consumers can enjoy the benefit this winter.”

uSwitch.com – the price comparison website – is urging consumers to review their gas and electricity suppliers to ensure they are paying the lowest prices possible. It says that consumers could cut their energy bills by up to £425.

Despite reporting healthy profits, SSE has said it cannot commit to price cuts, but said “avoiding an increase between now and the end of 2010 remains an important goal.”

According to uSwitch.com, price cuts this year to date average out at just 4%, compared to an increase in 2008 of 42%.