Business

SSE Airtricity earns profits of €111m in 12 months to end of March

Increased income from wind power boosts energy supplier

Increased wind power income blew profits at electricity and gas supplier SSE Airtricity to €111m in the 12 months ended March 31st

Barry O'Halloran
Wed May 22 2024 - 20:40

Increased wind power income blew profits at electricity and gas supplier SSE Airtricity to €111 million in the 12 months ended March 31st, the company’s British owner said on Wednesday.

The Irish company, which supplies homes and businesses in the Republic, was one of a number forced to rein in price increases over the last two years as global energy markets grew increasingly volatile.

SSE Airtricity’s operations grew profits to £94.5 million (€111m) in the 12 months ended March 31st from £5.2 million in the previous 12 months, its parent, London-listed utility SSE, reported.

A surge in income to £74 million from £28 million at wind farms contracted to the company aided the growth in profits, the company said.

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It pointed out that SSE Airtricity committed “not to make a profit” during the 22/23 financial year by absorbing wholesale price increases rather than passing them on to households. It distributed a £5.3 million residual profit to homes in the Republic through credits issued in April 2023. It also established a €25 million customer fund.

Energy prices surged following Russia’s invasion of Ukraine in February 2022, sparking sustained inflation that lasted almost 12 months. Airtricity has since cut domestic prices twice, in November and February this year. Many suppliers began cutting charges in the autumn.

“Increased consumer demand combined with reduced commodity price volatility has meant supply margins have returned towards more normalised levels this year,” SSE’s earnings statement noted.

The company’s wind profits vary, depending on hedging strategies and prevailing market prices.

A separate group division, SSE Renewables, will shortly apply to An Bord Pleanála for permission to build the 800 megawatt offshore Arklow Bank Wind Park 2 in the Irish Sea. SSE Renewables recently opened Lenalea Wind Farm in Co Donegal, a joint venture with the Coillte-ESB partnership, Futurenergy Ireland.

Barry O'Halloran

Barry O'Halloran

Barry O’Halloran covers energy, construction, insolvency, and gaming and betting, among other areas

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