SSE, one of the UK’s “big six” energy retailers, blamed weak prices achieved for generating electricity and higher costs for last month’s increase, which will add about £100 to a typical household bill.
The company is also “entirely confident” it operates legitimately following the launch of an investigation by regulators into alleged price-rigging.
SSE chairman Lord Smith said: “Some observers may choose to criticise SSE for making a profit and paying a dividend. I believe that profit and dividend allow SSE to employ people, pay tax, provide services, make investments that keep the lights on and create jobs.
“Its commitment to the dividend remains the hallmark of a company that takes a disciplined and long-term approach to business.”
SSE increased its interim dividend by 5 per cent to 25.2p as half-year pre-tax profit rose 38.3 per cent to £397.5million.
Some observers may choose to criticise SSE for making a profit and paying a dividend
Its retail business, which supplies electricity and gas to homes and businesses, rebounded from a £101.4milion operating loss last time to move £75.7million into the black. SSE shares rose 17p to 1400p.