SSE Airtricity, the Irish electricity and gas supplier owned by UK-based SSE, saw its profits soar to €111 million in the fiscal year ending in March, largely due to a boost in wind power income, the British parent company announced on Wednesday. The firm has been adjusting its rates over the last two years in response to the fluctuations in the global energy markets.
SSE Airtricity, which serves both residential and commercial customers in the Republic of Ireland, surged to £94.5 million (€111 million) in profits, a significant increase from £5.2 million the previous financial year, as per SSE’s records. The company’s growth in profits was heavily supported by the rocket in revenue from £28 million to £74 million from its contracted wind farms.
SSE Airtricity made a conscious decision to absorb any hikes in wholesale prices during the 2022/23 financial year, instead of transferring them onto its consumers, essentially making no profit during this period. Proceeds of £5.3 million were distributed to households in the Republic in the form of credits issued in April 2023, and a €25 million customer fund was also set up.
After the energy price spikes triggered by Russia’s invasion of Ukraine in February 2022, there was a sustained inflation for close to a year. However, SSE Airtricity reduced domestic grades twice since then, with reductions in November and again in February of the same year. Other suppliers followed the trend and started dropping rates in the autumn.
A decrease in commodity price volatility coupled with a rise in customer demand restored the supply margins to more regular levels, according to a statement in the company’s earnings report. It also mentioned that the profitability of wind power can change based on hedging strategies and ongoing market prices.
Separately, another division within the group named SSE Renewables, will soon seek permission from the Irish planning board, An Bord Pleanála, to construct the 800-megawatt Arklow Bank Wind Park 2 in the Irish Sea. Recently, SSE Renewables and Coillte-ESB’s joint venture, Futurenergy Ireland, inaugurated the Lenalea Wind Farm in Co Donegal.