UK's SSE trebles half-year profit and warns on windfall tax

British power generator and network operator SSE, said its half-year profit more than trebled, buoyed by strong performances from its thermal power plants and high prices but warned on Wednesday a possible windfall tax could hamper future investment.

British power generator and network operator SSE, said its half-year profit more than trebled, buoyed by strong performances from its thermal power plants and high prices but warned on Wednesday a possible windfall tax could hamper future investment. British Chancellor Jeremy Hunt has warned of tough decisions on tax increases and spending cuts to be announced in Britain's new budget plan on Thursday and is reportedly planning to extend windfall taxes to cover electricity generators as it seeks to plug a hole in government finances.

Soaring oil and gas prices in the wake of Russia's invasion of Ukraine have sent household energy bills to record highs, triggering Britain's worst cost of living crisis in generations. To help soften the blow, Britain and other countries have introduced taxes on energy firms benefiting from higher prices. Chief executive Alistair Phillips-Davies said any new levies would have to be applied fairly.

"If they (new taxes) are fair and reasonable, fine. I think one of the things we have got to be careful in the UK is that we have created an amazing environment for investors… its critical we don't endanger that," he told reporters. "We will have to stand back and look at what comes out tomorrow and carefully consider that," he said.

SSE said it planned to invest around 12.5 billion pounds ($14.88 billion) in British energy infrastructure projects over the five years to March 2026, taking its total investment this decade to around 25 billion pounds. Phillips-Davies said the 180 euros ($187.52) per megawatt cap level proposed by the European Commission on the revenue renewable generators get for their power in the market could be considered a reasonable level.

SSE posted adjusted pre-tax profit for the half year of 559.4 million pounds, more than treble the 174.2 million pounds posted last year. The rise was largely down to strong performances from the company's thermal power plants amid high energy prices but it said its renewable output for six months to Sept. 30 was impacted by unfavourable weather. ($1 = 0.9599 euros) ($1 = 0.8401 pounds)