SCOTTISH Power’s owner Iberdrola said the controversial hike in energy charges that it imposed on consumers from August will boost profits in the last quarter after falling demand for electricity weighed on UK earnings in the first nine months reports The Herald.

It expects profitability to improve in the three months to December, after the increase in prices from 1 August. The subsidiary increased average gas prices by 19% and electricity by 10%.

The UK's six leading energy firms have announced price hikes since the summer. Rise in energy prices has beenone of the main causes of the surge in inflation putting household finances under pressure.

ScottishPower earnings in its liberalised business, including retail energy supplies, fell by 47% annually in the first nine months, to €229m  (£202m).

The fall in profits in ScottishPower’s liberalised business was offset by an increase in earnings from regulated activities, including power transmission. Profits in the regulated business increased by 8.5% to €593m (£522.5m).

Iberdrola said the group Ebitda increased by 0.4% annually in the first nine months, to €5,6bn (£5bn), reflecting good performance from its renewable energy operation.

Average top director earnings rise
The earnings of FTSE 100 directors has increased by an average of 49% in the last financial year, according to a report  from Income Data Services (IDS), as the Financial Times discovers that UK government paid staff £141m in bonuses in the year ended April 2011, up £5m from £136m in 2010.

The IDS report shows average total earnings of a FTSE 100 director is now around £2.7m pa,  including fixed pay, salary and benefits, bonuses, cashed-in shares and long-term incentive plan values.

Base salaries did only grow 3.2% on average.  Earnings rise is attributed to a rise in average bonus payments – up from £737,624 in 2010 by 23% to £906,044 this year.

Total earnings of FTSE 100 directors rose across the board, with the breakdown: CEOs received an average increase of 43.5% (£3,855,172); Finance directors received an average increase of 34.1% (£2,001,515). All other directors received an average increase of 66.5% (£2,260,033).

Comments IDS editor, Steve Tatton: “At a time when employees are experiencing real wage cuts and risk losing their livelihoods, without further explanation it may be difficult for FTSE 100 companies to justify the significant increase in earnings awarded to their directors.”

“The pay gap between the boardroom and the shop floor does not yet show any signs of closing.”