SSE Chairman Richard Gillingwater said the company continues to face a number of challenges.
The board recommended a final dividend of 63.9 pence a share, making a total payout for the year of 91.3 pence a share, up from 89.4 pence a share.
It said 4.76 million of its 6.76 million customers could be affected by the cap and warned that it may have "unintended consequences".
SSE shares were trading up 1.0% on Wednesday at 1,466.0 pence per share, among the best performers in the FTSE 100.
On a reported basis - including the impact of write downs to wholesale generation, gas storage and production assets in the previous year - profit before tax jumped to £1.78bn from £593.3mln and operating profit surged to £1.95bn from £784.3mln.
Adjusted profit before tax hit £1.5bn this year, while profit margin per dual fuel household customer was around 6.9 per cent against 6.2 per cent the previous year. Standard prices tend to be higher than fixed-rate deals, so companies with a greater proportion of customers on SVTs are able to make bigger profits through the energy cycle.
"With a strong and growing asset base, and significant index-linked revenues, we remain committed to delivering annual dividend growth that at least keeps pace with inflation, and to working towards ensuring that dividend cover remains within the expected range".
Its wholesale business reported an operating profit of 498.2 million pounds after a loss of 481.3 million in 2015/16.
Breaking down the adjusted operating profit, the result from the Networks division was broadly flat year-on-year at GBP936.5 million from GBP926.6 million, Retail dipped to GBP422.3 million from GBP455.2 million and the Wholesale division experienced a lift to GBP514.6 million from GBP442.5 million. It found that customers with a standard variable tariff were overpaying by a collective £1.4 billion every year, compared to those energy customers with one of the cheapest tariffs on the market.
SSE hikes full year dividend..
SSE raised its electricity prices at the end of April by 14.9% for 2.8 million customers. Revenue from electricity distribution will benefit from around GBP10.0 million of under-recovered revenue in the recently-ended financial year.
Some 70% of its 6.76 million United Kingdom domestic customer accounts could be affected by a cap, it said. "It supports a stable United Kingdom carbon price, a continued commitment to cost-effective renewable energy, an evolving role for electricity distribution networks and the retention of competition at the heart of retail energy supply", said SSE.
Regarding the proposed cap, SSE said it "would caution against potential unintended consequences of any proposed intervention in what is a rapidly changing and increasingly competitive market".