Weather to Blame for Scottish Power’s Poor Profits
Big Six energy supplier Scottish Power has blamed the weather for an 80% drop in their profits. They also cited the energy price cap as another reason. Despite their wind-based renewables business growing, the firm has now lost around 165,000 customers over the last twelve months.
The firm says they have sold 10% less electricity and 8% less gas so far this year. While primarily blaming weather and price caps, they do acknowledge a significant loss of customers is also partly to blame. Their customer numbers have fallen from a still 4.78 million from November of 2018 to 4.62 million now.
Scottish Power is UK’s ‘Only 100% Green Company’
Scottish Power invested a record £2 billion into its renewable energy business. They used this funding to start up its East Anglia One offshore wind farm, located off the Norfolk coast.
Keith Anderson, Scottish Power’s Chief Executive, said:
“As the UK’s only integrated, 100% green energy company, our ongoing investment in smarter grids, digital systems and renewable generation will be critical to the country meeting 2050 net zero targets.”
The supplier’s reported profits topped just £37.4 million for the first nine months of 2019. That figure has plummeted from £170 million during the same period last year. That was the year of the ‘Beast from the East’ weather front, which brought freezing temperatures and storms to the UK. Obviously such weather increases the amount of gas and electricity used in homes. The latest winter had no such extreme conditions and thus less energy was used by households.
As part of their commitment to wind farms and power grids, Scottish Power sold its last fossil fuel power plants. They sold them to Drax last year for £700 million, which will likely soften the blow of this profit decrease.
Profits Up for Scottish Power’s Spanish Owners
The energy provider is actually owned by the Spanish utility company Iberdrola. Despite the massive decrease in their asset’s profits, the umbrella company is doing rather well for profits overall.
So far this year, Iberdrola have invested around £4 billion in renewable energy and energy networks. They boast total profits of well over £2 billion for the first nine months of the year. That figure has risen by a fifth from the same period last year.
The Chairman and Chief Executive of Iberdrola, Ignacio Galán, said of his company’s prosperity:
“These achievements provide us additional room for new investments, creating a virtuous circle of growth and financial strength.”
Iberdrola is a public multinational electric utility company based in Bilbao, Spain. Their subsidies include US-based Avangrid and NYSEG, as well as Scottish Power. Iberdrola is the main producer of wind power in the world. They are also one of the world’s biggest electricity utilities by market capitalisation.
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