Scottish Power loses 200,000 customers
22nd February 2018 | Residential Energy
Energy group Scottish Power has reported losing about 200,000 customer accounts last year, as it faced tougher competition. The company’s 2017 results revealed customer numbers fell from 5.3 million to 5.1m. The decrease contributed to a 51 per cent drop in earnings from its retail supply division, to £98m,
Electricity generation earning fell by 36 per cent, to £23m, following the closure of coal-burning plants, including Longannet in Fife.
However, earnings at its UK renewables division were up 44 per cent, to £316m, as it plugged in new wind farms and output increased 32 per cent. Gas supply was down due to warmer weather last year.
Keith Anderson, Scottish Power’s chief corporate office, said, “Completing our £560m investment in UK onshore wind in 2017 led to a good performance from the new renewables business, delivering a significant increase in green electricity production. We now have more than two gigawatts of wind power capacity, and the £2.5 billion East Anglia ONE offshore windfarm is well into construction. [More than] £600m was also invested in to our Networks business last year, as we continue to deliver smart and efficient grids capable of supporting the UK’s future energy needs.
“As anticipated, generation and supply continued to face challenges, predominantly in light of increasing input costs, reduced demand, challenging market conditions and political uncertainty”.
The company’s Spanish owner, Iberdrola, said yesterday it would invest £32bn over the next four years, mostly in networks, renewable energy and power purchase contracts in Mexico. The firm, which supply energy to more than 30m people in countries including the UK, Spain and the US, hopes to book a net profit of between €3.5 billion and €3.7 billion in 2022, it said in a statement.
Revenue in Iberdrola’s networks business in the UK fell 7.4 per cent on lower demands and margins.
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