Interim operating profits in generation rocket by 300% at Scottish Power as Big Six provider also marks 1m smart meter installation milestone

Interim operating profits at Scottish Power’s energy generation division rocketed by more than 300% in the first six months of this year, compared to the same period in 2017.

The companies Renewables and Grid / Networks divisions also recorded more modest increases in operating profits of 27% and 3% respectively.

But Big Six provider also lost another 100,000 house gas and energy customers – to 4.9 million – in the six months to June 2018 – continuing a flight by consumers to cheaper deals from independent energy providers.

In April 2018, Scottish Power announced a 5.5% rise in gas and electricity prices for nearly one million of its customers, effective from 1 June.

Scottish Power also announced that it has installed a cumulative total of one million smart meters in the half-year ending Jun 2018.

It is working with four installation partners across the UK, fitting up to 2,700 meters per day with a workforce of over 500 people. Keith Anderson, chief executive of Scottish Power, said: 

“Everyone knows that installing smart meters hasn’t been plain sailing for suppliers. Challenges have been overcome, with more to face, but it is a major achievement to reach one million installations. 

“The potential for customers to reduce consumption and save money is only one benefit. As the energy industry becomes fully digital in the years ahead, the new meters will be a vital cog in a smart network that supports electric vehicle charging, manages locally produced renewable energy and even the storage of electricity at home.”

Keith Anderson
Keith Anderson

Commenting on the interim results across the board, Anderson added: “All of our business areas are performing in line with expectations.

“Our investment in onshore wind last year has seen an increase in electricity generated, and excellent progress has been made on delivering the £2.5 billion East Anglia-1 project. We expect first generation of electricity next year.

“Networks also continues to see major investment. We are delivering a smarter and more robust grid system to support renewable energy connections, as well as planning for the anticipated increased uptake of electric vehicles in the years ahead.

“And Generation and Supply has improved on the poor results in 2017, moving towards a more typical year.

“Meanwhile, we expect further details on the proposed energy price cap in the second half of the year, and expect the market to remain challenging.”

26 Jul 2018

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