Annual profits

Scottish Power has tripled its annual profits

ScottishPower now generates 100% of its electricity from wind power. Photo: Andy Dysart / PA Wire

Supplier Big Six, owned by Spain’s Iberdrola, said it had recovered from a “difficult” 2017 to see profits from its production and supply business soar 187% to 271.8 million pounds sterling last year.

The company has kept the total number of gas and electricity customers stable above 5 million, having previously been hit by an exodus amid competition from smaller rivals and campaigns encouraging change.

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But the profits will be a blow to some after ScottishPower said on Tuesday it would raise prices by 10% for households on its Standard Variable Tariffs (SVT) from April 1.

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The price increase is in line with the energy regulator’s higher price cap.

It was the fifth of six major UK providers to announce SVT increases after Ofgem said the cap would increase to reflect changes in wholesale costs.

Keith Anderson, managing director of ScottishPower, said the supply industry had “improved dramatically”.

He praised the group’s green credentials after switching to fully renewable energy.

ScottishPower now generates 100% of its electricity from wind power after selling the last of its gas plants to Drax Group.

Mr Anderson said: “The past year has been a pivotal year for ScottishPower as we completed the historic journey from coal and gas to 100% green energy by selling our generation business.

He added: “It is clear that our customers support our commitment to green energy and our investment in a cleaner and healthier future because, unlike others, our overall number of customers remained stable in 2018.”

The company said it achieved a 3% retail margin in its supply arm and invested in the operation, installing 1.2 million smart meters, launching smart electric vehicle chargers and its first tariff “Uptime” of electric vehicles.

The results also showed that ScottishPower’s energy grids division saw a 5% increase in its underlying profits to £ 813.4million, while the renewables business saw its profits increase by 33%. to £ 457.8million.

The wider Iberdrola group for the first time reported annual net profits above € 3bn (£ 2.6bn), while operating profits jumped 27.7% to 9, € 3 billion (£ 8.1 billion).

He forecasts “single digit” growth in net income and underlying earnings in 2019.

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