Greig Cameron
Deputy Business Editor
THE head of ScottishPower has warned of a looming industry skills shortage
and a need to attract large numbers of young engineers because thousands of
workers are due to retire within the next decade.
Keith Anderson said the company is upping its graduate and apprenticeship
intake during 2015 to 130, from 85 last year, as it gears up to make £1.3
billion of investment in network improvements and renewable projects in the
UK this year.
In a bid to address the potential skills shortage ScottishPower is already
going in to primary and secondary schools to encourage engineering as a
career choice.
Mr Anderson, who also runs ScottishPower Renewables, said: “As an industry
as a whole, and we are no different to the rest, if you look at the next 10
years it is about 30 to 40 per cent of engineers leaving the sector.
“One of the biggest drivers for us is how do we get young people back in to
want to be part of the energy sector. We have got a huge drive on with
schools, universities and colleges but also reinvigorating apprenticeship
schemes.”
Mr Anderson suggested a lot of work is going in to changing perceptions of
how engineering is perceived.
“[The skills agenda] is hugely important. It is not to have a dig at any
other sectors but generally the energy sector or engineering has become a
little bit unfashionable compared to some other sectors.
“A lot of people out there think it is getting grease and oil under your
hands and it is a dirty job. There is a whole education process to talk
about the kind of people we need.
“Yes we need people at the end of the business climbing the poles, mending
the wire and in the generation stations but we also need a huge number of
highly skilled, highly qualified engineers in civil, mechanical,
structural, chemical and aeronautical engineering.”
A ScottishPower spokesman confirmed it is also sending young engineers into
schools to explain what their jobs involve.
He said: “It has got to the point that there could be issues in the next
few years if we don’t start finding replacements.”
The company, owned by Spanish energy group Iberdrola, also said its major
new Glasgow headquarters remains on course to be completed towards the end
of 2015 with the first staff set to move in during the first quarter of 2016.
Part of its renewable investment this year will see construction start on
the Killgallioch onshore wind farm in Ayrshire.
A feasibility study on a large scale pump storage hydro scheme at Cruachan
is still ongoing while the future of the Longannet power station has been
subject to much debate recently with suggestions it could close earlier
than anticipated.
Mr Anderson said: “The debate around Longannet is more about how you make
sure the transition is done in a safe and secure manner.”
Annual results for 2014 saw the UK generation and supply business post
earnings before interest, tax, depreciation and amortisation of £368.3m, up
from £272.1m.
Lower coal prices helped generation from Longannet and while gas prices
were also down ScottishPower said margins in its gas fired power plants
were still very low.
In renewables EBITDA rose from around £170m to £195m helped by a first
contribution from the West of Duddon Sands offshore wind farm.
Retail customer numbers, 2.2 million gas users and 3.5 million electricity
users, were relatively steady with Mr Anderson believing new entrants to
the sector have improved competition.
He said: “In terms of the customer end of the market there is a lot of
competition and it is a very aggressive market.
“A few of the smaller suppliers have taken customers by being quite
aggressive. We are doing well and holding our own. Our customer numbers and
relatively stable and we are competing hard.”
Mr Anderson said a new dual fuel tariff just launched by ScottishPower was
13 per cent cheaper than one year ago which proved “competition is working
and pushing companies like us and putting prices down”.
Iberdrola’s EBITDA was up 3.1 per cent to almost €7 billion, compared to
€6.76bn.
Net profit was down 9.5 per cent from €2.57bn to €2.32bn.
Iberdrola said it had been affected by regulatory changes in Spain but
performance from its generation businesses, including in the UK, had been good.
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