Scott Wright Deputy Business Editor
SCOTTISHPOWER has declared that it has invested a record £5 billion in
contracts across its operations in the last two years, with projects
including multi-million pound schemes to develop major wind farms around
the UK.
And in spite of the uncertain political backdrop the energy giant pledged
that it would keep investing in the years ahead, as long as the UK
Government continues to “provide stable regulation and presses ahead with
ambitious clean energy” policies. The company said its investment in the
last two years, which has included the development of the £650m Kilgallioch
Windfarm in the south west of Scotland, has supported more than 80,000 jobs
across its supply chain. Contracts have been placed with more than 3,500
suppliers, the company said, ranging from small local firms to large
infrastructure contractors.
Major projects currently on the company’s books include the development of
the 714 megawatt (MW) East Anglia ONE offshore windfarm off the Suffolk
coast. Construction of the onshore element of the project is underway,
ScottishPower noted, with offshore work due to begin early next year.
Elsewhere the company said it is spending around £660m this year to
strengthen its network of cables, power lines and substations. Such
infrastructure provides the electricity to 3.5m homes and businesses in
Scotland, Merseyside and North Wales, with the company adding that it has
now installed more than 600,000 smart meters.
Meantime, ScottishPower noted that 140 apprentices have joined its
Apprenticeship and Trainee programme in the last four years, which has been
run in partnership with Forth Valley College. A 95 per cent success rate
has been achieved on the scheme, it said.
Keith Anderson, chief corporate officer at Glasgow-headquartered
ScottishPower, said: “To deliver some of our most ambitious projects ever,
we are working with a wide range of specialist companies, and supporting
tens of thousands of jobs. From large multi-national organisations to small
local businesses, each supplier provides a unique service that is critical
to delivering our investment plans.
“It has been a year of uncertainty politically in the UK, with choppy
waters still to be navigated in the years ahead. However, if the Government
continues to provide stable regulation and presses ahead with the ambitious
clean energy and industrial strategy policies, then companies like
ScottishPower will continue to invest billions of pounds and support
quality jobs.”
Details of the investment commitments were announced at the end of a
challenging week for the ScottishPower. On Tuesday the company, owned by
Spanish giant Iberdrola, reported a 60 per cent fall in profits in its
household energy supply arm to £59.4 million. That came as the company
120,000 lost customers in the last year, with numbers standing at 5.22m at
September 30 versus 5.34m at the same stage the year prior. Commenting on
the day the results were unveiled, Mr Anderson reiterated the company’s
opposition to UK Government proposals to introduce a cap on energy prices.
He declared it would be bad for consumers and energy companies large and
small, while undermining investor confidence.
He said: “The key question the Government needs to answer is whether they
still believe customers benefit most from free market competition. If they
do, any intervention must be designed to increase customer engagement,
which is the biggest thing wrong in this sector. Otherwise, we would urge
the Government to opt for a fully regulated market. We need clarity.”
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