ScottishPower reports earnings jump as Ofgem allows companies to recover losses

ScottishPower has said that its earnings ballooned in the first nine months of this year as Ofgem allowed energy companies to claw back some of the losses they had made during the energy crisis.

The business said that its consumer-focused division had seen earnings before interest and tax (Ebit) of £574 million during the period, up by £653 million compared with the year before.

It came after energy regulator Ofgem included a clause in the price cap which allowed energy companies to recoup some of the money they lost. Most of this benefit had already been reported by ScottishPower earlier this year in its first-half results.

The business said that it served 4.6 million customers at the end of September, unchanged from March.

It said that consumers used 4% less electricity and 15% less gas in the period.

Overall ScottishPower reported a 132% rise in Ebit to £1.4 billion for the nine months. Ebit at its renewables division rose 34% to £357 million mainly due to windier conditions which helped its turbines produce more energy.

The company’s network division saw an 18% rise to £496 million.

“We are cracking on with our investment programme across the UK for essential upgrades to the electricity grid and new renewable energy projects,” said chief executive Keith Anderson.

He highlighted the recent failure of the annual renewables auction – allocation round 5 (AR5) – to produce any new wind power contracts.

“Britain still needs to pick up the pace. Unlocking the full potential of offshore wind is key to electrifying the economy and delivering energy independence for the UK,” he said.

“After the disappointment of the AR5 auction, we are engaging with the Government on how to get investment in offshore wind back on track next year.”