Editing ScottishPower

{{Short description|Scottish energy company}}
{{Distinguish|text=the early to mid twentieth century [[Scottish Power Company Limited]] or the company formerly known as [[SSE plc|Scottish and Southern Energy]]}}
{{Use dmy dates|date=February 2023}}
{{Use British English|date=June 2013}}
{{Infobox company
| name = Scottish Power Limited
| logo = ScottishPower Logo 2023.svg
| logo_alt = ScottishPower's logo as of 2023.
| logo_caption = Logo used since 2023. It is based on the [[Iberdrola]] logo.
| image = Scottish Power building (geograph 5475867).jpg
| image_alt = Image of ScottishPower’s headquarters in Glasgow
| image_caption = Headquarters on St Vincent Street, Glasgow 
| former_name = {{Ubl
| New Scottish Power plc (29{{endash}}30 July 1999)
| Scottish Power plc (1999{{endash}}2007)<ref name=":0" />}}
| type = [[Subsidiary]]
| foundation = 1990
| location = {{nowrap|[[Glasgow]], Scotland}}
| num_employees = 5,500 (2020)
| industry = [[Electricity generation]], [[Electric power transmission|transmission]], [[Electricity distribution|distribution]], [[Electricity retailing|retailing]]
| products = [[Electric power|Electricity]] and [[natural gas]]
| revenue = {{increase}} £5,349.7 million (2020)
| parent = [[Iberdrola]]
| net_income = {{decrease}} £78 million (2020)
| homepage = {{URL|https://scottishpower.com}}
}}
'''Scottish Power Limited''', [[Trade name|trading as]] '''ScottishPower''', is a [[vertically integrated]] [[energy company]] based in [[Glasgow]], Scotland.<ref name=":0">{{Cite web |title=SCOTTISH POWER LIMITED overview - Find and update company information - GOV.UK |url=https://find-and-update.company-information.service.gov.uk/company/SC193794 |access-date=2024-04-23 |website=find-and-update.company-information.service.gov.uk |language=en}}</ref> It is a subsidiary of Spanish utility firm [[Iberdrola]].

ScottishPower is the [[distribution network operator]] for [[Central Scotland (Scottish Parliament electoral region)|Central]] and [[South of Scotland (Scottish Parliament electoral region)|Southern Scotland]], [[Merseyside]], [[North Wales]] and parts of [[Cheshire]] and [[Shropshire]].<ref>{{Cite web | url=https://www.spenergynetworks.co.uk/pages/contact_us.aspx | title=Contact Us – SP Energy Networks}}</ref> It is also the [[National Grid (Great Britain)#Control of the grid|transmission owner]] for the south of Scotland.<ref>{{Cite web|url=https://www.spenergynetworks.co.uk/pages/our_transmission_network.aspx|title = Our Transmission Network}}</ref> The company also supplies electricity and [[natural gas|gas]] to homes and businesses around the United Kingdom and generates power for supply to the grid. It owned PPM Energy in the [[United States]], which has now been folded into [[Avangrid]].

== History ==
=== Foundation ===
[[File:Scottish Power 1990 Logo.gif|230px|thumb|Original ScottishPower logo]]

ScottishPower was formed in 1990, in preparation for the [[privatisation]] of the previously state-owned Scottish electricity industry the following year.<ref>[https://www.theguardian.com/business/2000/nov/22/thatcher.politics1 A whole world sold on sell-offs] Guardian, 22 November 2000</ref> Previously the UK government had privatised the English and Welsh electricity industry by splitting the market into 12 regional electricity companies (RECs) and two power generators. However, in Scotland, the industry was already organised on an integrated generation, distribution, and supply basis, and this integration survived the privatisation to become a model for the rest of the United Kingdom. ScottishPower was largely formed from the bigger of the two Scottish electricity boards, the [[South of Scotland Electricity Board]], whilst the smaller, the [[North of Scotland Hydro Board]], eventually became part of the [[SSE plc|Scottish & Southern Energy Group]] (the nuclear power stations in Scotland were spun off into a third company, [[Scottish Nuclear]], which was not sold off with ScottishPower and [[Scottish Hydro Electric]], but was sold later as part of [[British Energy]]).<ref>{{cite news|url=https://www.theguardian.com/business/2008/sep/24/britishenergygroup.edf|title=British Energy: Background|date=24 September 2008|newspaper=The Guardian|access-date=5 May 2024}}</ref>

=== MANWEB and Southern Water ===
ScottishPower was the larger of the two Scottish energy companies and benefited from being both a generator and supplier of power. In 1995 it acquired the [[regional electricity company]] [[MANWEB]], which supplied [[Merseyside]], North Wales and parts of [[Cheshire]].<ref>[http://findarticles.com/p/articles/mi_qn4158/is_/ai_n14008517 Manweb confirms bid talks] Independent, 26 September 1995</ref> In 1996 the company diversified into the [[water]] supply business with the purchase of [[Southern Water]]<ref>[https://query.nytimes.com/gst/fullpage.html?res=9E07E4DF1E39F93AA15756C0A960958260&sec=&spon= Scottish Water gets $2.35bn offer] New York Times, 29 May 1996</ref> (which was sold again in 2002).<ref>[http://news.bbc.co.uk/1/hi/business/1862160.stm Scottish Power to sell water firm for £2bn] BBC News, 8 March 2002</ref>

When the supply of energy into British homes was opened up to competition, ScottishPower entered this market, taking market share from the previous gas supply monopoly [[British Gas plc|British Gas]] and also gaining new market share in England and Wales.<ref>{{cite web|url=https://www.fitchratings.com/research/corporate-finance/dcr-reaffirms-rating-for-scottish-power-uk-plc-24-03-2000|title=DCR Reaffirms Rating for Scottish Power UK plc|date=24 March 2000|newspaper=Fitch Ratings|access-date=6 May 2024}}</ref>

=== Scottish Telecom ===
ScottishPower established the telecommunications company, [[Thus (company)|Thus]] (originally known as Scottish Telecom)<ref>[http://www.thus.net/aboutus/ Thus: About us]</ref> and then floated it on the [[London Stock Exchange]] in 2002.<ref>[https://web.archive.org/web/20090514101101/http://www.independent.co.uk/news/business/comment/outlook-and-thus-the-demerger-finally-came-to-pass-663799.html And thus the demerger finally canme to pass] Independent, 20 December 2001</ref>

=== PacifiCorp ===
In 2000, ScottishPower completed the acquisition of [[PacifiCorp]], which supplies electricity in the western United States, which operates as '''Pacific Power''' (in the regulated energy industries of the states of [[Oregon]], [[Washington (state)|Washington]], [[California]]), and as '''Rocky Mountain Power''' (in the regulated energy industries of the states of [[Idaho]] and [[Utah]] as well as both and central and eastern [[Wyoming]] (former Pacific Power territory), and southwestern [[Wyoming]]).<ref>[https://web.archive.org/web/20121022210839/http://www.highbeam.com/doc/1P2-4473440.html Scottish utility bids for PacificCorp] Chicago Sun-Times, 8 December 1998</ref> In May 2005, ScottishPower announced that it had agreed to sell Pacificorp to [[MidAmerican Energy Holdings Company]], a company controlled by [[Warren Buffett]]'s company, [[Berkshire Hathaway]], for US$5.1 billion in cash and US$4.3 billion in debt and preferred stock.<ref>[http://www.mindfully.org/Energy/2005/Buffet-Berkshire-PacifiCorp24may05.htm Berkshire Unit to acquire PacificCorp for $5.1bn]; {{Webarchive|url=https://web.archive.org/web/20160303190108/http://www.mindfully.org/Energy/2005/Buffet-Berkshire-PacifiCorp24may05.htm |date=3 March 2016 }} ''The Wall Street Journal'', 24 May 2005</ref> The successful completion of the deal was announced on 21 March 2006, after securing regulatory approvals. The deal did not include '''PPM Energy''' (which, as Pacificorp Power Marketing, was formerly the non-regulated subsidiary of Pacificorp).<ref>{{cite web|url=https://www.sec.gov/Archives/edgar/data/1045513/000119312506088980/dex99a16.htm|title=Scottish Power: Return of Cash: Questions and Answers for ADS Holders|publisher=SEC|access-date=5 May 2024}}</ref>

=== Takeover bids ===
Following the announcement of its acquisition of [[PacifiCorp]], the group's share price rose but the company was now widely seen as vulnerable to a takeover. It was soon revealed that the German energy group [[E.ON]], which also owns [[Powergen]], was interested in a takeover. On 22 November 2005, the board rejected an offer from E.ON of 570 pence per share, which would have valued the group at £10.7 billion.<ref>[http://news.bbc.co.uk/1/hi/business/4459472.stm Scottish Power rejects bid move] BBC News, 22 November 2005</ref>

On 28 November 2006, the board of directors of ScottishPower agreed to an £11.6 billion takeover bid by the Spanish energy firm [[Iberdrola]]. The offer was formally approved by shareholders at an [[Extraordinary General Meeting|EGM]] on 30 March 2007, effectively creating Europe's third largest utility company.<ref>[http://www.iht.com/articles/2006/11/28/business/web.1128power.php Iberdrola to buy Scottish Power for £11.6bn] International Herald Tribune, 28 November 2006</ref>

=== Recent history ===
[[File:St Vincent Street - geograph.org.uk - 5475833.jpg|thumb|right|180px|New HQ building on St Vincent Street in Glasgow]]
On 24 November 2018, the British government's energy regulator, the [[Office of Gas and Electricity Markets]] (Ofgem), appointed ScottishPower as Supplier of Last Resort for the failed domestic and business supplier Extra Energy. ScottishPower acquired all of Extra Energy's 108,000 domestic customers and 21,000 business customers.<ref>{{Cite web|url=https://www.ofgem.gov.uk/publications-and-updates/ofgem-appoints-scottish-power-take-customers-extra-energy|title=Ofgem appoints Scottish Power to take on customers of Extra Energy|date=24 November 2018 }}</ref>

On Friday 9 October 2020, Ofgem appointed ScottishPower as Supplier of Last Resort for the failed domestic supplier Tonik Energy. Scottish Power acquired all of Tonik Energy's 130,000 customers.<ref>{{Cite news|date=2020-10-09|title=Scottish Power to supply Tonik Energy customers – Ofgem|language=en|work=Reuters|url=https://uk.reuters.com/article/uk-tonik-energy-ofgem-supplier-idUKKBN26U1V0|archive-url=https://web.archive.org/web/20201014212610/https://uk.reuters.com/article/uk-tonik-energy-ofgem-supplier-idUKKBN26U1V0|url-status=dead|archive-date=14 October 2020|access-date=2020-10-16}}</ref>

On Friday 5 December 2020, Ofgem appointed ScottishPower as Supplier of Last Resort for the failed domestic supplier Yorkshire Energy (also known as Daisy Energy). ScottishPower acquired all 74,000 domestic customers and a small number of non-domestic customers.<ref>{{Cite web|url=https://www.ofgem.gov.uk/publications-and-updates/ofgem-appoints-scottish-power-take-customers-yorkshire-energy|title = Ofgem appoints Scottish Power to take on customers of Yorkshire Energy| date=5 December 2020 }}</ref>

== Controversies and complaints ==
In April 2007, the energy regulator [[Office of Gas and Electricity Markets|Ofgem]] urged customers of ScottishPower and [[EDF Energy]] to switch to a cheaper provider after the firms refused to cut prices in line with the rest of the industry.<ref>[http://www.timesonline.co.uk/tol/money/consumer_affairs/article1698416.ece Ofgem slams EDF and Scottish Power]{{dead link|date=September 2024|bot=medic}}{{cbignore|bot=medic}}. Times Online. 24 April 2007. Retrieved 4 June 2009.</ref>

In April 2008, Ofgem launched an investigation into allegations that ScottishPower abused their dominant market position relating to the electricity transmission network they own jointly in Scotland.<ref>[https://www.theguardian.com/business/2008/apr/09/oil.scottishandsouthernenergy Ofgem inquiry into dominance of Scottish grid]. [[The Guardian]]. 9 April 2008. Retrieved 4 June 2009.</ref> Ofgem said it had launched its inquiry into Scottish Power and [[SSE plc|SSE]] under section 18 of the [[Competition Act]], "based on a formal complaint alleging abuse of a dominant position in the electricity generation sector arising from constrained capacity on the transmission network."<ref>[http://www.ldpbusiness.co.uk/liverpool-news/national-business-news/2008/04/08/scottish-power-to-be-investigated-by-ofgem-96026-20735261/ Scottish Power to be investigated by Ofgem] {{webarchive|url=https://archive.today/20120804113743/http://www.ldpbusiness.co.uk/liverpool-news/national-business-news/2008/04/08/scottish-power-to-be-investigated-by-ofgem-96026-20735261/ |date=4 August 2012 }}. LDP Business. 8 April 2009. Retrieved 4 June 2009.</ref> The energy regulator believes that energy generators manipulate the power market for profit when supplies are tight because network operator [[National Grid (UK)|National Grid]] has to pay utilities to turn their plants on or off to balance supply and demand. This resulted in companies deliberately shutting their plants down when supplies are tight in order to receive a higher payment to start up again, increasing the system balancing costs at the expense of consumers. Ofgem was alarmed that the cost of balancing the system increased from £70 million in 2007/08 to an estimated £238 million for 2008/09 and an expected £258 million in 2009/10, with most of the costs incurred in Scotland. In January 2009, Ofgem suspended the investigation, saying it would be more effective to deal with the wider problem than pursuing the specific case further.<ref>[https://archive.today/20120719114546/http://uk.reuters.com/article/domesticNews/idUKTRE52T4RH20090330 Ofgem wants more power to punish market abuse]. [[Reuters]]. 30 March 2009. Retrieved 4 June 2009.</ref>

In November 2012, the [[Information Commissioner's Office]] (ICO) publicly listed ScottishPower as one of a number of companies that it had concerns about due to unsolicited telephone calls for marketing. The concerns were based on complaints. In response, ScottishPower said that it was working with the ICO to address any issues.<ref>{{citation|url=https://www.bbc.co.uk/news/business-20348373|publisher=[[BBC News]]|title=Commissioner names firms over 'nuisance' marketing calls|date=16 November 2012|last=Core|first=Kevin|access-date=8 February 2013}}</ref>

In early 2015, ScottishPower was temporarily banned from signing up new customers, due to long-standing and serious concerns regarding poor customer service, overdue bills and failure to implement rulings made by the Energy Ombudsman.<ref>{{cite news|url=https://www.bbc.co.uk/news/business-31728249|title=Scottish Power hit with 12-day sales ban by Ofgem|date=4 March 2015|publisher=BBC News}}</ref> The company's failings continued to be highlighted in the press later in the year, with complaints levels 20 times those of their best-performing competitor<ref>{{cite web|url=http://www.dailyrecord.co.uk/news/scottish-news/scottishpower-finish-bottom-customer-service-6528546|title=ScottishPower finish bottom of customer service league table with 20 times more complaints than top-ranked supplier|first=Vicky|last=Shaw|date=28 September 2015}}</ref>

In April 2016, ScottishPower released a press release that an £18M agreement had been reached with [[Office of Gas and Electricity Markets|Ofgem]] following their investigation into customer service standards.<ref>{{cite web|url=https://www.ofgem.gov.uk/publications-and-updates/scottishpower-pay-18m-customer-service-failings|title=ScottishPower to pay £18m for customer service failings|date=2016-04-26}}</ref>

In 2017, ScottishPower created controversy when they pursued a couple for a £4,300 debt despite the couple not owing ScottishPower any money and, moreover, not being customers of the firm. ScottishPower ignored letters from the couple, instead sending bailiffs to the home of the couple. It later transpired that the couple were in no debt to ScottishPower.<ref>{{Cite news | url=https://www.bbc.co.uk/news/uk-wales-mid-wales-39292239 | title=Firm chases wrong couple for £4k debt| publisher=BBC News| date=2017-03-17}}</ref>

In 2020, ''[[The Observer]]'' gave ScottishPower an award for the year's "worst customer service" for "its singular pursuit of revenue", including sending bills, debt collectors' letters and the threat of bailiffs to people who did not use its services, then refusing to register their complaints.<ref>{{cite web|url=https://www.theguardian.com/money/2020/dec/27/in-the-year-of-covid-the-awards-for-worst-customer-service-go-to|title=In the year of Covid, the awards for worst customer service go to...|date=27 December 2020|access-date=30 December 2020|work=[[The Observer]]|first=Anna|last=Tims}}</ref>

In January 2021, the Consumers' Association magazine ''[[Which?]]'' ranked ScottishPower the worst-performing supplier for customer service and the second worst supplier overall in their annual review of energy suppliers.<ref>{{cite web|url=https://www.heraldscotland.com/news/19035464.scottishpower-sse-scottish-gas-outfox-octopus-best-worst-energy-firms-customer-satisfaction/|title=ScottishPower, SSE, Scottish Gas, Outfox & Octopus: Best and worst energy firms for customer satisfaction|date=25 January 2021|access-date=14 February 2021|work=[[The Herald (Glasgow)|The Herald]]|first=Martin|last=Williams}}</ref>

== Operations ==
=== Energy Retail ===
The Energy Retail division contains '''ScottishPower Energy Retail Ltd''' which holds the gas and electricity supply licences.

At the end of September 2023, this division held an 8.7% share of the domestic electricity supply market<ref name="Ofgem chart">{{Cite web|url=https://www.ofgem.gov.uk/energy-data-and-research/data-portal/retail-market-indicators|title=Retail market indicators|date=September 2023|website=Ofgem|language=en-gb|access-date=26 March 2024}}</ref> and 7.5% share of the domestic gas supply market.<ref name="Ofgem chart" /> This is the lowest market share held by the company since 2004.

Also included in this division is '''SP Dataserve Ltd''' which provides a range of metering services including data collection, analysis and revenue protection.<ref>{{cite web|url=https://meteroperators.org.uk/members/sp-dataserve-limited/|title=SP Dataserve Ltd|website=Association of Meter Operators}}</ref>

=== Energy Networks ===
[[File:Scottish power area.PNG|thumb|150px|right|ScottishPower [[electricity distribution]] areas]]

The Energy Networks business contains three asset owning companies '''SP Transmission Ltd''' – holds the transmission licence for central and southern Scotland and owns the part of the [[Moyle Interconnector]] with [[Northern Ireland Electricity]], '''SP Distribution Ltd''' – holds the distribution licence for central and southern Scotland and '''SP Manweb Plc''' – holds the distribution licence for North Wales, Merseyside, and Cheshire. A fourth asset management business '''SP Power Systems Ltd''' maintains and repairs the distribution networks on behalf of the owners and acts as the [[distribution network operator]]. The operation of the transmission grid is carried out by [[National Grid plc]].

=== Energy Wholesale ===
Energy Wholesale contained two companies, '''ScottishPower Generation Ltd''', which formerly generated 6,200 MW of electricity power in the United Kingdom using coal-fired [[power stations|thermal power stations]], [[combined cycle]] power stations, [[hydro-electric]] schemes, [[pumped storage]] generation and were acquired by Drax in 2018. In 2006, ScottishPower Renewables (SPR) was granted permission to build Europe's largest on-shore [[windfarm]]. The 322 MW / 140 [[turbine]] site cost an estimated £300m and covers approximately {{convert|55|km2|sqmi|abbr=on}} of moorland south of [[Glasgow]]. By 2014, SPR had a portfolio of over 1,250&nbsp;MW of operating windfarms, including the recently expanded Whitelee with a total generation capacity of 539&nbsp;MW, making it Europe's largest windfarm. Also within this division is '''ScottishPower Energy Management Ltd''' which is responsible for buying and selling wholesale energy.

In 2005, the [[WWF (conservation organization)|WWF]] named ScottishPower's [[Cockenzie power station]] as the UK's least carbon-efficient power station.<ref>{{cite web|url=http://www.wwf.org.au/news/n223/ |title=Hazelwood tops international list of dirty power stations -- WWF-Australia |access-date=2008-10-02 |url-status=dead |archive-url=https://web.archive.org/web/20081013091310/http://www.wwf.org.au/news/n223/ |archive-date=13 October 2008 }}</ref> It is now closed.

In 2007, the WWF named ScottishPower's [[Longannet power station]] as the UK's least carbon-efficient power station out of Europe's top 30 worst polluting power stations in absolute terms.<ref>{{cite web|url=https://wwfeu.awsassets.panda.org/downloads/european_dirty_thirty_may_2007.pdf|title=Dirty Thirty – Ranking of the most polluting power stations in Europe|date=May 2007|website=WWF}}</ref> It ceased operation in 2016.<ref>{{Cite news |date=2021-12-08 |title=Longannet power station chimney blown up |language=en-GB |publisher=BBC News |url=https://www.bbc.com/news/uk-scotland-edinburgh-east-fife-59578148 |access-date=2023-01-11}}</ref>

{| class= wikitable
|+ScottishPower generation portfolio
! Station name
! Generation capacity
! Installation
! Fuel
|-
|[[Whitelee Wind Farm]]
|322 MW
|140 Siemens [[wind turbine]]s
|[[Wind power|Wind]]
|-
|[[Black Law Wind Farm]]
|124 MW
|54 Siemens [[wind turbine]]s
|[[Wind power|Wind]]
|}

=== PPM Energy ===
'''PPM Energy Inc''' was previously the competitive arm of [[Pacificorp]] but was made a separate business in 2002. It was involved in [[renewable energy]] and gas storage, amongst other things, in the US.  It is now part of [[Avangrid]] Renewables.

== See also ==
{{Portal|Companies|Scotland|Energy}}
* [[Energy policy of Scotland]]
* [[Energy use and conservation in the United Kingdom]]
* [[Green electricity in the United Kingdom]]

== References ==
{{reflist}}

== External links ==
* [http://www.scottishpower.com ScottishPower corporate website]
* [http://www.scottishpower.co.uk ScottishPower customer website]
* [http://www.spenergynetworks.com SP Energy Networks Website]

{{Energy in Scotland}}
{{European Network of Transmission System Operators for Electricity}}
{{Economy of Scotland}}
{{Energy in the United Kingdom|companies}}
{{Authority control}}

[[Category:1990 establishments in Scotland]]
[[Category:British companies established in 1990]]
[[Category:British subsidiaries of foreign companies]]
[[Category:Companies based in Glasgow]]
[[Category:Companies formerly listed on the London Stock Exchange]]
[[Category:Electric power companies of Scotland]]
[[Category:Electric power distribution network operators in the United Kingdom]]
[[Category:Energy companies established in 1990]]
[[Category:Former nationalised industries of the United Kingdom]]
[[Category:Iberdrola]]
[[Category:Oil and gas companies of Scotland]]
[[Category:Scottish brands]]
[[Category:Utilities of Scotland]]
[[Category:Wind power companies of Scotland]]