ScottishPower has reported an 11% decrease in earnings for the first half of the year, amounting to just over £1 billion.
This decline is largely attributed to the one-off recovery of outstanding price cap allowances from 2022, which significantly affected the company’s customer supply business.
The fall in earnings from its supply arm, which serves households and businesses, was nearly 70% year-on-year, dropping to £175 million.
This year-on-year decrease of £401 million is primarily due to the recovery of allowances set by Ofgem, the UK energy regulator.
Throughout 2022, energy suppliers, including ScottishPower, were compelled to buy energy at peak prices and sell it at a loss due to the price cap, until Ofgem adjusted the cap to reflect actual costs.
ScottishPower’s network and renewables sectors, however, showed significant gains.
Keith Anderson, Chief Executive Officer of ScottishPower, highlighted the company’s role in the UK’s economic growth, noting that over £2 billion has been invested in the first six months of the year.
Mr Anderson said: “We’ve seen a solid financial performance in the first half of the year, driven by our long term investments in the clean energy assets Britain needs to deliver energy security and affordable power for decades to come.
“Our investment strategy is closely aligned with the UK’s ambitions to be a clean energy superpower and we continue to progress our high-quality project pipeline across grids, renewables and clean energy technologies.
“With £12 billion to invest to 2028, we’re delivering jobs, delivering supply chain contracts and helping deliver the economic prosperity the UK needs to get growing again.”
