ScottishPower has reported an 11% year-on-year fall in earnings before tax for the first quarter, down £62m to £497m, blaming pressures on its retail side.
The liberalised retail business only made £12m, down by £118m from the same period last year. It blamed the six month delay in updating the price cap mechanism, which led to a “continued strain on earnings”. Gross margin problems also included the impact of milder weather year on year.
Meanwhile, ScottishPower Renewables made £250m in earnings before tax, up £41m, or 19.5% year-on-year, mainly due to increased production - with £16m as a result of weather conditions - as well as higher energy prices.
Onshore wind production increased 43% in the first three months of 2021 due to windier weather conditions across the UK.
ScottishPower Energy Network also saw earnings before tax of £250m, up 6.2% year-on-year, with the £15m uplift coming from gross margins on transmission revenues.
The number of Scottish Power retail customers by the end of March was 4.8 million.
The company's total energy volumes produced, compared to last year, were up by 0.5% in terms of electricity usage, while gas usage decreased by 13.5%.
ScottishPower also confirmed that planning consent was granted for the 2,900 MegaWatt East Anglia Hub, which will see two new offshore wind farms - East Anglia One North and East Anglia Two - built 37km off the coast at Lowestoft.
The company has also received provisional approval by Ofgem for the construction of the 2 GigaWatt power transmission line linking Scotland and the NorthEast of England, which is expected to come into service in 2027.
Keith Anderson, ScottishPower chief executive, said: “Decarbonisation and delivering green energy security have never been more important as we see record global gas prices impacting on every home and business in the UK.
“Our first quarter has seen onshore wind generation increase by over 40% demonstrating the huge role it has to play in delivering for the GB energy market going forward, coupled with offshore wind and our planned investments in new technologies like green hydrogen and battery storage.
“However, UK households are facing a cost of living crisis that is unprecedented and is only set to get worse with energy prices likely to rise further in October.
“The scale of this issue is too big for one industry to deal with and that’s why we believe we need a new approach which could see government reducing bills by £1,000 for the most vulnerable with a targeted fund and costs only recouped once prices return to normal and over a longer period of time.
“Government, consumer groups and industry are unanimous in the view that something needs to be done to soften the blow for consumers – it’s time to think out of the box on the solution to support those most in need.”
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