ScottishPower
A UK vertically integrated energy company spanning electricity and gas supply, energy networks, and renewable generation.
Last updated November 3, 2026
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Overview
ScottishPower is a vertically integrated British energy company headquartered in Glasgow, Scotland. Its activities include electricity and gas supply, electricity generation, transmission and distribution network ownership, metering services, and wholesale energy management. The company serves households and businesses across the United Kingdom and operates important electricity network assets in Scotland, Merseyside, North Wales, Cheshire and parts of Shropshire. The business was created in 1990 during the preparation for the privatisation of Scotland's previously state-owned electricity industry. Unlike the English and Welsh electricity sector, which was divided into separate regional electricity companies and generators, Scotland retained a more integrated structure. ScottishPower was formed principally from the larger South of Scotland Electricity Board, allowing generation, network operation and supply to remain within a single corporate group after privatisation. ScottishPower expanded beyond its Scottish base during the 1990s. It acquired MANWEB in 1995, adding electricity distribution and supply activities in Merseyside, North Wales and parts of Cheshire. It also entered the water sector through the 1996 acquisition of Southern Water, although that business was later sold in 2002. The company entered telecommunications through Scottish Telecom, subsequently known as Thus, which was separated and floated on the London Stock Exchange in 2002. International expansion became particularly significant through the acquisition of PacifiCorp in the United States, completed in 2000. PacifiCorp operated regulated electricity businesses under the Pacific Power and Rocky Mountain Power names. ScottishPower agreed to sell PacifiCorp to MidAmerican Energy Holdings in 2005, and the transaction completed in 2006. ScottishPower's former non-regulated US renewable and energy-marketing activities, including PPM Energy, ultimately became associated with Avangrid's renewable-energy operations. In 2006, ScottishPower accepted a takeover offer from the Spanish utility Iberdrola. Shareholders approved the transaction in March 2007, and ScottishPower became part of the Iberdrola Group. The acquisition ended ScottishPower's status as an independent publicly traded energy group while preserving ScottishPower as a major UK operating brand. Renewable energy has become a central part of the brand's public positioning. Through ScottishPower Renewables, the group developed substantial onshore and offshore wind interests. Whitelee Windfarm south of Glasgow became one of Europe's largest onshore wind farms, and ScottishPower has continued to present wind generation and broader electrification as strategic growth areas. At the same time, the group has retained substantial regulated network responsibilities and a retail supply business. ScottishPower's retail division supplies electricity and gas and provides related metering and data services. Its networks division includes transmission assets in central and southern Scotland and distribution networks in central and southern Scotland, Merseyside, North Wales and Cheshire. Network operation is carried out within the UK electricity-market framework, with system operation separated from the asset-owning and distribution businesses. The company has also played a recurring role as a Supplier of Last Resort. Following the failures of Extra Energy in 2018, Tonik Energy in 2020 and Yorkshire Energy in 2020, Ofgem appointed ScottishPower to take on affected domestic customers. These transfers demonstrated the scale and operational importance of its retail platform, while also adding to public scrutiny of customer-service and billing performance. ScottishPower remains an active Iberdrola subsidiary focused on UK energy supply, networks and renewable generation.
History
ScottishPower originated in the reorganisation of Scotland's state-owned electricity industry. It was incorporated in 1990 in preparation for privatisation, drawing principally on the South of Scotland Electricity Board. Scotland's electricity system retained an integrated generation, distribution and supply structure, unlike the more fragmented model adopted in England and Wales. This structure gave ScottishPower a broad operating base from its beginning. After privatisation, ScottishPower expanded through acquisitions and diversification. Its 1995 purchase of MANWEB added electricity networks and supply operations serving Merseyside, North Wales and parts of Cheshire. In 1996, the company entered the water industry by acquiring Southern Water. That investment was subsequently reversed when Southern Water was sold in 2002. ScottishPower also created a telecommunications business, Scottish Telecom, later branded Thus, which was floated separately on the London Stock Exchange in 2002. The company's largest international expansion was the acquisition of PacifiCorp, completed in 2000. PacifiCorp supplied electricity in several western US states through the Pacific Power and Rocky Mountain Power businesses. ScottishPower later agreed to sell PacifiCorp to MidAmerican Energy Holdings in 2005, with completion in 2006 after regulatory approval. The transaction did not initially include PPM Energy, the group's non-regulated energy and renewable-energy business in the United States. PPM Energy was later incorporated into the renewable operations associated with Avangrid. ScottishPower became the subject of takeover interest after its international expansion. The board rejected an approach from E.ON in 2005. In November 2006, it agreed to an offer from Iberdrola. Shareholders approved the transaction in March 2007, and ScottishPower became a wholly owned subsidiary of the Spanish utility group. The deal preserved ScottishPower as a UK-facing operating brand while placing it within Iberdrola's wider international portfolio. The group developed a substantial renewable-generation platform through ScottishPower Renewables. Its onshore wind programme included Whitelee Windfarm south of Glasgow. The project was authorised as a large-scale development and later expanded to become one of Europe's largest onshore wind farms. ScottishPower also developed offshore wind interests and increasingly associated its public strategy with renewable generation, electrification and the transition away from carbon-intensive power. Historically, ScottishPower's wholesale generation portfolio included coal-fired and gas-fired stations, hydroelectric facilities, pumped storage and combined-cycle generation. Environmental groups criticised the carbon efficiency of Cockenzie and Longannet power stations. Cockenzie subsequently closed, while Longannet ceased operation in 2016. ScottishPower's conventional generation assets were later reduced further, with its former generation business acquired by Drax in 2018. The company's current operating structure centres on three connected areas. Energy Retail supplies electricity and gas to domestic and non-domestic customers and includes metering and data services. Energy Networks owns transmission assets in central and southern Scotland and distribution networks in central and southern Scotland, Merseyside, North Wales and Cheshire. ScottishPower's network businesses maintain the physical infrastructure, while system operation is performed within the national electricity-market framework. Renewable and wholesale activities support generation, energy procurement and trading. ScottishPower has repeatedly been appointed Supplier of Last Resort by Ofgem. It took on customers from Extra Energy in 2018, Tonik Energy in 2020 and Yorkshire Energy later in 2020. These interventions reinforced the importance of its retail systems but occurred alongside sustained criticism of billing, complaints handling and customer service. The company remains active as an Iberdrola subsidiary with a UK portfolio combining regulated infrastructure, retail supply and renewable-energy development.
- 2018
Generation business acquired by Drax
[1]ScottishPower's former conventional generation business was acquired by Drax.
- 2016
Longannet power station closed
[1]The coal-fired Longannet station ceased operation, marking a major change in ScottishPower's conventional-generation portfolio.
- 2007
Iberdrola takeover completed
[1]Shareholders approved Iberdrola's takeover, making ScottishPower part of the Iberdrola Group.
- 2006
PacifiCorp sold
[1]The sale to MidAmerican Energy Holdings was completed after regulatory approvals.
- 2002
Thus telecommunications business floated
[1]Scottish Telecom, later known as Thus, was separated and listed on the London Stock Exchange.
- 2000
PacifiCorp acquisition completed
[1]ScottishPower expanded into regulated electricity operations in the western United States.
- 1996
Southern Water acquired
[1]ScottishPower diversified into water services through the purchase of Southern Water.
- 1995
MANWEB acquired
[1]The acquisition extended ScottishPower's network and supply operations into north-west England and North Wales.
- 1990
ScottishPower established
[1]ScottishPower was formed from the South of Scotland Electricity Board ahead of the privatisation of Scotland's electricity industry.
Products and positioning
An integrated UK energy company combining regulated electricity networks, retail energy supply and renewable generation within the Iberdrola Group.
Retail energy
Electricity and gas supply
ScottishPower supplies electricity and natural gas to residential and business customers throughout the United Kingdom. The retail operation holds the relevant supply licences and manages tariffs, billing, customer accounts and energy procurement. It has also served customers transferred from failed suppliers under Ofgem's Supplier of Last Resort process.
Electricity transmission and distribution · 1990
Energy networks
ScottishPower's network businesses own and manage electricity transmission assets in central and southern Scotland and distribution networks in central and southern Scotland, Merseyside, North Wales and Cheshire. The network businesses maintain infrastructure and support the delivery of electricity to homes and businesses, while national system operation is conducted within the UK's electricity-market arrangements.
Renewable energy generation
ScottishPower Renewables
ScottishPower Renewables develops and operates renewable-energy projects, particularly onshore and offshore wind farms. Its portfolio has included major Scottish onshore developments such as Whitelee Windfarm. Renewable generation is a central element of ScottishPower's current strategic identity within Iberdrola.
Energy services
Smart metering and energy data services
SP Dataserve provides metering-related services, including data collection, analysis and revenue protection. These capabilities support retail billing, network management and the wider digitisation of energy consumption.
Wind generation · 2006
Whitelee Windfarm
Whitelee is a large onshore wind development south of Glasgow developed through ScottishPower Renewables. Its scale made it a prominent symbol of ScottishPower's move toward renewable generation and one of Europe's major onshore wind projects.
Controversies
2021
National Grid and Scottish Power agree to £158m penalty over cable delays
In 2021, the industry regulator found that delays to the Western Link subsea power cable led to Scottish wind farms being paid to switch off on windy days. National Grid and Scottish Power agreed to pay a record £158m penalty in connection with the delays. A spokesperson for the joint venture said it recognized that it was ultimately accountable for the delay and had agreed to the redress package. The penalty was described as a record in the context of the regulator's findings.
2017
Disputed debt and bailiff case
ScottishPower pursued a couple for an alleged debt even though the couple reportedly were not customers and did not owe the claimed amount. The case attracted criticism after collection activity reached the couple's home.
2015
Customer-service and complaints failures
ScottishPower was temporarily barred from signing up new customers amid regulatory concerns about poor customer service, overdue bills and failure to implement Energy Ombudsman rulings. The company continued to receive substantial criticism in subsequent reporting.
2008
Ofgem investigation into electricity-market conduct
Ofgem investigated allegations involving ScottishPower and SSE and the possible exploitation of constrained electricity-transmission capacity in Scotland. The regulator was concerned that generators might influence plant availability and balancing payments when network capacity was tight. The specific investigation was suspended in 2009 while Ofgem addressed the wider market issue.
Brand decisions
2018
Take on failed-supplier customersOtherBackground
The collapse of Extra Energy required Ofgem to appoint a Supplier of Last Resort.
Action taken
ScottishPower accepted the affected domestic and business customers.
Aftermath
The company subsequently performed similar roles for Tonik Energy and Yorkshire Energy in 2020.
2006
Accept Iberdrola takeoverM&ABackground
After rejecting an earlier approach from E.ON, ScottishPower's board considered Iberdrola's offer.
Action taken
The board agreed to Iberdrola's takeover, which shareholders formally approved in March 2007.
Aftermath
ScottishPower became a wholly owned Iberdrola subsidiary and continued operating under its established UK brand.
2000
Acquire PacifiCorpM&ABackground
ScottishPower sought international scale and access to regulated electricity markets outside the United Kingdom.
Action taken
It completed the acquisition of PacifiCorp, which operated Pacific Power and Rocky Mountain Power in the western United States.
Aftermath
The US business was later sold to MidAmerican Energy Holdings, with completion in 2006.
Recent events
- 2020
Ofgem appointed ScottishPower Supplier of Last Resort for Tonik Energy[1]
Regulation · Other
ScottishPower assumed responsibility for customers of failed domestic supplier Tonik Energy.
- 2020
Ofgem appointed ScottishPower Supplier of Last Resort for Yorkshire Energy[1]
Regulation · Other
ScottishPower transferred in the domestic customers of Yorkshire Energy, also known as Daisy Energy, after the supplier failed.
- 2018
Ofgem appointed ScottishPower Supplier of Last Resort for Extra Energy[1]
Regulation · Other
ScottishPower took on the domestic and business customers of failed supplier Extra Energy.
- 2016
ScottishPower reached an agreement with Ofgem on customer-service standards[1]
Regulation
ScottishPower announced an agreement with Ofgem following the regulator's investigation into customer-service performance.
- 2007
Iberdrola takeover approved by shareholders[1]
M&A
ScottishPower shareholders approved Iberdrola's takeover, making the Scottish company part of the Spanish utility group.
- 2005
ScottishPower agreed to sell PacifiCorp[1]
M&A
ScottishPower agreed to sell PacifiCorp to MidAmerican Energy Holdings; the transaction completed in 2006 after regulatory approvals.
- 2000
ScottishPower completed PacifiCorp acquisition[1]
M&A
The company expanded into the western United States through the purchase of PacifiCorp.
- 1995
ScottishPower acquired MANWEB[1]
M&A
The acquisition expanded ScottishPower's electricity distribution and supply footprint into Merseyside, North Wales and parts of Cheshire.
- 1990
ScottishPower formed ahead of Scottish electricity privatisation[1]
Other
The company was established from the South of Scotland Electricity Board as part of the restructuring and privatisation of Scotland's electricity industry.
Sources7 sources
- 1ScottishPoweren.wikipedia.org
- 2ScottishPower corporate websitescottishpower.com
- 3National Grid and Scottish Power agree to £158m penalty over cable delaystheguardian.com
- 4ScottishPower acquires wind farmsenergyglobal.com
- 5ScottishPower bosses in Christmas job cuts blow to staffthenational.scot
- 6ScottishPower launches campaign in bid to reach Net Zero targetthenational.scot
- 7WWF teams up with energy giants at ScottishPower ahead of Cop26 summitross-shirejournal.co.uk
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