Gas crisis chokes third-quarter earnings at Scottish Power
Scottish Power has suffered a third-quarter 39 per cent earnings drop in its retail division focusing on delivering gas and electricity to households.
Liberalised Retail reported its EBITDA at £83m – a decline of £54m.
The wider energy market has been ravaged by soaring wholesale energy costs.
Challenging conditions across the sector have resulted in 13 UK energy firms ceasing trading since September.
This includes four firms in the past fortnight including PurePlanet, Colorado Energy, Daligas and Goto Energy.
The crisis has even led to Scottish Power’s CEO Keith Anderson calling for reforms to Ofgem’s consumer price cap.
Meanwhile, the company’s overall EBITDA has fallen by nearly 10 per cent to approximately £1.14bn.
The energy giant’s renewables arm also suffered from low wind conditions across the UK and Europe.
More encouragingly, its distribution branch SP Energy Networks reported positive results, gaining 1.3 per cent on its former recordings.
Distribution revenues have increased by £22m as a result of colder 2021 weather, while COVID-19 has influenced demand less than last year.
Anderson argued the energy crisis highlighted the importance of decarbonisation in the lead up to the COP26 climate conference.
He said: “The energy price spike is a gas issue and a stark reminder to of why we have to decarbonise our energy sector quickly and efficiently.”