Energy giant hit by exodus of 200,000 customers

ENERGY giant Scottish-Power has seen an exodus of customers, with 200,000 leaving in 12 months.

The firm, which is owned by Spanish group Iberdrola, recorded a 53 per cent drop in annual retail supply earnings to £121.9million as customer numbers fell to 5.1million.

It pinned the blame on higher costs hitting UK electricity margins, while its gas arm struggled in response to warmer weather in 2017.

It comes as the Big Six energy suppliers face the tough task of retaining customers amid fierce competition from smaller rivals and campaigns encouraging people to switch suppliers.

Keith Anderson, chief corporate officer of Scottish-Power, said: ‘As anticipated, generation and supply continued to face challenges, predominantly in light of increasing input costs, reduced demand, challenging market conditions and political uncertainty.’

The UK Government announced a shake-up of the energy industry last year by publishing draft legislation for an absolute cap on ‘rip-off’ energy tariffs.

‘Challenging market conditions’

However, Business Secretary Greg Clark refused to offer a guarantee that the flagship plans would be enforced by next winter.

Scottish-Power is among a number of major providers to pledge an end to standard variable tariffs and move customers to cheaper fixed-price deals.

The business, energy and industrial strategy select committee said last week that there was a ‘clear lack of will’ on the part of the Big Six to take the steps needed to address pricing problems.

Ignacio Galan, Iberdrola and Scottish-Power chairman, said the UK was at a ‘tipping point’ when it came to energy supply.

He added: ‘After 25 years of encouraging people to use less electricity, now we know that the best way to tackle climate change is to use more over the next 25 years.’

Revenues at the UK supply arm tumbled 11 per cent to £4.3billion for the year to December.

Pre-tax profits also swung to a £93.5million loss, down from a £13.8million profit in 2016.