Energy group Scottish Power saw a 7.9% hike in earnings last year despite losing more than 100,000 customers amid the recession, its parent group revealed today.
Spanish owner Iberdrola said Scottish Power delivered underlying earnings of £1.29bn in 2009, with the impact of the weak pound stripped out, accounting for 21% of the wider group earnings.
But it said UK electricity customer numbers fell 5.9% to 3.2m and remained flat at 2m for gas, while energy demand among cash-strapped households and businesses fell by 2.7% for electricity and 7.9% for gas.
News of its UK profits rise was slammed as “indefensible” by an energy consultancy, as wholesale prices have fallen sharply in the last year.
David Hunter, an analyst at McKinnon & Clarke, said: “Despite wholesale prices going into freefall, Scottish Power hasn’t cut domestic standard tariffs in almost a year.
“Failure of the ’big six’ suppliers to pass on to customers the massive reductions in wholesale energy prices, which they have been enjoying since 2008, is scandalous.”
Annual results due tomorrow from Centrica are expected to show operating profits for its British Gas residential arm of £554m, up from £379min 2008.
British Gas became the first of the major players to lower gas prices recently with a 7% cut for its eight million customers, but Scottish Power has not cut prices since last February, when it reduced average gas bills by 7.5% and electricity bills by 3%.
A spokesman for Scottish Power said profits in the UK were boosted by an 8% reduction in costs due to savings made across its IT operations.
This offset a drop in demand from recession-hit customers, the group said.
It also reduced bad debts from customers in arrears by 12% last year as it encouraged customers to pay by secure payment, with 75% now on direct debit or pre-payment meter.
Earnings for the wider Iberdrola group rose 6.3% to £6bn in 2009.
But the figures do not include results for January, which was one of the highest on record for energy usage due to the freezing weather.
