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Electric utilities

ScottishPower Announces Strong Performance and Strategic Plans

Strategic Insights

— 1 min read

ScottishPower, a leading UK multi-utility, has delivered strong results in the past year, exceeding business efficiency and customer service targets in its acquisition of Manweb and achieving significant cost savings. The company has also made progress in improving customer service, reducing prices, and investing in its business in Scotland. In its telecommunications arm, ScottishTelecom, has moved into profit and is expected to grow rapidly in the next few years.

Key Takeaways:

  • ScottishPower has achieved significant cost savings in its Manweb acquisition, with £98 million in annual operating cost savings and further savings planned.
  • The company has completed a disposal program for businesses no longer required in Southern Water, realizing £90 million, £20 million ahead of its original target.
  • ScottishTelecom has moved into profit and met its target of £4 million for 1997/98, with rapid growth expected in the next few years.
  • The company has signed long-term contracts with major Scottish coal suppliers and invested over £200 million in capital projects in Scotland.
  • ScottishPower has committed to being among the winners in the newly competitive energy market and is two of the first companies ready for the electricity market opening in September.
  • The company is examining opportunities for the future to extend its operations outside the United Kingdom, focusing on the US market.
  • Murray Stuart, Chairman of ScottishPower, has announced his retirement effective from the Annual General Meeting in July next year.
  • The company serves five million domestic, commercial, and industrial customers, about one in five British households.

Statistics:

  • £98 million: annual operating cost savings achieved in Manweb
  • £90 million: realized from disposal program for businesses no longer required in Southern Water
  • £4 million: target met by ScottishTelecom for 1997/98
  • £200 million: invested in capital projects in Scotland
  • 320,000: domestic gas customers at the end of March 1998
  • 15,000: industrial and commercial gas customers at the end of March 1998

Sources:

  • Business Wire
  • ScottishPower's press release
  • Sue Clark, ScottishPower (011-44-141-248-8200)
  • Brian Rafferty, Taylor Rafferty Associates (212-889-4350)

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