Scottish Power

ENERGY RETAIL
Scottish Power Energy Retail business supplies gas and electricity to around 5.2 million customers across the UK, with a track record of customer retention and product innovation.

Energy Retail manages pricing, selling, metering, billing, customer service and cash collection for gas and electricity supply to both business and domestic customers.

Energy Retail holds Scottish Powers supply licences and has its own data management and metering company - SP Dataserve Ltd., who manage the data processes underpinning billing and settlement.

With Energylinx we compare the prices of every single gas and electricity tariff available from ScottishPower and compare it with every other supplier in the market, impartially and totally free ensuring that you get best advice every time.

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Other businesses within ScottishPower include:

ENERGY NETWORKS
Formerly Infrastructure Division, the Energy Networks business owns and operates Scottish Powers electricity transmission and distribution network. With around 3.3 million customers, it operates primarily in a regulated environment with targets set by the UK regulator, Ofgem.

Day-to-day operation of the network, approaching 112,000 km, is conducted by ScottishPower Power Systems Ltd (PowerSystems), a wholly owned subsidiary of ScottishPower.

Scottish Powers assets and transmission and distribution licences are owned by three wholly-owned subsidiaries; SP Transmission Ltd, SP Distribution Ltd and SP Manweb Ltd. These act as an integrated business unit, with the aim of outperforming Scottish Powers regulatory targets and implementing their investment strategy to expand the network.

The Energy Networks business also includes Core Utility Solutions Limited which was set up to take advantage of the opportunities presented by the requirement for competitive provision of connections to distribution networks.

Energy Networks / Strategic Focus
Scottish Powers vision for Energy Networks is to become the UK’s leading network operator, aiming for operational excellence. To achieve this they plan to improve customer service and will be investing £1.7bn from March 2006 and 2010 to increase the security of supply, deliver an improved network performance and make it easier to connect renewables. 

Energy Networks / Operations
Energy Networks is a leading Networks Operator and has a substantial electricity transmission and distribution network in the UK with 65,000 km of underground cables and 47,000 km of overhead lines in the distribution system.

Whilst National Grid has operational control of the Great Britain transmission system, including the balancing of generation and demand in Scotland, Scottish Power retain network ownership and all associated responsibilities, including development of the network.

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ENERGY WHOLESALE

Scottish Powers Energy Wholesale business is focused on delivering competitive energy from across its portfolio.  The range and scale of their activities include:-

Generation
Generation has responsibility for operating and maintaining their generating portfolio. Generation is organised around the physical assets – coal, gas, windfarm and hydro-electric power stations plus the Daldowie facility near Glasgow which manufactures fuel pellets from sewage sludge.

In the short-to-medium term, Generation's impact on energy management activities is primarily through agreeing and meeting production commitments (including plant efficiency, availability, flexibility and reliability targets and maintenance outage schedules).

Generation works closely with the Energy Management team to establish production forecasts, which are incorporated into the Company's energy positions and opportunities for trading.

Energy Management
Energy Management is responsible for the wholesale trading of power, gas, coal and other commodities. This team schedules generating plant and works with the Energy Retail business to set gas and electricity tariffs. They also carry out financial modelling for potential investments identified by the Commercial Development team. In the longer term, they have responsibility for developing robust strategies, operational plans, budgets and forecasts in support of the company's strategy for developing its energy portfolio.
Energy Management forecasts energy trends over the long term and works with bodies such as Ofgem and the Department of Trade and Industry to help shape the energy policy of the future.

Commercial Development
Commercial Development is responsible for originating value enhancing opportunities for the business, including bespoke energy contracts, asset acquisitions and asset developments.

Over the past couple of years this has included the acquisition of 1,000MW of modern gas generation plant at Damhead Creek (800MW) and Brighton (200MW) and the disposal of the Byley gas storage development project. This transaction included a 15-year storage contract for a substantial portion of the planned capacity.

Energy Wholesale / Strategic Focus
Energy Wholesale's main objectives are to meet ScottishPower's UK energy needs at lowest possible cost and secure maximum value from the flexible and diverse generating portfolio. Key to achieving these objectives is their focus on nurturing operational excellence and strong trading skills.

ScottishPower are rising to the challenge of Climate Change with the position as the leading UK developer of renewable energy and are progressing well towards their target of 1,000MW by 2010.

They are also investing in the extensive thermal fleet of coal and gas generating plant to reduce emissions, and improve efficiency and flexibility.

Energy Wholesale / Operations

Managing their portfolio
Scottish Power operate a generating plant portfolio of 6,400MW fuelled mainly by coal and gas. Looking forward, their strategy is to expand their sustainable generation sources significantly. In April 2006, Scottish Power received final planning approval to construct Europe’s largest on-shore windfarm, the 322MW Whitelee project located south of Glasgow. The business now operates, or has planning approvals for, more than 80% of their 2010 target of 1,000MW.

Scottish Power purchase fuel for their power stations and gas for their domestic customers by negotiating competitive prices. This includes the negotiation and management of long term power and gas contracts. For example, in 2005 a 10-year gas contract was signed with Statoil providing sufficient gas for 250,000 homes annually and improving security of supplies as the UK becomes a net importer of gas.

Delivering flexibility
The Hatfield Moors gas storage site gave Scottish Power greater flexibility to meet the peak requirements of customers and to respond to the volatility of gas prices between midweek and weekends.  The bulk gas contracts give them further flexibility by allowing them to respond to market peaks by either using the gas to generate electricity in their own power stations or to trade it through the open market. Scottish Power operate a major pumped storage facility at Cruachan Power Station and have the capability to flex their coal and gas plants to respond swiftly to trading opportunities.

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RENEWABLES
ScottishPower Renewables is part of Iberdrola Renewables, the world's biggest producer of renewable energy.

ScottishPower Renewables is also currently the UK's largest developer of onshore windfarms with over 30 windfarms fully operational, under construction or in planning and is expected to become the first UK utility company to reach the target of 10 percent of energy produced from renewable sources.

ScottishPower Renewables prides itself on developing renewable energy responsibly and has set the standards within the industry, more of which you can read about on their website.

Developing new sources of renewable energy is also a key aim of ScottishPower Renewables and is at the forefront of the development of wave and tidal renewable technology.

Wind
Wind energy accounts for the vast majority of ScottishPower Renewables' energy capacity. Onshore wind is currently the most viable renewable energy technology, and a secure, natural source of energy that will not run out. ScottishPower Renewables is leading the way in converting this home grown resource into clean energy.

Marine
A large-scale feasibility study is currently in progress to investigate the potential of wave and tidal power within Scottish waters.

By utilising breakthrough technologies such as Pelamis Wave Power's floating Pelamis generator and Hammerfest's tidal turbine ScottishPower Renewables is leading the way in driving marine renewables forward.

ScottishPower Renewables recognises the value to society of biological diversity, cultural heritage and natural resources and we strive to secure conservation within the scope of their operations.

In addition to implementing and developing Habitat Management Plans at the renewables sites, they also undertake a broad range of conservation management and research at many of their sites and in the wider countryside. Scottish Power support and implement research by working in partnership with organisations – enabling them to develop their understanding of ecological impacts.

As a leading developer of renewable energy in the UK, ScottishPower Renewables has an important role to play in ensuring that biodiversity is conserved and enhanced for the benefit of present and future generations.

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