Customer Focus

ScottishPower supplies electricity and gas to 5.2 million customers throughout Britain and provides electricity connections to 3.47 million customers, ranking us amongst the UK's "big six" energy suppliers.

During 2009 energy prices and fuel poverty continued to be the most significant customer issues for energy companies.

We recognise that 2009 was a difficult year for many customers, with the UK feeling the effects of the worst global recession since the 1930s and many people struggling to pay their household bills.

The recession was compounded by a severe winter – the coldest on record for 31 years – which saw temperatures plunge as low as minus 27 degrees C and the heaviest snow fall in the UK for 18 years.

During this exceptionally cold spell, energy use increased in households throughout Britain, but especially in Scotland, which was hit the hardest, with sub-zero temperatures and sustained snow and ice.

Energy companies have been criticised in some sections of the media for making large profits, while retail energy prices remain at among their highest levels for the past five years.

However, pricing is complex. As we explain in the Economic Performance section of this report, an increasing proportion of household energy bills is paying for the delivery of energy to homes – such as investment in networks and mandatory government programmes to reduce carbon. Transmission charges levied by National Grid on generators vary according to the distance between the source of power and main centre of demand – meaning that Scottish companies pay more.

A report published by the electricity regulator Ofgem in February 2010 – Project Discovery, which reviewed the resilience of the UK electricity supply industry –  warns that the UK energy supply industry will need to invest more than £200 billion over the next few decades to ensure we have a modern and reliable, low carbon electricity network – and it has stated that this will mean further increases in energy bills.

The Department of Energy and Climate Change and HM Treasury will report initial findings in 2010 on how the UK’s electricity markets can deliver the investment needed to reduce carbon, while ensuring a fair deal for the consumer.

Despite these challenges, we remain committed to offering our customers the best possible value for money and a choice of products and payment methods that offer flexibility for different lifestyles.

We are also continuing to deliver large-scale energy efficiency programmes to help our customers reduce their carbon footprint and their energy bills, and investing in a range of social initiatives to help our most vulnerable customers.

Following two years of trials, we will be stepping up our roll out new technologies, such as Smart Meters, which will help customers to manage their energy use in the most efficient way. We plan to install an additional 100,000 Smart Meters in customers’ homes prior to a full roll out of the new technology in 2012.