Scottish Power announces loss of 120,000 customers
Big Six supplier attributes loss to government price cap rise and milder weather
Comparably milder weather, and the raised energy price cap that precipitated a record number of switches in April have caused Scottish Power to lose 120,000 customers over the past year.
The Big Six energy firm also reported a 71 per cent drop in its pre-tax earnings for its gas and electricity division, due to this year’s milder winter.
Mark Todd, founder of energyhelpline said, “Customers continue to walk away from big energy suppliers – energyhelpline estimates that the Big Six will lose 1 million customers during 2019. This trend has been fuelled by more competition and easier switching.
“UK consumers can compare and choose from over 70 suppliers and a switch only takes minutes to get going and a few weeks to complete. Profits have also been hit by the price cap, which forced down suppliers’ standard prices in the first quarter of the year putting a big squeeze on them.”
By comparison, Scottish Power’s renewables division has experienced a 4 per cent surge in its pre-tax profits, which now total £213 million.
Higher energy prices compensating for lower wind volumes from April to June contributed to this rise, according to a Scottish Power press release.
As the debate concerning the environmental impact of fossil fuels continues to heat up, amidst the government’s low carbon commitments, more energy firms have encouraged investment into renewable energy sources.
This month, E.ON became the first Big Six firm to announce switching all of its customers to 100 per cent renewable energy tariffs at no extra cost to its 3.3 million customers.
“At energyhelpline over half of our customers are choosing to switch to green suppliers now, totalling half a million green switches a year. With record heat and increasing environmental awareness, the whole energy market seems to be at a green tipping point.” commented Todd.
“Green is becoming the new norm and fossil fuels increasingly unacceptable. As more customers choose to go green, this could help ScottishPower to win them back.”