UK energy supplier and network operator Scottish Power has penned a jump in revenue and profits over the first nine months of the year, Spanish parent company Iberdrola reported on Thursday.
In the nine months to September, Ibredrola’s British wing Scottish Power recorded a 51% increase in revenue to €8.5 billion (£7.4 billion), alongside a near-two-thirds jump in pre-tax earnings to €2.5 billion.
“This was thanks to recovery of the deficit generated in the past by regulated standard variable tariff rates, which had a negative impact in 2022,” Iberdrola said.
Following a rapid increase in wholesale prices following the outbreak of war in Ukraine last year, regulator Ofgem has allowed energy companies to claw back losses through bill hikes.
This is done by clauses in its price cap, which determines how much suppliers can charge households per unit of energy.
Rival energy suppliers including Centrica PLC (LSE:CNA)-owned British Gas and E.ON have also reported higher earnings this year thanks to the allowances, with the former reporting a near 900% jump in profit at the interim stage.
Iberdrola added that increased revenue was also down to “normalisation of margins in the supply business and higher offshore wind production” in the UK.
This was part of a wider 17% jump in net profit to €3.6 billion recorded by Iberdrola, reflecting increased renewable output across Europe.