Energy supplier’s profits fall after homes take energy saving measures

ScottishPower emerged from the first half of the year with reduced profits, amid rises in wholesale energy prices and the UK depression.

The Glasgow-based company saw profits fall by 21% since the end of 2010 to £524 million. These results were released by its Spanish sister company Iberdrola.

The bulk of this loss was in the generation and energy retailing division, which saw an astronomical drop by 53%.

A spokesman for the Scottish energy supplier said that demand had dropped in the UK. In fact it’s fallen by 2.5% in this period alone.

Other energy utilities have also noticed a drop in demand from residential and commercial users, and believe it’s because of energy efficient measures being implemented.

The renewables arm of the company saw a 67% increase, especially in the wind sector, which picked up after relatively poor conditions in 2010.

However, representatives have predicted a boost in profits, especially later in the year when the UK energy tariffs are increased on August 1.

There are several ways that you can implement energy saving measures in the home, to avoid a large increase in bills when the raised tariff is in full swing.

Loft insulation and improved wall cavities limit the amount of heat loss from the home. But there are also ways to generate your own electricity, with solar panels, heat pumps and wind turbines.

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