Scottish Power: Meaning (information, definition, explanation, facts)

Scottish Power Plc is an energy company headquartered in Glasgow, Scotland. It owns the national grid systm in Scotland, supplies electricity and gas to homes and business around the United Kingdom, and generates power for supply to the grid. It also owns Pacificorp in the United States. Scottish Power is quoted on the London Stock Exchange as part of the FTSE 100 Index, and has a secondary listing on the New York Stock Exchange.

Scottish Power was formed in March 1991, by the privitisation of the Scottish Electricity market. Previously the UK government had privitised the English and Welsh electricity market by splitting the market into 12 supply companies and two power generators. However in Scotland, the market was given to two companies, Scottish Power and Scottish Hydro Electric (which later became a part of the Scottish and Southern Energy Group. Scotland generated power from coal plants, hydro electric dams and nuclear power stations. A surplus of power is generated and sold to England.

Scottish Power was the largest of the two Scottish energy companies and benefited from being both a generator and supplier of power. In 1995 it acquired the English supplier, Manweb which supplied Merseyside and North Wales. It later diversified into the water supply business with the purchase of Southern Water. When the supply of gas into British homes was opened up to competition, Scottish Power entered this market, stealing share from the previous monopoly British Gas. However, the electricity market was also opened to competition.

In 2000, Scottish Power completed the acquisition of Pacificorp which supplies electricity in: Oregon, Utah, Wyoming, Washington, Idaho and California. The results of this are that the group now generates 50% of its income in the United States.

Scottish Power also estalished the telecommunications company, Thus. This was floated on the London Stock Exchange with Scottish Power retaining a 20% stake, until 2002 when it sold its interest.