1 Oct 2012
Spanish utility Iberdrola, which is the parent company of Scottish Power Energy Networks, is considering selling a minority stake in its UK transmission and distribution network.
ScottishPower Energy Networks, which serves approximately 3.5 million homes across the UK, has been valued at around £5 billion by industry analysts. The company owns electricity transmission pylons and cables in southern Scotland and distribution networks in southern Scotland, northern England and Wales.
The network is in need of an estimated £8 billion of investment over the next 8 years to replace its ageing assets. It also needs to make links into the grid for the new wind farms that are due to be built in Scotland from which it would transport up to 11 Gigawatts of power.
The move comes in steps to cut down the Spanish firm’s €29.3billion worth of debts which have been accumulated from a number of acquisitions including that of ScottishPower for £12 billion in 2006. Industry analysts say that Iberdrola could potentially raise up to £1.5 billion from the sale of a 49 percent stake in ScottishPower Energy Networks.