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ScottishPower Threatens To Pull Investment Out Of Britain

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Terry Macalister, Nicholas Watt and Damian Carrington, The Guardian

Ignacio Galán says his company may pull out of £15bn investment programme if profits are risked by Ed Miliband’s plan

The row over domestic energy prices has intensified as the head of one of the big six companies accused Ed Miliband of risking investment in Britain and laying the ground for blackouts by proposing a fuel price freeze.

As Downing Street indicated that Tory ministers were looking to cut financial support for energy efficiency in poorer households as part of a drive to bring down the overall cost of fuel bills, the owner of Scottish Power warned that the Labour leader was attempting to defy international markets.

Ignacio Galán, the chairman of Spanish energy company Iberdrola, which owns Scottish Power, said: “I’d be delighted if Mr Miliband can already fix a cap for the international gas prices, for the international oil prices, for the international coal prices. But he does not have enough knowledge and power to fix this cap as well for those raw materials, which are already creating this energy.”

The Spanish executive, who said Britain was in desperate need of investment, accused Miliband of putting at risk Scottish Power’s plans for investment worth £15bn. “This winter or the next two winters some problems can happen, some blackouts can happen in the country,” he said. “To create some uncertainty around these [investment plans] is very negative.”

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