Positive energy fuels ScottishPower mission to make UK fully electric

“It is part of a global change, which requires a huge upgrade to infrastructure,” he explains.

“Replacing fossil fuels is the future of energy in the UK, and we must move towards that quickly. The biggest question for us, as a responsible energy company, is: how do we help our customers do that?”

ScottishPower’s customer business is leading the company’s strategy to help households decarbonise, either by supporting householders as they navigate and manage their energy needs via smart meters and green tariffs or by installing smart low-carbon technologies for their home such as heat pumps, EV chargers, solar panels and batteries.

(Image: ScottishPower’s Customer Business CEO Andrew Ward)

Andrew Ward has worked for ScottishPower for almost 33 years, and was UK Operations Director before becoming Customer Business CEO. “I have had a number of roles at the company, always involving customer engagement,” he says. “That has given me a great perspective on how the energy market has changed. It also means I have seen first-hand the struggles people are facing on a day-to-day basis.

“Customers faced real challenges when energy prices hit their highest levels and people who were paying less than £1000 annually for their energy suddenly saw their bills jump up to £2700 – and without the Government support, that would have been even higher.”

He adds: “That is the backdrop to where we are. Most people in the UK simply cannot afford that kind of increase. If we continue to rely on gas coming from Europe, we are always going to be affected by the volatility of that market.”

Residential properties account for 16% of the UK’s total carbon emissions. ScottishPower is the first integrated energy company in the UK to shift completely from coal and gas generation to 100% renewable energy generation. In 2016, it switched off its only remaining coal-fired power station at Longannet, and now relies solely on wind and solar sources.

In October, the company announced it was doubling its planned investment in renewables projects in the UK between 2024 and 2028 from £12bn to £24bn, with most of the money going towards upgrading the National Grid.

“Renewables will reduce the price of energy over time,” says Andrew.  “We are replacing dirty and costly coal and gas with wind and solar and battery technology. Homegrown, clean electricity generation is how we remove the risk of volatile global gas.  That’s the future for this country and it’s a fantastic future.”

He adds: “However, to do it, we need to invest in both renewable sources of energy and in the grid. With so much new generation coming on, the grid cannot support it. So we need to invest, and we need to do it today.”

The way we power our homes is changing, and the Government is encouraging a nationwide push for the replacement of gas boilers with heat pumps, which provide energy-efficient, low-carbon heating.

Heat pumps use similar technology to that found in a refrigerator, but in reverse, extracting heat from a source, then amplifying and transferring it to where it is needed, making them one of the most eco-friendly ways of heating homes. However, with around 23 million gas boilers remaining in the UK, there is a “mammoth task” ahead, explains Andrew.

“This is one of the highest saturations in Europe, and when you consider it in line with the fact we have some of the oldest and poorest housing stock in Europe, and that many rural properties are heated by oil, which is even more expensive than gas, you realise the scale of the challenge,” he adds.

“At the current installation rates, it would take more than 380 years to replace 23m gas boilers with heat pumps, so we need to go faster.

“There are lots of opportunities for people in the UK to transition away from gas, and ScottishPower is committed to helping them get there.”
Legislation surrounding new-build housing is “progressing” and on course to be introduced, explains Andrew.

“Electrifying homes is an absolutely critical step for the UK, so we would expect the Government to bring in very strong legislation around new build properties, making it clear they must include electric heating, for example, and Solar PV and EV (electric vehicle) charging points, and that insulation must meet the required standards,” he says. “If we are not doing that, you have to ask – are we really serious as a country about decarbonisation for the UK and its citizens?”

A new initiative will offer cashback incentives and energy bill credits to customers who take out low-interest loans to finance renewable energy home projects such as heat pumps or solar panelsIn addition to investing in upgrading infrastructure, ScottishPower is creating a nationwide “one stop shop” to help customers decarbonise their homes.

As well as advising on the kinds of products and government grants available – currently, eligible households can receive funding through the Home Energy Scotland Grant and Loan scheme and the Boiler Upgrade Scheme in England and Wales, for example – the team is also assisting customers more widely, says Andrew.

“Key to the process is helping customers understand what is right for their home, and the benefits of transitioning away from gas,” he says. “It is not enough to simply install a heat pump – we need to look at each property, and determine the level of insulation required, for example. Every home requires a level of care and attention to provide a complete solution.”

He adds: “And if we take these measures, and the home is upgraded, householders are looking at significant savings on their energy bills. It’s a little like when people were starting to get double glazing in their homes – it was a big change, but everyone could immediately see the benefits, and they started to save money on their bills.

“What ScottishPower is doing now is helping people see the savings they can make by decarbonising their homes. For example, if you are connecting an EV charger overnight, we guarantee we will do that in the cheapest and most efficient way possible.

“That is transformational, but it is where the energy market needs to go to ensure every household benefits.”

Part of ScottishPower’s advice strategy involves myth-busting – solar panels do not need direct sunlight, for example, explains Andrew.

“It’s true that the sun doesn’t shine as much in Scotland as it does in other places, but that does not stop solar panels from generating,” he says.

“Technology has improved greatly and panels are very efficient.

“It is a big leap for people, but what ScottishPower is trying to do is to help them understand all the options, and explain that if we take these measures, and they are installed responsibly, we make sure you see the benefits on your bills. That’s how we take this forward.”

ScottishPower is the only energy company in the UK offering a heat pump service package. “Like a boiler plan, this will be necessary, as heat pumps will become very important assets in the household,” says Andrew.

The company has teamed up with Santander UK to make adopting energy efficient technology in UK homes more affordable.

The new initiative will offer cashback incentives and energy bill credits to customers who take out low-interest loans to finance renewable energy home projects such as heat pumps or solar panels. 

“There is a large group of householders in the UK who understand the benefits of transitioning their homes, but are concerned about the costs involved,” says Andrew. “After the challenges of recent years amid the cost of living crisis, this is even more of an issue. There are fantastic Government packages available, which is a very positive step, we believe.

“Our partnership with Santander, the first of its kind in the UK, means people can afford the initial outlay by taking on a low-interest loan, for example against their mortgage, spreading the cost and ultimately saving money on energy bills and increasing the value of their home.”

As it sets out its vision for the whole of the UK, ScottishPower is continuing to encourage its customers to engage with the company. Latest scores from independent consumer champion Citizens Advice rated ScottishPower number one of the UK’s large energy suppliers in terms of customer service.

The charity has created a ranking system for both familiar energy firms and some lesser-known ones based on the quality of their customer responses.

Andrew explains: “We’ve worked tirelessly to improve and enhance our services for all of our customers and I’m pleased to see the efforts of our team recognised by this latest research. We can help all UK households through this journey, and we’ll be there every step of the way.”

He adds: “We know we have a huge challenge ahead of us, but it is one we can meet.” 

www.scottishpower.co.uk/greener-living