Slide for Iberdrola as Spaniards switch off

IBERDROLA, the Spanish owner of ScottishPower, has blamed the sharpest fall in demand for electricity in 40 years for a 23 per cent fall in its first-half profits.

The Bilbao-headquartered company reported a net profit in the six months to 30 June of 1.5 billion (1.3bn).

Spain's economy has been hit hard by a fall in construction, while domestic demand for electricity has also fallen in the recession, sliding 7 per cent over the half-year.

A spokesman for the company said that the first half of the year compared with a period of economic growth in early 2008, and that the comparatives would get easier in the second half of the year.

In the UK demand for electricity also fell. However, Iberdrola said ScottishPower, which has more than five million retail customers, continued as one of its main growth drivers.

ScottishPower's contribution to group underlying earnings rose 7 per cent in sterling terms to 745m, although the contribution was hit by a fall in the currency relative to the euro.

During the period Iberdrola Renewables, the separately listed renewable energy unit, completed the Whitelee Windfarm in East Renfrewshire, the largest onshore wind farm in Europe.

Iberdrola has also teamed up with rival Scottish & Southern Energy and GDF Suez to compete for sites to develop new nuclear plants in the UK. A spokesman for the Spanish firm said yesterday that he was confident the consortium was "in the frame" to be awarded sites.