ScottishPower warns on blackouts

THE head of Britain's second largest power group issued fresh warnings of the prospect of widespread blackouts within three years.

ScottishPower chief executive Ian Russell said there will be blackouts unless there is investment in new forms of energy to replace the closure of nuclear and coal plants.

'At the moment there is more certainty of closures of coal plants [rather than the opening of new power stations],' he said.

The crucial period will be in three years' time when coal stations are phased out. He said: 'I don't have a problem with 10 years' time, but at the moment there is not enough new generation power.'

Russell's comments came as ScottishPower unveiled plans for an £800m seven-year programme to build wind farms. ScottishPower leads this market in the UK, and is number two in the US. It plans to invest £200m to build a gas-fired power station in Utah.

Growth in demand for alternative energy and ScottishPower's rising share of the market helped boost pre-tax profits 23% to £327m in the half year to September. It has gained 250,000 new customers in six months.

PacifiCorp, its previously loss-making business in America, now earns more than 60% of group profits.

Russell said ScottishPower will invest £1bn this year to grow. This may include acquisitions.

Analysts expect a full-year dividend of 20p, down from 28.7p last year.