The steady financial performance was primarily underpinned by the success of the company’s regulated electricity distribution operations, which acted as a vital buffer against declining returns in other sectors.

The networks division emerged as the standout performer, reporting a 29% surge in earnings to almost £1.6bn. This significant growth was entirely driven by the acquisition of Electricity North West, which added £400 million to the balance sheet and established ScottishPower as the UK’s second-largest distribution operator. The expansion offsets a more challenging year for the renewables and retail arms.

Lower wholesale electricity prices led to a 12% dip in renewable profits to £887m, while the retail business faced a £196m decline in underlying earnings due to adverse weather, industry costs, and price cap constraints. However, the retail division’s final figures were bolstered by the £900m sale of its smart meter business.

Chief executive Keith Anderson characterised the current period as a pivotal shift in the electrification of the UK, noting that the company invested £3.8bn last year in major transmission projects. Looking ahead, ScottishPower has secured regulatory approval for a £12bn “rewiring” scheme. While this infrastructure investment is expected to create jobs, it coincides with a 7% drop in the Ofgem price cap to £1,641.