Andrew Ward, CEO of Customer Business, says the company has a “key set of skills” when it comes to bringing together a diverse mix of stakeholders.
“The benefits of transitioning the UK’s homes to full electrification are wider than energy security and reduced costs,” he explains.
“As a responsible energy company, we have successfully built up relationships across private and public sectors, with government and with the NHS, and most recently, cross-industry, in our partnership with high street bank Santander.”
He adds: “These relationships are essential if we are to achieve the ambitious net zero goals set by Government. None of us can do this on our own.”
Almost a sixth – around 16% – of the UK’s carbon emissions come from domestic housing, and measures like heat pumps and solar panels are the solution.
Demand is surging, and ScottishPower has recently appointed a second provider to install heat pumps across the country. (Despite this, the UK still has some catching up to do. Around 1% of UK homes are fitted with heat pumps, compared with 60% in Norway and 43% in Sweden).
ScottishPower has installed more than 3750 heat pumps in UK households over the last 24 months across the country, benefiting the UK supply chain and wider businesses and jobs, with many benefiting from government grants such as the Home Energy Scotland Grant and Loan scheme, the Boiler Upgrade Scheme and Energy Companies Obligation 4 (ECO4), which reduce upfront costs for customers – particularly those from lower-income households.
However, Andrew acknowledges that for many people, the cost of installing energy efficient measures remains prohibitive.
“There are fantastic government packages available but more needs to be done,” he says.
“Our partnership with Santander – the first of its kind in the UK – will help people spread the cost of the initial outlay, and ultimately increase the value of their homes.”
The unique collaboration between ScottishPower and Santander UK aims to make it easier for homeowners to invest in sustainable energy solutions such as heat pumps and solar panels, working towards reducing their carbon footprint and lowering their energy bills.
Through low-interest loans and cashback initiatives of up to a combined total of £1000, people can offset the initial costs of energy efficient technology.
(Image: ScottishPower Customer Business CEO Andrew Ward)
Santander also offers free Energy Performance Certificate (EPC) assessments and discounted mortgage rates for EPC A and B rated properties to support homeowners.
Andrew adds: “The people of the UK need banks like Santander to offer more affordable and innovative finance solutions to help the energy transition, and this is just the first step.
“We are already receiving high levels of interest from other banks keen to talk to us and take part.
“Many homes don’t have the savings to invest in upfront purchases, so making it easier for households to make the transition has to be the priority of energy companies, banks and government.”
Taking the steps to improve a property is a positive move, from the perspective of both householder and bank, explains Andrew.
“We expect the Government to push through with plans for rigorous policies around energy efficiency in the newbuild housing market,” he says. “If all new houses are being built to the same standard – with a heat pump, solar panels and battery, EV chargers, and so on – then the next challenge is to upgrade the existing, older housing stock.”
Andrew adds: “If you want to sell your house in 10 years’ time, for example, that could become harder if you do not have energy efficiency measures in place.
“Increasingly, the UK is heading towards a point where the house with the energy-saving upgrades is the one that everyone wants.
“And the fact that a householder is taking the steps to improve their asset is very positive for the bank, who – via mortgages – partly own that asset.”
ScottishPower has also partnered with Energy Systems Catapult this year to deliver the Warm Home Prescription service, which helps people who struggle to afford energy and have severe health conditions made worse by cold and damp conditions.
More than 16.8 million people live with respiratory illnesses in the UK and the aim of the WHP is to install energy efficiency measures, such as upgraded or new insulation and air source heat pumps, for vulnerable customers living in homes with low EPC ratings.
ScottishPower is the only national energy supplier to deliver this targeted support, and it is part of the company’s commitment to supporting its communities.
“We are very passionate about improving people’s lives and improving their homes,” says Andrew.
“A large part of our business is providing the help and support to people to improve the energy efficiency of their homes, and we do that directly with customers but with other stakeholders too,” says Andrew.
“We’re working with partners in ways you might not expect, such as in our NHS project. If we can actually help people, when they are facing medical conditions that require support from GPs and hospitals, then hopefully that ultimately helps not only those living with the respiratory conditions but also relieves the pressures on the NHS.”
As energy technology becomes “smarter” and more efficient, more and more homes will benefit, explains Andrew.
“Change is happening at pace,” he says. “The technology is there, and becoming more commonplace. Our one-stop-shop approach to supporting customers through their energy transitioning journey can help them understand the benefits to the environment and to their own finances.
“Undoubtedly, we need policy changes quickly so as a company we are saying – let’s accelerate the EV scheme, let’s get more banks on board and let’s get more communication out to customers to make them aware of the benefits of this technology.”
In addition to its installation of heat pumps, ScottishPower is the first UK energy company to offer a service package, similar to a boiler service plan, to help householders protect the equipment.
“There are potentially thousands of new jobs in the industry as it transitions to electrification and there is an increased push for training and upskilling the next generation of clean energy installers,” says Andrew.
“We will need people with the skills and qualifications required to remove gas boilers, for example, and to fit and repair heat pumps, solar panels, EV chargers – this is happening, and it is happening quickly, because we cannot continue to use fossil fuels.”
The number of individuals qualifying as heat pump installers in the UK has risen to an all-time high. The Heat Pump Association reported that the total number of installers increased from nearly 3000 in 2022 to more than 10,000 last year.
By expanding its network of qualified installers, ScottishPower hopes to drive the growth of the UK’s heat pump market as it meets growing demand from customers.
The Green Skills Outlook, recent research from Economist Impact and ScottishPower parent company, Iberdrola, shows almost two-thirds of business leaders think the green transition will create more jobs than it eliminates, with three quarters (74%) saying that the jobs it creates will be higher quality for workers.
The push for more ‘green skills’ could also lead to more courses and qualifications at the UK’s universities and colleges, more upskilling programmes, and training schemes for the unemployed.
ScottishPower’s partnership drive also extends to small businesses, which make up around 99 percent of the UK’s enterprises and employ 60% of the country’s workforce.
The company supports the Together for our Planet Business Climate Leaders campaign, launched by the UK Government’s Department for Business, Energy and Industrial Strategy (BEIS) which encourages small businesses across the UK to take the pledge to cut emissions while providing them with tools to grow, adapt and seize new opportunities.
ScottishPower is extending the ways in which it can help businesses reduce carbon emissions by launching new services including using rooftop solar to generate renewable energy and replacing gas heating systems with the latest heat pump technology.
“The way we power our homes and businesses, the way we fuel our country, is changing, because it has to,” says Andrew.
“The whole system has to come together to make sure the transition to a cleaner, greener future happens smoothly and quickly, and ScottishPower is playing a key role in that process.”
