29 November 2006
After weeks of speculation, ScottishPower has confirmed that they have accepted a bid from Spanish supplier Iberdrola, Spain's second-largest energy company.
This marks another takeover of a British firm by a European counterpart which has led to four of the so-called 'Big 6' energy suppliers being run by overseas companies.
Consumer groups are worried that foreign intervention may adversely affect the quality of the service provided by the energy suppliers and lead to difficulties in resolving customer service issues.
"It's crucial that ScottishPower's consistent performance in customer service and its competitive pricing will not come second fiddle to the financial priorities of the parent company," said Geoff Slaughter, product manager from the price comparison and switching website, uSwitch.com.
Mr Slaughter added that uSwitch.com was appealing to Ofgem to ensure that the UK's consumers' needs were not compromised and that customers would not be left to foot the bill for Iberdrola's investment.
If the takeover is successful, only Centrica and Scottish and Southern Energy will be flying the British flag, although there have been rumours circulating that, due to the drop in the price offered by Iberdrola, ScottishPower may be open to a more profitable bid before the official takeover date in April 2007.
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