The chairman of ScottishPower has slammed David Cameron’s plans to force energy firms to offer their cheapest price plans to customers as anti competitive.

Ignacio Galan was speaking in London as he unveiled the results for the Iberdola group, which owns ScottishPower.

Mr Galan defended ScottishPower’s 7% price rise by claiming the utility was losing money on its electricity generating and distribution business.

He confirmed Iberdola’s gross revenues for the three quarters of 2012 were €25.2bn, up 8% on the same period in 2011, while pre-tax and interest earnings had risen 3.4% to €5.8bn.

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But operating profits have decreased 2.4% to €3.4bn.

Galan said ScottishPower had made a loss of £47.9m in 2012 and blamed government efficiency programmes which had cost the company £94m.

"Without this, we could cut our prices by 8%," he said.

He added that the question Cameron had to answer was: "Do you want a market, yes or no?"

Galan said Cameron’s goal could only be achieved by adopting "a regulated tariff, so no market."

Iberdrola has revealed its investment programme for 2012-14, which will see £3.5bn spent on upgrading electricity transmission and distribution systems.

It will also increase the capacity of the overland Scotland-England interconnector, while a new subsea cable from Scotland’s west coast to north Wales is to be built.

"Transmission work will create 1,400 jobs of which 300 will be engineers and very highly qualified people," Galan claimed.

"We are creating a centre located in Glasgow which started with 60-70 people and this month reached 260 people."

(IT)