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Iberdrola urges Nick Clegg not to jeopardise £10bn investment

The government must maintain a stable regulatory environment to continue to attract investment, Iberdrola bosses told Nick Clegg on Wednesday.

Chairman Ignacio Galán outlined the Spanish company’s plan to invest £10 billion over the next decade through its Scottish Power businesses, in a meeting with the deputy prime minister.

Also present was Keith Anderson, chief corporate officer of Scottish Power, who said it was “a good constructive meeting”. He added: “Ensuring security of energy supply is the big issue which concerns all of us.”

The appeal for stability came the week after Galán accused Clegg’s fellow Liberal Democrat and energy secretary Ed Davey of undermining energy regulator Ofgem’s independence. Davey had written to Ofgem attacking the profits made by gas suppliers and suggesting the companies be broken up, although he was careful to stress the final decision was a matter for the regulator.

As Iberdrola announced its annual results, Galán told the Financial Times he was “shocked” by Davey “interfering” with the work of independent regulator Ofgem.

Iberdrola is planning to spend about 41 per cent of its investment budget, or £3.2 billion, in the UK from 2014-2016. It is also expanding in North America, Mexico and Brazil.

The company is developing major offshore windfarms off East Anglia and West of Duddon Sands, which depend on subsidy. It shelved its Argyll Array in December amid concerns about the seabed conditions and the impact on basking sharks.

It is also investing in electricity transmission and distribution network upgrades in its regulated businesses.