ScottishPower plans to offer its three million electricity customers the opportunity to fund renewable energy projects under a new tariff called "Green Energy", the company announced today. (Monday)

Householders and small businesses supplied by ScottishPower or its subsidiary Manweb will be invited later this year to opt for the new tariff from which funds will be invested in wind and hydro generating plant that would not otherwise have been built. The tariff will be available to the wider public once the electricity markets are fully opened to competition.

Research by the company has shown that a high percentage of customers - more than 40 per cent of small businesses in some areas - would be prepared to support 'Green Energy' as a means of making a personal contribution to the promotion of renewable energy.

The renewable energy projects to be funded will be chosen by ScottishPower in conjunction with community groups. A number of suitable options have already been identified, ranging from a small hydro generation unit to a new wind farm.

The projects will be audited by independent experts whose findings will be published annually by ScottishPower

The new tariff is in line with Government objectives announced in the Budget to encourage environmental initiatives, such as options for consumers to choose a more sustainable mix of electricity supplies at a higher price.

Contribution to reduction in emissions of the greenhouse gas CO2 will depend on the size of the projects but could lead to savings of 50,000 tonnes a year in the case of a typical windfarm.

ScottishPower's new tariff will support the company's own efforts to reduce emissions, which include investment in clean-coal technology in its major power stations and the development of a renewable energy portfolio which now accounts for around fifteen per cent of the company's generation capacity.

Currently ScottishPower has full or part ownership of eight windfarms and is the second largest windfarm operator in the UK.

In addition, energy promotion programmes by ScottishPower and Manweb, including those introduced under a government scheme, are leading to savings in CO2 emissions equivalent to the amount produced by a medium-sized coal-fired power station over two months. (700,000 tonnes) Ken Vowles, ScottishPower's Executive Director, Generation, said: "ScottishPower is uniquely placed in the energy sector to offer a green energy scheme as a company which combines expertise in renewable energy generation with a well established customer service infrastructure, including a new multi-million pound utility billing system. "We believe that 'Green Energy' is an ideal opportunity for customers and other stakeholders who want to see energy generated from 'green sources', he added.

For Further Information:
ScottishPower Press Office
Gordon Laidlaw or Colin McSeveny,                                    0141 248 8200