ScottishPower and Alfred McAlpine today launched the UK's first multi-utility service provider, "Core Utility Solutions Limited".

The new joint venture company was set up to take advantage of growing opportunities in the new connections market and will serve national and regional housebuilders and commercial developers who need to link their sites to any of the major utility companies' networks.

For the first time customers will be able to benefit from a seamless design and build service for their utility connection requirements.

The new connections market is emerging particularly in the electrical and gas connections sectors following the decision by the industry regulator Ofgem to open up more of the activity to competition.

The drive from the regulator is to break up the existing monopolies and attract more new entrants into the market to promote value for money and improved service levels for customers.

Recent research from Ofgem (Review of Competition in Gas & Electricity Markets) revealed that the connections market in gas and electricity alone was worth over £1bn a year. Adding connections in the water and telecommunications markets takes this to some £1.5bn.

Core Utility Solutions will initially operate across central and southern Scotland and the north of England with a workload of over 30,000 connections in the housing, commercial and industrial sectors and an initial annual turnover of around £50m. It has a workforce of 420.

The business is expected quickly to grow to become a UK-wide multi-utility service provider and to double its turnover. Growth will be achieved by combining the technical design and customer management expertise of ScottishPower and the commercial delivery focus and national coverage of Alfred McAlpine Utility Services.

During the first half of the current year, management will concentrate on integrating the business by re-locating to new premises in Uddingston in Scotland and Warrington in northwest England and delivering new IT applications to manage the growth in the number of new connections across a wider territory. These changes are expected to lead to significant cost savings, the benefit of which is expected to flow through in 2003.

Oliver Whitehead, Chief Executive of Alfred McAlpine and Bill McClymont, Managing Director of Core Utility Solutions said:

"This joint venture company is the first of its kind where customers can benefit from a complete multi-utility design and delivery service rather than the somewhat fragmented approach that exists elsewhere."

"Scottish Power and Alfred McAlpine have a very strong reputation in this marketplace and their combined skills and knowledge will provide an exciting opportunity to establish Core Utility Solutions as the UK's leading multi-utility provider."

Further information:

ScottishPower Press Office
Gordon Laidlaw                              0141 248 8200 (mobile 07850 634 841)

Alf Alfred McAlpine PLC 020 7930 6255 Oliver Whitehead, Chief Executive http://www.alfredmcalpineplc.com/ Ian Grice, Executive Director01483 711700
Weber Shandwick Square Mile 020 7950 2800
Reg Hoare/Peter Gaze/Laurence Read