The UK Competition and Markets Authority (CMA) cleared Iberdrola’s acquisition of a major shareholding in electricity distribution network operator Electricity North West (ENW).
Through its subsidiary ScottishPower, Iberdrola has now taken on an 88% shareholding of ENW, which distributes electricity to almost 5 million people in the North West of England. ENW’s licence area is located in an indeal area for Iberdrola, sitting dircelty between two ScottishPower network licencing areas in Central and Southern Scotland, and Merseyside and North Wales.
The acquisition process was formally undertaken in October 2024. At this time, the full share capital of ENW, including debt, was valued at around €5 billion (£4.182 billion). As part of the deal, Iberdrola’s partners, a consortium of Japanese investors led by Kansai, will retain a 12% interest in ENW’s share capital and have also signed an agreement to collaborate on a longer-term basis.
Welcoming the decision, Iberdrola’s executive chairman and ScottishPower’s chairman, Ignacio Galán, said: “Electrification is powering the UK’s growth and competitiveness, as well as improving its strategic autonomy and contributing to national security. Network investments are the backbone to this process.
“As we welcome our ENW colleagues into our business, we further strengthen our joint ambitions to deliver a resilient, flexible electricity network to meet the future needs and demands of Britain.”
This acquisition makes Iberdrola the second-largest DNO in the UK, just behind National Grid Electricity Distribution. Following the acquisition, Iberdrola now has a regulated asset value in the UK of around £11.6 billion. As such, the UK is now Iberdrola’s primary market in terms of network asset base value, and Iberdrola employs over 8,500 people in the UK.
Furthermore, Iberdrola has been increasing its UK presence through another notable acquisition. Through SP Energy Networks, the company acquired Derryherk, a private data technology company. While little information is available about Derryherk, the company is credited as a delivery partner for SP Energy’s Re-Heat project, and is known to focus on developing digital twins for energy networks.
SP Energy Networks meanwhile has been working on a £5.4 billion grid upgrade. In November of last year, the company announced that it had chosen 19 companies to deliver the grid upgrade programme, which it says will create 1,000 new jobs. SP Energy Networks has said that its grid upgrade programme will be the “biggest rewiring of the GB electricity grid since its inception”.
