ScottishPower’s Spanish owner made €2.8 billion (£2.4bn) last year, 2.3% less compared with 2010. Iberdrola blamed a challenging economic environment for the dip.

In the UK, profits at ScottishPower’s residential business took “quite a hit” said a spokesman, with profit on gas and electricity falling 40%.

Iberdrola also blamed the profit drop on changes in law for renewable energy in Spain, with the Spanish government recently announcing it is stopping subsidies for solar and wind power.

Despite the dent in profits, a spokesperson for Iberdrola told ELN the firm welcomes this cut because there is a €24billion deficit for the subsidy across all Spain’s energy firms which could be “damaging” to the industry.