Providing first-class portfolio management for ScottishPower – An Arqiva case study

Founded more than a century ago in Glasgow, ScottishPower is one of the UK’s largest and most reputable energy providers. The company serves more than five million homes and business premises across the country, and is committed to making sustainable energy available for all.

ScottishPower chose to work with Arqiva to manage its asset portfolio effectively

ScottishPower chose to work with Arqiva to manage its asset portfolio effectively

Like other organisations of similar stature, ScottishPower owns and controls a large number of assets – in particular its Radio Hillsite portfolio, made up of substantial tower sites, and the rooftops of its operational buildings. As well as being infrastructure critical to ScottishPower, these sites also generate additional revenue streams through development for third-party telecommunications use.

A challenge to overcome

ScottishPower exists in an extremely competitive market, where efficiency – both in financial and operational terms – is crucial. The ability to accurately manage and monetise existing assets, therefore, can be extremely valuable in helping the business maintain high service and satisfaction levels for its customers.

Looking after such a large portfolio of sites is much easier said than done, however. Agreeing deals with third parties, whether network operators or any other kind of tenant, is only one part of the asset management and commercialisation process – the company must also consider site maintenance - including tower, grounds and generators, along with day-to-day third-party sharer management, site access control and estates management. All of these responsibilities take time and dedicated resources, and are a distraction to the organisation’s core business.

This is why ScottishPower chose to work with Arqiva, a trustworthy and reliable partner with the experience and skills to manage its asset portfolio effectively.

The perfect solution

We actively manage a portfolio of around 70 sites on behalf of ScottishPower, and have done since 2010. As part of this relationship, we provide a comprehensive package of estates management and facilities management services, while also advising on any telecoms matters that affect the assets in question.

At the outset of the partnership, emphasis was placed on the core estate management activities; we ensured straight away that the large volume of outstanding rent reviews and lease renewals were completed, giving ScottishPower the comfort of knowing its estate was in good order, and that it was receiving the correct income from its various sites.

Tenant relationships are also handled by Arqiva, meaning the ScottishPower team needn’t deal with enquiries or negotiations. Regular correspondence and negotiations take valuable time that could be spent elsewhere.

With us handling these responsibilities – and more - in a proactive and organised manner, ScottishPower can dedicate its own internal resources to other core business activities that affect its customers directly, keeping internal efficiency and productivity high across the business.

Added expertise

As well as taking care of the day-to-day responsibilities of portfolio management, we support ScottishPower by providing invaluable guidance when it’s needed most.

We’ve been at the core of the UK’s telecommunications sector for decades, meaning we have the experience and expertise to advise ScottishPower on any telecoms matters that may affect its asset portfolio: it could be that new business opportunities arise from advancements in technology, for example, or that new legislation requires the company to make changes to its agreements.

Impressive results

Our established and professional relationship with ScottishPower gives their own internal business partners and customers the comfort of knowing that all facilities management matters, such as annual inspections, safe-to-climb certifications and diesel generator maintenance, are all being completed in line with the current standards and to the required frequencies.

We’re not standing still either: we continue to develop and build on the relationship to ensure ScottishPower gets the best possible results from the services we provide. This has included the roll-out of a new alarm monitoring system to monitor diesel generator performance, allowing the organisation to relax knowing its critical sites are always online and performing as expected.

Our asset management work with ScottishPower has been hugely successful by all accounts - here’s what those on both sides had to say:

Alan Aitkenhead - Head of Estates, ScottishPower:

“Arqiva have actively managed a portfolio of approximately 70 sites on behalf of Scottish Power since 2010 and we have recently entered into a further three-year contract. We have found Arqiva to be a very professional and well-run organisation, and have developed a very successful working relationship since contract inception. The appointment of Arqiva to manage our portfolio has allowed many of the day-to-day management issues to be removed and dealt with in a proactive and organised manner. Arqiva’s knowledge and expertise in the telecoms market has given us confidence to make decisions that directly impact our portfolio, particularly in this ever-evolving market. We also have comfort that many of the facilities management matters, such as annual inspection, safe-to-climb certifications and diesel generator maintenance, are all being carried out in line with current standards and to the required frequencies.

“Arqiva has also introduced innovative ways of working during this period, including the roll-out of a new alarm monitoring system for our diesel generators. This, again, has given our business assurance that the sites are kept on-line, particularly given the operational importance.”

Chris Rose – Head of Asset Management, Arqiva:

“Our relationship with ScottishPower has developed into a very productive partnership where Arqiva focuses on delivering comprehensive asset management services, thereby taking the pain of non-core activities away from the client, allowing it to concentrate on its core business activities. This has resulted in a more efficient and cost effective management of the relevant sites and the protection of incoming revenue from wireless telecoms site sharers at a time when in the market, mobile operator network consolidation has seen such revenues decline.”

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