19 Economies of Scale Iberdrola, the Spanish electricity giant, has in recent years pursued an aggressive acquisition strategy throughout the world. Companies that have been acquired by the firm include Scottish Power (UK, 2006), Energy East (USA, 2008), Elektro (Brazil, 2011) and UIL Holdings (2015) to form Avangrid. During peak times each firm operates at 100 per cent capacity and, during off-peak times, the average usage of electricity amounts to about 60 per cent of total capacity per firm. The peak periods begin at 9.00 a.m. and 5.00 p.m. local time and last about 45 minutes. Explain why Iberdrola’s acquisition strategy may make sense.