MSPs consider plans for public energy company

MSPs are to examine whether a state-run energy company would reduce costs for consumers

MSPs are to study the feasibility of a publicly owned not-for-profit energy company being set up in Scotland.

First Minister Nicola Sturgeon pledged to set up a company to sell energy to households at "close to cost price".

Holyrood's economy committee is to look at whether the plans are realistic, and whether it could reduce costs for consumers and promote green issues.

Convener Gordon Lindhurst said MSPs would study how well not-for-profit energy firms in other countries work.

Ms Sturgeon announced plans for the Scottish company at the SNP's conference in October 2017.

She said it would be up and running by 2021, and would offer "the option of a supplier whose only job is to secure the lowest price for consumers".

The first minister said: "Energy would be bought wholesale or generated here in Scotland - renewable, of course - and sold to customers as close to cost price as possible."

• How would a state-run energy company work?

Nottingham City Council operates a similar scheme through its not-for-profit Robin Hood Energy company, which was launched in 2015 and sells gas and electricity to customers across the UK.

This and other schemes further afield will be studied by the committee, with members considering whether a Scottish version would reduce costs and promote energy efficiency.

Appealing for people to come forward to the committee with views, Mr Lindhurst said: "Some of the considerations include whether it can help tackle fuel poverty, and what role it would play in supporting new technology in sustainable energy and in contributing to community projects.

"There are a number of not-for-profit energy companies in existence in the UK and further afield, and we will be looking at how they operate and deliver on the core objective of providing competitively priced energy, and how this fits in with the needs of the country."