Energy firm policy could be tough sell

The idea of a not-for-profit, relatively cheap, stateowned energy company is a laudable one but is it really feasible? The policy is a long-held ambition and was a highlight of Nicola Sturgeon’s party conference speech.

By 2021, the Scottish Government wants to establish a company to take advantage of Scotland’s burgeoning renewable energy sector, selling initially to a domestic market but with an eye on international customers in the future.

The move taps into public disquiet over the money being gained by the existing energy firms and suspicions they are acting in concert to keep profits high.

South of the border, an energy price cap has been floated by the Government as a sure-fire vote winner.

Existing providers insist they are relaxed about the potential new competition but as soon as the bottom line is at stake, they will throw up barriers.

The Scottish Government is no stranger to policies aimed at social wellbeing ending up mired in court action — its minimum alcohol pricing has still not cleared the court system. State intervention in markets is not always welcome. Ultimately, the scheme will stand or fall by the number of people willing to sign up to it and if the price of energy is too high, no amount of good intention will lure customers.

Competition, and opposition, is bound to be fierce.