Power to the people may cost us all dear

The Scottish Government has been warned by its own consultants that it may be creating a loss-maker if it presses on with plans to create its own energy supplier.

Driven by the need to provide an alternative for hardpressed consumers who are suffering amid spiralling prices, the principle behind the scheme is laudable.

But the warning from EY that around half of Scotland’s suppliers posted losses last year is a chilling one for a government which needs to make savings.

It is not a market which can be entered lightly, especially in Scotland where brand loyalty to two of the so-called “Big Six” – Scottish Hydro and Scottish Power – has proved particularly strong.

While start-up costs of as little as £0.5 million are relatively modest, running costs must not become a millstone around taxpayers’ necks.

Scotland has already been promised an energy bonanza through the drive for renewables, especially wind power.

So far, the appearance of turbines across the country has done nothing to bring prices down.

A sustainable, not-for-profit, Scottish Governmentbacked, energy firm, if it achieves the aims set down for it, would leave Nicola Sturgeon in the warm glow of a fine legacy.

A money-draining failure, propped up by taxes, would see an ill wind blow right through that, however.