As this is my first appearance at the committee in 2019, I wish all committee members a happy new year, if it is not too late to do that.
I am pleased to be here today to support the committee’s draft budget scrutiny. Scotland is an energy-rich nation, and its wealth of energy resource provides significant opportunities for supporting sustainable economic growth and our national wellbeing.
A successful energy system not only provides the means to deliver against the energy trilemma so that we have secure, reliable and affordable low-carbon energy sources, but makes important contributions to Scottish Government priorities including economic development, tackling fuel poverty and responding to climate change.
We have just passed the first anniversary of publication of our first energy strategy for Scotland. In the spring, we will publish the first annual energy statement showing progress to date. I intend to publish our electricity and gas networks vision statement later this month, which will take into account the latest data.
The energy strategy sets out our ambitions with regard to energy generation and use. Not all the relevant powers are currently devolved to the Scottish Parliament, but through financial support, planning policy, our wider influence and a range of devolved policy responsibilities, we have significant scope to champion the energy agenda. I look forward to updating the committee on delivery of Scotland’s energy strategy.
One strand of the strategy is the ambition to establish a public energy company. I welcome the committee’s recent constructive report and assure you that we will take your views into our thinking as we go forward. The public energy company will be at the centre of the energy strategy’s delivery. It can be a vehicle for delivering and supporting many of the strategy’s outcomes, including tackling fuel poverty, supporting economic development and contributing to mitigating the risks from damaging climate change. Through its public sector ethos, it can be a way of positioning the consumer and communities, rather than profit maximisation, at the centre of our energy transition.
We have engaged with local authorities to develop that approach; I am keen that we develop the concept jointly through partnership and co-design with our local government partners. We intend that the completed outline business case will add substance to our development of next steps and a substantive proposal for consultation. It will allow us to assess the commercial, financial and economic case, which is essential, given the recent dynamics of the energy supply market. However, given the potential outcomes, we cannot wait until 2021 to see whether the current price cap is able to deliver improvements in respect of fuel poverty, and I have concerns that it has led to unintended consequences.
To reiterate, I am grateful for the committee’s positive and constructive report, and I look forward to working with you to deliver the potential from Scotland’s considerable energy opportunities. I am aware that there are a range of interests today with regard to the budget, and I am glad to answer questions as best I can.