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Nicola Sturgeon says her promised state-run energy firm would not have halted crisis

Nicola Sturgeon attended an offshore wind supply chain summit at the city's Marcliffe Hotel.

Nicola Sturgeon says households would still be facing an energy crisis even if the Scottish Government had fulfilled an election promise to create a state-run energy company.

The first minister blamed the Covid-19 pandemic for her government’s failure to deliver on the 2017 election promise.

The SNP leader, who was attending an offshore wind supply chain summit in Aberdeen, said the powers to make any “meaningful intervention” would still lie with the UK government.

It comes as Ms Sturgeon prepares to meet with energy suppliers on Tuesday where she will urge them to do everything they can to mitigate the impact of rising bills.

The first minister said she supports the UK Treasury looking at the “disproportionate impact” people are facing in parts of Scotland.

First Minister Nicola Sturgeon
First Minister Nicola Sturgeon who spoke at the ScotWind summit at the Marcliffe at Pitfodels, Aberdeen.

Asked why Scotland never got the promised state-owned energy firm, Ms Sturgeon said the pandemic – which started two and a half years after her pledge – has “disrupted all sorts of things that governments across the world were planning to do”.

She added the Scottish Government will continue to take forward “modified plans” in the form of a new national public energy agency.

Ms Sturgeon continued: “I think people should be clear that not withstanding that – and it’s right and proper for the Scottish Government to be scrutinised – had that been different, we’d still be facing this energy crisis and the powers to make a meaningful intervention on that would still lie with the UK government.”

‘Expensive PR campaign’

But Liam Kerr, Scottish Conservative shadow energy spokesman, hit out at the first minister’s failed policy, describing it as “little more than an expensive PR campaign”.

He accused Nicola Sturgeon of having “done nothing but stand in the way of achieving energy security”.

The north-east MSP added: “Once again, the pandemic is trotted out as an excuse but let’s face it — the nationalists ditched the company at the first opportunity.”

Colin Smyth, Scottish Labour’s energy spokesman, said: “Once again Nicola Sturgeon would prefer to talk about what others should do than tell us what she will do.

“There’s no doubt that the Tories are missing in action, but the SNP are too.

“All this spin and deflection doesn’t change the fact the SNP’s promise to set up a publicly-owned energy company has been left in tatters at the time we need it most.”

The 2017 election promise

The first minister first pledged to deliver a publicly-owned, not-for-profit energy company in October 2017 to sell gas and electricity to customers at low prices by 2021.

But it later emerged ministers had shelved the plan, with efforts being “refocused” on a public energy agency.

The Scottish Government later said that work on the plan was halted by the pandemic and altered because of changes in the energy market.

On Monday, the first minister said an energy paper will be published as part of a series outlining the case for Scottish independence.

But Ms Sturgeon said the precise date for that is “not yet determined”.

She said new offshore wind power projects will be “crucial” as Scotland seeks to become “one of the net-zero capitals of Europe”.

Sir Ian Wood who attended the ScotWind summit at the Marcliffe at Pitfodels, Aberdeen
Sir Ian Wood who attended the ScotWind summit at the Marcliffe at Pitfodels, Aberdeen. Picture by Kami Thomson.

But asked about the upcoming energy paper on independence, Scottish oil tycoon Sir Ian Wood, said the country should be “recovering as much oil and gas as we can without damaging the environment”.

He added: “I think this government are now more tuned in to maximising renewable energy.

“And I think there’s an acceptance that we need to have some degree of oil and gas.”

But when asked if the first minister shared that acceptance, Sir Ian said: “Clearly politicians are very careful what they say about climate change issues.

“I don’t know the answer to that. She certainly got the message quite clearly from me that we should be maximising the amount of oil and gas without damaging the economy.”

Conversation