The SNP has faced renewed demands to set up a publicly-owned energy company after the Welsh Government announced they will create a state-run firm.
Nicola Sturgeon first vowed to launch a nationalised company in 2017, but she has since backed down from the pledge.
The first minister blamed the financial impact of the Covid pandemic for the failure to deliver the major election promise.
The SNP leader has said Scotland would still be facing a major energy crisis even if a government-controlled firm had been established.
While still in favour of the idea in principle, she said in September Holyrood required the full powers of independence to establish a public company.
However, her government was accused of “lacking ambition” after Mark Drakeford’s administration in Wales revealed in October they will launch their own state renewables firm.
It’s expected to launch in 2024 and would be the first of its kind in Britain.
‘Lack of ambition’
Labour MSP Colin Smyth said: “While the SNP and the Greens’ promise to set up a publicly owned energy firm lies in tatters, Labour are leading the way in Wales.
“This could have been a chance to transform Scotland’s energy sector, deliver a better deal for customers, and drive forward the renewables revolution.
“Instead the SNP-Green government’s lack of ambition is holding Scotland back once again by offshoring the profits and jobs from Scotland’s huge renewables potential.”
Tory MSP Liam Kerr said: “The SNP spent £500,000 of taxpayers’ money on a public energy company, but threw in the towel after claiming it was too hard to set up.
“Now their ineptitude has been laid bare by the Welsh Government who’re showing they can do what the SNP couldn’t.”
‘More choice’
When Ms Sturgeon first unveiled her plans for a public energy firm in 2017, she said it would help keep bills down instead of generating profits for private businesses.
The first minister said: “It would give people, particularly those on low incomes, more choice and the option of a supplier whose only job is to secure the lowest price for consumers.”
She told SNP members the company would be set up before the Holyrood election in 2021.
Labour leader Sir Keir Starmer said his party would set up their own state-run firm if they oust the Tories from power at the next election.
A Scottish Government spokesperson said: “Continuing market volatility and the reserved nature of powers on energy regulation and the energy market to the UK Parliament mean that now is not the right time for a retail-based public energy company.
“A national public energy company that is involved in major energy generation would only be possible in an independent Scotland where we had full powers over the energy market and full access to borrowing.”
Scottish Greens MSP Mark Ruskell said: “Time and time again we have called on this Tory government to use the powers of Westminster to nationalise the big five energy companies to protect the public from obscene price hikes, and to secure energy supplies.
“This would be the quickest and easiest way to establish a national energy company.”