Struggling families would be supplied with affordable energy as part of a groundbreaking scheme
Nicola Sturgeon’s pledge to set up a state-owned energy company in Scotland to offer cheaper power to homeowners has been praised by campaigners.
The first minister said a new company would be set up within the current Holyrood parliament and offer a new choice of supplier, with consumers paying “as close to cost price as possible”.
She made the promise in her closing address to the annual SNP conference in Glasgow.
The new firm will be set up by 2021 and would give allow low income Scots a supplier only concerned with “securing the lowest price for customers.
She said: "Energy would be bought wholesale or generated here in Scotland - renewable, of course - and sold to customers as close to cost price as possible.
"No shareholders to worry about. No corporate bonuses to consider. 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."
The announcement was welcomed by environmentalists and consumer organisations.
Emma Grant McColm, energy spokesperson for Citizen's Advice Scotland's consumer futures unit, said: “As Scotland’s consumer champion we are interested to note this announcement and we look forward to hearing more detail.
“We would welcome any intervention that genuinely increases fairness for energy consumers.”
Claire Mack, chief executive of Scottish Renewables, said a state-owned energy firm could provide a one-stop-shop or gateway to accessing public funds.
Meanwhile, Friends of the Earth Scotland (FoES) welcomed Sturgeon’s promise, also made during her leader's speech, to make Glasgow Scotland’s first Low Emission Zone (LEZ).
The scheme will reduce illegal levels of air pollution which have been silently causing premature death and harming health for years in Scotland’s largest city.
Emilia Hanna, air pollution campaigner for FoES, said Glasgow is the obvious choice for because of its poor air quality.
“She said: The LEZ has the potential to improve air quality, drive down climate emissions, and make Glasgow city centre a much more pleasant place for people to live, work, and spend time and money in.
“Glasgow’s Low Emission Zone should initially restrict the most polluting buses, vans, and lorries from the city centre, with taxis and cars included at a later date.”
