Scottish energy company ‘not something we are able to do’, Martin tells MSPs

More than seven years after Nicola Sturgeon pledged her government would set up a publicly owned energy company, Holyrood’s Energy Secretary has told MSPs that ministers do not have the necessary powers to fulfil the commitment.

While she was being questioned by MSPs on on the UK Government’s GB Energy proposals, Gillian Martin was pressed on whether the Scottish Government had plans to “revive” the  proposals – which were announced by the then first minister in 2017.

Tory MSP Douglas Lumsden asked the acting Net Zero and Energy Secretary: “We know GB Energy will not supply electricity directly to households so will the Scottish Government revive their plans to have a public energy company?”

Back in October 2017, Ms Sturgeon pledged to the SNP conference that the Scottish Government would set up a “publicly owned, not-for-profit energy company” before the 2021 Holyrood elections.

Speaking at the time, Ms Sturgeon said, under the plans, energy would be “bought wholesale” or generated in Scotland from renewable power projects and then “sold to customers as close to cost price as possible”.

Such a move, the then first minister said, 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”.

On Tuesday, Ms Martin, however, said: “We looked at what was required in terms of the legislation around that, it is not something we are able to do at the moment with the current devolution settlement.”

Her comments came as she appeared before MSPs on Holyrood’s Net Zero, Energy and Transport Committee.

Ms Martin, meanwhile, said that Holyrood ministers were “very pleased” that Aberdeen had been chosen by the UK Government as the headquarters for GB Energy.

However, she said she had “not had discussions” with GB Energy or the UK Government on how many people would be employed there.

Kevin Stewart, the SNP MSP for Aberdeen Central, said while there had been claims in October 2024 that 1,000 people would work there, GB Energy chair Juergen Maier had said on November that the total would be 200 to 300.

Claiming that would be a “big loss from the 1,000 that was first said”, Mr Stewart asked the Energy Secretary what discussions she had had with either GB Energy or UK energy minister Michael Shanks.

“Specifically on the numbers, I have not had discussions around that,” Ms Martin said.

However, she said it may be “quite difficult to put a number on the employment that is going to come from GB Energy”.