On Thursday 21 June 2018 the Centre for Energy Policy held "What should a Scottish publicly owned energy company look like?", part of the Energy Conversation series of events.
This was a popular event, and we anticipate that we will hold another event on this topic in the autumn. To be the first to hear about our events, make sure you're on our mailing list.
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Oluwafisayo Alabi Research Associate, Centre for Energy Policy oluwafisayo.alabi@strath.ac.uk |
At the moment what a Scottish publicly owned energy company should look like is really not clear. There remain a lot of questions on what is the motive and agenda behind the announcement.
In particular, a re-echoing question is can a publicly owned company thrive in an ever changing energy environment. If it can, would the people trust the system enough to want to switch. Amidst these mixed thoughts and opinions, what the people expect and want is just an energy company that consistently provides clean, safe, reliable and affordable energy.
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Christian Calvillo Research Associate, Centre for Energy Policy christian.calvillo@strath.ac.uk |
- Do we want a green energy supplier? No problem, we have at least a dozen.
- Cheaper than the big six? You have lots to choose from.
- With excellent service? There are at least 20 with great reviews.
- Do you want it also to be community-owned? 3 or 4 ring the bell (there are probably more).
If the objective of the Scottish Government’s Energy Company was just this, it will feel like a lost opportunity. An opportunity to change from the obsolete seller of kWh of electricity or gas to new business models offering the services that the people really want (and need), such as heating or energy efficiency. That would make a difference.
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Gioele Figus Research Associate, Centre for Energy Policy gioele.figus@strath.ac.uk |
The Scottish Government’s announcement to enter the energy market as a supplier has come to great surprise to the guests of last Thursday’s conversation. The most surprising part is the fact that the Government does not intend to operate in its most traditional space, the network distribution, where the natural monopoly would make a stronger case for its intervention, or the generation where the high initial costs would discourage private firms to operate.
The question is what can the Government do better in a very competitive space in continuous evolution? Would the Government manage to launch a revolution in the retail of energy, perhaps by shifting the focus from the sale of electricity and gas to heating and hot water? I really look forward to be surprised (again).
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Antonios Katris Research Associate, Centre for Energy Policy antonios.katris@strath.ac.uk |
Despite the original announcements, the Scottish Publicly Owned Energy Company will most likely be an energy retailer, at a very low price for the consumers. However, if it is to attract consumers from already established companies selling at a low price, it will have to sell at a loss or near a loss.
For such a company to be viable, state subsidies may be necessary. This being the case, the legal environment may not allow the company to function after all. Especially since state aid regulations are likely to stay in place even after the UK’s withdrawal from the EU.
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