John Swinney makes 'jobs' vow after meeting GB Energy chief as cheaper bills 'social tariff' planned

The First Minister spoke as he met Juergen Maier, the chair of Great British Energy – the publicly owned, clean energy company the Labour government is setting up. The meeting was the first formal engagement between the Scottish Government and GB Energy, which is to be headquartered in Scotland.

Also present was Chris Stark, the former Climate Change Committee chief executive who is now heading up the UK Government’s Clean Power 2030 unit, tasked with delivering commitments on green energy.

It came as Mr Swinney co-chaired his first meeting of the Scottish Energy Advisory Board – an expert body that advises Holyrood ministers on energy matters.

The First Minister used the meeting to stress the importance of Scotland being an attractive proposition for GB Energy, as he pledged his Government’s support to help ensure investment opportunities are secured.

Mr Swinney said: “Clean, green energy represents a massive opportunity for Scotland. Not only does it help tackle climate change, but it can be a huge stimulus of jobs and prosperity for Scotland for decades to come.

“We welcome the creation of Great British Energy and Clean Power 2030, and now it is up to Scotland to maximise the investment and opportunities that will come to projects in Scotland from these initiatives.

“Having the heads of both Clean Power 2030 and Great British Energy in Scotland today, meeting with the leaders of Scotland’s energy sector, is the next step in doing exactly that. It means we can make sure Scotland is ready to grab the chance for jobs and green growth they represent. It is a chance we will grasp with both hands.”

Mr Swinney added: “Scotland has already made great strides towards a clean, fair and secure energy system and we are continuing to accelerate our enormous renewables potential and work to ensure the maximum possible economic and social benefit from the opportunities created.”

The vow from the First Minister comes with energy firms working with the Scottish Government to deliver a “social tariff” that could cut fuel bills for vulnerable customers.

Ministers are working with E.On, EDF Energy, Scottish Gas (Centrica) and consumer organisations on a new working group that aims to design the special tariff, which it is hoped could provide more affordable energy for those in need.

The move comes after the Scottish Government’s climate action minister Alasdair Allan chaired a roundtable event to consider what could be done to help those struggling with energy costs.

Mr Allan said: “The Scottish Government has repeatedly called for a social tariff for those who need it the most, including those in extreme fuel poverty. It’s great news therefore that the energy suppliers and consumer organisations have agreed to work with us on this.”

The minister accepted there was “some way to go” before a social tariff, which would see certain customers charged a reduced rate for their gas and electricity, becomes a reality.

He said: “This is a real step forward and could produce a model for fairer energy pricing not just in Scotland but in other nations too.”

The average household energy bill is set to increase by £149 from next month after industry watchdog Ofgem confirmed it was increasing its price cap. At the same time, the Government is withdrawing winter fuel payments from millions of pensioner households across the UK who are not in receipt of benefits.

Timescales for the Scottish Government’s new working group are to be agreed shortly, but Mr Allan said: “We recognise the urgency in delivering extra support for consumers struggling with their energy bills.

“We remain committed to working closely with the UK government, Ofgem, suppliers and consumer organisations, advocating for the delivery of a social tariff across Great Britain.”

Gillian Martin, acting energy secretary in the Scottish Government, wrote last year to the previous UK government, setting out the principles ministers at Holyrood think should be key features of a social energy tariff.

She made clear the Scottish Government believed such a scheme should be used to provide additional support for customers rather than acting as a replacement for existing forms of support.

Ministers at Holyrood agree any new social tariff should be applied automatically to anyone in receipt of means-tested benefits – but could also help those on low incomes who just miss out on qualifying for benefits and who are at risk of fuel poverty.

People who have high energy bills because they need to use medical life-saving equipment for long-term conditions should also be eligible for any such scheme, the Scottish Government has said.

Andrew Bartlett, chief executive of consumer body Advice Direct Scotland, which has been campaigning for a UK-wide social energy tariff, said it was “very encouraging that energy suppliers are willing to get around the table and help design a workable social tariff”.

Mr Bartlett said: “To be truly effective, struggling households should automatically be placed on the cheapest energy deal through an opt-out system, so they do not have to take any action to benefit.”

But he stressed: “The need for action is urgent, especially given that energy prices are about to increase as winter approaches, pushing millions of people into the desperate position of being unable to afford to heat their homes once again.

“We hope that this new working group can show the UK Government that an opt-out social energy tariff is both workable and essential, giving it fresh impetus to act.”

David Southgate, policy manager at the disability equality charity Scope, also hailed the creation of the working group as a “positive step”.