The National Public Energy Agency
We are establishing a new dedicated National Public Energy Agency. This has been set out in the 2021/2022 Programme for Government.
The National Public Energy Agency will provide the leadership and coordination needed to accelerate delivering the decarbonisation of heat across Scotland.
The fully dedicated agency will be in place by September 2025. Until then the work of the agency is being delivered by the Scottish Government so it is not delayed and the Agency can be developed properly.
Our vision is that by 2045 our homes and buildings are cleaner, greener and easier to heat so that we are no longer contributing to climate change. Our Heat in Buildings Strategy sets this out.
Development of the National Public Energy Agency
To achieve this transformational change in the way we use heat we have developed the National Public Energy Agency.
The new National Public Energy Agency will:
- accelerate transformational change in how we heat and use energy in homes and buildings
- aid public understanding and awareness
- coordinate delivery of investment
The first phase of developing the agency included a call for evidence on December 2021. It closed on 8 February 2022. The full development of the agency will be in place by 2025.
Stakeholder evidence will also determine the next steps in the Agency’s development, including:
- whether or not the new body should have a regulatory role in line with planned legislation
- the governance, institutional form and functions of the dedicated Agency
- how people would like to contribute to the development process
A future Public Energy Company
We have not abandoned our pledge to provide affordable energy to the people of Scotland however there has been significant change since we commissioned the outline business case for a public energy company. We originally committed to in 2017 under the previous Scottish Government administration.
Some of these changes include:
- The energy supply market has faced dynamic challenges;
- A climate emergency has also been announced; and
- We have set new ambitious net zero targets that require a step change on the demand side in terms of how people use heat and practice energy efficiency behaviours.
Given these factors and the on-going, complex nature of the energy market and UK Government regulations policy, now is not the right time to pursue a national public energy company.