Public energy company: strategic outline case

Independent strategic outline case to consider how Scotland's public energy company could be developed suggests that a phased approach would work better.

Untilted letter?

Reliance Restricted

29 March 2018

Low Carbon and Consumers Division
The Scottish Government
Low Carbon Infrastructure Unit
5 Atlantic Quay
G2 8LU

Dear Sirs

Strategic Outline Case in support of the development of a publicly owned energy company

In accordance with your instructions, we have performed the work set out in the scope of our ConsultancyONE contract dated 20 October 2017 (the "Engagement Agreement") in connection with the preparation of a Strategic Outline Case for the development of a publicly owned energy company (the "Project").

Purpose of our report and restrictions on its use

This report was prepared on the specific instructions of the Scottish Government solely for the purpose of the Project and should not be used or relied upon for any other purpose.

This report and its contents may not be quoted, referred to or shown to any other parties except as provided in the Engagement Agreement.

We accept no responsibility or liability to any person other than to the Scottish Government and accordingly if such other persons choose to rely upon any of the contents of this report they do so at their own risk.

Nature and scope of the services

The nature and scope of the services, including the basis and limitations, are detailed in the Engagement Agreement. We were engaged to prepare the Strategic Outline Case in line with the HM Treasury Green Book guidance. Our scope of works does not include a review of regulatory or legal matters. For more information on our scope please see section 1.3 of this report.

This report is based upon the scope of services that was determined by the Scottish Government and we did not have the specific interest of any particular third party in contemplation when we carried out our work.

Yours faithfully, Ernst & Young LLP



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