The Scottish Government

Utilities

RECOMMENDATION

COMMENT

85. The Scottish Parliament should strongly support the utilities in Scotland in consolidating their positions as UK and future global leaders.

This has been taken forward in the context of the Scottish Utilities Forum (see next entry). In order to help MSPs to understand the utility sector, a brief on the companies was sent to all MSPs in June 2000.

86. A Scottish Utilities Forum should be established with the full participation of the Scottish Parliament. This Forum would act as a mechanism principally for addressing major utility issues (such as customer service, investment, environment, growth opportunities) in Scotland and should be established by the autumn of 1999.

The Scottish Utilities Forum was set up in late 1999 with a remit to encourage utilities and MSPs to communicate on issues of mutual interest, and to identify opportunities for utilities to support economic development in the wider Scottish community. The Forum has met six times since January 2000 and has discussed a wide range of issues.

87. The utilities sector will seek opportunities with the Scottish Parliament to make creative use of utility companies resources to support education, training and community programmes throughout Scotland.

Initial work was done on developing a skilled workforce in the utilities sector, but proved difficult to follow through. The whole focus of the Forum is now being reviewed by members with a view to focusing more on communication as the main theme for the future.

88. The Scottish Parliament must recognise and support the unique issues facing the utilities in Scotland. It must also ensure that a level playing field for Scottish business is maintained.

Regulatory issues have figured frequently on the Forum's agenda; the meeting in October 2000 was addressed by Callum McCarthy the energy regulator. The aim has been to make MSP members aware of the regulatory issues facing Scottish energy companies; some visited member companies for briefings on the subject.

89. The Scottish Parliament should take a positive role in developing creative forms of public/private partnerships and work with the utilities industry to generate public/private partnerships, which will benefit Scotland.

This has not been taken forward. The Forum has not proved, self evidently, to be the best way of addressing this area.

90. The Scottish Parliament should be encouraged to maintain the right balance between protecting Scotland's environment and creating employment opportunities within Scotland.

The Forum has been used to brief MSPs on environmental regulation and the employment opportunities which might arise from renewable energy development. In addition member companies have set up a pilot scheme under which managers agree to mentor SMEs in environmental issues.
As a result of the review mentioned against recommendation 87 above, consideration is being given to merging the Forum with the Cross Party Group on Oil and Gas, widening the Group's remit to include all energy issues.