Prime Minister Sir Keir Starmer refused to repeat his pre-election pledge that Aberdeen-based GB Energy would cut household bills by £500, but insisted it would stabilise prices.
Speaking to the media at Scottish Labour’s conference, Sir Keir refused to re-state the specific promise.
Experts warned GB Energy could take years to be delivered – possibly longer than Labour is in power.
Asked whether he stood by a specific pledge to wipe £500 off people’s energy bills, Sir Keir did not repeat the promise but insisted it would help control prices.
The prime minister said: “The transition to clean energy is going to make sure bills are lower, quite rightly as I said then that they are permanently lower.
“What GB Energy will do is drive towards renewables to ensure that we are in charge of our own energy. That it is independent, not on the international market, that means that the price is controlled.”
‘Decimate jobs’
It comes as the party’s energy policies sparked a “sector-wide flight” from the North Sea and Grangemouth refinery – and could decimate jobs, according to a leading union.
GMB Scotland used Scottish Labour’s annual conference in Glasgow to call on the Scottish and UK Governments to open the door to new oil and gas extraction while increasing investment in renewables.
It’s the latest in a list of headaches for the Labour leadership during a conference that has been hit by protests and a marked drop in energy following weeks of disastrous polling.
Current predictions have Labour on track to suffer its worst result in the history of devolution at next year’s Holyrood election.
Meanwhile, industry leaders say the plan to fund the company by hitting businesses with a windfall tax and then asking the same groups to invest does not make sense.
Prime Minister Sir Keir Starmer addressed the closure of Scotland’s only oil refinery at Grangemouth in his set-piece speech on Sunday.
He promised £200 million to help secure the refinery’s future, saying it highlights the importance of Scotland to his government.
Not too late
The GMB claims increased taxes on oil and gas extraction caused business to flee Scotland’s energy industry, while renewable jobs have not materialised fast enough.
It notes the troubled Western Isles yard at Arnish and at Methil in Fife, where significant infrastructure improvements are needed.
Speaking at the Labour conference on Saturday, Roz Foyer, general secretary of the Scottish Trades Union Congress, accused governments at Holyrood and Westminster of “failing” workers.
She said: “My key message today to both our governments is this – do your jobs. Stand by Scotland’s energy workers.”
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