Thank you, Presiding Officer. I’m very pleased to be responding to this debate. Welsh Government has clearly stated its ambition to deliver a low-carbon energy system for Wales. In doing this, we have committed to deliver the maximum benefits for Wales from this transition and protect the most vulnerable. So, I very much welcome the work that has been done on developing the Ynni Cymru model.

Certainly, reading the report, I think it’s very clear that the report identifies very similar strategic priorities to those that I set out in my energy statement in December: using energy more efficiently, moving to low-carbon generation, and gaining economic benefit from the new technologies and business models that are emerging from the transition.

Most of the types of activity proposed here are already being taken forward by Welsh Government funded programmes of support, such as Welsh Government Warm Homes, the Local Energy service, and the public sector support offer. We continue to identify sources of capital finance that can be used to support the development of energy efficiency and renewable energy projects across all sectors. I think we’ve had significant impact with our energy efficiency programmes to date and we are keen to continue to address the energy efficiency challenge and set out actions to be taken forward.

I think it was an initial exchange between Simon Thomas and myself that sort of got this conversation going around having a not-for-profit company. Simon Thomas and I had an initial meeting and then Welsh Government held three events across Wales in March to collect evidence and views about the potential for an energy service company for Wales, and Simon spoke at the event in Aberystwyth. I think it’s really helpful to see that the aspirations that you’ve spoken about today, Simon, are really set out in the report that we’re considering today.

The Environment and Sustainability Committee of the last Assembly recommended setting up an energy company and its report recognised the risks and challenges in entering what is now a highly competitive market, with over 50 players. Certainly, the feedback that we had from those three meetings is that it is very challenging at the moment to sell cheap energy that is also low carbon unless you own the generation. Profits are, therefore, uncertain. As one participant told us at an event, the supply sector is about high customer volumes and very low margins.

The feedback we got was that people felt we needed to be very clear on the purpose of an energy company. There is a danger that an energy company could become a distraction from what is really needed, which is the work we’re already doing in driving investment in energy efficiency, renewable generation and infrastructure to enable that transition to a decarbonised smart energy system in Wales.

We do need to look at the benefits and the risks of such a company. We also need to be clear about the purpose of a company—it could tackle energy prices, it could address issues of trust in providers, or it could help to provide a market for Welsh generators, but it’s unlikely that any single model would be able to tackle all of the issues.

So, it’s good to be working with people who are interested in this idea to understand what activity is already under way and clarify how the Welsh Government can best add value in this area. We’re also aware of a number of organisations within Wales that are already considering or taking action, against a background where the number of energy companies is increasing rapidly. As I said, there are already 50 providers with a supply licence, some of which have social outcomes at their centre, providing greater choice. However, we have seen the failure of GB Energy, and I think that demonstrates that it is difficult to compete in an increasingly crowded market.

We also got some feedback from the events about the fact that Welsh Government needs to continue to provide a supportive policy environment and co-ordinate activity across Wales to enable projects to be delivered for the benefit of Wales. Another bit of feedback was that people felt that the Government’s job should be to act as an honest and trusted voice above the sales patter of competing energy suppliers, looking at the strategic and regulatory issues. We’re already doing this—we work very closely with Ofgem, distribution network operators, the National Grid, and UK Government to ensure they deliver on our priority to deliver an energy system that enables the low-carbon transition in Wales. An arm’s-length body without the convening power of Government would not be able to do this.

We’re focusing Government’s resources on identifying and addressing the gaps in the market, linking up activities and supporting developments that won’t happen naturally. So, this is exactly what we’re doing by supporting projects such as Energy Local in Bethesda, which is piloting the local selling of electricity, and I’m looking forward to visiting there very soon. I think that will help us understand how regulation needs to change to help this to happen more widely.

We’ve already identified heat as a key area, and have been working with Bridgend to identify new approaches to delivering low-carbon heat. We are now gathering evidence to inform the development of the support services we provide to public bodies and local energy groups in Wales. These services have already captured local benefit from delivering energy projects across Wales, and they will continue to form a key part of our approach to creating the right environment for that transition to low carbon in Wales.

So, I very much look forward to publishing our report from those recent events, along with our position on the proposal. I very much look forward to continuing to work with Simon Thomas, and any other elected Members who support our vision, to identify how to continue to use the available resources in the most innovative ways to deliver our energy aims.