Public energy company: outline business case

Public Energy Company Outline Business Case for Scottish Government

We have pleasure in enclosing a copy of our report in response to your Call Off instructions Contract reference CASE/429725 dated 31 January 2019. This document ("the Report") has been prepared by Grant Thornton UK LLP ("Grant Thornton") for the purpose of providing the Public Energy Company Outline Business Case ("the Project") to the Scottish Government("the Addressee"). The Report sets out the findings of our work undertaken in the form of the desired Outline Business Case.

We agree that an Addressee may disclose our Report to its professional advisers directly involved in the Project, and also to officers and members of Scottish Government solely in relation to the Project or as required by law or regulation, the rules or order of a stock exchange, court or supervisory, regulatory, governmental or judicial authority without our prior written consent but in each case strictly on the basis that prior to disclosure you inform such parties that (i) disclosure by them is not permitted without our prior written consent, and (ii) we accept no duty of care nor assume responsibility to any to any person other than the Addressees.

Whilst prepared by Grant Thornton, this report reflects the views of Scottish Government, including its other advisers, it does not purport to represent the sole views of Grant Thornton.

The Report should not be used, reproduced or circulated for any other purpose, in whole or in part, without our prior written consent, such consent will only be given after full consideration of the circumstances at the time. These requirements do not apply to any information, which is, or becomes, publicly available or is shown to have been made so available (otherwise than through a breach of a confidentiality obligation).

To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Scottish Government for our work, our Report and other communications, or for any opinions, we have formed. We do not accept any responsibility for any loss or damages arising out of the use of the report by the Addressee(s) for any purpose other than in connection with the Project.

Whilst the information in the Report has been prepared in good faith, it does not purport to be comprehensive or to have been independently verified. The recipient's attention is drawn to the fact that no representation, warranty or undertaking has been received by Grant Thornton in respect of the accuracy of the information provided by Scottish Government. Grant Thornton does not accept any responsibility for the fairness, accuracy or completeness of the information so provided and shall not be liable for any loss or damage arising as a result of reliance on the report or on any subsequent communication, save as provided for under the terms of our contract with Bramble.

Scope of work and limitations

The scope of our work has been limited both in terms of the areas which the analysis considers and the level of detail into which the analysis goes. There may be matters, other than those noted in this Report, which might be relevant in the context of the Public Energy Company, which a wider scope review might uncover.

The extent of our duty for the work to the Addressees and our liability for the work is as set out in the terms of agreement reference CASE/429725 dated 31 January 2019 between Scottish Government and Bramble and the underlying Management Consultancy Services Framework (Agreement Ref RM 3745) dated 21st August 2017.

Forms of report

For your convenience, the Report may have been made available to you in electronic as well as hard copy format, multiple copies and versions of the Report may therefore exist in different media and in the case of any discrepancy the final signed hard copy should be regarded as definitive.

General

The Report is issued on the understanding that Scottish Government has drawn our attention to all matters, financial or otherwise, of which they are aware which may have an impact on our Report. Events and circumstances occurring after the date of our Report will, in due course, render our Report out of date and, accordingly, we will not accept a duty of care nor assume a responsibility for decisions and actions which are based upon such an out of date Report. Additionally, we have no responsibility to update this Report for events and circumstances occurring after this date.

Notwithstanding the scope of this engagement, responsibility for management decisions will remain solely with Scottish Government and not Grant Thornton. Scottish Government should perform a credible review of the recommendations and options in order to determine which to implement following our advice.

Contacts

If there are any matters upon which you require clarification or further information, please contact Andy Boak on 0131 659 8522 or Neil Peckett on 0131 659 8540.

Yours faithfully

Grant Thornton UK LLP