A bill to devolve powers, based on the Smith Commission report, has been set out following the ‘no’ vote in September’s independence referendum.
It plans to give the Scottish government powers for onshore oil and gas licensing, as well as a formal consultative role in the designing renewable energy incentives.
Ofgem will also lay its annual report and accounts before the Scottish parliament, as well as submitting its reports to appear before committees in Holyrood.
The Scottish parliament will also be given powers to design and implement energy efficiency and fuel poverty strategies, although the responsibility for the way the money is raised will remain reserved.
The document set out by the UK government also set out that the Scottish parliament would gain the powers to set income tax rates and bands, but not to alter the threshold above which tax is paid.
Prime minister David Cameron said: “The leaders of the other main political parties and I promised extensive new powers for the Scottish Parliament – a vow – with a clear process and timetable. And now, here we have it: new powers for Scotland, built to last, securing our united future.”
However, Scottish first minister Nicola Sturgeon said the devolution paper appears to be “a significant watering down of what was promised”.
She added: “We remain committed to this process, despite the difficulties we have experienced in getting information in a timely fashion and we will continue to work with the UK Government and other stakeholders to ensure that the changes are made ahead of the bill being taken through Westminster.”