Scottish Government plans to set up a publicly-owned energy firm to provide lower cost power have been welcomed by regulators.
Dermot Nolan, the chief executive of Ofgem, said they would "welcome any form of potential new entry" into the energy market.
He spoke out after First Minister Nicola Sturgeon announced her intention to set up ''publicly owned, not-for-profit energy company'' before the end of the current Scottish Parliament term in May 2021.
More details of the government's proposals will be set out when ministers publish their energy strategy later this year.
Mr Nolan told BBC Radio Scotland's Good Morning Scotland programme the necessary process of granting a licence to the new company could probably be completed within months.
When asked how long it would take the new firm to get a licence from Ofgem, he said: "I don't think it should take overly long. We would try to facilitate any license application"
He added: "We could see a real change in energy in the next five to 10 years, much more local production, much more peer to peer community trading of energy and I think something like is by and large something consumers will like."
While he stressed any new power firm would "need to satisfy its customers and provide a high quality level of service", he said: "Personally my own view is that in the future the energy sector will change a lot, we will have a lot more community energy groups, we'll have a lot more local production of energy so it seems that any company with strong roots locally, with a strong reputation is likely to do well."
When she announced to the SNP conference in Glasgow, Ms Sturgeon said: "The idea, at its heart, is simple.
''Energy would be bought wholesale or generated here in Scotland - renewable, of course - and sold to customers as close to cost price as possible.
''No shareholders to worry about. No corporate bonuses to consider.
''It would give people - particularly those on low incomes - more choice and the option of a supplier whose only job is to secure the lowest price for consumers.''
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