An extended analysis is presented of the earlier investigated induced surface current effects which arise in a magnetized plasma when the confining field has an imposed inhomogeneous part generated by currents in external conductors. The electromagnetic induction law requires a corresponding contribution from these effects to be added to the formulation of the energy principle for plasma MHD stability. For a plasma with a free boundary, conventional theory therefore holds in a strict sense only when there is a homogeneous external magnetic field. An illustration is given by two-dimensional straight Extrap geometry with a peaked current distribution, subject to a combined translational and ballooning-like displacement. In this case there are strong restoring forces, leading to stable oscillations around the plasma equilibrium position.