A NEW non-profit energy company has been set up to sell cheaper power to around 200,000 homes across Scotland.
Our Power Energy has been founded by 35 organisations including some of Scotland’s largest housing associations, and local authorities.
The company will enter the market at the end of 2015 as an Ofgem-licensed supplier of gas and electricity to provide lower cost energy to the tenants and communities of its members.
It expects to save people up to 10 per cent on their household utility bills compared to standard commercial tariffs.
Over the next five years, this could see up to £11 million of savings for households in some of the most disadvantaged communities across the country.
It is backed by loans of £2.5 million from the Scottish Government and £1 million from Social Investment Scotland.
Social Justice Secretary Alex Neil said: “Fuel poverty is at its highest level in a decade with fuel prices having risen by an inflation-busting 7 per cent between 2012 and 2013.
“A recent investigation by the Competition and Markets Authority (CMA) found that millions of energy customers are paying too much for their energy bills.
“That is why the Scottish Government has invested £2.5 million in Our Power. It will be the first independent and fully-licensed energy supply company registered as a non-profit distributing organisation owned by its members.
“This ground-breaking company will make a real difference to tens of thousands of low income households who are currently disadvantaged in the energy market and struggling to pay their bills.”