The country's first not-for-profit energy company will launch at the end of this year, and council tenants in Fife will be among the first to benefit.
Our Power has been founded by 35 organisations, including Fife Council. All profits will go back into the company and used to improve its services. The firm will supply all social households in the Kingdom, with savings of around 10% expected.
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 member organisations. The announcement follows investment of £2.5 million from Scottish Government and another £1 million from Social Investment Scotland, both in the form of repayable loans. 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.
Alan Russell, Senior Manager of Housing Condition and Supply, said: "It’s great news that Our Power will enter the market at the end of 2015.
"Fuel poverty is a major issue for many households throughout Scotland. However, by removing profit from the equation, Our Power offers a new way of tackling this problem. Over the next five years Our Power will help many disadvantaged families reduce their energy bills and stay warm."
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