Social landlords to launch energy supply company

Our Power Energy is set to enter the market at the end of this year as an Ofgem licensed supplied of gas and electricity. They intend to provide low cost energy to the tenants and communities of its member organizations.

The organization is the first in the UK for non-profit distribution. It is a subsidiary company of Our Power Community Benefit Society. It currently has 35 member organizations including Scotland’s largest housing associations and local authorities.

On average it expects to save its members up to 10% on their household utility bills in comparison to commercial tariffs. Savings in disadvantaged communities as a result could reach £11 million.

The organization has the financial backing of the Scottish Government (£2.5 million) and Social Investment Scotland (£1 million).

Our Power, 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 seven 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.” Kimberley Stoddart, a tenant of West of Scotland Housing Association, commented:

“The launch of Our Power is really great news – energy bills are getting more and more expensive and its particularly hard for people on low incomes to make ends meet. I really hope Our Power will be a wakeup call for the big energy companies – by having a not for profit competitor – hopefully they will feel pressure to reduce their prices.” Alister Steele, Chairman of Our Power and Managing Director of Castle Rock Edinvar, added:

“This is a monumental day for Our Power. We are absolutely delighted to have agreed a funding package with Scottish Government and Social Investment Scotland’s Social Growth Fund.” “Our Power can now fully focus on market entry and delivering a utility offer to households disadvantaged most in the energy market. Fuel poverty is one of the biggest issues facing society today and Our Power is fully committed to help eradicate it.” Alastair Davis, Chief Executive of Social Investment Scotland said:

“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. We look forward to seeing Social Investment Scotland’s £1 million investment in Our Power make a tangible difference to communities across the country.”