Not-for-profit energy supplier anyone?

17 July 2015

energy Up in Scotland, there's a new not-for-profit energy company set to launch, with the aim of selling cheaper energy to homes. That sounds noble doesn't it?

The company is called Our Power Energy, and will launch with 35 founder organisations, which includes housing associations and local authorities, and wants to be doing business by the end of 2015 as an Ofgem-licensed gas and electricity supplier.

Our Power Energy want to cut utility bills for disadvantaged communities by up to 10% cent compared with the usual shower that make up the Big Six. And they think that their buying power will help save communities up to £11 million on bills over the next five years.

Bold claim.

This particular scheme has been backed with a very healthy £2.5 million loan from the Scottish Government and £1 million from Social Investment Scotland. Could something like this work in the rest of the UK? If it works in Scotland, then you can imagine it branching out or, being taken up by other initiatives.

Scottish 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."

TOPICS:   Utilities   Travel

1 comment

  • Alex
    I am sure this scheme will succeed. I am also sure that the tariff I am on will be equal to or cheaper than the tariff all these people move too. Thus it will be a total waste of £3.5m. The majority of these people will be on standard tariffs that they haven't changed in the last decade. Thus they will be paying way over the odds. They will move them to a new tariff which will be cheaper than anything the big 6 offer but... Cheaper tariffs will be available some time before the switch or some time after the switch. Anyone signed up to the moneysaving expert newsletter would spot the cheap tariff and swap. It only takes 5 mins every week to read up on these things. Invest the £3.5m in financial education in schools and a lot more people would understand how screwed they are by not changing tariffs.

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