A GROUP of housing ­associations are to set up a power company in a bid to cut energy bills and help tackle fuel poverty.

Neil Clapperton, chief executive of Grampian Housing Association, said the proposed Our Power company could make a "clear social impact".

Grampian Housing Association is one of an alliance now seeking funding to set up the new utility provider, which it is claimed could save tenants at least £100 a year in fuel bills.

Mr Clapperton said: "Advising tenants, insulating homes and improving heating systems is only part of the battle. But a group of Scottish housing associations thinks it has now cracked the outstanding problem of what to do about rising energy bills."