A new electricity deal will save taxpayers up to £10m a year and help public bodies go greener.

Scottish Power and SSE have been awarded innovative new contracts to supply electricity, available to the whole public sector.

Cost savings will come from bulk buying and the new arrangements will reduce electricity demand and promote greener power.

The Scottish public sector spends around £200m a year on electricity. From this autumn, all public bodies including every council, health board, university and college can take advantage of the contracts.

Finance Secretary John Swinney said: "At a time of high energy prices, this Government has secured significant savings for taxpayers, allowing up to £10m a year of efficiencies to be spent on other front line services.

"On top of saving money this contract will create a greener Scotland. The public sector needs to show leadership if we are to achieve the ambitions of our Climate Change Bill. "The contracts will help public bodies address emissions from energy use through a range of energy efficiency measures, access to renewable generation sources and opportunities to sell green electricity back to the Grid. The vast majority of public bodies have recognised these benefits and have signed up to this deal."

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John McClelland who authored the report on procurement reform said: "With over 95% of Scottish public sector demand signed up to use the national electricity contracts, and significant cost and environmental benefits secured, this is a great example of what can be achieved through joined-up collaborative procurement. This project helps position Scotland as a trail-blazer in this area for the rest of the UK - and beyond."

All of the electricity under the Scottish Power deal will be attributed to Scottish renewable sources, with a large proportion from the Whitelee wind farm, currently the largest onshore wind farm in Europe. Scottish Power has offered a dedicated energy management service to reduce demand, with opportunities to sell electricity from small scale renewables back into the Grid.

The SSE contract provides access to a range of low carbon and renewable technologies, such as combined heat and power, solar and biomass. Electricity supplied through this contract will have been produced from renewable sources including Glendoe, SSE's new hydro electric scheme which is Scotland's first conventional large scale hydro electric power station for 50 years.

(GK/JM)