Government encourages collective switching

Consumers are being encouraged to participate in collective switching schemes as a way to reduce their energy bills by the Department of Energy and Climate Change (Decc).

Ahead of the Big Community Switch and the Big London Energy Switch auctions, which are due to take place tomorrow, energy secretary Ed Davey has said they allow consumers to get a better price.

He said: “Switching is one of the best ways that people can force the Big 6 to compete on price and take control of their energy bills, especially if communities club together to get the best deal.

“With 77 local authorities up and down the country getting involved, this is a really national collective switch – giving millions the opportunity to see what they can save.”

Registrations for the Big London Energy Switch and the Cig Community Switch close at midnight tonight, ahead of the auction, where energy suppliers offer a price for the consumers signed up to the collective switching scheme.

Once a supplier has won the auction, the registered consumers will then have until 13 January 2014 to accept the new tariff, and the switched should be completed by the end of February 2014.

The two collective switching schemes have arrived on the back of a Decc funded switching project called Cheaper Energy Together, which took place between December 2012 and March 2013.

This project has delivered more than £2.7 million of savings to households, and more than 21,000 consumers switched supplier.