Ikea has launched a collective energy switch that promises a 100 per cent renewable electricity tariff.
The Swedish furniture retailer has joined forces with the Big Clean Switch campaign to use a collective switch to secure cheaper green power for households. The two companies claim it will save a typical UK household £300 a year.
Big Clean Switch describes itself as a “profit with purpose” company that helps people move to renewable electricity providers. It says on its website it only offers tariffs where the supplier can guarantee that 100 per cent of the electricity sold is matched from renewables.
Hege Sæbjørnsen, Ikea’s sustainability manager, said: “We hope to make switching to renewable electricity simple, accessible and affordable to everyone.”
For every switch, Ikea will receive a commission payment, which it said will support local community initiatives near each store.
It is uncertain whether this switch will undercut the cheapest 100 per cent green electricity suppliers currently available, such as Tonik and People’s Energy, which had some of the cheapest green energy tariffs at the time of going to press.
In the past, collective switches have offered the cheapest tariff on the market at the time, but others have not.
The news follows Ofgem’s announcement of plans to trial collective switching with around 50,000 consumers, with the aim of combatting the lack of consumer engagement in the retail energy market.