by Brendan Coyne
Local authorities look set to be the next group to approach energy companies for best prices via collective switching schemes.
South Lakeland District Council will be the first local authority to trial a scheme with iChoosr, the firm that has pioneered collective switching in Belgium and the Netherlands. Co-founder Bart Stevens said iChoosr had spoken to most UK energy companies about an initial reverse auction in September. The company aims to undertake “about ten projects simultaneously” from October.
At a meeting convened by iChoosr in London on 24 May, local authorities expressed concerns about European procurement rules that specify public body contracts over £174,000 must be put out to tender. A South Lakeland spokeswoman said the council had been given the green light by legal advisers because it was facilitating a switch for local residents, not procuring energy. However, iChoosr said a public tender may be advisable for transparency.
Stevens said iChoosr may develop the offering to help suppliers deliver social obligations to consumers.
· The deadline for consumers to decide whether to switch to Co-op Energy’s bespoke fixed tariff was extended until 31 May, and the cap raised to 30,000. Co-op would not give indicative numbers, but a spokesman claimed it was “going very well”.
This article first appeared in Utility Week’s print edition of 1 June 2012.
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