Collective energy switching works by combining the energy use of individuals registered to the scheme to create a large single energy use figure. This is then used to set up an auction, where energy providers offer their lowest price for providing the energy. By significantly increasing the amount of energy being used, collective schemes can often negotiate cheaper tariffs for participating individuals.
Oldham ran a collective energy switching campaign which brought 8,700 local residents together to get a cheaper energy deal. The campaign delivered an average saving of £171 per household.
This campaign was so successful it was rolled out across Greater Manchester and with other key partner authorities across the UK for a second energy switch. This delivered a new energy deal for an additional 45,000 people and delivered an average saving of £120 per household.
There are now many national collective energy switching services, which can be accessed online with no obligation to switch your energy provider.