Collective purchasing could become a permanent feature of the UK energy market, according to Edward Davey, the Secretary of State for Energy.
He says it could be a ‘really useful tool’ for consumers by making it easier to move to a better deal and to get real savings on gas and electricity bills. Also it would help boost competition amongst the energy suppliers.
Davey says: “Now I want to see more providers coming up with schemes with the scale and reach to help the most vulnerable consumers. Local authorities and housing associations could have real role to play here, helping their tenants cope with living costs.”
Richard Bates, Director of Empowered Consumers at Consumer Focus, suggests: “Many consumers are put off by the prospect of having to switch energy by themselves. Collective switching – where an intermediary can do the hard work on their behalf – offers an alternative, straightforward way of switching.
“And because the intermediary can aggregate together consumer demand, it can give customers much more muscle in markets than they have when switching alone.
“Other countries have already shown that collective switching can deliver significant consumer benefits, chiefly greater convenience and better value.”He says: “There is real scope for similar schemes to be developed in the UK and we hope many organisations will be interested in finding out how this innovative model can work in their area.”
More information: www.decc.gov.uk