Energy News

Brits lose £4.1bn a year by not switching energy supplier

Wednesday 8 February, 2012

By Martin Fagan

Watchdog offers Brits a chance to band together to buy energy at cheapest prices.

Brits who are fed up with rising energy bills are being offered the chance to club together to buy gas and electricity in bulk at wholesale prices.

The Big Switch campaign, run jointly by consumer watchdog Which? and online pressure group 38 Degrees, urges consumers to sign-up online to form a group on whose behalf Which? will use the collective purchasing power to secure the most competitive energy deal.

Consumers can register their interest through The Big Switch website until 31 March, when energy companies will be invited to submit a market leading deal and take part in what Which? calls a “reverse auction”.

The winning deal will then be offered to everyone who signed up, and each signatory will also receive a personalised savings estimate. Which? says it will handle the switching process and strive to make it as quick and easy as possible.

Which? also says that UK consumers are collectively paying £4.1billion a year more than they need to by not switching their energy tariff to the cheapest deal. The sheer number of tariffs on the market and the complex array of deals makes it difficult for some people to pinpoint the best option, says Which?.

“The Big Switch is a completely new way to buy energy as a group - the bigger the group, the stronger our bargaining power will be,” said Richard Lloyd, executive director.

“We are urging anyone who is angry about the state of the energy market to sign-up.”

David Babbs, executive director of 38 Degrees, said: “We're all sick of gas and electricity companies ripping us off. If thousands of customers band together, we'll have the bargaining power to do something about it. The big energy companies act like they're untouchable, but this people-powered campaign can turn the tables and bring down prices for everyone.”

The regulator Ofgem has welcomed Which?’s initiative and says that collective switching could offer customers “more options on how they engage with the energy market”.

The Big Switch is the first time in the UK that a large number of people can join together as a group to negotiate a deal with energy companies. Which? and 38 Degrees are urging people to join The Big Switch and help shake up the market.