Energy bills have become dramatically more expensive in recent years and in order to cut costs consumers have been invited to work together to reduce their bills. By clubbing together to purchase electricity and gas on a larger scale they can take advantage of lower prices.
The online campaigning group 38 Degrees, as well as the consumer group Which?, are inviting consumers to sign up to a bulk buying scheme by the end of March. Once they have done this, energy companies will be asked to submit a bid stating how much they can supply the energy for.
Once the best offer is been established, everyone who signed up to the scheme with Which? will be transferred to this new energy provider. Which? are going to be providing switchover services.
Recently, price cuts have taken place in the energy sector but the average fuel bill for a year in the UK is still well over £1000. The Executive Director of Which? is Richard Lloyd and he has said, “We don’t feel that the energy companies, the regulatory authorities or the government have done enough to improve the financial situation for consumers.
In these times of particular economic hardship many people are struggling to meet their bill payments and not enough has been done about this.” The scheme is being called the Big Switch and it is a form of reverse auction. The companies are being invited to bid on a basis of price per cubic metre of gas and per kilowatt of electricity. Those who sign up will be notified once the deal is been struck and they can still refuse it if they feel it is too expensive.
A recent survey by Which? has shown that consumers in the UK are wasting over £4 billion every year because they are not price hunting for the cheapest deal on their energy. 38 Degrees is headed by David Babbs who has commented, “Consumers in the UK are getting tired of energy companies charging far too much. This is a scheme that is going to allow consumers to band together and demand lower prices.”