Collective switching 'could improve market' - 03/05/2012

Collective switching schemes such as energyhelpline.com's Huge Switch campaign may help greater numbers of people get cheap electricity and improve the way the market works.

This is according to Consumer Focus, which noted the concept could be used in several "sluggish, unresponsive" sectors such as telecoms and financial services, as well as domestic energy.

The organisation observed providing more information to homeowners has not been enough to encourage people to make energy price comparisons and cut through the complex range of deals on offer.

However, it suggested a new approach that puts power back in the hands of consumers could improve the market and make it simpler for people to get better deals without having to do all the work themselves.

Richard Bates, director of empowered consumers at the group, said: "Collective switching has the potential for an intermediary, working on behalf of consumers, to turn inertia from something that works against consumers into a force that works for them."

This view was backed up by Edward Davey, secretary of state for energy and climate change, who said collective purchasing schemes could help consumers get better deals for gas and electricity by forcing energy suppliers to work harder for people's business.

He added he is "very excited" about the potential for such schemes in the UK, while Consumer Focus noted the concept has already proved successful in other European countries.

Energyhelpline.com launched its Huge Switch scheme last month, offering those who sign up a range of options, such as green tariffs and deals tailored to the needs of individual homeowners.

Make sure you're not paying too much for your energy - compare gas and electricity prices now at energyhelpline.com or call 0800 074 0745