Collective energy switching

If you’re looking for information on collective energy switching, you’re in the right place. Discover everything you need to know about collective energy deals, including how you can use strength in numbers to reduce your energy bills.

What is collective switching?

Collective switching is when a large group of consumers join forces to use their collective bargaining power to negotiate better deals. In the cases of energy, a group will form in the hope of getting better gas and electricity deals from energy suppliers. 

If you’re wondering how to join or start a collective, there are several services that can help. Sometimes, local authorities can negotiate better deals for households in council blocks or entire geographical areas.

How do collective energy switching schemes work?

Rather than consumers marching en masse to the supplier, collective energy switching usually involves a third party or middle man who acts as a negotiator between the group and the energy provider. 

Once a significant amount of consumers have signed up to the collective, the negotiator can take the purchasing power of the group to different suppliers and broker the best deal or have the providers bid for the contracts in an auction.

Are there any downsides to collective energy buying?

There can be. Collective switching services often don’t take exit fees into account. Unlike auto switching services that factor-in your contract end date, you might get charged for leaving your current deal. On the plus side, this won’t apply if you’re on a Standard Variable Tariff (SVT) or within the last 42-49 days of your deal.

Collective energy deals tend to last between 12 - 18 months, so you should pay attention to when the deal ends. If not, you may be automatically rolled on an SVT once your tariff is up.

Collective energy purchasing

As well as collective switching, some energy suppliers were formed with the purpose of offering local residents lower energy deals. One example of this includes Bristol Energy which originally only served homes in Bristol and the South West. 

Another supplier helping local communities with fairer energy deals is Angelic Energy which was created by both Robin Hood Energy and Islington Council in north London.

Switch your energy supplier

To get the best deals, you need to switch energy providers. Compare energy deals and see how much you could save on your next energy bill.