People-power scheme to win cheap energy from suppliers

Published on 06/10/2012 14:37

THOUSANDS of of households across the UK could soon be able to cut their energy bills, thanks to a collective bargaining scheme pioneered by a Dundee MSP.

Jenny Marra has championed the scheme, which encourages groups of consumers to band together and negotiate cheaper prices from energy companies for buying in bulk.

At this week’s Labour Party Conference it was announced the party would be working with iChoosr to help people negotiate cheaper prices at schemes in Dundee, Lewisham, Llanelli and Chorley.

Eventually, the plan is to make the scheme available
nationwide.

Jenny Marra said she was pleased her constituency was chosen for the Scottish pilot scheme: “I’m delighted that Labour is able to offer this collective bargaining scheme in Dundee from today. Many households in the city are facing tough times with energy bills and in this economic climate everyone is looking for savings on their bills.

“The Labour Party is about collective action, and if we can offer the power of acting together to make it a bit easier for people to heat their homes, then I think that’s a great thing to be able to do while we’re out of office.

“There is no obligation to accept the auction price, but everyone who signs up will be offered the deal after the auction. People can register their interest now at www.switchtogether.org.uk”

The scheme has some similarity with the BigSwitch campaign organised by consumer organisation Which? which invited consumers to sign up for a collective deal and then “sold” the group of customers to energy companies according to who could offer the cheapest price.

The BigSwitch operated by Which? was won by the Co-operative, but the winning price was beaten within hours.

Although none of the “Big Six” energy companies took part in the Big Switch, the move to collective bargaining was seen as a way of challenging their hold on the energy market. More than 37,000 people switched their energy to the Co-operative – saving an average of £223 a year on their yearly energy bills.

According to the latest research, only 20 per cent of consumers are currently getting the cheapest available deal for their gas and electricity, though high fuel costs are one of the biggest financial worries facing consumers.

Caroline Flint, MP, Labour’s shadow energy and climate change secretary, said: “The Labour Party has always believed that by the strength of our common endeavour we achieve more than we achieve alone. That’s why we’re organising our own collective purchasing service. By harnessing the power of our grassroots network and Labour councils, we can be a vehicle for people coming together to collectively negotiate a fairer deal with the energy companies. Because people are doing this
together, they’ll have more leverage than they would just doing it on their own.

“This initiative shows that the Labour Party is changing as an organisation, finding new ways to reach voters disenchanted with politics, and is focused on being a positive force for change in the communities we seek to serve.”