‘Energy switch’ scheme offering chance to save hundreds on bills

The scheme, being organised by Hull Council, could provide welcome relief for thousands of hard-pressed families struggling to cope with the burden of spiralling energy bills.

It is thought they could save between £60 and £200 a year.

The initiative allows every household and small to medium-sized business in the city to join a new collective that will have the power to negotiate potentially cheaper prices for gas and electricity.

It is set to be the largest and most inclusive of its kind, being both the first in the UK to allow residents who use pre-payment meters to register, and being open to so-called small and medium enterprises (SMEs).

In total, 12 local authorities will join together as part of the scheme, which will open up potential savings to two million households and about 100,000 businesses.

The scheme will work by means of a “reverse auction”, where energy suppliers will be invited to bid the lowest price to supply the energy to all those signed up. Residents will then be sent an offer and can choose to accept the new energy rates and switch provider or stay with their current provider.

To be involved in the first auction residents need to register by December 17 – and could be on a new lower energy rate by the new year. It is anticipated that results of the reverse auction will be available before Christmas.

The scheme will re-open for new applicants every three months.

Anyone want to find out more or register can log on to the web address www.hullcc.gov.uk/energyswitch, or visit one of the council’s customer service centres or Hull Warm Zone.

Registration is free but participants will need to give details of their current energy usage for gas and electricity. There is no obligation to switch supplier when registering.

Registration and auctions for businesses will be held in January.

Coun Stephen Brady, leader of the city council, said: “Households that register for this scheme will see real benefits; it will make switching energy providers easy and most importantly save people a significant amount of money. I hope to see lots of households taking advantage of this opportunity.

“I am also pleased that small and medium businesses will benefit from this scheme, which will help with economic growth in the city.”

The groundbreaking scheme follows a challenge from Energy and Climate Change Secretary Ed Davey, who encouraged communities to use their potential bulk buying power to get a better deal on energy prices.

He said: “As a long-term advocate of collective purchasing and switching, I thoroughly welcome this initiative and wish it every success. Enabling local residents – especially vulnerable households – to club together in this way could make all the difference in helping households get a better energy deal. I want to see many more schemes like this get off the ground.”

According to latest figures, about 17.6 per cent, or 19,000, households in the city are thought to be in fuel poverty, spending more than 10 per cent of their income on heating their homes.

About 18.1 per cent (26,109) households in the East Riding are in fuel poverty, although more than a quarter of households in the borough are not connected to the national gas grid.

In Yorkshire and the Humber some 18.6 per cent (415,324) households are thought to be in fuel poverty, and nationally about one in five households fall into this category on current evaluations.

Earlier this month it was predicted that rising energy bills, mostly driven by increasing gas prices, will see the number of UK households in fuel poverty rise to more than nine million by 2016.