April 19, 2016
There has been a steady increase in the number of organisations and groups offering collective switches to their customers or members. They all promise the same thing; the very best deal and cheapest energy tariff on the market.
But are they all they are cracked up to be?
What is a Collective Switch?
A collective switch is when a large group of people get together and use their shared buying power to negotiate a better deal from energy suppliers. The idea behind a collective switch is that the more people that are involved in a switch, the bigger the buying power and the better the deal is likely to be.
Quite often collective switches will offer the cheapest energy tariff on the market, but the headline grabbing figure isn't always the cheapest energy deal on the market for everyone.
If you have taken part in a collective switch then you will have received a competitively priced energy tariff that saved you money on what you had previously been paying, but there could be more money to be saved and through a process that is quicker than a collective switch. How? By taking just a few minutes to do an energy comparison on-line or let someone else do it for you by phoning an energy comparison website.
Take a recent collective switch organised by One Big Switch Scotland. The aim was to get as many Scottish households to register for the collective switch as possible. It was actively promoted on TV, social media, the radio and the press. During the registration period more than 44,000 households signed up to this particular collective switch.
The winner has now been announced and it is a fixed price dual fuel tariff from First Utility. For the average energy user (3,100 kWh or electricity and 12,500 kWh for gas) the cost will be £771 per annum.
A quick comparison on Energylinx switching platform shows that for an average user in the FK10 area, a tariff at this cost wouldn't even rank in the top 15 (it would be 17th). With the cheapest tariff on the market being £56 less than the winning collective switch tariff.
Source: Energylinx comparison and switching service.
For a G67 postcode the winning tariff ranks slightly better at number 13. For a DD1 postcode higher again in 11th place, but in no comparisons that Energylinx ran, did the One Big Switch winning tariff top the list and even if you're not a typical user - meaning you either use lots of energy or very little energy - in many postcodes One Big Switch still isn't the best deal for you.
Unlike a lot of collective switches, One Big Switch don't claim to be offering the best deal on the market, but for the 44,000 people that have registered for the collective switch there are bigger savings to be made.
Don't believe us? Check it out for yourself. Click here to be taken to Energylinx's comparison tool or give one of our friendly advisers a call and they will do all the work for you. All we need to know is address, current energy supplier, tariff and usage. That is it! Call 01259 220000 and we will find out what you could save, today.
Posted on April 19, 2016 at 08:45 AM