The Big Switch: A First That Worked

When we launched the Big Switch with 38 Degrees in February, we knew it wouldn't be easy. This was a completely new way to buy energy using the power of thousands of consumers to collectively negotiate a better deal with suppliers.

When we launched the Big Switch with 38 Degrees in February, we knew it wouldn't be easy. This was a completely new way to buy energy using the power of thousands of consumers to collectively negotiate a better deal with suppliers. Nothing has ever been attempted on this scale in the UK before and in a market where inertia rules, and industry players have a vested interest in keeping it that way, it was never going to be plain sailing.

The good news is that we had an incredible response, with more than 285,000 people joining together to get a cheaper deal. Collective switching has also captured the imagination of politicians from across the political spectrum, from the Energy Secretary, Ed Davey to the whole Shadow Cabinet pledging support for the Big Switch.

The reaction from some of the energy suppliers was less enthusiastic. In fact two of the major suppliers told us the Big Switch would never succeed. While we hoped that as many suppliers as possible would take part, we knew that not all them could be competitive enough to beat the cheapest deals already on the market.

On the day, we were pleased that five suppliers - big and small - signed up to take part in the reverse auction. The final result was that Co-operative Energy beat the best deals on the market and won in all three categories.

We're estimating that more than 200,000 households could save by switching via The Big Switch - and the average savings for switchers are around £123. For those who are on the worst value deals on the market, switching could cut as much as £200 a year off their bills. If everyone who signed up switches, that would be a £25 million saving on household energy bills.

Our aim for The Big Switch was simple. We wanted to help as many people as possible to save money on their energy bills. By the end of the month, we will have saved consumers money and moved the market with a new market leading fixed deal. And we have reached thousands of people on terrible tariffs who signed up in person and by post - not the usual switchers.

Job done then? Not quite. We're now in the process of sending out tens of thousands of personalised emails with tailored savings quotes and tariff recommendations. Everyone has until the 28 May to decide whether or not they want to switch.

Overall the response has been positive, but perhaps unsurprisingly some of those with most to lose from collective switching have seized any opportunity to criticise the Big Switch. We're unapologetic about standing up for consumers in the face of industry players' vested interests.

Some commercial switching outfits were quick to claim that there was a cheaper tariff available on the day, and advised people to use their websites instead.

But they conveniently failed to mention that we'd deliberately excluded the tariff because it was a variable rate and only open to a small number of customers. We want every potential switcher to be as confident as possible that the deal they switch to won't suddenly be hiked up. When one major supplier has already warned of future price increases, we think it is irresponsible to recommend a deal that could go up at any time when the price difference is relatively small (£21 on an average bill of around £1270 a year).

Others said that it is unfair to cap the number of people who can switch to the Co-op deal to 30,000, leaving the rest on 'worse' deals. But the truth is that nothing is ever that simple in the energy market. We know one deal will not work out cheapest for everyone, as a single energy tariff has a minimum of 98 different prices due to variations in regions, meter type and tariff structures. That's why we're sending out tailored tariff recommendations. Based on these, we estimate that over 200,000 people will actually be able to save money on their bills.

We're pleased with what we've achieved with the Big Switch - shifting the market, delivering a saving for over 200,000 people and reaching out to those who have never switched before, but it's important to remember that this is just one step.

It took a lot of people to achieve this. But a properly functioning, competitive market would respond much better to mass demand. That's why we'll continue to push for wider energy market reform to make it work for consumers, and continue to campaign for a better and fairer deal for all through our Affordable Energy Campaign.

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