When comparing energy tariffs you might have come across collectives. They are often some of the best value deals you find. But what are they? And how do they work?
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A collective is a tariff only available to a specific group of customers. The group, known as a community, isn’t just friends or neighbours, but is organised, for example by a local council.
Collective energy switching gives the group more bargaining power than would have as an individual. Organisers can ask for a special tariff using collective purchasing, meaning you can get a better deal.
Collectives are usually only available for a limited time, or to a limited number. This is because they are aimed at sourcing a deal for a specific group of customers. You won’t be able to get this deal if you aren’t a part of the community.
Collectives can be arranged by councils, national newspapers and even price comparison sites.
Usually, an organiser will assemble a group of people, or a community. Your collective energy deal is then decided after a community has been confirmed. This is because the deal is intended to suit your community’s specific energy needs.
Energy suppliers bid against one another, and the supplier offering the best deal is selected by the organiser. Because energy companies are competing for your custom, your energy deal is likely to be much better.
If your community has similar goals, your deal will suit your needs better than a standard deal.
Almost any group can form an energy-switching community. If you are interested in collective energy switching then keep your eyes peeled.
You might find a community through a price comparison website, a local council or even a national newspaper.
You may also find a community through an organisation of which you are already a member. This can be very helpful as collective energy switching works best for groups of likeminded individuals with similar energy needs.
If you’re interested in collective energy switching, keep an eye out for direct marketing of collective switches. It is best to move quickly as the offer will only be available for a limited time.
In most cases you are under no obligation to accept the deal offered just because you are a member of the community.
Usually, once a plan is announced you get to choose whether to sign up or not. It is worth double checking this before you sign up just in case, you don’t want to be forced to accept a deal that isn’t right for you!
Collective purchasing schemes have become very popular since 2018. This means it should be fairly easy to get a collective energy deal if you want to.
Collective energy switching is best if you find a community of likeminded individuals with similar energy goals. If you can find a community that suits your needs then your goals are more likely to be reached under the deal negotiated.
Collective bargaining power means that collective energy switching can be really great for niche areas or demographics that are underrepresented by common energy tariffs. Rural communities often use collective energy switching to find cheaper energy deals.
Collective energy switches are not the only way to find a better energy deal. You can compare energy deals at any time.
After a collective energy switch comes to an end, if you haven’t taken up the negotiated tariff then you won’t have access to the deal.
However, this does not need to be the end of your collective energy switch. Successful community leaders are likely to organise another community so you may want to watch out for that if you are still interested in making a collective switch.
Watch out for marketing about collective energy switches as you may find a community that suits your energy goals.
Collective energy switches are not the only way to save money on your energy bills. You can still compare energy deals at any time to find one that suits your needs.