Come and meet them at Disrupting Poverty in Leeds
What’s thePeoplesPower.co.uk all about?
In a few words – Collective Energy Purchasing.
To sign-up (it’s free and there’s no obligation): http://www.thepeoplespower.co.uk/
We think the relationship between energy suppliers and household consumers is skewed. And it’s a costly skew too; collectively we over-spend £4 billion a year because we’re on the wrong energy tariff. What’s worse this costs lives, the fuel poverty epidemic contributes to the 27,000 excess winter deaths that occur each year.
You could join dozens, hundreds or even thousands, of other little people to become a real force. Group bargaining’s an old idea, but it’s still a good one, and with the advent of mass internet access the possibilities are endless.
And that’s what thePeoplesPower.co.uk are all about- empowering UK households to get a fairer deal on their energy. The concept is simple: consumers group together in large numbers and thePeoplesPower.co.uk negotiates a better deal based on their stronger combined purchasing power. The balance shifts: customers and suppliers have a relationship which is fairer and more sustainable.
As much as we love to demonise the Big Six, they’re not the devil incarnate, just organisations that are focused on profit margins. And getting a manageable chunk of new custom in one go is of great value for them. We know it is and can see the high referral fees they pay for new customers and the amount they spend on advertising.
This model has been tried and tested already. In the Netherlands it’s helped households save around 10-20 per cent on their bills.
What’s in it for thePeoplesPower?
- a good question … where there are profits to be made, people’s motives need to be clear.
- thePeoplesPower.co.uk is set up as a not-for-profit Community Interest Company (http:// http://www.thepeoplespower.co.uk/community-interest-company/)
- We charge a £2 referral fee per household switch (charged to the energy company to cover our costs (we don’t advertise and our four person team all work as volunteers).
- We want to help people who are struggling with their energy bills
What’s different about thePeoplesPower?
- We want to help people in fuel poverty and open collective switching to the non switching classes (as well as anyone else) – so we have started collaborations with Housing Associations and other not-for-profit organisations (http://www.thepeoplespower.co.uk/energy/housing-associations-sign-up)
- Our not for profit motive and low referral fee £2 allows us to pass on more savings to households and offer something more attractive to energy companies than the standard switching site (who charge energy companies somewhere between £30 and £70 per switch).
- Green energy option
- Cap on the number of people we switch in one go. (By keeping the numbers small and capping it at 20,000 per switch, we ensure that all energy companies can participate, big and small. This way we don’t compound the problem of an uncompetitive market place. Also having a cap avoids switching chaos, energy companies will struggle to smoothly switch 50,000+ people in one go.
In this way, we think we’ve found a collective switching model which can work for both consumer and provider, thus restoring the balance, and in turn, our confidence in an essential industry.
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