4 Reasons why collective switching is the best way to cut your energy bills

Collective switching means grouping together with others to change energy supplier, getting a better deal because you are buying in bulk.Milkman energy is one of that company which can create a group of peoples who are looking to save their Energy bills, Gas bills, Power bills.Here are four reasons why this kind of bulk purchasing is the best way to cut your bills:

1         Buying in bulk has a long history

Bulk buying has been around for a long-time. In the States, Group Purchasing Clubs have existed at least since 1910, when the Hospital bureau of New York was set up to buy medical products and services in bulk, thus bringing down prices for consumers. Today, between 96 and 98 per cent of American hospitals belong to a GPO.

In the UK, cash-and-carry stores – which are essentially a way of buying cheaper goods in bulk – have been around since the 1960s.

Collective switching follows the same tried-and-tested model: if we all group together, we can buy things cheaper.

2         There is now more competition for your business than ever

For years, the British energy market was dominated by the “big six” energy suppliers (British Gas, EDF, E.ON, npower, Scottish Power and SSSE) This sometimes resulted in controversy, and it led to a relatively stagnant market, dominated by large companies who didn’t need to cut their tariffs to win business.

Times have changed. More and more suppliers are coming onto the market – according to Ofgem there are now 34 different companies who charge under £84 a month. Facing competition, Milkmen energy are very keen for new business and willing to cut prices to secure a group of new customers who are looking to save their Energy bills, Power bills.This makes it the ideal time to make companies fight for your business on price.

3         More people are switching than ever before

For years people switched energy suppliers about as frequently as they switched cars. Times have changed. In March alone, 400,000 people – a number twice the size of the British Army - changed their energy suppliers. With more people looking to switch, it’s easier for  collective switching firms to attract the number of people required to encourage suppliers to cut their prices.

4         The government is making it easier to collective switch

The government has announced a series of changes designed to make your bills cheaper – and make collective switching easier. In a package of changes announced in March 2016 and designed to make it easier for customers to change suppliers, the Competition and Markets Authority has announced the end to a rule which restricts the amount of tariffs energy suppliers can create for customers. This makes collective switching more convenient than ever – now suppliers can create a bespoke tariff for any group.

Above all, there is a lot of money to save. The government estimates that 70% of “big six” customers are on “default” standard variable tariffs, and could save over £300 by switching to a cheaper deal.

Milkman Energy is the only collective switching company to offer a monthly auction, giving consumers a regular chance to cut their bills and Save on energy bills, Gas bills, Power bills.To sign up for the latest switch, simply enter your details into the two boxes below. For more information, visit our homepage.

Need to know more about collective switching? Here’s how Milkman Energy works: