This week we caught up with George Frost, Country Manager of iChoosr to explore the benefits collective energy switching companies offer consumers.
How long has the company been running?
iChoosr was founded in 2008, entering the UK market in 2012. We are active in the Netherlands, Belgium and the UK with group buying actions including energy and solar panels. We help people to make an informed decision and above all, we make it easy, by 2017 3 million consumers will have participated in our auctions and we have helped 1 million consumers switch energy suppliers.
We entered the UK market in 2012 assisted by the Department of Energy and Climate Change focus on (and funding for) collective schemes. We now work with over 160 local authorities who want to help their residents make an informed decision and save money on their energy bills. We also have partnerships with non-council organisations including unions and online communities.
From previous auctions, which type of supplier tends to win the bid? The big six or other independent suppliers?
We work with the big six suppliers as well as the larger independent suppliers. Previous winning suppliers include British Gas, SSE, nPower, Sainsburys, Co-op, Green Star Energy, First Utility and Ovo Energy to name a few.
How many people are needed in an auction to negotiate a good deal? Does participation on the schemes so far meet expectations?
The more households that register the bigger the negotiating power. In our summer May 2017 auction we had over 70,000 households register.
Is collective switching particularly interesting for a specific demographic?
There are 3 types of consumers:
- Shoppers – customers who are engaged with the market and switch regularly
- Snoozers – customers who might have switched in the last three years but are not aware they need to review their tariff annually
- Sleepers – the disengaged who have never switched. And even some who are not aware that it is possible!
Our aim is to engage the Snoozers and the Sleepers to hold them by the hand and help them by providing a simple and easy user experience and demystifying the complex energy switching process.
Do you have an estimated figure on how much money people have manage to save through your scheme?
On average 96% of registrants can make a saving with average savings of over £240 in the most recent auction!
Is the service free?
Yes. Registration takes less than five minutes, is completely free and there is no obligation to switch. We secure exclusive, bespoke tariffs which are often market leading, not available on price comparison sites or direct from the supplier.
How long does the entire process (registration, bidding, switching process, etc) take?
It depends how close to the auction people sign up. Registration normally opens six-eight weeks before the auction but you can sign up at the last minute. The auction is held over one day, where energy supplies compete for everyone’s custom. Personal offers are sent around two weeks after the auction. The saving is unique to the consumer (we use their current energy usage to work out what saving they are likely to make).
The winning tariffs are available to accept for around four weeks during which time each household decides if they want to stick or switch. If they decide to switch we work with the winning supplier and oversee the switch.
When do I need to sign up by?
For the autumn 2017 scheme, you have until the 9 October to sign up.
When will I hear back about the deal?
The autumn auction takes place on the 10 October and from week commencing 23 October, you will receive your personal offer, detailing how much you are likely to save by switching to the winning tariff.
What’s the benefit of switching tariffs after the auction?
We secure a fixed one year contract so you have peace of mind knowing that your energy bills will not go up for at a least a year.
How will I know your offer is better than my current plan?
We provide a comparison to show the savings you are likely to make. It's then up to you to decide if you wish to switch or not.
I am already on a fixed plan will I have to pay an early exit fee?
If your fixed period is coming to an end in the next month or so, you should be able to switch without a penalty. Some fixed contracts come with early termination (or ‘exit’) fees. These should not apply in the last 49 days of your fixed term. If you discover you would be liable to an exit penalty, then you should be sure you are building this into your budget when calculating how much you could save.
I'm in debt to my current supplier - can I still switch?
Energy companies can refuse to allow you to switch to another supplier if you have outstanding debt. If you owe money, you may need to pay this before being accepted by a new supplier. Whether or not you are allowed to switch will depend on how long you have owed the money.
Will the terms and conditions of the deal be made clear to me?
Yes, you can read all the terms and conditions before accepting your personal offer and have a 14 day cooling off period in case you change your mind.
Do you receive a commission if I switch?
We receive a small fee from the winning suppliers for each household that switches which is why we are able to offer the service for free.
Will my information be safe? Will it be given out to others?
Information is stored in a secure format and will not be passed onto third party organisations other than to allow you to switch suppliers if you choose to accept the offer. Obviously we need to pass your details on to your new supplier but no-one else.
Can I choose my method of payment?
The only payment option is Direct Debit which is easy for the household and often allows the suppliers to offer even better tariffs as it is better for them too.
Can I choose to receive my bills online or via post?
Yes, you can choose to receive bills online or via post.
Am I obligated to switch if I sign up?
No. If you don’t want to save the money you can unsubscribe or ask to be included in future auctions.
We've teamed up with iChoosr to offer consumers the opportunity to save themselves up to £224 in energy bills by switching providers. So, what are you waiting for? Make the smart switch today with iChoosr.