Collective energy bargaining is an innovative practice being looked at by a number of Governments and communities within Scotland, Northern Ireland and the Netherlands amongst others. The premise is that the community or group can purchase fuel at a more competitive rate than that available to individuals, thus reducing expenditure on fuel for participants.
The concept is particularly interesting in the context of the Affordable Energy Strategy and the work of the Inter-Departmental Group on Affordable Energy (IDGAE). One of the priority actions in the Strategy is to look at the role of energy suppliers and identify opportunities for relieving the fuel price burden on consumers. Three actions have been specifically identified for further consideration including energy brokering, oil stamps and pay as you go for oil. The IDGAE will keep developments in other jurisdictions under close review as the work of the group develops.