Britons missing out on free energy scheme cutting bills by £237

The scheme is run in partnership with local councils and is designed to help residents access cheaper fixed-rate energy deals.

It works by pooling households into a large buying group, giving energy suppliers an incentive to offer lower prices than those available on the open market.

Registration for the scheme is free and completed online through participating local councils.

Households must sign up before a local deadline, which typically falls between late January and February depending on the council area.

Once registration closes, energy suppliers take part in an auction process.

Suppliers including British Gas and Octopus Energy compete to offer the most competitive fixed-rate tariff to the group.

The auction system is designed to drive down prices by using the combined purchasing power of thousands of households.

After the auction concludes, registered households receive a personalised offer.

The offer sets out the tariff available and the estimated savings compared with their current energy deal.

Households can then decide whether or not they wish to switch.

Switch Together said the process is designed to be straightforward and low effort.

The organisation said: "The questions will focus on your home to assess your eligibility.

"Behind the scenes, we run an auction where vetted installers bid to offer the best value and quality."

Switch Together said: "We'll email you a detailed offer based on your home and the auction results."

Councils taking part in the scheme this winter include Surrey, Solihull, Stockton-on-Tees, Leicestershire, Kent, Berkshire and Essex.

The scheme is open to households regardless of their current energy supplier, and there is no requirement to accept the offer received after the auction.

Councils involved in the initiative say there are no hidden fees associated with signing up and face no pressure to switch if the offer does not meet their needs.

Each household receives an individual offer, allowing them to make an independent decision.

Switch Together has been running since 2012 and was originally launched under the name Big Community Switch.

It is now operated by iChoosr, an energy switching company that works with local authorities, who say the initiative has helped households across the UK save a combined £47million on their energy bills since it began.

The scheme comes as energy costs remain a concern for many households.

Ofgem’s energy price cap is set at £1,758 a year for a typical household from January.

The Government has also announced measures in the recent Budget aimed at reducing household energy bills.

These measures are expected to save households around £150 next year.

Switch Together is being promoted as an additional option for households seeking to reduce energy costs.

Local councils say the scheme is particularly relevant for people who have not switched energy supplier in recent years.

They say long-standing customers are often paying higher tariffs than those available through collective switching schemes.

Households do not need to provide payment details when registering.

The registration process involves answering a short set of questions about the home and current energy usage.

Switch Together said this information is used to assess eligibility and generate accurate offers after the auction.

Households that choose to accept an offer are supported through the switching process.

Those who decide not to switch can remain with their existing supplier without penalty.

Councils involved in the scheme continue to encourage residents to register ahead of local deadlines.

Collective switching can be an effective way to access better value energy deals during periods of high energy prices.

The initiative can be accessed here.