The largest council-led collective energy-switching scheme in the UK is set to be launched next month, The MJ can reveal.
Approximately 2.1 million households and 100,000 businesses across 16 local authorities throughout the country could be eligible to take part.
Driven by Peterborough City Council, members also include Manchester City, Hertfordshire and Northumberland county councils, and Bolton and Blackpool councils.
Council official expect residents could see savings of up to £200 a year from the scheme, which is also the first of its kind to allow residents who use pre-payment meters to register.
Leader of Peterborough City Council, Cllr Marco Cereste, said: ‘As a local authority we have a key role to play in protecting and helping the most vulnerable. This scheme will give us a unique opportunity to tackle fuel poverty and to put pressure on the energy suppliers.
'This will also be the first scheme in the UK for businesses. By making it possible for them to participate we are helping to make the business community much more resilient and as such contribute to driving growth in Peterborough.'
John Harrison, executive director of strategic resources for Peterborough City Council, added the authority will be ‘acting swiftly to try and bring the potential benefits to our communities before winter arrives'.
Members anticipate registration for the scheme - which will use the reverse auction technique where energy suppliers bid the lowest price to supply energy to all those registered - will be launched in November with the auction results announced before Christmas.
The registration and auction for eligible small and medium enterprises is scheduled for January 2013.
To participate, residents will be invited to visit a custom-made website or contact the relevant council to register their details for free, giving current energy usage figures for gas and electricity.
Peterborough City Council's cabinet will discuss the scheme on 5 November, and will be recommended to proceed with the launch with immediate effect, a spokesman said.
