A scheme which could see every Peterborough resident save money on their energy bill will be discussed by Peterborough City Council's Cabinet at a meeting on Monday 5 November 2012.

The Peterborough Collective Energy Scheme will enable people from across the city, and from other communities in the UK, to join together as a single unit to negotiate cheaper energy bills.

It's expected that residents could see energy savings of between £60 to £200 a year.

If the initiative is approved by councillors, Peterborough would lead the UK’s first ever collaborative scheme for collective energy switching. Fifteen local authorities will join the city council as part of the scheme, which in total will open up potential savings to two million UK households.

The Peterborough Collective Energy Scheme is a response to rising energy prices and an increase in the number of households in fuel poverty. To that end, the scheme will also be the first in the UK to allow residents who use pre-payment meters to register.

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In addition, the council's scheme will be the first in the UK to invite small and medium enterprises (SMEs) to take part, which could result in savings for 5,000 SMEs in Peterborough.

To participate in the scheme, residents will be invited to visit a new website or to contact the council to register their details free of charge, giving their current energy usage figures for gas and electricity.

The scheme will work by means of a reverse auction where energy suppliers will be invited to bid the lowest price to supply the energy to all those signed up for the scheme. Residents will then be sent an offer to switch provider and accept their new energy rates.

It's expected residents will be able to register their details within weeks and could be on a new lower energy rate by the start of 2013. There will be a cut-off for registration but the scheme will re-open for new applicants every three months.

Councillor Marco Cereste, Leader of Peterborough City Council, 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 sustaining growth in this city."

(CD/IT)