COLLECTIVE purchasing and switching occur when a group of like-minded consumers band together to negotiate a better deal with their gas and electricity suppliers.

There is no set model for how individual schemes will operate, however this kind of activity will usually be facilitated by a third party who works on behalf of customers.

In general, collective switching is where a third party actively negotiates a better tariff on behalf of the consumers they represent.

The benefits could include a better price, a commitment to choose green energy, or a deal on energy saving products; and someone else can shop around for the best deal for you.

The consumer organisation Which? organised the first UK collective switch in June involving almost 37,000 who made an average annual saving of £223.22 on their energy bills.

Nationally, collective energy switching is supported strongly by the Department of Energy and Climate Change, the Local Government Association and consumer groups including Consumer Focus.