Collective energy projects among 132 to benefit from £46m in Government funding

The Department of Energy and Climate Change (DECC) said that its 'Cheaper Energy Together' competition, one of three funding streams open to local energy projects, had been "heavily oversubscribed". It has awarded a share of £5 million to 31 successful projects, covering over 94 local councils and eight third-sector organisations.

DECC made a total of £46m available to 132 local energy schemes under the three competitions. It has allocated £31m to projects aimed at helping vulnerable householders who are struggling with their energy bills, and a further £10m to projects across local authority areas using the Government's Green Deal programme to improve energy efficiency.

Energy Secretary Ed Davey said that the awards would help local communities save energy and money.

"This £46m will help local councils across England upgrade inefficient heating kit as well as creating demand for and installing insulation under the Green Deal in homes across their local areas," he said. "Funding will also be used to drive forward collective purchasing and switching initiatives at a local level, helping consumers get a better deal on their energy bills."

Collective energy schemes allow people and businesses within a defined area to join together as a single unit in order to negotiate cheaper energy tariffs. The Government published guidance on collective energy purchasing earlier this year; while Davey wrote to energy suppliers (2-page / 34KB PDF) in March making it clear that he wanted to see them engaging positively on this type of scheme.

Among the successful applications was one from Peterborough City Council, which in November last year announced the UK's first collaborative scheme for collective energy switching. The scheme, which involves fifteen local authorities as well as the city council, was also the first to allow small businesses and householders who use pre-payment meters to take part. The first 'reverse auction', at which energy suppliers will be invited to bid the lowest price to supply all participants, will take place at the end of this month.