Energyhelpline.com 'Huge Switch' aims to beat Which? 'Big Switch'

The price comparison site will allow users to register an interest until mid-April under the Huge Switch banner.

It will then negotiate a deal with power suppliers to offer to those who sign up.

Energyhelpline claims it will generate better deals than Which? as it will take less commission from suppliers so can pass on the difference.

It says it will earn £20-£30 per customer rather than the £40 Which? will earn.

Best deal unlikely

Neither initiative will offer British Gas or Scottish & Southern Energy deals as the pair aren't engaging in collective switching.

Archna Luthra, MoneySavingExpert.com consumer products analyst, says: "Collective switching is on everyone's agenda, especially with the new Energy Minister Ed Davey championing it.

"The real test of all these schemes will be the deal that's brokered. With many firms already showing reluctance to engage in the auctions, it looks unlikely a market leading deal will be secured. 

"It would be brilliant if it is, only time will tell."

What will users be offered?

There will be one variable tariff made available by Energyhelpline, one fixed-price tariff and one green deal.

When they are offered the deal they will also be told of the best tariffs available from the remainder of the market, based on their circumstances.

This may be cheaper given prices vary depending on where customers live and how much gas and electricity they use.

There will be no obligation on users who register an interest to sign up.

Which?'s Big Switch operates under a similar model.

'Better solution'

Mark Todd, director of Energyhelpline.com, says: "We agree with the concept of the Which? Big Switch but feel there are a number of flaws and we believe we have come up with a solution that would be better, cheaper and provide more choice and flexibility for the customer."

About 60% of UK households have never switched supplier and have missed out on hundreds of pounds of savings as a result, the firm says.

A Which? spokeswoman says: "It's great to see more collective switching schemes being launched that have the potential to shake up the energy market.

"If done right, we think that joining together to negotiate better deals should be good for hard-pressed energy customers. We encourage people to register with as many schemes as possible to get the best tariff."