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Ikea launches collective energy deal

Ikea is running its first ever energy collective offering a renewable fixed tariff - but for some it will fall flat.

The firm, which is best known for its furniture stores, has teamed up with comparison site Big Clean Switch to offer a 12 month fix from Octopus Energy to the first 7,000 people who sign up.

The tariff is open to all, although it can only be found via the Big Clean Switch website.

The deal will cost an average 888/year but this can be beaten by the market's cheapest renewable tariff which costs 807/year.

Check if you can save 100s/yr by switching energy providers, use our Cheap Energy Club to help you compare the best deals on the market.

What is a collective switch?

A collective switch is where energy firms bid to offer you their best tariffs via a trusted go-between (eg, a council or, in this case, a partnership between Ikea and a price comparison site).

The go-between negotiates the best tariff - which is usually an exclusive deal - and then helps eligible customers to switch to the provider.

MoneySavingExpert.com has run nine collective switches to date, with over 500,000 users having switched in this way to collectively save millions of pounds on their annual bills.

How does the deal stack up?

Based on typical use for customers with both gas and electricity, the Octopus Ikea Green 12m Fixed tariff costs an average 888/yr.

The cheapest deal on the market is currently 807/yr, which is 81/yr cheaper, and like the Ikea tariff provides 100% renewable electricity.

The first 2,000 to sign up also received a 25 bill credit per fuel; a customer taking just gas or electricity received 25, those switching both received 50. The Big Clean website says this is no longer available, but for those that did get it, this took the dual fuel price to 838/yr on average, which is 31/yr more than the cheapest tariff.

Here are the key details of the winning Octopus Ikea tariff:

If you decide to go ahead you can only sign up via the Big Clean Switch as it's an exclusive deal and won't be available on comparison sites.

What does Ikea say?

Hege Sbjrnsen, country sustainability manager at Ikea UK said: "By partnering with the Big Clean Switch, we hope to make switching to renewable electricity simple, accessible and affordable to everyone."