The Slovenian Consumers Association (ZPS) started a campaign at the end of August, together with the Dutch company PrizeWize, to help Slovenian users save on their electricity bills. The name of the campaign is Switch and Save. It aims to help users switch their suppliers of electricity and natural gas. It also invites users for a joint purchase under the "together we pay less" principle.
Users can apply online for the joint purchase until the 15th of October. On the 16th of October the most favourable price will chosen through an auction. Only those suppliers who will guarantee the same price for at least 12 months, without any price hikes, can take part in the auction.

The "defeated" suppliers in Austria additionally lowered their prices
Joint purchases of energy have already been organized in 9 EU member states. Around three million users have responded to the campaign and have saved around 135 million euros on energy bills.
The example of Austria has been presented on the Varčuj24 comparative website. The site welcomes the initiative, but warns of the Austrian experience, which is negative, according to Varčuj24.

"With the campaign Austria's users failed to get the cheapest supplier, as right after the auction the defeated suppliers lowered their price for the difference of the requested high commissions by the consumers association and PrizeWize company. After the auction they offered far more favourable prices than the price offered by the consumers association," commented Reinhold Baudisch, the head of the biggest web page in Austria which compares the prices of suppliers of electricity.

Slovenian suppliers also warn against high commissions for organizers
Slovenia's suppliers of electricity have also confirmed that the high commissions for taking part in the campaign could prove to be a problem.

The Elektro energija company stresses that it does welcome the joint purchase campaign, but adds: "We would also like to warn about the fact or danger, that due to the relatively high commissions expected by the organizers of the campaign for each signed contract between a supplier and user, household savings will not be as significant as if they would be if organizers would renounce their commissions," they wrote to MMC.

The Elektro Celje Energija company is of similar opinion. Their answer was that they would most likely take part in the auction, but haven't made a final decision yet and »are waiting for the final costs, which campaign organizers will charge for every user, to be known. At the moment those costs are pretty high," added the company.

ZPS: "The purpose of the commission is not profit"
We also confronted the Slovenian Consumers Association (ZPS) on the issue. They assured us that the purpose of the commission is not to make a profit, but to cover the costs of the campaign "which are by no means low". As costs the association mentions the online tools for applications, the toll-free call center for users, the calculations for estimated savings, organizing the switching of suppliers for a large number of users, staging the auction and communicating with the public and suppliers.

The campaign as a path towards more favourable offers
Varčuj24 still advises users to take part in the campaign. A larger number of users will enable cheaper prices and at the same time increase competition among suppliers, as it will be clear that users will always opt for those suppliers with the best offer. The website only adds that before signing the contract, it would still be wise to check the offers of other suppliers.

Tina Hacler, MMC
Translated by K. J.