Local communities will be able to take control of their energy bills and help transform the energy system thanks to proposals unveiled in Britain’s first Community Energy Strategy.

Over 50 per cent of people surveyed by DECC said that saving money on bills was the major motivation for getting involved with community energy schemes, and around 3.5 million bill payers are ready to get together with other people in their local community to take more control of their energy.

A similar project was set up in Kirklees last year with hundreds signing up to a collective deal which saved many people more than £100 each.

Four in ten respondents to the survey said they were interested in joining a community energy group and taking part in collective switching or collective purchasing schemes. Under the plans Government will broaden the support available for community energy projects, whereby people come together to reduce their energy use or buy and generate their own energy.

Energy and Climate Change Secretary Ed Davey said: “We’re at the turning point in developing true community energy.

“The cost of energy is now a major consideration for household budgets and I want to encourage groups of people across the country to participate in a community energy movement and take real control of their energy bills.

“Community led action, such as collective switching, gives people the power to bring down bills and encourage competition within the energy market, which is what we need.”