Think-tank IPPR believes that taxpayer money should be given to local energy co-op groups instead of the Big Six.
According to the group, bigger energy savings and cheaper bills will come from bypassing the Big Six and placing the onus and funding on smaller groups.
It is suggested that the Big Six simply use the funds provided to advise their customers to become more energy efficient, without prior knowledge of usage on a local level.
It is believed that local groups could work with councils and local government to provide energy saving solutions such as double glazing and cavity wall insulation on a much more personalised level.
This initiative would have the focus of bringing co-operative groups together with local people and businesses to provide a community-led project.
Emission reductions as a result of these plans are said to hit the 60% mark, providing energy savings which will help to pay for the projects which will be free up front for consumers.
IPPR North Director, Ed Cox stated: “Putting energy companies in charge of cutting bills is like putting the fox in charge of the henhouse.
“They have a vested interest in keeping bills high, unlike energy operators who actually supply homes with power and maintain our creaking infrastructure.”