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| Would you trust an auto-switching site for life? | Would you trust an auto-switching site for life? |
| (35 minutes later) | |
| Energy switching services help consumers find a gas and electricity supplier by automatically switching them to the best deal. | Energy switching services help consumers find a gas and electricity supplier by automatically switching them to the best deal. |
| They've been around for a couple of years, but now a giant comparison site - GoCompare - is getting in on the act. | They've been around for a couple of years, but now a giant comparison site - GoCompare - is getting in on the act. |
| The company claimed its Weflip service will "automatically keep households on cheap energy deals, forever". | The company claimed its Weflip service will "automatically keep households on cheap energy deals, forever". |
| However, a rival start-up warns: "The key question for anybody doing auto-switching is trust." | However, a rival start-up warns: "The key question for anybody doing auto-switching is trust." |
| With auto-switching, consumers give companies their details - name. address, energy usage - and then leave it to them to find the best available tariff when their current deal ends. | With auto-switching, consumers give companies their details - name. address, energy usage - and then leave it to them to find the best available tariff when their current deal ends. |
| The first on the market was Flipper more than two years ago. It claims to save members £385 a year. | The first on the market was Flipper more than two years ago. It claims to save members £385 a year. |
| Since then, a swathe of other services have been set up that offer to take away the hassle of switching, including SwitchD, Look After My Bills, and Switchcraft. | Since then, a swathe of other services have been set up that offer to take away the hassle of switching, including SwitchD, Look After My Bills, and Switchcraft. |
| A question of trust | A question of trust |
| GoCompare is the first major firm to enter the market: "We're an established company with significant reach and a long history of saving people time and money." | GoCompare is the first major firm to enter the market: "We're an established company with significant reach and a long history of saving people time and money." |
| It says it can offer deals from across the market, while smaller rivals offer a percentage of the market - effectively only those suppliers that pay commission. | It says it can offer deals from across the market, while smaller rivals offer a percentage of the market - effectively only those suppliers that pay commission. |
| Henry de Zoete is co-founder of Look After My Bills, which launched in January and won a record Dragons' Den deal in August. | |
| He said: "The key question for anybody doing auto-switching is trust. Price comparison sites have a chequered past to say the least when it comes to doing the right thing." | He said: "The key question for anybody doing auto-switching is trust. Price comparison sites have a chequered past to say the least when it comes to doing the right thing." |
| A GoCompare spokesman said it had "saved people in the UK billions of pounds on essential outgoings since it launched in 2006, and has never charged consumers a penny to use its services. | A GoCompare spokesman said it had "saved people in the UK billions of pounds on essential outgoings since it launched in 2006, and has never charged consumers a penny to use its services. |
| "Weflip isn't a comparison website, it's an automatic switching service for energy that doesn't charge consumers either, making it as simple and cost-effective as possible for people to find and stay on better energy deals." | "Weflip isn't a comparison website, it's an automatic switching service for energy that doesn't charge consumers either, making it as simple and cost-effective as possible for people to find and stay on better energy deals." |
| Millions overpaying | Millions overpaying |
| Frank Field, the MP who chairs the Commons Work and Pensions Committee, welcomed anything that helps tackle consumers being overcharged for their gas and electricity. | Frank Field, the MP who chairs the Commons Work and Pensions Committee, welcomed anything that helps tackle consumers being overcharged for their gas and electricity. |
| An estimated two-thirds of households have never switched supplier, which leaves them paying more to heat and light their home than they need to. | An estimated two-thirds of households have never switched supplier, which leaves them paying more to heat and light their home than they need to. |
| Mr Field said: "There is an army of loyal consumers in Britain who, for one reason or another, simply do not have the time or resources to shop around for the cheapest deals. | Mr Field said: "There is an army of loyal consumers in Britain who, for one reason or another, simply do not have the time or resources to shop around for the cheapest deals. |
| "Any moves to address this injustice by helping those hard-up households who have long been paying too much for their gas and electricity, are to be welcomed." | "Any moves to address this injustice by helping those hard-up households who have long been paying too much for their gas and electricity, are to be welcomed." |
| For those who simply want the cheapest deal and haven't time to find it themselves, auto-switching appears to be a perfect answer. | For those who simply want the cheapest deal and haven't time to find it themselves, auto-switching appears to be a perfect answer. |
| It's a service that is likely to spread to other areas of personal finance. Look After My Bills said it is planning to add broadband in a matter of months, while GoCompare's move into energy is likely to be the first sector of many if that proves successful. | |
| That means auto-switching services could soon appear for phone tariffs, savings and even insurance. | That means auto-switching services could soon appear for phone tariffs, savings and even insurance. |
| But is it wise to trust any company to make such important financial decisions for you? | But is it wise to trust any company to make such important financial decisions for you? |
| Andrew Hagger, personal finance analyst from Moneycomms.co.uk said: ""People are quite reluctant to switch without doing their own in-depth research and changing brands is rarely an instant or knee-jerk reaction unless their provider has upset them in some way." | Andrew Hagger, personal finance analyst from Moneycomms.co.uk said: ""People are quite reluctant to switch without doing their own in-depth research and changing brands is rarely an instant or knee-jerk reaction unless their provider has upset them in some way." |
| He predicted that the new services will prove popular with consumers who are time-poor and simply want the cheapest service, "but for others who are more selective and not frequent switchers, this will simply be a step too far". | He predicted that the new services will prove popular with consumers who are time-poor and simply want the cheapest service, "but for others who are more selective and not frequent switchers, this will simply be a step too far". |