The energy market is constantly evolving and the latest fad is the growth of automatic switching services.
We Flip, Flipper, Switchcraft and Dragons Den conquerors Look after my bills are just a few of the start-ups that have all tapped into the increase in energy switching by promising customers a hassle-free and money saving super-service.
How do they work?
Automatic switching sites use algorithms (or teams of good old-fashioned humans) to monitor the energy market to find the ‘best’ deal for their customers.
You sign up to the switching service of your choice and provide the name of your current supplier, tariff, annual energy use, the usual personal stuff and your bank details.
Once you’re registered, your new energy switcher will scan the market, find a cheaper deal and in most cases, if it’s £50 cheaper, automatically transfer your energy supply to a new company saving you ‘lots of money and time’ in the process.
Sound great right? No more dealing with call centres, no stress and even better - no more overpriced energy because you are on the best tariff for you. Everyone’s a winner!?
As the old adage goes – If it seems too good to be true, it probably is…
‘But, these companies are saving me money and getting me a better deal and most of them don’t charge me anything!’ I hear you say.
Yes, the above is pretty much true, but for the time it takes you to register your details with these companies you could have switched yourself and saved a lot more money.
The main shortcoming of automatic switching sites is that they will only switch you to an energy supplier who they have a commercial partnership with. Most make their money by being paid a commission for every customer they switch. One could argue that this creates something of a conflict of interests and in the vast majority of cases, you can find plenty of suppliers who offer far cheaper tariffs. With switching sites, you will still be paying too much for your gas and electricity. And for what? - giving your personal details to a third party and saving yourself two minutes a year.
Here at Outfox the Market, we purposely avoid agreements with automatic switching sites and traditional price comparison sites. We save the money we would pay in commission and make our prices even lower for our customers. That’s why, we can be the cheapest supplier in the UK. It is all about saving our customers money, not lining the pockets of switching sites and already wealthy entrepreneurs off the telly.
So next time you see a Facebook Ad, shiny TV Advert or famous face telling you just how much money you could save by leaving your energy supply to an automatic switching site, remember, they are being paid the money that could be used to reduce the price you pay for your energy.
Energy is the same whoever you choose to supply it.