Comparison sites to make switch to cheapest utility deals automatic

BILL payers are set to save hundreds of pounds under an automatic switching revolution being planned by price comparison websites.

The change could put an end to longstanding complaints that broadband, energy and telephone providers push up prices for loyal customers each year when introductory deals come to an end.

Until now “auto-switching” services have only been offered by niche firms. But the services are set to go mainstream as larger firms with millions of customers adopt the technology.

Under auto-switching, customers will be automatically moved on to cheaper tariffs by sophisticated computers, meaning they will no longer face the hassle of hunting for deals.

James Daley, director of Fairer Finance, the consumer campaign group, said price comparison sites would need to adopt auto-switching “or die”. He said: “The market is modelled around consumers being penalised for inertia as most of us don’t have the time or inclination to be switching all the time. Price comparison websites have a lot of pressure on all fronts at the moment and they will have to change or die.”

Gocompare, one of the UK’S biggest price comparison sites, said it was working on plans to introduce auto-switching, describing it as a “natural evolution” from its current service.

Rik Smith, a commercial manager at Uswitch, said: “We are always looking at opportunities ... and it would be remiss if we weren’t looking at other ways for our customers to save money.”

A spokesman at Moneysupermarket said: “We aim to make switching as easy as possible and support further developments in the sector.”

The Big Deal has just launched an auto-switching service called Look After My Bills. Britain’s biggest energy companies have signed up to the service, which is free for consumers to use. It earns a commission of around £45 from the supplier each time someone switches.

Comparethemarket, however, said it had no plans to introduce auto-switching because its customers preferred to “be in control” of the process.