When we came together to reimagine price comparison for today’s user there were many practices we wanted to challenge. One that was a real source of concern was the emerging auto-switching market.
Auto-switching can be a powerful tool for customers. It removes the need to search and switch to a new deal BUT are those deals always right for you?
The main concern as a user, is you are left with the remaining debt from your existing supplier, having to pay this off immediately while paying your first month to your new supplier.
Many customers in the UK opt to pay monthly for their energy supply and this is often the most efficient payment method. And this can be where the pitfall starts:
Your monthly payments are based on your estimated annual energy consumption and that is evenly divided between the 12 months of the year. Meaning, that your monthly bill isn’t necessarily reflective of the amount of energy you have consumed in that period.
For instance, energy consumption is typically higher in the winter due to the added cost of turning on the heating. However, on a monthly fixed tariff you’ll pay the same in December when you have your heating on as you do in August when you’re leaving your doors open hoping for even the hint of a breeze.
What does this mean? Well for the typical consumer it means that for some months of the year their energy account is in credit, while in other months they’re building up a debt on their account. This could leave some consumers with a final balance to pay off when they switch their energy provider.
Auto-switching can have other issues too, you might be switched to a provider that you’d rather not be with, that you’ve had a bad experience with in the past or to a deal that you’re not 100% happy with. You do get some time to intervene, but if you miss your notifications for whatever reason you are stuck with your new provider with your only way out a potentially expensive exit fee.
So, how is Monva different?
Monva is a next generation price comparison service. We’ve automated the things that make comparison hard work but kept you in control of the switch. We've left the most important decision up to you, after all it’s your finances that are affected – we leave you in complete control of confirming the switch. Once you have signed up for our energy service, we bring you new offers when we can save you money and let you decide whether it’s the right deal for you.
If you already have an account with Monva, our Ai driven savings sidekick mo will take care of searching for and presenting you with the best energy deals based upon your preferences. Once we think we’ve found you the best deals, we’ll let you know and if you think we’ve found the right one simply click to switch.
mo will conduct this search for you every year and as our proposition widens, we’ll also provide you with more opportunities to save with different products and service.
Ready to switch smart and worry less? Start your energy switch by chatting with our Ai Chatbot mo, today.
Tags: Energy, Your Money