Monzo unveils new energy switching service
Written by Anthony Strzalek
UK digital challenger bank Monzo has announced that it is testing a new service which allows users to switch energy suppliers.
In five minutes and a few clicks, people who receive a recommendation will be able to transfer their energy contracts to a new provider. That could be a supplier recommended by Monzo’s partners or one the bank is working with directly.
According to a 2016 Ofgem report, 66 per cent of households are on the most expensive kind of tariff, known as a standard variable tariff. Typical energy contracts are 12 months long, but many people are on a contract that has expired. This means that they are often on the most expensive tariff by default, and end up paying significantly more than they should, claims Monzo.
Over the coming weeks, Monzo will be inviting a number of people to switch providers and save money on energy through a feed item in the app.
By entering simple information like a postcode and whether you live in a house or a flat, Monzo users will be given a quote that will explain the new monthly tariff and how much they stand to save each year. For those who do decide to switch, they will be asked to set up a direct debit from their bank account or Monzo current account.