A device that plugs into a home broadband router and automatically switches supplier when cheaper deals become available is set to revolutionise the home energy market.
The launch of Labrador comes as more and more people are changing their energy companies.
The company’s free service is primarily targeted at the growing number of households which have smart meters, which automate readings. More than 8m have been installed in the UK so far, and energy suppliers have to offer one to every home in the UK by the end of 2020.
Unlike conventional price comparison sites, which require people to actively search for a better deal and input their details and energy use, Labrador will automatically switch people’s accounts when it finds a cheaper tariff.
Jane Lucy, founder and CEO of Labrador, said: “We’re not about behaviour change: we assume consumer lethargy will remain.”
Flipper was a similar service that launched last year, relying on accessing a customer’s energy bills, which might be estimated. Labrador believes it will be more accurate, as it use a device that plugs into a customer’s broadband router and talks wirelessly to their smart meters, taking readings direct from them.
While Flipper charges an annual £25 fee, Labrador makes its money like a switching site, by being paid an acquisition fee by suppliers.
Lucy said she expected customers would be switched 1-3 times a year and save on average £300 a year. They are given the choice to tailor their preferences, for example, to just green energy tariffs.
The company has signed up about 500 customers since a soft launch in February, but aims to take 3% of the switching market within five years. In the future the company may branch out into home automation and helping consumers identify individual energy-guzzling appliances, Lucy said.