AN automatic energy switching service which launches today could save households thousands of pounds on gas and electricity bills.

Comparison website GoCompare's WeFlip uses computers to shop around for the best deals and automatically switches them on to the cheapest one.

At present the service just covers the energy market but other products such as broadband and phones are expected to follow within a few years.

The service is similar to those offered by Switchcraft, Lookaftermybills.com and Flipper, which are also worth considering.

More than 16million households still pay too much for their energy.

At present, the biggest difference between the most expensive standard variable tariff and the cheapest is £375, according to GoCompare.

If you look at the difference between those tariffs since 2012 it adds up to £1,865 extra over last six years.

How to save on your energy bills

SWITCHING energy providers can sound like hassle – but fortunately it’s pretty straightforward to change supplier – and save lots of cash.

1. Shop around – If you're on an SVT deal you are likely throwing away more than £300 a year. Use a comparion site such as MoneySuperMarket.com or EnergyHelpline.com to see what deals are available to you.

The cheapest deals are usually found online and are fixed deals – meaning you'll pay a fixed amount usually for 12 months.

2. Switch – When you've found one, all you have to do is contact the new supplier.

It helps to have the following information – which you can find on your bill –  to hand to give the new supplier.

• Your postcode
• Name of your existing supplier
• Name of your existing deal and how much you pay
• An up-to-date meter reading

It will then notify your current supplier and begin the switch.

It should take no longer than three weeks to complete the switch and your supply won't be interrupted in that time.

Customers need to give their details then an algorithm identifies the right moment to switch by comparing thousands of tariffs, and pinpoints the best deal.

It then automatically checks customers everyday to see if there is a cheaper tariff available – including any exit fees to leave their current deal.

Once there is a difference of £50 – including fees – it automatically moves them onto the new, cheaper deal.

This process usually takes two weeks and customers can expect to be switched two or three times a year.

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Customers will be able to choose a fixed or variable tariff.

WeFlip makes money by charging suppliers a fee in order to pass on customers.

Savvy readers will know that you can use a cashback website like Quidco or TopCashback to get this cash directly to them, although

Last week, we reported on how tens of thousands of homes are going without energy because they can't afford bills.

While MoneySavingExpert.com's Martin Lewis has warned millions of households need to switch energy supplier now.

In other energy news, an Npower and SSE merger was cleared this week to create a new energy giant – but what does it mean for your bills?

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