Pay upfront energy switching site Flipper enters administration
Energy switching site Flipper which aims to “take the hassle” out of moving to a cheaper deal has entered administration.
Update 23 June, 2017: Flipper has been bought out of administration by utility company Wessex Water.
Flipper is an energy switching site charging users £25 a year. As part of the service, it scours the energy market every quarter and handles the switch process to make sure users are on the cheapest energy deal. It will only switch you if it finds a deal saving a minimum of £50 after any exit penalties.
The business has entered into administration, with James Snowdon and John Dickinson, of Carter Backer Winter (CBW) LLP being appointed as joint administrators on 12 June.
Flipper is still trading and it confirms there’s no change for customers as it seeks to gain a buyer for the business within the next week. Flipper had previously told YourMoney.com it had “tens of thousands of customers”.
CBW said: “The joint administrators are currently in advanced discussions with a number of parties and are seeking to sell the business within a short time-frame.”
What should Flipper users do?
In the case of administration, a buyer will be sought for the business or it could be liquidated.
James Daley, consumer campaigner and managing director of Fairer Finance, said it would be a shame for the service to be liquidated as it’s a “good idea and good business” in an energy market saturated by user-inertia.
Daley said: “People are nervous for paying up front to save money. It’s a great shame as I think we need support for organisations like this.
“If Flipper is liquidated, consumers will go into a queue with other creditors. Anyone who has already been switched would have made savings – many making that £25 back. Others may have made the £25 payment and not seen anything for it. In the case where they didn’t get the service, they should apply to the administrator for a refund.
“But, the best thing to hope for is that a buyer will be found to make the business work to ensure customers get the service that they signed up for.”
An official statement from Flipper is expected to be released next week.