An new internet service hopes to have 60,000 to 80,000 customers by next year.

Change of address notification service NewAddress.ie says that more than 11 per cent of the population, or approximately 440,000 people, move home every year.

Managing director Derek Quinn says the company hopes to have 15 to 20 per cent of these home movers using its service by next year, with the numbers to grow "exponentially" from then.

He said that a similar service in the Netherlands is used by 70 per cent of home movers. He hopes to achieve a similar level of usage here within one to two years.

The service is free to consumers. Companies whose databases are changed are charged a transaction fee per change, as well as a relatively small initial licence fee.

"For most organisations, the average cost of processing a customer change of address is around €5. It can be much higher in some sectors, most notably banks, where the cost is €20, as a postal mandate in required.

"In total, Irish organisations spend in excess of €42 million on processing change of address requests."

A number of major companies have already signed up with NewAddress.ie, including ESB Customer Supply, Bank of Ireland, Bord Gáis, Eircom, Quinn Direct and Vodafone. ESB is sponsoring the new company.

Mr Quinn said that the technology used by the company is very secure. It uses an encryption system similar in power to that used by the banks.

"We are as secure as the banks," he said.

The company was founded by Mr Quinn, Kevin Gill and Bob Hoffman, with assistance from Enterprise Ireland. In February of this year, MyHome.ie invested €1 million in return for a 65 per cent stake. The remaining 35 per cent of the company is owned equally by the founders.

Consumers who register with the service are sent confirmation packs which they must complete and return. At the end of the period of service, consumers are sent a list of the organisations with whom their new address has been registered.

The company communicates with organisations using its service in two ways. Organisations can either log into the NewAddress.ie website in the way customers log into their bank's website; or the companies can be sent the information using software that can be installed in their computer systems.

Prior to building the service, the developers looked at similar services in other jurisdictions. "We decided there were a number of gaps and we feel that we have built a service that is top class," Mr Quinn said.

Research carried out by the company found that people moving home have to change their address details with an average of 25 organisations, including banks, utilities, insurance companies, telcos and retailer loyalty club schemes.