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USwitch danger
Users of USwitch and other comparison sites should be aware of a potential scam being operated by the energy companies. This is even more important to take notice of, with this site so heavily advising you use such sites to save money.
I was an Atlantic customer in 2005 and for the first six months of 2006. I paid a fixed monthly charge of £30 for gas and £20 for electricity. On changing supplier I was asked to pay an extra £37.92 to cover unpaid consumption.
My reason for leaving was that a different supplier could provide my energy supplies at a cheaper cost - £22 for gas and £20 for electricity. In October 2006, after the supplier raised prices, I used the online comparison service USwitch to compare prices. After putting in my monthly payments, as well as other details, Atlantic came out the cheapest with electricity being offered at £20 per month and gas reduced to £11.
However, having now switched again, to a cheaper supplier, I have received a bill from Atlantic for unpaid gas supply of £325. By my calculations, I have used nearly £48 per month (based on Atlantic’s bills). This is much higher than I have ever paid before. When I left my previous supplier to switch back to Atlantic I was in credit at the end of the period by £40. This begs the questions – why was I suggested such low prices through USwitch, and why have I been charged so much by Atlantic?
Since receiving the ludicrously high bills I have switched to a different supplier. Curiously enough, through USwitch I was offered Atlantic as a cheaper option to Atlantic. Something is clearly very wrong.
My interpretation of this is that an energy supplier can quite easily suggest any figure when comparing suppliers, start serving a customer and then bill them at a much higher level than originally suggested. Until a customer receives a bill (usually after three to four months) they are unaware that the price they are actually paying is much higher.
So many comparison sites have sprouted up on the Internet offering services that save money. My understanding is that these are not regulated and perhaps it is time they were. I doubt if I am the only one who has been misled.
I was an Atlantic customer in 2005 and for the first six months of 2006. I paid a fixed monthly charge of £30 for gas and £20 for electricity. On changing supplier I was asked to pay an extra £37.92 to cover unpaid consumption.
My reason for leaving was that a different supplier could provide my energy supplies at a cheaper cost - £22 for gas and £20 for electricity. In October 2006, after the supplier raised prices, I used the online comparison service USwitch to compare prices. After putting in my monthly payments, as well as other details, Atlantic came out the cheapest with electricity being offered at £20 per month and gas reduced to £11.
However, having now switched again, to a cheaper supplier, I have received a bill from Atlantic for unpaid gas supply of £325. By my calculations, I have used nearly £48 per month (based on Atlantic’s bills). This is much higher than I have ever paid before. When I left my previous supplier to switch back to Atlantic I was in credit at the end of the period by £40. This begs the questions – why was I suggested such low prices through USwitch, and why have I been charged so much by Atlantic?
Since receiving the ludicrously high bills I have switched to a different supplier. Curiously enough, through USwitch I was offered Atlantic as a cheaper option to Atlantic. Something is clearly very wrong.
My interpretation of this is that an energy supplier can quite easily suggest any figure when comparing suppliers, start serving a customer and then bill them at a much higher level than originally suggested. Until a customer receives a bill (usually after three to four months) they are unaware that the price they are actually paying is much higher.
So many comparison sites have sprouted up on the Internet offering services that save money. My understanding is that these are not regulated and perhaps it is time they were. I doubt if I am the only one who has been misled.
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Comments
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This is well known and there are numerous threads... when prices are rising I'm surprised people believe that every time they switch they can cut yor dd yet further and still cover your consumption, but many seem to fall into this trap.0
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Welcome to the forum.
As tripled said above this has been covered countless times if you do a search.
The comparison websites have but one aim - to get you to change supplier and then they get their commission. The utility company call centres and their salesmen are equally as bad.
If you want to try an experiment. Ring a comparison site and say you are paying, say, £80 with Company A. They will say they can beat it with Company B at say £70.
Ring another site and say your are paying £70 with Company B and they will beat it with another Company - If Company A are paying them the highest commission they will get you a 'deal' with your original Company A for say £60.
Repeat the process - you get the drift - and see what you can get it down to; £20 is easily achievable!!!!0 -
Thanks for the heads up. I just hope that Martin, or someone else that operates this site looks into this, particularly as comparison sites are so heavily promoted here. If nothing else, it would confirm the site is not part of the scam.0
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When comparing I have always tried to use the consumption values from my bills and not the amount of ££ I am paying.
The amount often bares no resemblance to usage, with some companies I have been well in credit others I have owed them extra money regularly.I beep for Robins - Beep Beep
& Choo Choo for trains!!0 -
Thanks for the heads up. I just hope that Martin, or someone else that operates this site looks into this, particularly as comparison sites are so heavily promoted here. If nothing else, it would confirm the site is not part of the scam.
http://forums.moneysavingexpert.com/showthread.html?t=542721
In the thread above I have stated that I believe ofgem, with the new regulations, are taking steps to curtail the comparison sites.
I have written to Martin(and had no reply) saying that I believe this site(of which I am a great fan) has a great deal to answer for in the promoting of these comparison sites. Far from saving money, in many cases it will have cost people a great deal of money.
Those sites are useful if you understand utility tariffs - but how many people do?
It is also apparent, from lots of posts on this site, that many people do not understand the Direct Debit scheme; they think if they are quoted, say, £30 a month DD this means that their gas/electricity is 25% cheaper than a company that quotes £40 a month - and this of course is where the comparison sites take advantage. That and the offer of 'free' chanpagne is irresistable to some people.0 -
I used uswitch last night. I am with Atlantic. On my current bills of £400.00 pa gas & £600 pa electricity uswitch recommended changing to Npower and i would save £189.00 pa.
However when i did the mathematics of the KWH price of gas. Atlantic were definately cheaper, even after allowing for the additional standing charge i pay.
I agree regulation and fines for false information are needed0 -
im in process of switching from click energy 3 ( BG) to online energy dual fuel 4 ( SP) i didnt use uswitch for comparisons i am switching through quidco.
ive just put my annual cost usages into uswitch ( stating i was a scottish power online energy 4 duel fuel customer), uswitch confirmed that SP online energy 4 duel fuel is cheapest for me with BG click energy 3 ( 43.50) more expensive.
neither of the above tariffs are available it says to apply for via u switch.
first tariff that uswitch states can be applied for via uswitch is powergen energy online extra saver duel fuel ( with tesco clubcard points) which is stated as being 79.99 more expensive.
npower gets no mention at all on uswitch.( EDF cheapest tariff is regarded as being 168.00 per year more expensive)
no evidence that uswitch always suggests a cheaper company to encourage switching0
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