How, (deliberately?), misleading are some comparison sites for energy switching?

joejl

If you are going to use the price comparison sites do your own calculation of your current annual costs. From my comparison exercise, expect the switch sites to exagerate your current costs - at least for tariffs with Direct debit or online discounts.
I'm on an: online, pay monthly by Direct Debit, Tariff from EON. I know all of the current, post increase, rates per unit from the latest bill -sent when the rates increased. I calculated my prospective12 month bill for the same usage I then put in to the comparison sites.I tried using several price comparison sites from the moneysavingexpert.com article.
I was deciding whether to give notice to change supplier within 14 days of receiving notice, (and thus continue to pay at the old rates until the switch is completed), I was surprised the sites grossly overestimated my current costs - and thus likely savings if I used them to make a switch. However I think I know why - One at least admitted if you looked up your current tariff that it did not deduct the discounts on my current tariffs before making the comparison "Dual fuel direct debit customers receive a discount of 8% off their total annual bill. EnergyOnline Extra Saver 5 customers receive an additional discount of 12.7% off their total annual bill for managing their account online (not included in your savings figure). The total discount is 20.7% off the total annual bill.".
In passing the unit prices quoted on the sites did not usually match the prices being charged by EON.

fatlad1971

joejl wrote: »

If you are going to use the price comparison sites do your own calculation of your current annual costs. From my comparison exercise, expect the switch sites to exagerate your current costs - at least for tariffs with Direct debit or online discounts.
I'm on an: online, pay monthly by Direct Debit, Tariff from EON. I know all of the current, post increase, rates per unit from the latest bill -sent when the rates increased. I calculated my prospective12 month bill for the same usage I then put in to the comparison sites.I tried using several price comparison sites from the moneysavingexpert.com article.
I was deciding whether to give notice to change supplier within 14 days of receiving notice, (and thus continue to pay at the old rates until the switch is completed), I was surprised the sites grossly overestimated my current costs - and thus likely savings if I used them to make a switch. However I think I know why - One at least admitted if you looked up your current tariff that it did not deduct the discounts on my current tariffs before making the comparison "Dual fuel direct debit customers receive a discount of 8% off their total annual bill. EnergyOnline Extra Saver 5 customers receive an additional discount of 12.7% off their total annual bill for managing their account online (not included in your savings figure). The total discount is 20.7% off the total annual bill.".
In passing the unit prices quoted on the sites did not usually match the prices being charged by EON.

:T
Something Ive said from day one

nothing beatings picking up the phone a calculator and pencil

1carminestocky

Yet another by-product of de-nationalising the energy industry is the invention of the ludicrous concept of the switching site that masqerades as the consumer's champion when the reality is not quite so praise-worthy.

fatlad1971

1carminestocky wrote: »

Yet another by-product of de-nationalising the energy industry is the invention of the ludicrous concept of the switching site that masqerades as the consumer's champion when the reality is not quite so praise-worthy.

Spot on analysis

Cardew

Something I posted a while ago:

Why am I slagging them off constantly?

Well firstly read the scores of posts from other posters complaining about the inaccuracies and misleading information.

Read the scores of posts from those complaining that they changed companies, seduced by the much lower Direct Debit and/or champagne/cashback arranged by the comparison sites, only to find themselves heavily in debt.

My objection is these sites are totally driven by the need to maximise their commission, and that does not sit easily with providing accurate and unbiased information to consumers.

They deliberately ‘point’ customers toward those companies that pay commission, regardless of whether that is the best deal for them ,or not. You may recall that BG published a letter from one comparison site that had offered them the chance to greatly increase their sales if they paid them more commission.

Some examples of their tactics:

1.Certain companies are excluded, or difficult to find.
Ebico is a good example. Earlier this year they were very competitive, if not the best for those with low consumption. They charge no tier1 rate/daily charge, their Direct Debit, quarterly and Pre-pay rates are all the same. A non-profit making organisation which, if the many posts on this forum are accurate, provides excellent service.

It was very difficult to find mention of them on some comparison sites. The reason? I wonder if it could have anything to do with the fact they pay no commission?

2. Star ratings for the service provided; according to who? If ever there was a subjective opinion ---- I wonder what influences that opinion?? Take a guess!

3. They rely on the fact that the average customer has no idea of the kWhs they use but know how much they pay on DD. Ring any comparison site and say I pay £xx a month on DD and they will quote you a lower DD. Doesn’t mean the customers are better off of course.
Try it – ring around and see what happens.
To say “no I can’t beat that” means no commission for the operator – can’t have that!

4. Promoting ‘free champagne’ & ‘money-back’ initiatives to persuade the unwary to move to a worse tariff.

So a lot of people get a poor deal from these companies, but why does this matter to the rest of us? Well these companies are simply parasitic and their huge profits are paid in the end by us the consumer.

On top of this all of the companies have huge staff simply to cope with the merry-go-round of customers changing companies – again an expense that falls to us in the end.

The last question is the most difficult “I mean if they are really as bad as you make them out to be why would Martin recommend them, surely not just to get the cash back offered.? Well at least to answer the question on this site.

Obviously I am a huge fan of this site, but understandably it is a commercial project, and the expenses to run it must be very high. He doesn’t charge a subscription like ‘Which’ so must get income from somewhere. He makes no secret that going to a comparison site via the link on this website provides income.

The fact that Martin endorses these companies for financial reward doesn’t make criticisms of the comparison websites any less valid!

Woodgnome_2

To be honest I have generally found the Energyhelpline site to be fairly accurate.

I agree with everyone else though, always do your own calculations as well.

KimYeovil

And remember, most people do not use the switching sites to switch. They just use them for their calculators and to see the options.

Cardew

KimYeovil wrote: »

And remember, most people do not use the switching sites to switch. They just use them for their calculators and to see the options.

I think that statement should be amended to "most sensible people etc etc"

The Comparison websites have become a £multi-Billion industry by getting people to switch and USwitch sold for £xxx million.

In the evidence given by the 'Big 6' bosses to the recent Parliamentary Committee on Energy prices they stated that a huge percentage of those switching(20%?) actually moved to a more expensive tariff.

Admittedly some of those will have switched through the antics of doorstep salesmen or indeed the company's telephone sales staff, but the comparison sites will have played their part.

The lure of cashback or a bottle of 'free' champagne should not be underestimated!!!!

Ken68

Hi Joe....I have yet to make it work out. Thought to switch to nPower some time ago via Quidco £72.
Did my own calculations would have gained a quid had I moved and would probably have been sculped in the process. Or should that be scalped.
The customer pays for lots of things Cardew, that are not reasonable.
Fancy company cars, plush headquarters, silly offers to the consumer, they can't be ignored, built into the price by now, so might as well cash in.

1carminestocky

Ken68 wrote: »

Hi Joe....I have yet to make it work out. Thought to switch to nPower some time ago via Quidco £72.
Did my own calculations would have gained a quid had I moved and would probably have been sculped in the process. Or should that be scalped.
The customer pays for lots of things Cardew, that are not reasonable.
Fancy company cars, plush headquarters, silly offers to the consumer, they can't be ignored, built into the price by now, so might as well cash in.

I'm assuming you were just planning the one move? The way to make the cashback work is to switch 4 times per year. There's invariably £250 cashback available doing this (although the recent offers are poor as I think Martin has given them all loads of work to do, lol). As Cardew suggested, there have been times when I have moved to a *slightly* higher tariff but as I'm usually only with a company a maximum of 3 months it's not a deal breaker.

JPH

Does anyone know how to claim the money promised when switching thru uswitch?