Consumer Focus accredited comparison websites discredited?

jalexa

OK, now I have your attention perhaps "discredited" is a bit strong. Maybe "abject failure at a time of whole of market price turmoil" is more accurate if a bit of a mouthful.

I have long endorsed Consumer Focus accredited websites as something that consumers should rely on in tackling supply industry tariff obfuscation. Certainly I don't alleged that the results aren't intended to be "accurate" (and "neutral").

However, in spite of my considerable experience I am completely baffled by the comparisons at a time of whole of market price "turmoil". Though I am considered "informed" on the subject I find the results impossible to digest. Which tariff has increased, which tariff hasn't increased? I think there are 4 possible "price rise" outcomes in looking at a comparison. Which (of the 4) is correct? I have no idea.

I looked at a comparison earlier. In small print "Prices include VAT and the last update 08 Aug 2011". That clause is a Consumer Focus Confidence Code requirement. It was accurately stated, but what *exactly* did it mean? I have no idea.

I've read a lot of recent Forum posts. Not only is it clear that few understand the comparison results, there are worrying reports that customers don't understand what their supplier's are saying over the phone. I can't say being "mislead", but only because I'm not a party to the call.

The situation is a disgrace and a disaster for the consumer.

backfoot

We are seeing the symptom not the cause.

Cause is complexity, too many tariffs and hidden catches. The Comparison Sites are still trying to unravel it all for us, but massive price hikes,timing and weasly marketing words make even their analysis next to useless.

Solutions:

Enforce the Retail Market Review proposals for tariff simplification with vigour. I would allow just one online tariff, all older more expensive versions being rolled into the cheapest available rate.Absorb discounted,guaranteed and other essentially variable marketing tricks into the online best.

Allow one each of 3 and 5 year fixed term products.

Allow a once a year price change on all variable products and to offer new fixes. This will promote huge downward pressure on price forcing suppliers to get it right over the short term and smooth out price volatility.

Do away with pretend green and other products. We all pay for what is required for future capacity.

Standardise on one national social tariff for those qualifying.

Move standard priced customers to the cheapest rate available for that supplier.

Do not allow discounts for payment methods but apply additional charges for failure to meet payment timetables.

Prohibit exit fees on any variable tariff, so that the bewildered can backtrack from timing or other mistakes as quickly as possible.

This is my Blueprint. I reserve the right to clarify these outline proposals.

jalexa

backfoot wrote: »

Hi

You post has saved me searching for an earlier thread. In relation to "deferred discount" I found I had been relying on an earlier Customer Focus Confidence Code, not the December 2010 revision.

When I checked I found that an Atlantic "paid in the 13th month after 12 months custom" tariff did not include the (deferred) discount on the particular accredited comparison website checked (in accordance with Confidence Code clauses 7.1.1 & 7.1.2). I did not check a comparison for Npower, the other *big* "deferred discount" player.

However this morning I did check the comparison site tariff details for a NPower "deferred discount" tariff. It says the discount is paid "on or before the last day of the 12th month". Having read (December 2010) Confidence Code clauses 7.1.1 and 7.1.2 I know *exactly* what the wording is saying as I suspect you do also.

In any event, while my original argument has been technically wrong since December 2010 (but unchallenged until your intervention) my concern was never inaccurate headline cost per se, it was the potential for the "deferred discount" to be forfeited, something I believe I am (and was) right about.

Consumers should beware "deferred discount" tariffs unless they understand that (potentially £100) will be forfeited if they switch before the discount is earned.

Commonly tariffs from Atlantic and NPower feature deferred discount.

backfoot

Marketing tricks. Many others (Eon final bill,exit fees,discounted,guaranteed,SSE false product names) etc.etc.

Do a comparison starting with Scottish Power and see the list of tariffs in the menu.:o

OFGEM asking for simplification. In the run up to their next action the Suppliers are doing doing their utmost to do the opposite.
:rotfl:

Use my blueprint. Problem solved.:D