Say No to price comparison

umboko

We are paying these so-called price comparison web sites through higher utility bills.

Not all utility firms supply their tarrifs and deals to comparison sites.

The quote you get from comparison sites mean nothing.

You can find all the utility companies tariffs on their own web sites.

Find the best prices yourself and cut out most the trouble.

stop putting utility prices up - say no to price comparison web sites

Cardew

This is a post from 4 years ago when ofgem were going to introduce rules to stop switching for cashback etc.

Actually there are two fair and reasonable questions above.(I assume you don’t want a reply to the frivolous questions!)

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!

The criticism of not mentioning some companies is not so much a problem now, unless you want companies ranked by 'service'.

We, the consumers, pay the many £millions these companies get in higher bills.

I really cannot understand why the Energy Saving Trust don't run a comparison website(effectively funded by the Government - or a levy on Utility companies) and cut out the huge sums we pay for comparison websites.

Note however the last couple of lines in the quote re MSE.

HalloweenJack

if the EST do run a website it would cut funding this website receives from `click through rate` or more than likely it wouldnt be prodomanantly featureed as certain `paid for` comparison ones are.

macman

Most savvy users of this board will use the comp sites for research only, and then switch using a cashback site. On that basis I'l be more than happy to keep using them as an invaluable free resource..

Plushchris

umboko wrote: »

Not all utility firms supply their tarrifs and deals to comparison sites.

Which companies and deals are these please?

jalexa

umboko wrote: »

We are paying these so-called price comparison web sites through higher utility bills.

why "so-called" and what is the "paying for" mechanism?

Not all utility firms supply their tarrifs and deals to comparison sites.

That is true, but your point? Ah, some suppliers (perhaps even M&S) are "feart"?

The quote you get from comparison sites mean nothing.

I'm assuming not a "legally informed" statement, if only because technically it is a "comparison" not a quote.
However Consumer Focus accredited comparison websites comply with a "Confidence Code". Occasional inadvertant errors excepted the "headline cost" is accurately calculated in accordance with the rules. Of course there are one or two "gotchas"...But that is something else.

You can find all the utility companies tariffs on their own web sites.

OMG. At this point every informed person here (who didn't already) realises you are talking nonsense.

Find the best prices yourself and cut out most the trouble.

Indeed, and the best way to do that is to use a Consumer Focus accredited comparison website.:)

grahamc2003

jalexa wrote: »

Indeed, and the best way to do that is to use a Consumer Focus accredited comparison website.:)

I think you are missisng the point.

I think what the op is saying is that, being parasitic on suppliers, these comparison sites simply cause our bill to be higher than they otherwise would be. I think that is an obvious statement.

The situation is now such that our electricity bill comprises only 30% of the wholesale electricity costs - the other 70% going on things like, as the op states, price comparison sites, plus all the other costs lumped onto suppliers, like 'green' subsidies of various sorts, admin for switching, etc etc as well as the costs of simply billing customers.

If we go back 40 years to the time of the cegb, then, if the supplier function could be separated out, the cost of our elec bills would be something like 95% the notional wholesale costs, in my experience (of working in the industry both before, during and after privatisation), simply because what is now the supplier function, was then just sending out (understandable) bills and paying the cheques into the bank and perhaps running a few retail shops on the side. Almost all of today's supplier functions, along with their costs, simply didn't exist before, and were artificially invented to give the impression of competition (which, imv, it has spectaculalry failed to do).

Of course, these days many people seem to think charging customers for functions of no real value are worthwile to keep people employed, which is not so far removed from paying thousands of people to dig holes, and some other thousands to fill them in again, which seems to me a waste of resources.

jalexa

grahamc2003 wrote: »

I think you are missisng the point.

Maybe, maybe not.

But my "quote" you quoted was in resonse to "Find the best prices yourself and cut out most the trouble"

So still an advocacy of switching to the best price. It's clear the post was not "anti-switching", only "anti comparison website". And not well argued.

Plushchris

I dont buy it, if the energy companies stopped paying comparison sites money do you really think they would take that money off of peoples bills?

If they dont pay the comparison sites that money it would get spent on other forms of obtaining customers, so lots more annoying TV ads etc.. Not lower bills.

If you really think bills would be lower if comparison sites were suddenly done away with you must be deluded.

Ken68

The comparison sites are just another sales team. Probably cheaper than in house and I for one find them easy to use. And it enables the energy provider to keep the disgraceful confusion marketing. If you can't stop the likes of Quidco.....use them, fill your boots.

backfoot

I can see the added cost argument of the OP.

For an essential commodity like energy, the solution rests with the Government and Regulator.

Ofgem should be the only Comparison Site, funded by the suppliers. All tariffs should be held on the system with their publication governed by the largely well drawn up Confidence Code.:cool:

The Comparison Site is a useful tool in today's complex market.