energy comparison websites - how credible?

uk1simon

Hello,

I have compared tariffs on a few well known websites quite a few times. I submit my meter readings every month, put data in a spreadsheet, calculate whether it matches what's on the bills, analyse my usage and cost. I know my kWh per annum, average per month etc.

My current bill is exactly £891.3 per annum (gas+electricity). This is what I paid for the last 12 months up to 18/10/2013.

So I type in my numbers on one comparison site and this is what I get:
- Your current spend on gas & electricity is £1,055 per year.
- The cheapest tariff comes up on top and the website says it will save me £127 and my yearly spend will be £928. £127 is highlighted to encourage me to click and proceed.

I got the details of this tariff and calculated my yearly spend and it is indeed £928 which means if I decide to proceed and switch I will be paying (£928-£891.3) £36.7 more and not £127 less.

Why is there the difference?
Well I clicked a link I hadn't paid attention to before. To cut the story short they, to some extent they forecast the prices I will be most likely transferred onto when my existing tariff expires.

These websites have got plenty of publicity recently and if I was on a standard tariff and didn't know anything about the market I'd visit these sites and switch. It should save a few quid (there are exceptions of course).
However I only switch if I'm 100% sure I can benefit from it. These sites unfortunately don't give me that certainty.

Has anyone tried to carefully calculate and noticed these differences?
Are these websites so marvelous?
Has anyone questioned how they operate, make money and get you on the "suitable tariff"?
Are they really on consumer's side or they don't care as long as they get enough traffic of switchers wandering around energy companies?


Regards,
Polish Simon

Nada666

uk1simon wrote: »

Well I clicked a link I hadn't paid attention to before. To cut the story short they, to some extent they forecast the prices I will be most likely transferred onto when my existing tariff expires.

And was the quote wildly wrong after accounting for this?

Cardew

The sole purpose of the comparison websites is to get you to switch supplier in order that they get their commission - why else would they exist?

They are also very successful and make £millions.

However provided you know exactly what you are doing, as well your exact consumption in kWh, they give accurate information.

On some websites, when you are on a fixed tariff 'knowing what you are doing' includes being aware that their figure for your present consumption makes the assumption that you will move to the company's standard tariff at the end of the fixed term.

e.g. if your fixed tariff ends in, say, 2 months, they calculate your present spend as 2 months on the fixed tariff and 10 months on the expensive standard tariff.

Frankly IMO all these websites are simply parasitic and the £millions they earn are paid for by us consumers.

It would be very easy for the Government to task the Energy Saving Trust(EST) to run the sole comparison website that wouldn't be paid commission by the utility companies. After all the EST is in existence to give the consumer advice.

uk1simon

Nada666 wrote: »

And was the quote wildly wrong after accounting for this?

you dont understand dont you how do you define wildly? is ther a point of switchtchng between fixed tariffs lets say every 3months
if you are wild go for it youll be always on the cheapest deal