Does This Mean The End Of Cashback On Energy Products.

FOREVER21

Road_Hog wrote: »

How about, we don't pay any company commission and save the money?


Who do you think pays the switching deal money?

Do you seriously think if the energy companies stop paying cashback wether it is to the likes of uswitch or quid co, then this would reduce their prices, dream on!
We all know who pays for the cashback ultimately, but those individuals who get cashback at least get some thing.

Cardew

FOREVER21 wrote: »

Do you seriously think if the energy companies stop paying cashback wether it is to the likes of uswitch or quid co, then this would reduce their prices, dream on!
We all know who pays for the cashback ultimately, but those individuals who get cashback at least get some thing.

So it is in order that the utility companies unnecessarily pay many £millions to these comparison websites, as long as a few individuals get a 'free' bottle of champagne or £30 or so?


Perhaps the Utility companies should pay double the amount of money to these websites, so the same individuals get 2 bottles of champagne or £60 or so.


As it is obviously a great deal for customers, 3 times as much, or 4 times as much!

FOREVER21

Cardew wrote: »

So it is in order that the utility companies unnecessarily pay many £millions to these comparison websites, as long as a few individuals get a 'free' bottle of champagne or £30 or so?


Perhaps the Utility companies should pay double the amount of money to these websites, so the same individuals get 2 bottles of champagne or £60 or so.


As it is obviously a great deal for customers, 3 times as much, or 4 times as much!

The last time I switched energy suppliers, in August I searched the comparison sites and found the best deal for the 1 year fix I wanted.

The same tariff was on offer via Quidco with £100 cashback which I claimed and received.

Now you tell me what is wrong with that deal from a MSE point of view!

Are you of the opinion that if energy companies stopped paying cashbacks the prices would decrease.? I for one think not and why should people be prevented from benefitting from cashbacks as long as they are getting the best energy deal for their needs.

I also question your statement regarding "a few individuals" getting the benefit of cashback !whilst I have no figures to support it I would suggest the number of people who avail themselves of cashback deals is more than "a few"

Road_Hog

Consumerist wrote: »

Frankly, I wouldn't see anything wrong with switching 4 times a year if that is what price-competition generates.

So, let's say, that you get £25 each time you switch, a £100 pa.


Where do you think that comes from and who pays it?


So, let's all switch for £100 pa and wonder why the energy suppliers are charging us an extra £100 pa. In fact it's more than that, because we get our ton and then the comparison sites get their bunce aswell.

Consumerist

Road_Hog wrote: »

So, let's say, that you get £25 each time you switch, a £100 pa. Where do you think that comes from and who pays it? So, let's all switch for £100 pa and wonder why the energy suppliers are charging us an extra £100 pa. In fact it's more than that, because we get our ton and then the comparison sites get their bunce aswell.

We all pay every day for the various forms of advertising used to persuade us to buy things. To the energy suppliers, comparison sites are just a means of advertising their wares, probably funded from their advertising budgets.

How is this any different to, say, supermarket vouchers? We get hundreds of pounds worth of them every year. We know who pays for them in the end but will you ask the government to ban them too?

Cardew

Consumerist wrote: »

We all pay every day for the various forms of advertising used to persuade us to buy things.

The difference surely is that all the Utility companies are selling EXACTLY the same product i.e. the identical gas and electricity delivered by the same pipes and wires.


Not only that, but people are not going to purchase any more of the product(i.e. gas and electricity) being marketed.


Nobody is making any criticism of people(the tariff tarts!) who take advantage of the system to gain money back. The argument is the system is wrong.


However there can be no doubt that the comparison networks are parasitic in that they add nothing to the product and cream off £millions, which is paid for directly by the customers.


Also I do think that if none of the companies paid this 'levy' then that could be reflected in lower prices.


If you consider those payments have no effect on the prices we pay, why not encourage them to pay two or three times as much to the comparison networks, and increase cashback by the same ratio.

Consumerist

Cardew wrote: »

The difference surely is that all the Utility companies are selling EXACTLY the same product i.e. the identical gas and electricity delivered by the same pipes and wires.

I take your point but if you accept that the comparison sites provide a service to energy customers, how do you suggest that service is paid for? Are you suggesting that they should charge customers? Would such a charge be a disincentive for customers to use the sites? How might customers easily gather the necessary data together and then sort it so as to make a switching decision?

If we want the comparison-site service then surely we must accept that they will have to be paid for somehow.

As far as I am concerned the cashback offered by comparison sites is little different to, for example, investment brokers offering part of their commission to their clients.

Cardew

QUOTE=Consumerist;64186662]I take your point but if you accept that the comparison sites provide a service to energy customers, how do you suggest that service is paid for? Are you suggesting that they should charge customers? Would such a charge be a disincentive for customers to use the sites? How might customers easily gather the necessary data together and then sort it so as to make a switching decision?

If we want the comparison-site service then surely we must accept that they will have to be paid for somehow.

As far as I am concerned the cashback offered by comparison sites is little different to, for example, investment brokers offering part of their commission to their clients.[/QUOTE]


I totally accept that without a comparison-site service it is virtually impossible, even for us 'anoraks', to work out the best deal for our circumstances; and the new simplified tariffs insisted on by Ofgem haven't made things any easier.


However I gave the answer to your question in post #14:

It would be very easy for the Government funded Energy Saving Trust(or even Ofgem) to set up a comparison website for gas and electricity.

At least then you could get unbiased facts and not information presented to 'favour' certain companies; e.g. how can you be objective about 'Service' standards. Attempting to point users toward companies that can be directly linked to via their website etc etc.

Don't forget that many people don't/can't use the internet comparison websites; they rely on the phone. The call centre staff depend on the commission they get for you to change; so it is not in their interests to get a customer to stay with their present company, or move to a company that doesn't pay the call centre any commission.

Try ringing a company, and acting dumb about your tariff and consumption, and see how unbiased(not) is the advice you receive. ' You are paying £xxx a month? I am sure we can reduce that payment' -

molerat

The cash back will just be part of the advertising budget. Do you think that the tv, newspapers and radio stations "add value" to the product without "creaming off millions" ? If the rules change I expect I will still be paying without a chance of seeing any of it back. At least with the current situation I am eligible for a piece of the action too.

Jennifer_Jane

Co-op have stopped giving membership points for payments, and monthly meter readings.


"We need to let you know about some changes we have had to make as a result of a Retail Market Review that has been undertaken by our regulator, Ofgem. The aim of their review has been to create a simpler, clearer and fairer market place for energy customers.

To meet the new requirements following this review, all energy suppliers have had to evaluate the incentives offered to their customers. After 31 December 2013, energy suppliers will no longer be able to offer certain types of discount to their customers.
How does this affect you?Currently we offer the following incentives because you are a member of Co-operative Group

• One membership point for every £1 you spent with us
• Share of the profits distributed each year

The regulator has instructed us to cease operating this scheme as of 31 December 2013. This is because you, as a member of Co-operative Group, do not have a direct democratic link to Midcounties Co-operative.

It has been agreed that we can honour points earned up to this date and the appropriate share of profits will be paid to you in the next payment Co-operative Group makes to you.

We appreciate this change will be disappointing news for you, and it was not one that went unchallenged. However, it is a change we have had to make to ensure we meet all our regulatory requirements."