MSE News: Energy cashback saved from total Ofgem ban

Consumerist

mbrock wrote: »

Another seemingly perverse and anti-consumer decision by Ofgem is to ban the Co-op from giving dividend to Co-op Energy customers (and hence members). . . .

Not necessarily. You may find this <MSE post> of some interest.

Former_MSE_Archna

Hi all

We campaigned on this purely because it was an anti-consumer decision. Removing cashback would likely mean less people switch, in a market where lots of people are still reticent about taking action on their bills. The cashback is effectively giving consumers a cut of the amount the comparison sites earn for switching people. Where the cashback isn’t paid, comparison sites can simply keep the entire amount.

Our decision to campaign on this was made completely independently of Moneysupermarket – just as all editorial MSE work is, as set out clearly in our editorial code.

scootw1

scootw1 wrote: »

topcashback don't seem to be offering any cashback for electric/gas at the moment. Is this the reason?

Anyone help?

Former_MSE_Archna

Hi consumerist

All our data and calculations come from MoneySupermarket which is an Ofgem approved comparison.

Unfortunately switches do fail from time to time. This is usually down to the suppliers, not the site doing the switching (MoneySupermarket in the case of Cheap Energy Club).

We're passing on suggestions to DECC as to how the process can be improved.

Consumerist wrote: »

Be aware that Cheap Energy Club is not an Ofgem-approved comparison site and so it is not bound by the Confidence Code.

There has been some criticism on this site regarding CEC accuracy and switching failures.

Use Cheap Energy Club at your own risk.

Former_MSE_Archna

scootw1 wrote: »

Anyone help?

Hi scoot

This type of cashback has been banned by Ofgem.

scootw1

MSE_Archna wrote: »

Hi scoot

This type of cashback has been banned by Ofgem.

But comparison sites cashback is not? How is topcashback different?

canterswest

A small detail which I did not know. My long term fix ended on 31st December 2013. I put off doing anything about it until a few days ago. Most comparison sites including this one said you MUST start your switch six weeks before your deal ends to avoid being put on a standard 'expensive' tariff when your deal ends and you are waiting for the new provider to take over your account.


With my provider this was not true. As long as I do not cancel the direct debit I was told there is a grace period of six weeks when the old contract price continues. By leaving it until the last minute I extended an unbeatable tariff from long ago for a little while!


As I had a small credit balance the provider changed my direct debit amount to £20 so there will be a small amount to settle once the switch goes through.


My provider has this policy and perhaps all the others do too. In which case if you are moving to a more expensive tariff leave it to the last minute.

Consumerist

scootw1 wrote: »

But comparison sites cashback is not? How is topcashback different?

My understanding of Ofgem's current position is that the ban on cashbacks will not be "actioned" if the cashbacks are offered equally on any switch made through the site. It is possible that topcashback is not / was not offering cashbacks on that basis. e.g. different amounts for switching to different suppliers.

Consumerist

canterswest wrote: »

My provider has this policy and perhaps all the others do too. In which case if you are moving to a more expensive tariff leave it to the last minute.

Hi canterswest and welcome to the forum

You don't mention who your current supplier is so it's not possible for others to confirm the policy. Ofgem only requires that suppliers do not charge an early-termination fee during the 6 weeks prior to the end of a contract.

It is, however, possible that the person you spoke to has got the wrong end of the stick. I would suggest you check your final bill to confirm that you have been advised correctly.

scootw1

Consumerist wrote: »

My understanding of Ofgem's current position is that the ban on cashbacks will not be "actioned" if the cashbacks are offered equally on any switch made through the site. It is possible that topcashback is not / was not offering cashbacks on that basis. e.g. different amounts for switching to different suppliers.

So everyone loses out because people can't be bothered to combine the results of a comparison with the cashback website amount to get the best deal? I feel a backlash against the regulator coming on from those of us who do a full comparison as opposed to a half-hearted one.