MSE News: Collective switching comes of age as 60,000 save £10 million

redux

Consumerist wrote: »

I suspect that much of the problem is timing.

At the time the headline was prepared for release, it was probably the truth but suppliers are wasting no time to compete as soon as new offes are released. Extra Energy is launching new tariffs like there will be no tomorrow.

Coincidentally, e.on has launched a new tariff which is only available until 10 February.

In my view, CEC should have realised that the market would react to its collective switch and should have prepared headlines which anticipated that reaction. It seems to me they will now lose credibility over these now-misleading claims as switchers come to realise they might have done better.

I surmised that as well, but Dan has answered it by saying he ran the last checks just the day before the email.

The last MSE promotion was undercut within 3 days, but this time it happened even before launch.

cklass

Consumerist wrote: »

Assuming each switcher got their £30 cash-back, MSE would have reaped about £1.8m - still not to be sniffed at, of course.

Even that wouldn't be pure profit, though, as CEC doesn't run itself. According to one of Martin's articles, MSE gets about £11 per duel fuel switch, which covers MSE's costs and leaves them with some profit. The remaining £19 goes to paying MoneySupermarket as well as Allfiled, which provides the database platform.

polymaff

MSE_Dan_L wrote: »

It's really difficult to explain everything within a short headline.

We're not criticising any lack of explanation. We are criticising what you DID publish.

redux

polymaff wrote: »

We're not criticising any lack of explanation. We are criticising what you DID publish.

Indeed.

It is absolutely certainly true that people currently on standard tariffs can save money by switching to a well chosen fixed term deal, but this principle is not extensible to claiming that huge savings are possible on the margins between the latest rival tariffs.

The words "our winners smash the best-buys" and "by far the cheapest" are patently untrue in this instance.

MSE's messianic zeal for helping people save money is one thing, and laudable as that, but an email containing claims on behalf of specific affiliate marketed products is also examinable by other methods.

I'm wondering how clearly some of the people there see any demarcation boundaries.

As I pointed out above, the MSE CEC Sainsburys tariff has roughly 15% more expensive gas units in some areas than certain rivals. Personally I reckon such a switch may be unwise during seasonal peak gas use and may lead to higher bills in the short term, and by the time its slightly cheaper electricity has an effect there will have been more rounds of new tariffs, frustrating anyone who has bought it and looks again at the £60 exit fee.

redux

The latest comment on Martin Lewis's Twitter account says:

"New. We've negotiated cheaper than the cheapest energy bills - typically £250/yr cheaper + £30 cashback."

I think it might be time that this use of language was reviewed on advertising standards grounds.

There are many areas of the country where the MSE CEC Sainsburys tariff is not even the cheapest or less than £10 cheaper than the next cheapest rival amongst the latest new tariffs.

Mr Lewis is conflating 2 things, the possibility to save something/anything at all, and the fact that people on standard tariffs can save by using a fixed tariff. But to write a choice of words that seems to imply a claim that MSE's deal is £250 cheaper than the next cheapest is unsupportable.

Clarification or correction needed.

victor2

redux wrote: »

The latest comment on Martin Lewis's Twitter account says:

"New. We've negotiated cheaper than the cheapest energy bills - typically £250/yr cheaper + £30 cashback."

I think it might be time that this use of language was reviewed on advertising standards grounds.

There are many areas of the country where the MSE CEC Sainsburys tariff is not even the cheapest or less than £10 cheaper than the next cheapest rival amongst the latest new tariffs.

Mr Lewis is conflating 2 things, the possibility to save something/anything at all, and the fact that people on standard tariffs can save by using a fixed tariff. But to write a choice of words that seems to imply a claim that MSE's deal is £250 cheaper than the next cheapest is unsupportable.

Clarification or correction needed.

Totally agree.
I've given up on CEC. Had a few emails from them which stated incorrect facts. Use uSwitch (as I always have) to identify cheaper suppliers, then research the better looking ones myself. Switched easily through Quidco, for the cashback, last time, having seen many negative posts about CEC on here.


It's just a business for profit now, and not even the best one at that.

Jackthedog

That headline caught me.... Looked at the MSE estimate based on my location, usage and current tariff etc and it suggested suggested for me a good saving of 179 per year!!!

Being of cautious nature I always do my own check against my current tariff figures ... I have a spreadsheet that does the calculation..... well what do you know ... for me, on the same data, the Sainsbury tariff would be about 44 pounds MORE expensive per annum.

Something is not right here...checked them both it three times and same result shows...

Headline should be Cheapest Tariff except it is more expensive despite what the mse calculator says!!! Beware do your own sums...

canterswest

http://www.thesun.co.uk/sol/homepage/features/6317385/Sun-Investigation-Sneaky-price-comparison-sites-helpline-scam-which-costs-YOU-more.html


Surprised Martin Lewis has not investigated comparison sites since he has directed millions of consumers to use them over the years. Can't find any warnings they might not tell you the cheapest tariff in his many appearances, just to wait until all energy providers have announced price changes before using them, which he seems to have stopped saying recently.


http://www.itv.com/thismorning/hot-topics/martin-lewis-energy-price-increases


'lock in your current price or even cheaper by fixing for up to four winters and guaranteeing yourself no price hikes.' Oct 2013

LesD

MSE_Dan_L wrote: »

It's really difficult to explain everything within a short headline.

The Sainsbury's Energy tariff, based on average price and usage across all regions on price alone is the current cheapest on the market at £901. I believe the Extra Energy tariff averages at £913 with Eon at £920.

We did try to explain that the 1 year tariff could be beaten, in the top section of this week's weekly email:

"...Show your exact prices and compare them to ALL tariffs. Worth doing as while our collective tariffs usually win, there are regional variations. So you can see who wins, how much you'll save and then switch to your best."

Hope this makes sense to you all. I'm not sure there's much more to add around this, but thanks for your contributions - certainly interesting perspectives on the matter.

This is rapidly becoming a serious fraud office issue.

Yet another email from the 'Expensive Energy Club' with totally misleading 'facts'.

This con has been set up purely and simply to make money for Moneysupermaket.con by getting naive readers to switch suppliers unnecessarily.

"For most it's by far the cheapest deal, with huge savings,..." any word I type here would get me banned!

web_ferret

Hmm I smelt a rat and went looking.
Seems like I am correct.
This isn't what it seems. £ 60 exit fees thats some lock in and as others have said, dependant on region this latest MSE switch is being misrepresented.

I'm out.