Customers 'Duped' By Energy Switching Deals

kevbev321

Good morning all,

I have just come across this news story on sky news:

http://news.sky.com/story/1435862/customers-duped-by-energy-switching-deals

an extract:

Energy price comparison websites have been "duping" customers into switching to deals that are not the cheapest on the market and should pay them compensation, a group of MPs have said.

The Energy and Climate Change Committee said some sites had used misleading language to dupe consumers into options that only displayed commission-earning deals.

I'm shocked to see a screenprint of the Moneysupermarket website - which is part of the same company as MSE, featured in the article :eek:.

I'd love to hear from somebody about this; I have switched my energy several times now using the MSE Cheaper Energy Club - have I been a victim of this too?

keith1950

You only get duped if you are dumb enough not to read the information properly.

Every site I have ever used has clearly had as an option..." sites we can switch you to " or " all sites you can switch to".

To use the word " duped" is totally over the top.

As with most things if you don't read the terms and conditions or in this case the options you deserve what you get.

chanz4

makes me wonder what mse response is, as they have only recently been telling people how much they get for a switch in the last few months

[Deleted User]

I think the word "duped " is mild,I d say "conned " or "bent " when they use words like "sites we can switch you to now ". why can t they all just say "all available tariffs " ? and be done .
Its still a con, on Ukpower.co.uk "all available tariffs we can switch you to " implies that everything available will be shown. Its a lie because the small drop down icon reveals "all available tariffs " and even more tariffs of which Ukpower can switch you too, just that they dont get paid for switching I presume. Anyone who listens to me on my rounds gets directed to cheapenergyclub for the switch and £30 cashback, a no brainer

victor2

keith1950 wrote: »

You only get duped if you are dumb enough not to read the information properly.

Every site I have ever used has clearly had as an option..." sites we can switch you to " or " all sites you can switch to".

To use the word " duped" is totally over the top.

As with most things if you don't read the terms and conditions or in this case the options you deserve what you get.

I disagree, and believe duped is a very appropriate description.
Instead of "sites we can switch you to", it should say something like "sites we get paid for switching you to", to remove any ambiguity, and should not default to only show those that pay them.

Switching sites are very useful, but should only be used as pointers to suppliers worth investigating further IMO.

System

The Committee has focussed on the money paid to switching sites rather than looking at the bigger picture.

https://assets.digital.cabinet-office.gov.uk/media/54da24ebed915d514400000b/The_Energy_Shop_Submission.pdf

Have a read from Page 21 onwards.

footyguy

kevbev321 wrote: »

...

I'm shocked to see a screenprint of the Moneysupermarket website - which is part of the same company as MSE, featured in the article :eek:.

I'd love to hear from somebody about this; I have switched my energy several times now using the MSE Cheaper Energy Club - have I been a victim of this too?

According to the MSE news article of 4 months ago, no

http://www.moneysavingexpert.com/news/utilities/2014/10/energy-comparison-sites-hide-cheap-tariffs-but-we-dont

... it has bizarrely named Martin Lewis of MoneySupermarket (sic). It is well known that Martin Lewis is the editor in chief of MoneySavingExpert.com and has no role at MoneySupermarket.com.

Perhaps you could remind Martin with where those £millions that landed in his bank account came from? :cool:

kevbev321

keith1950 wrote: »

You only get duped if you are dumb enough not to read the information properly.

Every site I have ever used has clearly had as an option..." sites we can switch you to " or " all sites you can switch to".

To use the word " duped" is totally over the top.

As with most things if you don't read the terms and conditions or in this case the options you deserve what you get.

I don't agree with this at all. Duped is exactly what they have done if what the article states is actually the case.

I for one consider myself quite "savvy" when it comes to money, and as previously stated have used the cheaper energy club several times before. I have never noticed any option to change which companies they show to me; this could be a good thing meaning MSE doesn't do it, or it could mean that I have indeed been duped.

The one thing that does raise my suspicions is that every switch I've ever been shown comes with cashback - suggesting that MSE have been paid to do my switch. I didn't even think to see if there were any other options; I have always been of the opinion that MSE conducts itself in a way which protects its customers, not deceives them.

kevbev321

footyguy wrote: »

Perhaps you could remind Martin with where those £millions that landed in his bank account came from? :cool:

Couldn't have put it better myself

facade

You need to do the maths yourself.

I got caught out many years ago, on my first switch. There were teams of cold callers and we were taken in by "Cheaper to have both from the same company, reduce your monthly payments by half"

They did that alright, and after the first year we were so far in arrears that the next year we ended up on double to repay the deficit.
I never once understood The Bill. We got so many units at the rate I expected, and another number at a higher rate, but the number kept changing each quarter (wasn't a fixed % either)
Strange how they would tell you how to change m3 into kWh, using calorific value & gas density but not how they split the rates.

Now I read all the terms and check all the figures myself, and TBH I'm not that bothered about saving £10 a year to switch.

victor2

Hengus wrote: »

The Committee has focussed on the money paid to switching sites rather than looking at the bigger picture.

https://assets.digital.cabinet-office.gov.uk/media/54da24ebed915d514400000b/The_Energy_Shop_Submission.pdf

Have a read from Page 21 onwards.

Interesting reading....

Large numbers of consumers using price comparison websites are being quoted savings they cannot possibly achieve. The figures involved, in turns of customer numbers and the aggregate inflation of savings quotes is substantial. That would, in most normal cases, demand regulatory intervention. However, with Ofgem, the regulator, complicit in this arrangement, the situation becomes a little more complicated and may demand action from higher levels of authority.

How much do Cheap Energy Club claim their switchers saved?...