Customers 'Duped' By Energy Switching Deals

canterswest

The referral website that reportedly is the biggest energy switching business says it does not have customers.


https://twitter.com/MartinSLewis/status/569861358793175040


Regulators (CMA, Ofgem) and the Energy select committee will have to close this loop hole if they bring in changes to protect consumers otherwise all switching business will simply start saying they are editorial businesses like MSE, none of them will admit to having customers and nobody has been missold because nothing is being sold.


On commission, where there are two or more referral businesses the total commission needs to be published. If CEC for example makes £25 per dual fuel switch and uses Moneysupermarket to handle that switch which itself makes £60 per dual fuel switch, the customer needs to know the total commission.

facade

Obviously, you will all think me witless, naive, backwards thinking, and a Dinosaur, but as the electricity comes from the same powerstation, along the same wires, how come we can't all just pay the same price per unit from the same company, and do away with all the middlemen making money for the shareholders?

Then The Government could simply set the prices.


Just wishful thinking.......

victor2

facade wrote: »

Obviously, you will all think me witless, naive, backwards thinking, and a Dinosaur, but as the electricity comes from the same powerstation, along the same wires, how come we can't all just pay the same price per unit from the same company, and do away with all the middlemen making money for the shareholders?

Then The Government could simply set the prices.


Just wishful thinking.......

Do you really need that answering?
Do away with all this competition and bring back the Electricity Board and Gas Board - and we'll all pay whatever the government (in whom we have total faith) chooses to charge us.

MillicentBystander

Talking of the CEC, I still don't understand why they require your FULL address? I remember bringing this up on here when the CEC launched and Martin stated they would look into it and remove the need if it wasn't wanted but he never got back. Just seems strange when the vast majority of the switching sites I use (including Martin's previous favourite, energyhelpline require just a post code). I know Martin has stated that MSE have no intention at present to use this (very valuable) info for marketing purposes but it just seems uneccesarily invasive....

canterswest

MillicentBystander wrote: »

Talking of the CEC, I still don't understand why they require your FULL address? I remember bringing this up on here when the CEC launched and Martin stated they would look into it and remove the need if it wasn't wanted but he never got back. Just seems strange when the vast majority of the switching sites I use (including Martin's previous favourite, energyhelpline require just a post code). I know Martin has stated that MSE have no intention at present to use this (very valuable) info for marketing purposes but it just seems uneccesarily invasive....

I have wondered if collecting names and addresses is an 'engagement' metric affecting the final payment on the sale of this website, due September 2015?


If it isn't required to give a quote, the site should delete all the personal information it has collected. Perhaps a letter to MSE for an explanation, and then a take it to the Information Commissioner's Office if there is a problem.

pearl123

You obviously need to check your existing rates against a new provider. Don't just take the switching site info. It is wise to double check.

It's a bit of OTT reporting by sky, as I sure the vast majority have made savings.

Cardew

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.

The paper indicates/implies that the 'inflated saving' scam* came about as a result of the changes last year.


Not so! I was complaining on MSE about this practice years ago.


* Making the assumption that those on a fixed tariff will switch to, and remain, on the expensive standard tariff when the fixed deal expires.


See also this thread:
https://forums.moneysavingexpert.com/discussion/comment/67633521#Comment_67633521

facade

victor2 wrote: »

Do you really need that answering?
Do away with all this competition and bring back the Electricity Board and Gas Board - and we'll all pay whatever the government (in whom we have total faith) chooses to charge us.

I know. It just beggars belief that somehow we can have many layers of middlemen all creaming off a "profit" and get it cheaper than one company that has no middlemen and need make no profit. :rotfl:

MillicentBystander

facade wrote: »

I know. It just beggars belief that somehow we can have many layers of middlemen all creaming off a "profit" and get it cheaper than one company that has no middlemen and need make no profit. :rotfl:

I wouldn't actually mind paying what I pay now in re-nationalised fuel payments if the profit generated was used for improving the infrastructure, in particular addressing the shameful state of the current storage facilities we have as oppsed to paying shareholders. De-nationalising the energy industry is surely one of the worst decisions even the awful Thatcher Govt ever made! It's led to a frankly shameful 'shadow industry' all basically adding to the cost of the nation's fuel bills.

auntyS

Cardew wrote: »

* Making the assumption that those on a fixed tariff will switch to, and remain, on the expensive standard tariff when the fixed deal expires

This is exactly what I have been complaining about earlier this week. Nobody would stay on a standard tariff so why use it as a basis for comparison unless they want to dupe the unaware customer by quoting huge savings.


I worked out the practise of 'can/can't switch to' some years ago as they don't openly promote the companies who they can't switch you to because generally there is no commission for them thus no cashback for you .