Energy switching sites misleading assumptions

System

Look at separate suppliers for gas and electricity if you haven't done so already.

Banana-Man

Thanks Hengus. According to MSE Energy Club it's £100/year cheaper if I split them.....Can't believe it. It never occurred to me that a dual fuel deal would cost me more. I've been dual fuel for probably 15 years now. Ignorance was bliss. D'oh!:(

LyndaS

Banana-Man wrote: »

Thanks Hengus!

I've just done a check to find I'd only be £3/year better off by switching. That sounds more like it!

Great stuff. Have signed up for a reminder should savings go up.

Banana-Man wrote: »

Thanks Hengus. According to MSE Energy Club it's £100/year cheaper if I split them.....Can't believe it. It never occurred to me that a dual fuel deal would cost me more. I've been dual fuel for probably 15 years now. Ignorance was bliss. D'oh!:(

The savings you quote here for the next 12 months are almost certainly unachieveable and therefore would be misleading to most people.
Think about why this statement is correct and explain why.

List all the required assumptions that would need to be satisfied in order for the above savings to actually be achieved over the next 12 months.

System

LyndaS wrote: »

The savings you quote here for the next 12 months are almost certainly unachieveable and therefore would be misleading to most people.
Think about why this statement is correct and explain why.

List all the required assumptions that would need to be satisfied in order for the above savings to actually be achieved over the next 12 months.

Hi - welcome to this forum. Assessing energy usage over a future 12 month period is at best an educated guess. Suppliers get it wrong and consumers get it wrong because no one can forecast how warm or cold a Winter might be. That said, all we can do is reduce the variables. We can do this by fixing the term and tariff (the latter fixing the daily standing charge and unit price).

If, as you suggest, that the savings are misleading then how do you choose your supplier and tariff? I would respectfully suggest that 12 month forward projections are better than doing nothing; moreover, it is worth noting that the present Ofgem methodology is only in error for those consumers on a fixed contract with less than 12 months to run. That said, the calculations and savings are only correct if actual usage matches the projected consumption.

Banana-Man

Which? replied to my concerns as follows:-

"Thank you for taking the time to send us an email about the Which? Switch website.

Which? Switch operates as a white label site and although we are not able to be accredited to Ofgem’s Confidence Code – the Code by which many switching sites operate - we operate by the principles of the Code.
The Code currently stipulates how switching sites calculate savings and this includes how to treat savings for those on fixed tariffs insofar as they assume that people will roll on to a standard tariff if they take no action. We have fed back to Ofgem about these calculations, as have other switching sites and we will continue to do so as part of their ongoing consultations.
I am sure Ofgem would welcome your feedback too, so please do feel free to contact them directly to outline your concerns.
In terms of commission, we do receive a flat commission of between £15 and £45 when you switch energy suppliers using Which? Switch. This covers the costs of running our site and goes towards the work we do campaigning on behalf of all consumers. Whether we receive commission makes no difference to where the results appear in our tables, meaning you'll always be able to find the best deals.
[FONT=&quot]Thanks once again for getting in touch and please do not hesitate to get in contact again with any feedback."[/FONT]

System

Banana-Man wrote: »

Which? replied to my concerns as follows:-

"Thank you for taking the time to send us an email about the Which? Switch website.

Which? Switch operates as a white label site and although we are not able to be accredited to Ofgem’s Confidence Code – the Code by which many switching sites operate - we operate by the principles of the Code.
The Code currently stipulates how switching sites calculate savings and this includes how to treat savings for those on fixed tariffs insofar as they assume that people will roll on to a standard tariff if they take no action. We have fed back to Ofgem about these calculations, as have other switching sites and we will continue to do so as part of their ongoing consultations.
I am sure Ofgem would welcome your feedback too, so please do feel free to contact them directly to outline your concerns.
In terms of commission, we do receive a flat commission of between £15 and £45 when you switch energy suppliers using Which? Switch. This covers the costs of running our site and goes towards the work we do campaigning on behalf of all consumers. Whether we receive commission makes no difference to where the results appear in our tables, meaning you'll always be able to find the best deals.
[FONT=&quot]Thanks once again for getting in touch and please do not hesitate to get in contact again with any feedback."[/FONT]

The question has to be asked is why Which is not using the referral fees that it receives to campaign for a change in the projected savings calculation.

I received this e-mail yesterday about an ongoing Collective Switch:

Rachel Calder is one of many people who have saved money switching energy through the Summer Collective.

Rachel had this to say "It was really simple to switch. I would recommend it to anyone who is looking to reduce the cost of their energy bills."

"This is the second year I have switched using the Collective. It took around 10 minutes to compare and switch. The service was very prompt and quick, and I知 now estimated to save over £740."

"All I had to do was enter a few details including my postcode and usage, then I was shown which tariffs were best for me"

The above is a bit like saying that I have just saved myself a £60 fine by not driving at 40 mph in a 30mph limit.

Edit:

Complaints sent to Ofgem and the ASA but I am not holding my breath.

Former_MSE_Roxanne

Hi guys,

These 'personal projection' calculations on comparison sites are the way that Ofgem says comparisons must be calculated.

We didn't agree that this was the right approach to comparisons, and did originally voice our concerns to Ofgem about this. After Ofgem didn't listen to our complaints, we decided to ignore its approach.

So, if you’ve a fix expiring in the next 12 months, on Cheap Energy Club you can toggle to see savings against your current fix’s price, what it'll be after, and the personal projection, And if you're unsure, we default to the most appropriate (based on where you are in your fixed term).

For more information about our comparisons, please see our news story on it here:
http://www.moneysavingexpert.com/news/energy/2015/08/test-your-energy-fix-check-if-you-can-save-100s

System

MSE_Roxanne wrote: »

Hi guys,

These 'personal projection' calculations on comparison sites are the way that Ofgem says comparisons must be calculated.

We didn't agree that this was the right approach to comparisons, and did originally voice our concerns to Ofgem about this. After Ofgem didn't listen to our complaints, we decided to ignore its approach.

So, if you’ve a fix expiring in the next 12 months, on Cheap Energy Club you can toggle to see savings against your current fix’s price, what it'll be after, and the personal projection, And if you're unsure, we default to the most appropriate (based on where you are in your fixed term).

For more information about our comparisons, please see our news story on it here:
http://www.moneysavingexpert.com/news/energy/2015/08/test-your-energy-fix-check-if-you-can-save-100s

Good on MSE. I added my voice and I complained to Which pointing out that they could follow MSE CEC's lead and provide both the OFGEM comparison and the more honest year on present tariff compared to year on new tariff. I got a standard response. It really is time that MSE had a campaign to sort out this flawed methodology.