Misleading comparisons?

Telegraph_Sam

Once a year I go through the ritual of comparing energy suppliers' tariffs prior to switching, or not, depending on the advertised savings. Originally I had doubts in my own basic mathematical abilities as far as getting the sums to add up were concerned. Now, more sceptical, I don't take any claimed annual savings - on MSE or any other comparison site - at face value without first putting the actual kWh and day rates into my own spreadsheet. This at least allows me to make the various assumptions and discounts explicit. It is surprising the discrepancies that result. I don't think the suppliers appreciate it when their figures are queried. Too bad. It has been worth the hassle of setting up the spreadsheet template in the first place.

JJ_Egan

I dont have a problem but only look at the actual unit and S/C costs then factor in any kickback .

Flt._Lt._Biggles

Telegraph_Sam wrote: »

Once a year I go through the ritual of comparing energy suppliers' tariffs prior to switching, or not, depending on the advertised savings. Originally I had doubts in my own basic mathematical abilities as far as getting the sums to add up were concerned. Now, more sceptical, I don't take any claimed annual savings - on MSE or any other comparison site - at face value without first putting the actual kWh and day rates into my own spreadsheet. This at least allows me to make the various assumptions and discounts explicit. It is surprising the discrepancies that result. I don't think the suppliers appreciate it when their figures are queried. Too bad. It has been worth the hassle of setting up the spreadsheet template in the first place.

Are you saying that all the comparsion sites are giving you differing results?

Or that they all give the same results but that differ from your own calculation?

Telegraph_Sam

More the latter than the former. I tend not to use more than just one or two comparison sites for all the difference that going ever further makes. But over time I have become aware of discrepancies between at least some of the savings claimed, and what results if I input the same data into my spreadsheet. Some of these could possibly be attributed to the inclusion or exclusion of a bonus / cash back or kickback or some other misunderstanding, it is not always easy to tell. Preferable to do one's own number crunching.

Flt._Lt._Biggles

Telegraph_Sam wrote: »

More the latter than the former. I tend not to use more than just one or two comparison sites for all the difference that going ever further makes. But over time I have become aware of discrepancies between at least some of the savings claimed, and what results if I input the same data into my spreadsheet. Some of these could possibly be attributed to the inclusion or exclusion of a bonus / cash back or kickback or some other misunderstanding, it is not always easy to tell. Preferable to do one's own number crunching.

:huh:

How can it be the latter if you only use one comparison site???

But anyway, based on what you have claimed, that probably means you are either doing a different calculation, or are getting it wrong, compared to all the independent sites that are all coming up with the same results.

So do all the other comparison sites offer the same cashback???

Someone will be along soon to give you the answer you want to hear ...:cool:

matelodave

The savings are not calculated on what you are paying now but on what you would end up paying when you present deal finishes and you get transferred over to your suppliers standard variable tariff.

The assumption being that you won't transfer to a different deal in the meantime.

This is how OFGEM have decreed that the comparison should be calculated.

So you should ignore the perceived savings and just use the comparison site to work out how much a tariff will cost. You can then decide if it will be less or more than you are presently paying.

I use the comparison sites to find out the tariffs and do my own sums

d0nkeyk0ng

I’ve been tracking usage and tariffs through spreadsheets. It’s not hard, just time consuming. I found that the cheap energy club comparison was accurate provided I put in my actual usage. It was accurate for estimated cost for the next twelve months. It was less “accurate” when discussing savings - obvious compared to going to standard variable rate will cost me more.

Telegraph_Sam

You get the impression that it is possible to correct for being transferred to the SVR by default. Even so I have an instance where the MSE tool is offering me a saving by switching to a tariff that is shown to be more expensive than the quoted benchmark. The conclusion which we all seem to be coming to is to use the search engine to identify options for comparison but then input the quoted unit / day rates into a spreadsheet in order to come to valid conclusions. This has the added bonus that you can simulate variations in consumption in case the crystal ball is a bit off target.

Telegraph_Sam

Reinforcing the above comments, I have been offered savings of £232 p;a. for switching by the Energyhelpline who I take to be one of the more reputable comparison sites. This would be to a worse deal than what I am on at present. I pointed out that following their advice should qualify me for being paid by the energy supplier for the privilege - and not peanuts at that. Their defence was, as you will have guessed, "we act according to OFGEM's guidelines" and these require comparisons to be made with the standard variable rate. I would guess that the majority of MSE subscribers are canny enough not to be on SV tariffs, but I wonder how many actually take the claimed "savings" at face value? To me the default methodology is a scam and pressure should be brought on OFGEM to put the onus on the comparison sites to use SV tariffs as a benchmark only with the specific authorisation of the consumer. I doubt if the majority of comparison sites would do this voluntarily given the incentive to encourage subscribers to switch.

PaschalFun

Telegraph_Sam wrote: »

Reinforcing the above comments, I have been offered savings of £232 p;a. for switching by the Energyhelpline who I take to be one of the more reputable comparison sites. This would be to a worse deal than what I am on at present. I pointed out that following their advice should qualify me for being paid by the energy supplier for the privilege - and not peanuts at that. Their defence was, as you will have guessed, "we act according to OFGEM's guidelines" and these require comparisons to be made with the standard variable rate. I would guess that the majority of MSE subscribers are canny enough not to be on SV tariffs, but I wonder how many actually take the claimed "savings" at face value? To me the default methodology is a scam and pressure should be brought on OFGEM to put the onus on the comparison sites to use SV tariffs as a benchmark only with the specific authorisation of the consumer. I doubt if the majority of comparison sites would do this voluntarily given the incentive to encourage subscribers to switch.

Nice bump :cool:

A poor workman always blames his tools.

EHL offers the alternative methods of calculation

I'm not sure how the defualt method of calcualtion can be referred to as a scam when it:
a) is defined bt the regulator
b) you are aware of teh metrhod of calculation
c) it is calculated on the baseis you do nbothing

Your preferred method of calculation appears to relate to a historical tariff.
Seems I will be paying about about 10x more than my gandparents formally paid on their 1950's tariff if I switch. Perhaps I shouldn't switch. But the site informs me what I will be paying if I do nothing, and it looks quite expensive compared to whaty is actually avaialable elesewhere, or even with the existing supplier :cool:

bubblesbonbon

matelodave wrote: »

The savings are not calculated on what you are paying now but on what you would end up paying when you present deal finishes and you get transferred over to your suppliers standard variable tariff.

The assumption being that you won't transfer to a different deal in the meantime.

This is how OFGEM have decreed that the comparison should be calculated.

So you should ignore the perceived savings and just use the comparison site to work out how much a tariff will cost. You can then decide if it will be less or more than you are presently paying.

I use the comparison sites to find out the tariffs and do my own sums

I fell foul of this recently and actually complained to my supplier that their projected annual savings were misleading.
The figures quoted were that I would SAVE about £20 over the year yet their new tariffs were 28% dearer.

However my annual figure included 111 days at my current cheap tariff then 254 days at their standard tariff. The comparison was based on 365 days at the standard (cheapest) tariff.

Interestingly they left my complaint "on file" since they agreed that it could cause confusion.