Compare the Market offering misleading "savings" which aren't savings???

trjp

I realise this MIGHT be a commonplace topic here but searching for 'compare" or "tariff" offers walls of not quite relevant posts so apols. if that's the case!
I recently headed to 'the Meerkat' to see what else was on offer and they threw-up a few tariffs which they claim will 'save me' upto £90 a year.
Problem is, when I look into the tariff pricing, standing charges AND unit costs are HIGHER so there is no possible way I would 'save' any money!?
I emailled them and their reply was pretty-much "we don't set the prices" but I didn't question the prices, I questioned their dubious 'savings' calculation
I know these sites have history with 'hiding' deals (or promoting some deals over better ones) but this seems to be a pretty straightforward case of "presenting false information"?
Note: I wondered if dual-fuel discounts or cancellation fees might factor-in but every setting is unchanged between tariffs and they don't show their working so I can't know that.
Note: I wonder if they factor-in tariffs expiring - that would explain it but without stating that they do that AND stating what tariff they use to replace the expired one this remains highly misleading information no??

[Deleted User]

Hi,

I think these sites compare savings to your suppliers standard tariff, what you will go onto when your fixed deal ends, not what you are on now.

Phones4Chris

@trjp All comparison sites work in a simialr way. The "savings" are based on what you'll pay over the next 12 months on the assumption that your current deal finishes on the specified date and you move onto the supplier's standard tariff and you do nothing.
You've already discovered what you need to do, go and look at any potential supplier's tariff details, unit charge and standing charge.
Dual fuel discounts don't always save money either, look at separate deals from different suppliers.

Gerry1

As with so many other things, the blame for this lies squarely with the useless Ofgem because they specify how the so-called saving should be calculated.

trjp

Thanks for the replies - I did try to 'fool' it by choosing what I thought was my suppliers 'standard tariff' and I still get some claims of 'savings' which I just cannot quite explain (tho they are very small and likely relate to assumed termination or dual-fuel fees perhaps) but I suspect you're all right
If I decline to offer an end-date it gets shirty and just offers me 'unfavourable' tariffs so I guess that's the reasoning - it's not exactly clear tho, my suppliers renewal letter at-least has the decency to highlight that the 3 alternate tariffs they're offering are notably (like 15%) more expensive!!

[Deleted User]

Hi,

I ignore any 'savings', take a note of tariff and sc, then do my own calculations and compare to what I am paying now.

Need to accept that there has probably been price rises since last fix, so unlikely to get it cheaper.

[Deleted User]

Mathematically, some form of assumption has to be made as to what happens at the end of a fixed tariff term given that there is no tariff rollover. The default position is the supplier’s SVT. When Ofgem brought in its policy of a rolling 12 months cost assumption going forward, over 70% of consumers had never switched suppliers so the projected savings were 100% accurate for those customers. Even now the assumption is only flawed for consumers on fixed tariffs with less than 12 months to run. MSE CEC offers a 12 months price now compared to 12 months going forward which is a more accurate way of showing the cost differential.

Phones4Chris

The savings figures aren't accurate for the reasons we've mentioned BUT those with the biggest "imaginary" savings will still have the lower tariffs but the devil is in the detail, the unit cost may be more important to you than the daily charge for example, or whether it's a fixed or variable tariff, what method of payment there is etc., so as has been said look at the tariff details (TIL) and do your own sums.

trjp

Thanks again folks !
No-one likes a 15% increase in their billls but I suspect this is just the start of 'paying for the pandemic' - I have to admit that most of the suppliers on Meerkat etc. I've never heard-of (and I've done the guinea-pig thing before!) - so given that current supplier has been quite efficient and decent I'll probably just stay (the overall saving when tariffs adjust is <£15 anyway)