Comparing the comparison services discussion

ottomel

Changing suppliers can be a nightmare. I know. But the decision to change can be worse. In the last few years I have changed suppliers doing my own homework or chasing the occasional offer. Recently I used uswitch and they suggested SWEB, saving £77 per annum from my present supplier Powergen online. I have obtained figures from both and I cannot see how the saving is to be made. I contacted uswitch and they were really helpful. Do not bother was their reply. OK. I then got in touch with Energywatch and spoke to an advisor. I was told that they are powerless to take any action against the comparison companies, as opposed to the salesman who gives incorrect information with regard to the cost of the supply companies.

I think that these companies should be able to justify the figures and where the savings are made. Does why are they recommending one company as opposed to another need an appropriate reply.

RedFred_2

Have been comparing prices on the comparison company sites for Gas & Electric,
Iam now totally confused.
Entered the same information for each enquiry, totally
different supplies recommended from each site.
Why is this? Surely if they use the same data that they must obtain from the companys concerned, the answers must be the same, or are they getting commission to push one company over another?
Anyone got any ideas on how to sort the wheat from the chaff?

mark101

ottomel / RedFred

I totally agree with both your comments - This is why I have never switched. I think it's all a gimmick (I'll get some come back here) and somewhere down the line they'll get you especially if you don't tart, if the guys/gals do that with the energy products....

Mark

james_erskine

My interest is that I work for Energylinx.

We totally agree with most of the comments on this board, we would like to see additional legislation put in place to protect the consumer.

Many comparison services, both energywatch approved or otherwise appear to miss out a number of suppliers so effectively the consumer does not always receive the very best deal possible.

We would like to see new legislation introduced in a similar way to what occurs in the financial services industry so that should a price comparison service not provide the very best advice - then there should be financial penalties involved.

Our view is that the financial loss suffered by the consumer as a result of not being made aware of the best price should be paid by the comparison service to the consumer - a figure of say 12 months loss plus a penalty payment that could be used to fund the body who would assume responsibility for the legislation itself.

Currently energywatch does state that services with their accreditation do include all suppliers, however it easy to check and see which suppliers are missing from even the energywatch supplier sites - and then sometimes where they are shown you are not actually able to sign up to the tariff.

The companies that we often notice to be missing are EBICo, Telecom Plus, sometimes the online EdF tariffs, Atlantic Electric and Gas, Basic Power and Zest4.

Perhaps this forum could start a lobby group to help shape future legislation that surrounds the price comparison industry.

Our advice is use a few price comparison services, see who provides the most comprehensive data and if you do anything over the phone, make sure that the comparison service puts everything in writing. Either print out from the website you are using or obtain the information in writing before committing to anything.

Hope this helps.

James Erskine

MarkyMarkD

I think that not switching because you are uncertain if a comparison site offers the best deal is cutting off your nose to spite your face.  Everyone using their original suppliers is getting screwed - BG are the most expensive for gas; your local REC is the most expensive for electricity.  That is a fact.

And the reputable comparison services will provide the same best buys for the same input details, if you input your actual consumption.

If you input what you are currently paying (e.g. £20 per month) that is too vague to get the right answer.

Some comparison services - I'm thinking of uswitch - by default exclude those suppliers who have a poor customer service rating.  So they will sometimes not bring up the cheapest - if their service is seen as dodgy.

I have switched loads of times.  It's very little effort and we have saved substantial amounts compared to the "do nothing" option.  I have personally always used uswitch and am very happy with the comparison service they provide.

And I have no axe to grind for them - other than as a satisfied customer.

James' comparison to the financial services industry is misguided. If you go to an IFA, they are NOT obliged to search the entire market and offer you the very cheapest mortgage - for example. They are quite within their rights to maintain a relationship with a number of lenders, and provide you the best quote from that panel of lenders. It's only mis-selling if they claim to search the whole market and fail to do so, or if they actually search a number of companies and recommend someone who is not the best for you on the basis of some better level of commission or similar.

On the same basis, I don't see anything wrong with a comparison site failing to recommend suppliers with duff customer service, or failing to recommend peripheral suppliers, as long as they don't imply that they cover the whole market.

RedFred_2

I believe that the energy watch dog should supply the tariffs to the comparison companies, if comparison companies then choose to compare only certain suppliers for whatever reason then they should declare that and the reason why, ie poor service.
Once a supplier submits the tariffs to the watch dog those tariffs should then be fixed, until the watch dog agrees a price change. Individual supply companies suppling details to comparison companies, have no legal standing and is open to mis interpretation.
By suppling directly to the watch dog there could be some regulation of the way quotes are given out.
No axe to grind with the comparison companies, who do try to help consumers, just think some form of control is required.

james_erskine

Thanks MarkyMark and RedFred.

The problem is that energywatch clearly state that price comparison services must include ALL suppliers and if a consumer takes advice from them, they will then be under the impression that they are receiving just that - a comparison of all suppliers.

If a price comparison is not then including all the suppliers then it would be appropriate to state that this is only a snapshot of the industry.

This is what I meant when I referred to the financial services industry - the basis of the search needs to be disclosed at the outset. Our view is that without proper regulation that another potential "endowment misselling scenario" could be easily occur a few years from now when the consumer becomes accustomed to the concept of comparing energy suppliers on a regular basis.

I do agree with the concept of showing a service rating but this does need to have a definitive basis.

e.g. a supplier should not be given a low rating on the basis that the comparison service does not have a specific relationship with the supplier.

In summary what we are currently lobbying for is regularity. We would like ultimately like to see all advice being transparent so that if a consumer is searching that they know:

1. Whether or not all suppliers are included in the search results. And if not whether a better deal can be obtained elsewhere.
2. Information from an industry wide database of supplier service ratings.
3. The amount of commission being paid to the comparison service on a supplier by supplier basis.
4. A legal requirement to provide advice that is regulated with financial penalties for bad advice.
5. Phone quotes backed up with written documentation.


James Erskine

RedFred_2

I'll vote for that James

chateau42

Nothing to beat your own actual annual consumption and a written cost per Kw from a supplier, fixed or otherwise. Work it out yourself from that information. However comparison sites are useful, but check them. Generally agree with the last posts. ???

malcolmord

Sometimes works, sometimes not