Compensation call over energy switches
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Shopping around could save some customers a significant amount, Ofgem says
Now, the Commons Energy and Climate Change Committee says "duped" customers should get some money back.
The government said it was important that people could trust such sites.
Last year, the websites were accused of using a mechanism that asked consumers if they wanted to switch gas and electricity suppliers immediately.
By clicking "yes" to that question, all the deals that did not earn the company a commission were filtered out.
Only if a consumer clicked "no" were they shown other deals, which could be cheaper.
Tim Yeo, the committee's chairman, said: "Consumers trust price
comparison services to help them switch to the best energy deals
available on the market.
"But some energy price comparison sites have been behaving more like backstreet market traders than the trustworthy consumer champions they make themselves out to be in adverts on TV.
"Some comparison sites have used misleading language to dupe consumers into opting for default options that only display commission-earning deals.
"And others have previously gone so far as to conceal deals that do not earn them commission behind multiple drop-down web options."
The regulator also forwarded the issue to the Competition and Markets Authority (CMA) which is now considering the role of price comparison sites as part of its wider review of the energy market.
Steve Weller, Uswitch chief executive, said: "What is important now is that all switching services - be they price comparison sites, collective switching schemes or offline switching services - are required to meet the same high standards."
A Department of Energy and Climate Change spokesman said: "Millions of pounds have been saved by using price comparison sites to switch - by shopping around people can make sure they find the best energy deal available.
"Consumer trust and confidence in price comparison sites is important and, with Ofgem's strengthened confidence code, people will be able to have greater confidence than ever before that, by switching, they'll save."
Do you use price comparison websites? Have you been
"duped" by one? If you are happy to speak to a BBC journalist about the
issue email us Haveyoursay@bbc.co.uk and remember to include a contact number.
Compensation call over energy switches
Shopping around could save some customers a significant amount, Ofgem says
Energy
price comparison sites should pay compensation to customers who changed
to tariffs that may not have been the cheapest deals, MPs have said.
Such websites have been criticised in the past for not
showing the cheapest tariffs, and not telling customers which deals they
earn commission on.Now, the Commons Energy and Climate Change Committee says "duped" customers should get some money back.
The government said it was important that people could trust such sites.
Last year, the websites were accused of using a mechanism that asked consumers if they wanted to switch gas and electricity suppliers immediately.
By clicking "yes" to that question, all the deals that did not earn the company a commission were filtered out.
Only if a consumer clicked "no" were they shown other deals, which could be cheaper.
"But some energy price comparison sites have been behaving more like backstreet market traders than the trustworthy consumer champions they make themselves out to be in adverts on TV.
"Some comparison sites have used misleading language to dupe consumers into opting for default options that only display commission-earning deals.
"And others have previously gone so far as to conceal deals that do not earn them commission behind multiple drop-down web options."
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Department of Energy and Climate ChangeMillions of pounds have been saved by using price comparison sites to switch - by shopping around people can make sure they find the best energy deal available”
The committee is also calling on
energy regulator Ofgem to consider requiring price comparison sites and
other third parties to disclose the amount of commission they get for
each customer switch made, at the point of sale.
Confidence code
By the end of March, websites signed up to its consumer
confidence code will have to show all the tariffs on offer, unless
customers choose to see a more limited range.The regulator also forwarded the issue to the Competition and Markets Authority (CMA) which is now considering the role of price comparison sites as part of its wider review of the energy market.
Steve Weller, Uswitch chief executive, said: "What is important now is that all switching services - be they price comparison sites, collective switching schemes or offline switching services - are required to meet the same high standards."
A Department of Energy and Climate Change spokesman said: "Millions of pounds have been saved by using price comparison sites to switch - by shopping around people can make sure they find the best energy deal available.
"Consumer trust and confidence in price comparison sites is important and, with Ofgem's strengthened confidence code, people will be able to have greater confidence than ever before that, by switching, they'll save."
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