- 30 June 2007

Filed under: Home Energy News - Catalyst Commercial Services Ltd @ 10:01 am

Comparison websites help many people cut costs but their primary aim is to make profits for providers and they do not always show the cheapest sources of gas, electricity or other utilities. These sites usually receive between £30 and £60 in commission from the company you switch to and that can lead to conflicts of interest. This has prompted Energywatch, the energy supply watchdog, and Ofcom, which oversees phone, internet and digital TV suppliers, to introduce voluntary accreditation schemes to show which sites are more trustworthy than others. The Ofcom scheme requires the service to be independent and cover a reasonable number of suppliers. Energywatch requires approved services to cover all licensed suppliers. A dozen websites have now been accredited. Some applied but were refused. Audrey Gallacher, of Energywatch, says: “There are a number of services out there who did not want to sign up to our code. To consumers thinking about using one of those services, my message is caveat emptor or buyer beware. Even with the accredited sites, you cannot be a passive consumer, you should check at least three sites that carry the Energywatch confidence code logo. “I decided to check all 12. I live in central London, giving me a number of potential electricity suppliers (I don’t have gas), and my bill from EDF for the last quarter was £133. Typing my details into Simplyswitch.com, Moneyexpert.com and Energylinx.co.uk, the cheapest standard rate is apparently to stick with EDF, whose price is also matched by Sainsbury’s. But Saveonyourbills.co.uk tells me I would save £46 per year if I swap to British Gas Click Energy 2. Energyhelpline.com, Unravelit.com, Switchwithwhich.co.uk, Moneysupermarket.com and Uswitch.com give the same result. Ukpower.co.uk and Theenergyshop.com suggest EDF and Sainsbury’s. Homeadvisoryservice.co.uk says Scottish Power is the best, saving me £14 per year. After a day of trying to decipher the reasons behind the differing results, it appears to come down to how the people behind the sites input the details of each deal. For instance, I pay by quarterly variable direct debit, but this is a grey area with Click Energy 2. Quite apart from the potential technical failings behind the sites, there is room for some questionable practices. Even some insiders say some sites are less trustworthy than others. Ken Geddes, of Energylinx.co.uk says: “A site should have to include every supplier, not just licensed suppliers. That’s because there are companies in the market such as Telecom Plus, Ebico, Utilita and Green Energy who are not licensed suppliers, but they are suppliers none the less and have exceptionally good deals. “These companies buy energy from the licensed suppliers and rebrand it as their own. “But they are small companies and will only pay a minimal fee to the price comparison sites, so some of the sites just don’t list them. “Ebico, which buys its power from Scottish and Southern Energy, is a small not-for-profit company designed to help people on low incomes. But its plans are open to all and it is often the cheapest on the market. But it pays little or no commission to the sites, so they have no incentive to pass customers on to it.

The Energywatch accredited sites are:

www.switchwithwhich.co.uk 08000 111 395

www.ukpower.co.uk

www.energylinx.co.uk 0845 225 2840

www.uswitch.com 0845 601 2856

www.theenergyshop.com 0845 330 7247

www.energyhelpline.com 0800 074 0745

www.moneyexpert.com 01942 710 910

www.unravelit.com 0800 279 4091

www.simplyswitch.com 08000 111 395

www.moneysupermarket.com 0845 345 5708

www.homeadvisoryservice.co.uk 0800 0931021

www.saveonyourbills.co.uk 0870 005 2095

www.energywatch.org.uk

www.ofcom.org.uk

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