Partner Article

Ofgem to Bring End to Comparison ?Energy Brokers?

Gas and electricity regulators Ofgem have announced plans to look at how comparison sites market introductory offers such as cash-back and other incentives.

According to This is Money, the regulator is unhappy with how these “services” for consumers use attention grabbing discounts of several hundred pounds in an attempt to encourage customers to switch suppliers; in reality, these offers are only available for a small number of customers with those remaining receiving a more expensive deal.

This is a practice seen on many energy comparison websites, whereby they generate revenue from energy companies on a commission basis – this has earned them the unfortunate moniker of “energy brokers”.

Although we at MyMoneyPA also make money from our featured providers based on the amount of sales through our site, we are proud of our impartiality and will never resort to placing greater emphasis on such deals for our own benefit.

In a move which we are strongly in favour of, upon Ofgem assuming control of the voluntary code of practice for comparison sites in January, the accredited sites will have to pass an independent audit before displaying a Confidence Code logo on their site.

This is yet more positive news for consumers following plans to remove complexity from tariffs, as making sites more reliable and reassuring should simplify the switching process.

This was posted in Bdaily's Members' News section by MyMoneyPA .