Customers 'Duped' By Energy Switching Deals

Energy price comparison websites have been “duping” customers into switching to deals that are not the cheapest on the market and should pay them compensation, a group of MPs have said.

The Energy and Climate Change Committee said some sites had used misleading language to dupe consumers into options that only displayed commission-earning deals.

It has called on energy watchdog Ofgem to consider requiring price comparison sites to disclose the amount of commission received for each switch at the point of sale.

Representatives of the “big five” sites told MPs they earn up to £30 in commission every time a customer switches to a participating provider, or up to £60 when a customer switches both their gas and electricity accounts.

Committee chairman Tim Yeo 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.”

He added: “As an immediate and essential first step towards rebuilding confidence, the companies should compensate any consumers who have been encouraged to switch to tariffs that may not have been the cheapest or most appropriate for their needs.

“We have no objection to commission being paid by suppliers to price comparison websites as long as the arrangements are clearly disclosed.”

Earlier this month, uSwitch told the committee it would compensate consumers who had been misled into signing up for an energy tariff that was more expensive than others available.

Its chief executive Steve Weller told the committee he was “sincerely disappointed” that a customer was told by his call centre that the cheapest deal available to him was with First Utility, when it was in fact with extraenergy for more than £60 less.

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Customers 'Duped' By Energy Switching Deals