It’s no secret that Price Comparison Websites (PCWs) are the most popular way to change energy supplier and, on the surface, they seem to offer a service that is fair and transparent. But is everything what it seems..?
PCWs make their money by energy suppliers paying them commission every time a customer switches – which can be as much as £80 per customer. Don’t worry if you didn’t know that, 85% of people don’t know how PCW’s make their money.*
Worryingly, PCWs only have to show you those tariffs that earn them money, not all those that are available. This means using a PCW probably won’t get you the cheapest deal available on the market – merely the ‘best’ deal from those suppliers who are prepared to pay.
Does this really matter? Well, if suppliers are paying the PCWs millions of pounds every year they need to cover that cost somehow. So if you’ve found yourself locked into a long energy contract, on a tariff with a hefty exit fee or have been moved on to an expensive default tariff when your deal ended, then maybe this was due to your energy provider trying to recoup the commission they’ve paid out.
As the UK’s first independent energy switcher we believe you deserve the right to know you’re on the best energy tariff, at all times, with complete transparency.
That’s why we’ve penned an open letter to the energy regulator Ofgem, calling on them to investigate how PCW’s make their money and the impact this has on your bill.
*We conducted independent research of 1,878 UK adults to see where they go and what they thought:
“Customers should have the peace of mind that they’re always on the best energy deal – especially those who have ‘shopped around’ on a comparison site, but this just isn’t the case. And if someone switches but doesn’t continue to check the market regularly, it is almost certain that they will end up paying more than they should. That's why we believe Flipper is a better deal than comparison sites” – Mark Gutteridge, Flipper’s managing director.