Energy comparison sites will soon be more honest about who pays for listings
If you're on a UK price comparison site looking for a new energy deal, it's possible that some of the best options are being hidden from you. Last year, collective switching site The Big Deal revealed that many of the biggest sites are burying tariffs and instead promoting those that give them a commission from the UK's major energy providers. For some comparison sites, this means automatically filtering results pages to only show commission-linked deals if you opt to switch energy tariffs "today" or "now." While the practice is being investigated by the Energy and Climate Change Select Committee, energy regulator Ofgem is hoping it can crack down on misleading sites with a new version of its opt-in Confidence Code.
To keep this accreditation, price comparison sites will now have to show all of their available energy tariffs by default. In addition, the wording on these sites needs to be clear so that customers know exactly how the results are being filtered. If Ofgem thinks it's still misleading, sites could be banned from offering a choice between all tariffs and commission-only results pages -- they'll just have to use the former exclusively. Accreditation will also require that sites clearly explain their commission arrangements so that customers are aware before choosing a new deal. Not every major price comparison site is accredited, but those who are have until March to comply with Ofgem's new rules. While it's not compulsory for the wider industry, it's certainly a start and could make these sites a little more transparent.
[Image Credit: Sunshinecity, Flickr]
