Energy Minister calls for investigation into price comparison scam

27th October 2014

Consumers could be losing out on the best energy deals because comparison sites filter out the tariffs which do not pay them commission.

Energy Minister Fergus Ewing has highlighted the issue and written to both OFGEM and the Secretary of State for Energy asking why the UK Government has failed to act to protect consumers, and when it will close this loophole.

The Scottish Government has also written to leading price comparison websites including Compare the Market, Go compare, Uswitch, Money-supermarket and Confused, urging them to disclose any commission arrangements they have agreed with electricity suppliers. The Energy Minister has also sought an assurance that consumers are provided with complete transparency when comparing prices.

Mr Ewing said:"I am deeply concerned by recent reports that consumers are losing out on the best energy deals because comparison sites filter out the tariffs which do not pay commission.

"These are serious allegations which, if proven, would require swift action to prevent this practice and ensure customers have access to the full information they need to make the best energy choices.

“I have written to the UK Government calling for an immediate investigation into this practice and action to ensure consumers are provided with full and transparent advice from across the whole market.

“It is wrong that consumers who already distrust the energy market should be hit by this lack of transparency when trying to cut their bills.

“In the meantime, I am urging every comparison website to list the companies it receives commissions from and make it clear on their websites how companies' tariffs are selected in each search.

“I call on the UK Government and the energy regulator Ofgem, who have the powers to protect the public from this scam to act, however belatedly, to stop this practice and ensure consumers are provided with the best advice possible when making energy choices."