by Trevor Loveday
Ofgem is to investigate switching websites’ practices to ensure consumers get the best advice on options in the energy market, the regulator said this week.
A spokesman said the watchdog would be “looking at marketing by brokers and switching sites to make sure their information is transparent and not misleading”. Utility Week understands one area of concern is cashback offers.
The regulator said switching sites were “important in assisting consumer engagement” and it was considering “what more we can do to facilitate this role”.
However, it cited recent findings from its consumer focus groups that showed “even some more active and engaged consumers find price comparison sites confusing and some are sceptical of their independence”.
Ann Robinson, director of consumer policy at Uswitch, welcomed Ofgem’s proposals. “We are confident that Ofgem sees price comparison sites as part of the solution in increasing consumer engagement,” she said.
Ofgem’s plan to look at third-party intermediaries in the energy market such as switching sites was flagged in an update to its Retail Market Review. It anticipates that a growing role for switching sites and energy brokers in the domestic market will emerge from the Green Deal and smart metering.
The regulator indicated it was considering changes to the voluntary Confidence Code for switching sites next year, when it takes over responsibility for it from Consumer Focus.
This article first appeared in Utility Week’s print edition of 2nd November 2012.
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