On the proposals announced by Ofgem today to the energy price cap, price comparison websites and personal projections, Martin Lewis – founder of MoneySavingExpert.com – has said consumers will not necessarily get a better deal and is urging them to still always do a price comparison before settling.
Martin says: “It may give those who might otherwise have switched a false sense of security that you’re on a good deal. The price cap will not be a good deal, it will just be marginally better than what you would be on if you did nothing at all.”
“So my message is, if you are eligible for the price cap, don’t settle for it, always go and do a comparison.”
Price Comparison Sites:
Martin says: “From today, price comparison sites can show only the tariffs that pay them and at the bottom they must give an option that will show you the whole of the market. So unless you take that option, on most comparison sites I suspect - they haven’t all published what they’re going to do yet - you will not be seeing the whole of the market. And these days, it tends to be small providers who don’t pay comparison sites who are the cheapest – so you probably won’t see the cheapest.”
“The Money Saving Expert Cheap Energy Club has always defaulted to showing the whole of the market and it will continue to do so, we will not be using this methodology to take out the ones that don’t pay.”
“So, if you’re using a price comparison site, make sure from now on you check that it’s comparing right across the market and not only those that pay it.”
Martin says: “This has long been a bug bear of mine. Up until now comparison sites and energy providers have been mandated to use a methodology that doesn’t give a clear or accurate projection. I think it’s almost deliberate prescriptive misselling on behalf of the regulator to give people the wrong information. This proposal is to somewhat loosen the personal projection regulations – which I think is a good move. It’s not quite as strong as I’d like it to be, but at least it does free people up, like us, to do the right thing.”
You can view the Money Saving Expert article and Martin’s full video about these proposals here
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Notes to editors:
Money Saving Expert’s Cheap Energy Club has over 2,764,000 members.
About Martin Lewis: Martin Lewis OBE, Money Saving Expert, is the journalist and consumer campaigner who created MoneySavingExpert.com and is now the site’s Executive Chair. Martin also founded and chairs the Money and Mental Health Policy Institute charity.
He’s the UK’s most-googled man, Citizens Advice’s Consumer Champion of the Year, and has spearheaded major financial justice campaigns including bank charges reclaiming (over seven million template letters downloaded), PPI reclaiming (over six million) and a successful large-scale campaign to get financial education in schools. He has his own prime-time ITV programme, The Martin Lewis Money Show, as well as a range of other regular media slots. He was appointed OBE in the Queen’s Birthday Honours in June 2014.
About MoneySavingExpert.com: MoneySavingExpert.com is dedicated to cutting consumers’ bills and fighting their corner. The free-to-use consumer finance help resource aims to show people how to save money on anything and everything, and campaigns for financial justice. It was set up in 2003 for just £100, and its free-to-use, ethical stance quickly made it the UK’s biggest independent money website, according to internet ranking site Alexa.com, and the number one ‘Business and Finance – Business Information’ site, according to Hitwise. It has more than 12 million people opted-in to receive the weekly MSE’s Money Tips email, and more than 16 million unique monthly site users who visit more than 28 million times a month. In September 2012, it joined the MoneySupermarket.com Group PLC.