New rules set for energy price comparison sites

Energy price comparison websites will have to meet tighter standards under new rules set by Ofgem. Many sites have been accused of hiding the cheapest tariffs from consumers, in favour […]

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By Priyanka Shrestha

Energy price comparison websites will have to meet tighter standards under new rules set by Ofgem.

Many sites have been accused of hiding the cheapest tariffs from consumers, in favour of deals which will give them a cut.

Those that have been accredited with the regulator’s voluntary consumer ‘Confidence Code’ will now have to make changes by the end of March.

The new “gold standard” requires them to list which energy companies they have commission arrangements with and how much they earn on certain tariffs.

The sites must also show all tariffs available in the market – unless a shopper chooses to see a smaller selection – and use “clear and simple” language, which must be approved by Ofgem.

Rachel Fletcher, Ofgem Senior Partner said: “Comparison sites are a great place to start energy shopping but customers need to feel confident that the sites are providing information they can trust. From the end of March, Confidence Code accredited sites will need to be more transparent with their users and I’d encourage them to meet these new standards earlier.”

Around 40% of energy shoppers used price comparison websites to compare suppliers at their last switch, according to Ofgem.

The regulator has also announced an investigation into energy supplier SSE.