Fake savings - what now?
As the analysis in this report shows, Personal Projections have now got us into the realm of the implausible and the absurd. Annual savings are being quoted that exceed the customer's annual energy spend and are 8000% greater than the customer can achieve in reality. Customers are being misled about savings which can result in bad financial decisions. It must by now be clear as day that this approach is not just fundamentally flawed but totally insane. It simply has to stop.
We are therefore, again, calling for the following.
For price comparison websites and (where applicable) energy suppliers...
- To suspend all sales activities which use the fake "exaggerated" Personal Projection approach.
- To undertake an internal audit of all switchers that have been affected by fake savings approach.
- To pro-actively contact those switchers, informing them of the extent of the exaggeration in the savings quoted.
- To impose an immediate suspension of all sales activities by comparison websites and energy suppliers that use the fake "exaggerated" savings approach.
- To initiate an independent audit of the comparison websites, energy suppliers and collective switching schemes that use the fake "exaggerated" savings approach in order to identify the extent of the mis-selling that may taken place, and whether compensation is now due to consumers.
For the Energy and Climate Change Select Committee...
- To formally launch an inquiry into the issue of fake savings by comparison websites to identify whether mis-selling has taken place, and whether compensation is now due to consumers.
For consumers who have switched via an affected price comparison website or energy supplier in the past 12 months...
- To contact the energy price comparison website (or energy supplier website) through which they made their switch in order to get a re-quote based on the "true and honest"" like for like comparison. This is the first and necessary step to identify the extent to which consumers have individually been affected before deciding what further action each consumer should take.
Consequently this report is copied to;
- David Cameron, Prime Minister
- Jeremy Corbyn, Opposition Leader
- Amber Rudd, Energy Secretary
- Lisa Nandy, Shadow Energy Secretary
- Competition and Markets Authority
- Angus Brendan MacNeil MP, Chair, Energy and Climate Change Committee
- Members, Energy and Climate Change Committee
- David Gray, Chairman, Ofgem
- Dermot Nolan, CEO, Ofgem
Campaign to stop fake and mis-leading comparisons
Support our campaign to stop this dodgy and mis-leading practise.
If you have been misled by an energy comparison site that quoted you a saving way above what you actually received you may be entitled to compensation. Get in touch, tell us about your experience and we will see what we can do to help.
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