How energy price comparison websites exaggerate savings - Part 9
9. Case Study - MoneySavingExpert.com Big Winter Switch Event
Martin Lewis, through the MoneySavingExpert.com Cheap Energy Club ran a collective switch in November / December 2014. The company claims that almost 60,000 people switched and together saved £10m. Details can be found here and here.
MoneySavingExpert.com is one of the Big 6 energy price comparison websites as defined in this report. MoneySavingExpert.com is also one of the energy price comparison websites that uses the "inflated" savings methodology. We use this collective switch as an example purely as it is a discrete event, and because the results have been published and are in the public domain. They are therefore readily analysable.
The collective switch attracted a surprisingly large proportion of first time switchers (74%). This is far higher than we would expect from normal switching traffic via MoneySavingExpert. This 74% will not have been affected by the calculation methodology so we can strip these out. The remainder will have largely been affected by the "inflated" methodology so we apply the population level analysis (as detailed above) to these customers.
Based on details of the switch we can estimate that some 10,000 or more customers were quoted "inflated" savings that amounted to some £1.5 million to £2.0 million.
Click here to view Table 6 - Case Study
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