Price comparison energy websites set for new rules in bid to ‘end hidden fees’ and ‘license to scam’
PRICE comparison energy websites could be bound by new rules in a bid to “end hidden fees” and their “licence to scam”.
New proposals by the government could see households stopped from being charged hidden fees when buying energy deals.
Third-party intermediaries (TPIs) are organisations or individuals that offer energy-related advice and can help you find an energy quote.
Businesses tend to use them most as they can offer advice on bespoke energy deals, however they are also used by individuals.
But customers have reported TPIs adding hidden fees in exchange for their services or offering contracts which don’t suit their needs.
A report from Ofgem published earlier this year also found some TPIs were locking businesses into contracts at high prices for multiple years.
It also found some businesses had flagged “mis-selling concerns”.
Ofgem’s report added: “In most cases, TPI service fees are paid as part of a consumer’s energy bill from their supplier, with the supplier paying fees to the TPI from the payment they receive from the customer.
“This structure has led to some customers being unaware that they are paying a separate fee to the TPI and how much.”
In response, the Government today launched a consultation on how TPIs can be better regulated so consumers get the best value for money.
Ministers are proposing to make it compulsory for TPIs to provide transparent information on any fees they charge and clarity over how long an energy contract will last.
A standards of practice framework will also be put in place so customers can make complaints about TPIs and so customers are offered the best deals.
TPIs could also be required to offer services to help customers cut carbon emissions and save money on their bills.
Miatta Fahnbulleh, the energy consumers minister, said too many families and businesses were falling foul of “poor practices” from energy intermediaries.
“These unregulated third parties and rogue brokers have had license to scam consumers without oversight or facing consequences,” she added.
“We will bring these intermediaries under control and put an end to hidden fees and other unethical tactics.”
Because the government has launched a consultation, that means the new framework proposed may not come into force.
The consultation will end in mid-November, and be considered by ministers before any next steps are agreed.
A spokesperson for Ofgem said: “We are driving up standards for businesses in the energy market using the powers we have, and earlier this year announced a series of new rules to improve service and transparency, and provide more support to resolve disputes.
“We recommended introducing regulation of brokers and other third parties following our deep dive into the non-domestic energy sector. We are pleased to see this is being considered by government, and will work with them as they shape how this could look.”
How to save on your energy bills
SWITCHING energy providers can sound like a hassle - but fortunately it's pretty straight forward to change supplier - and save lots of cash.
Shop around – If you’re on an SVT deal you are likely throwing away up to £250 a year. Use a comparion site such as MoneySuperMarket.com, uSwitch or EnergyHelpline.com to see what deals are available to you.
The cheapest deals are usually found online and are fixed deals – meaning you’ll pay a fixed amount usually for 12 months.
Switch – When you’ve found one, all you have to do is contact the new supplier.
It helps to have the following information – which you can find on your bill – to hand to give the new supplier.
- Your postcode
- Name of your existing supplier
- Name of your existing deal and how much you payAn up-to-date meter reading
It will then notify your current supplier and begin the switch.
It should take no longer than three weeks to complete the switch and your supply won’t be interrupted in that time.
Help you can get with your energy bills
You might be able to get help via the Household Support Fund.
The fund was due to close at the end of this month but it has been extended until next spring, with a further £421million added to the pot.
The £421million pot has been shared between councils in England who then have to allocate their portion.
That means what you can get, and who is eligible, depends on where you live.
However, in most cases, help is offered to those who are on benefits, have a low income or are classed as vulnerable.
To find out if you are eligible, contact your local council and see what help is on offer.
You can find what council area you fall under by using the Government’s council locator tool on its website.
Beyond the Household Support Fund, you may also be able to get a grant on your energy bills if you have fallen into debt.
A number of energy firms offer help to customers worth up to £2,000 including British Gas, Octopus Energy and OVO.
Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.
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