Your uncertainty is reasonable. The energy comparison market is commercial, not neutral, and you’re right to ask how it works before trusting it with your energy account. This guide answers honestly including how comparison sites make money, what “whole of market” really means, and what questions to ask before you compare.
Consumers have a high level of trust in comparison sites in general, with 94% reporting that they found them to be ‘reliable’ across industries. However, more in-depth research conducted by Ofgem has shown that consumers can have doubts about the impartiality of the information provided to them on comparison sites, particularly when commission is involved.
Your doubt is justified. Here’s why:
Understanding the business model is the first step to using comparison sites effectively.
Most platforms earn commission when users switch suppliers through their service. When you switch through a price comparison site, the new supplier typically pays a referral fee. This is the primary revenue model across the industry.
Important: The price a consumer will pay for a tariff will be the same regardless of which route they switch through, so a consumer will not pay if they switch through a comparison site. Any commission that a PCW may receive does not affect the price the consumer pays for their energy.
Some sites pass user data to suppliers for a fee, even if no switch takes place. This creates an incentive to collect data regardless of whether you switch.
The energy suppliers can pay a fee to the website to have its energy quotes shown at the top of any comparison list. When this happens, value for money is not considered and customers can end up paying more.
None of these models are illegal. But they vary significantly in how they affect the impartiality of results.
This term is often misunderstood, and comparison sites sometimes use it misleadingly.
Accredited sites must make all tariffs in the market available to you to view. Non-accredited sites do not have to meet this high standard.
After a recommendation made by the Competition and Markets Authority, in July 2018 Ofgem removed the “Whole of Market” requirement from the Confidence Code. Before this, energy comparison websites had to default a personal projection to show a “Whole of Market” view, regardless of whether the energy comparison website could arrange a switch to the energy supplier or not.
What this means: Some suppliers do not participate in comparison platforms, either by choice or because they do not pay commission. This means no comparison site can guarantee it shows every possible deal.
In 2013 Ofgem took over responsibility for the Confidence Code, a voluntary code of practice for domestic energy price comparison services. The Code insists that its members follow key principles, providing reassurance to consumers about the independence, transparency, accuracy, and reliability of the service.
The revised code requires accredited sites to meet tighter standards on how tariffs are displayed. This is so consumers can be confident that deals aren’t hidden from view. Sites will also have to list prominently which energy companies they have commission arrangements with and make it clear that they earn commission on certain tariffs.
Ofgem requires that sites are subject to an independent external audit to ensure results can be trusted and are up to date. The Code governs how results are ranked and displayed and ensures that enough results are displayed for a good comparison (at least 10). The Code requires sites to cover all payment methods (i.e. including pre-payment meters).
Accredited sites must, for example, have an effective complaints procedure and be able to signpost customers to energy efficiency information and information about Government grant schemes which they could be eligible for.
For business customers, the Retail Energy Code (REC), the industry-level set of arrangements governing retail aspects of the energy market, has established a voluntary code of practice for TPIs, which requires the delivery of greater transparency and fair treatment for customers, and says that suppliers must work with CoP-accredited TPIs.
Use this checklist to evaluate any comparison site, including this one.
If you have a problem after switching through a comparison site, you’re not without recourse.
The Energy Ombudsman provides a free and impartial service that aims to resolve disputes between consumers and suppliers in the energy sector. If you’re having issues with your energy supplier, energy broker, network operator, green deal or heat network supplier, they may be able to help resolve your dispute.
The Energy Ombudsman can only handle complaints about energy suppliers that have signed up to their voluntary scheme. But more than 450 domestic and business suppliers have and it’s likely yours is one.
While the Energy Ombudsman cannot impose fines on suppliers, it can order them to pay compensation. The usual amount is £50, known as a Time and Trouble Award. However, the amount can go up to £10,000, depending on the size and complexity of the complaint.
Under Ofgem rules, Big Six suppliers (British Gas, EDF, E.ON, npower, Scottish Power or SSE) have eight weeks to resolve your issue before you can escalate the complaint to the Ombudsman. Small suppliers have 12 weeks.
Yes. Most platforms earn commission when users switch suppliers through their service. Reputable sites clearly disclose this and allow sorting by price or features rather than commission value.
No. After a recommendation made by the Competition and Markets Authority, in July 2018 Ofgem removed the “Whole of Market” requirement from the Confidence Code. Previous to this, energy comparison websites had to default a personal projection to show a “Whole of Market” view, regardless of whether the energy comparison website could arrange a switch to the energy supplier or not. Now Customers that create a personal projection can filter the results page to show all energy tariffs available to them and also tariffs they can switch to through the comparison site.
Savings estimates are based on assumptions about your current tariff and usage. The more accurate your usage input, the more reliable the estimate. Always check the assumptions the site is using.
If you have a problem with your energy supplier, the Energy Ombudsman should not be your first port of call. You can only escalate complaints to them once you have lodged them with your supplier itself and the supplier hasn’t responded within a reasonable timeframe or to your satisfaction.
Going direct is not inherently safer, it just means you are comparing without the benefit of seeing other options. Comparing first always gives you more information.
No. Comparing does not involve a credit check.
The right approach to energy comparison is not to trust any single site uncritically. Instead, understand how comparison works and use that knowledge to compare effectively.
A trustworthy comparison site will be: