WIREDGOV

Ofgem has yesterday set the gold standard for energy price comparison websites with the announcement of its new Confidence Code. 

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. 

Comparison sites are currently the most popular way to shop around for gas and electricity – around 40 per cent of energy shoppers used a comparison site to compare suppliers at their last switch. Ofgem’s Confidence Code gives customers assurance that accredited sites are independent of suppliers, carry every tariff available in the market and meet higher standards of accuracy and reliability when showing tariff information. 

Ofgem took on the Code from Consumer Focus in 2013 and has been examining whether it provides the right protections for energy customers. The previous version of the Code allowed sites to take users straight to a partial view of tariffs from suppliers paying commission to the site. Yesterday’s changes will help customers make an informed choice when using an accredited comparison site. They are:

• Banning a default partial view. Sites must show all tariffs available in the market unless customers actively choose to select to see a smaller number of tariffs.
• Ending confusing language. The wording of any choice must be very clear to site users. Sites must test their messaging with consumers and be able to prove that it is clear and simple. If a site cannot demonstrate this, it will not be able to give customers a choice of view, and will have to show all tariffs. The wording of this choice must be approved by Ofgem.
• Making commission arrangements transparent. Sites must explain clearly that they earn commission on tariffs that customers can switch to directly through the site.

The new Code goes live at the end of March 2015. Sites that want to keep their accreditation and carry on displaying the Confidence Code logo must satisfy the new rules by that point, or Ofgem will withdraw its accreditation. Ofgem will keep the Code under review, to make sure it continues to provide a high level of consumer protection without preventing accredited sites from coming up with innovative ways of marketing energy deals to customers and keeping pace with changes in the energy market.  

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