Statement on energy price comparison sites and commission

24 Jan 2014 01:08 PM

Price comparison sites play an important role in helping consumers compare deals. Ofgem has taken over the running of the code of practice for such sites and we are reviewing it to ensure that its objectives are in line with our reforms for a simpler, clearer, fairer energy market. We will be consulting on this in Spring. 

The code of practice is there to protect consumers in a number of ways. For example, switching sites have to state which suppliers they earn commission from. They also have to make sure that they do not rank tariffs in accordance with the suppliers from which they are earning commission.

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Ofgem is the Office of the Gas and Electricity Markets, which supports the Gas and Electricity Markets Authority, the regulator of the gas and electricity industries in Great Britain. The Authority’s functions are set out mainly in the Gas Act 1986, the Electricity Act 1989, the Competition Act 1998 and the Utilities Act 2000. In this note, the functions of the Authority under all the relevant Acts are, for simplicity, described as the functions of Ofgem.

For further press information contact:
Chris Lock: 020 7901 7225
Howard Rhoades: 0203 263 9629