uSwitch set to pay consumers it misled

The price comparison website uSwitch has told MPs it will compensate consumers who have been misled into signing up for an energy tariff that is more expensive than others that were on the market.

Steve Weller, the chief executive of uSwitch, told the Energy and Climate Change Committee that he was "sincerely disappointed" that a customer was told by his call centre that the cheapest deal available to him was with First Utility, when it was in fact with extraenergy for more than £60 less.

The questioning follows an investigation by collective switching website The Big Deal, which claimed that the "big five" comparison websites were directing callers to energy tariffs that earn them commission, despite being asked for the cheapest deal.

Mr Weller said: "As I mentioned, I'm sincerely disappointed that our service wasn't living up to the high standards we set out, and our procedures which were laid down weren't actually adhered to.

"Anything that we have done with our agents that have misled, yes we will compensate them."

Table: how much do comparison sites earn for each switch?

Asked if the site would compensate other consumers who could show that they had been misled, Mr Weller said: "If we are found at fault we do take active measures internally, but also if the customer is out of pocket and they would have selected that tariff or that option we can look at providing some financial compensation."

Representatives of the "big five" sites told MPs they earn up to £30 in commission every time a customer switches to a participating provider, or up to £60 when a customer switches both their gas and electricity accounts.

'Fees are neccessary'

MoneySuperMarket chief executive Peter Plumb said it charged energy suppliers £29 on average, arguing the fees were required to fund the comparison sites.

He said: "We are not a simple computer programme. We have to spend money on technology, and we have to spend money on marketing."

Mr Weller initially declined to give MPs a figure for the amount it charged, but later said the average commission was £30.

Must be whole of market

Ofgem launched a consultation on the code governing the sector in August, with the newly revised rules announced last month.

The regulator has banned sites from automatically showing a partial view of tariffs from suppliers paying commission to it.

Instead, they must show all those available in the market - unless customers actively choose to see a smaller number of tariffs.

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