Utility Week

Customers UTILITY WEEK | 22ND - 28TH JUNE 2018 | 27 Price comparison sites: a force for good or bad? Last September the Competitions and Markets Authority (CMA) published a report after a year-long investigation of comparison sites and related smartphone apps, which found that while they help consumers shop around for better prices, some are not working in people's best interests. So are they a good idea for vulnerable customers? The jury is out identifying vulnerable customers before any planned smart meter installation, and suppliers vary vastly in their plans to meet their specific needs through the process. This issue is exacerbated by the fact consumers are largely unaware of the Priority Services Register (PSR), which would help immeasurably in the identification process. There is a clear link between the smart meter rollout and the PSR in terms of consumers' needs, identification, recording and reporting, and indeed ensuring that related services interlink to help customers manage their household bills. Beyond identification, there has been supplier uncertainty over the process for gaining consent for additional services, revolving around data-sharing with third-party installers, but also providers in the event of consumer switching, which must ensure vulnerability records are accurate and safe. But following the GDPR ruling and the soon-to-be altered Data Economy Act (DEA) these boundaries should be far clearer going forward. This is something of a watch-this- space scenario and depends hugely on the eventual outcomes regarding the DEA, but those are certainly the best- laid plans. All these potential sticking points aside, there are definitely myriad potential benefits to be had by vulnerable customers from the rollout. These include instances where smart meters are in place, and financial insecurity is already identified and the customer's consent given – the supplier can then monitor supply alarms to identify the need for proactive intervention, and route calls from customers to appropriate customer service personnel. The difference smart meters can make to vulnerable customers really could be immeasurable, and for the better, if handled carefully and in the right way. Smart meters and smart tariffs A smart future has vulnerability risks. This is because there is an undeniable scope for smart tariffs to create new vulnerability profiles and excluded groups. The good • The idea behind comparison sites is to make the process of choosing the cheapest tariff easier. • The aim is also to save consumers time in shopping around for the best deal by comparing all the tariffs in one place. • More than 90 per cent of consumers interviewed by the CMA last September were satisfied with the service they receive when using a price comparison site (across the sectors, not exclusively with regard to utilities). The bad • They provide a single price that does not take into account factors including region, solar panels and battery storage, to name but three. The price listed is rarely the actual price a user will receive. • Not all energy companies appear on price comparison websites. • Cost is not the only consideration for vulnerable customers. The prices stated do not take into account the Warm Home Discount or Cold Weather Payment, for example, or make users aware that they stand to lose these. • Price comparison sites provide their services free of charge because they make money by charging a commission to suppliers when consumers switch or sign up via their platform. • Consumers shopping on a comparison site see year one prices, with no indication of what will happen in year two. In the post-SVT world, it's even harder to work out what a consumer will end up paying, and obfuscation, product proliferation, complex naming and intractable pricing abound. The ugly • Not all vulnerable customers have access to the technology to allow them to use price comparison websites. • Ofgem has a list of approved price comparison websites, and says "you can trust that the options and prices you find on them are calculated and displayed in a fair and accurate way", but all of the above points still apply.

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