Are Energy Comparison Services worse than Financial Services?compare energy companies, compare power companies, energy comparison
According to an article by Alice Uribe in Financial Review dated 27.01.2018, financial advisers at the big banks favoured their own products, ignored the best interests of customers 75% of the time, and in 10% of cases actually gave advice that left investors worse off, a damning report by the corporate regulator finds.
Financial advice providers are required to act in customers’ interests but the above article reveals 75% of the time they do not act in that manner.
Energy advice providers or energy comparison services unlike financial advisors are not legally bound to act in customer’s interests at all.
- They are not required to compare all providers, indeed most compare less than a third.
- They are not required to recommend the cheapest energy provider that they have available to them.
- They are not required to reveal the quantum of payments that they receive from each provider.
- They do not reveal that they are under obligations not to promote a further switch if a better offer is available later.
Despite the obligations that financial advisors have to act in the interests of customers, energy advisors have no constraints. There are no prizes for predicting the result. Energy customers are paying about 20% more than they should be.
The average saving available to an energy household is around $500. This saving invested at a real rate of return of 5% over 20 years would be worth $17,360 in today’s dollars!
You should expect at least as much of your energy comparison service as you do of your financial advisor! If we need a Royal Commission into the banks, we need one much more on energy advice.
Without the controls that govern financial advice, energy comparison services have a free rein to serve the suppliers that pay them and to whom they are bound by contract. The results are unsavory, more often than not. All the energy comparison and switching services, other than Energy Umpire, work for suppliers and their advice meets the needs of their clients, the energy companies. If you are a customer, beware.
Unlike all the other energy comparison services, we at Energy Umpire , always work for our clients and never accept any payment from energy companies. Working without any obligations to energy providers, we compare electricity and gas bills using current offers of all energy suppliers in Victoria, NSW, Queensland and South Australia. As an independent energy comparison service, we leave no stone unturned till we find the best plans and ensure our clients get the cheapest power bills around the year and every year.
Come to Energy Umpire and compare your electricity and gas bills. We will ensure you get the cheapest bills all the time, guaranteed.