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| Energy comparison sites' profits and charges revealed | Energy comparison sites' profits and charges revealed |
| (35 minutes later) | |
| The big five energy comparison sites are each making millions of pounds in profits, MPs on the Energy Select Committee have been told. | The big five energy comparison sites are each making millions of pounds in profits, MPs on the Energy Select Committee have been told. |
| The most profitable - Compare the Market - is making £69.7m a year, according to John Robertson, a Labour member of the committee. | The most profitable - Compare the Market - is making £69.7m a year, according to John Robertson, a Labour member of the committee. |
| Uswitch was the least profitable, he said, making £9.8m. | Uswitch was the least profitable, he said, making £9.8m. |
| The bosses of five price comparison sites told MPs that their profits merely reflected customer savings. | The bosses of five price comparison sites told MPs that their profits merely reflected customer savings. |
| The Energy Committee was also told how much money the comparison sites charge energy companies for finding them new customers. | The Energy Committee was also told how much money the comparison sites charge energy companies for finding them new customers. |
| Uswitch said it charged an average of £30 for each new tariff taken out, while Moneysupermarket said it charged £29. | Uswitch said it charged an average of £30 for each new tariff taken out, while Moneysupermarket said it charged £29. |
| If customers transfer both their gas and electricity accounts, the companies would be charged twice - in some cases as much as £60. | If customers transfer both their gas and electricity accounts, the companies would be charged twice - in some cases as much as £60. |
| 'Rip off' | 'Rip off' |
| Why do you have to make such big profits?" asked Mr Robertson. | Why do you have to make such big profits?" asked Mr Robertson. |
| "Every part of the profit we make is based on a customer saving money," said Phil Morgan, the chief operating officer of Go Compare, which makes a profit of £19.8m. | |
| "The larger the profit, the more savings we're putting into the market," he said. | "The larger the profit, the more savings we're putting into the market," he said. |
| Compare the Market later made it clear that its profit figure of £69.7m was derived from all the deals on its website, including insurance products. | |
| But Mr Robertson accused the comparison sites of not being fair to customers. | But Mr Robertson accused the comparison sites of not being fair to customers. |
| "There seems to be some kind of ethos in the energy market that says, 'I want to rip off every person I get hold of'," he said. | "There seems to be some kind of ethos in the energy market that says, 'I want to rip off every person I get hold of'," he said. |
| Moneysupermarket said the fees it charged were fair. | Moneysupermarket said the fees it charged were fair. |
| "The fees are required to fund the price comparison sites. We are not a simple computer programme," said Peter Plumb, the chief executive of Moneysupermarket. | "The fees are required to fund the price comparison sites. We are not a simple computer programme," said Peter Plumb, the chief executive of Moneysupermarket. |
| New Rules | New Rules |
| The bosses of the five comparison sites were called in front of MPs to explain why they do not always show the best deals on offer to customers. | The bosses of the five comparison sites were called in front of MPs to explain why they do not always show the best deals on offer to customers. |
| They have been criticised for only promoting the deals on which they are able to charge a commission. | They have been criticised for only promoting the deals on which they are able to charge a commission. |
| However the regulator, Ofgem, is introducing new rules for price comparison sites that are members of its confidence code. | However the regulator, Ofgem, is introducing new rules for price comparison sites that are members of its confidence code. |
| From the end of March, such sites will have to show all deals on offer, including those that do not earn the site a commission. | From the end of March, such sites will have to show all deals on offer, including those that do not earn the site a commission. |
| Most of the sites have promised to conform with the new rules, although some say they already do so. | Most of the sites have promised to conform with the new rules, although some say they already do so. |
| The continuing study into the energy market by the Competition and Markets Authority (CMA) will also examine the role of price comparison sites. | The continuing study into the energy market by the Competition and Markets Authority (CMA) will also examine the role of price comparison sites. |
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