Financial comparison site iSelect has been ordered to pay $8.5million as it misled customers choosing electricity plans. They have admitted that their commercial arrangements with electricity retailers restricted the plans available to customers, meaning that the recommended plan was not necessarily the best price.
ACCC Chair Rod Sims was quoted as saying “about 38 per cent of people who compared electricity plans with iSelect at that time may have found a cheaper plan”
Negawatt Energy Solutions has long held the view that commission-based brokerage is fundamentally flawed. Brokers operating under this model only offer plans or contracts from retailers with whom they have a commercial arrangement, not the best one for the customers. This is not the optimal strategy for energy management or energy saving. Similarly, any commission based on a percentage of energy spend provides no incentive for the broker to have a customer pay the lowest possible price. For this reason, our fees are based on analytical effort, not on how much our customers spend, and we invite all major retailers to respond to requests for pricing.
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