How comparison sites make money
In short: many energy comparison sites earn a commission for every customer who switches through them. That is why they do not always show every offer on the market.
You open your latest electricity bill and the amount looks excessive. You look for an alternative on a comparison site that promises to show the best tariffs. But how do those sites make money?
What are energy comparison sites?
Energy comparison sites are platforms that promise to show the best suppliers and tariffs based on your consumption. But not every supplier or plan is shown: many sites only list, or highlight, the ones that pay them commissions.
How they make money
When you choose a supplier through a comparison site, the site charges the supplier a fee that, according to Trafero estimates, can reach around €200 per customer. Suppliers tend to pass that cost on in their tariff prices. We estimate this model amounts to around €110 million a year in the Portuguese market.
A biased comparison
Not every supplier appears on comparison sites. According to Trafero, on average only about 39% of suppliers are compared and, on the worst sites, that falls to 13%. So you may miss cheaper options simply because those suppliers will not pay commissions.
Privacy and data use
When you use a comparison site you hand over sensitive personal data: address, consumption, tax number and email. This data has value and can be used in suppliers' marketing campaigns. Read the privacy policy carefully before sharing it.
How to avoid hidden commissions
Instead of relying only on traditional comparison sites, choose transparent services that explain how they make money. Always ask: who pays for this result? To understand your bill better, see what you pay on your electricity bill.
How Trafero is different
Trafero is free and receives no commissions from suppliers. It searches tariffs across the whole market, without bias, and helps you switch to the best offer. Want to know how much you could save? Run the free simulation.