subject: Is The Utility Warehouse A Scam? [print this page] In the UK and I would suppose in the USA the price of your utility bills is no doubt growing faster than the rate of inflation. For some peculiar reason the costs always seem to go up during periods of high demand when we have no alternative but to consume more. As always the utility comanies complain and trot out the same reasons talking about supply and demand and how there's a scarcity of oil however they spin it we still end up paying more.
With more than 2.5 million people out of work in the UK alone people are struggling to keep within budget and heat there homes at the same time. In a lot of cases they are fighting a losing battle and are having to choose between heating there home and eating. The energy watchdog's seem to be toothless so what are people to do?
Many people looking to save money on gas and electricity are searching for better deals now that the market has been unregulated and it's true to say that by shopping around large savings can sometimes be made by switching suppliers. Nonetheless whenever there's money to be made there are always people who'll try and make it at your expense.
Many companies have sprung up to take advantage of this situation and the Utility Warehouse Discount Club is one of them. So to answer the question does The Utility Warehouse Scam you you have to look at how they sell the service. The Utility Warehouse make large of the fact they don't advertise but sometimes neglect to tell you that there sales people have a financial incentive to sign you up. A large proportion of Utility Warehouse Club members are also agents for the company.
For every person they sign up they get a set amount of money (based on the services you take) and a small percentage of any future bills you pay. I'm not saying this is sharp practice as we all have to make a living but it's a little something you need to bear in mind just before signing up.
As always it pays to do your own research before signing on the dotted line and these days it's very easy to verify that you really are getting a great deal and not being conned. The snag is everytime I've checked The Utility Warehouse is not the cheapest often by quite a margin. The counter argument by The Utility Warehouse is that the "Extras" they give you like discounts on items if you purchase them by using their pre paid credit card for example you'll end up saving money still. I prefer to save on my bills and not have to complicate matters with credit cards and the like.
To answer the original question is the Utility Warehouse a scam? I don't believe it is in the true definition of a scam it's just that frequently they are not the cheapest energy supplier so it falls to you to do your own analysis. The watch word is buyer beware! It's so easy to check for yourself these days as anyone with Internet access can easily check on one of the many price comparison sites. If for some reason you don't have Internet access you could always visit your local library the staff are very helpful and it's free.
