Consequences of Ofgem RMR
The recent Retail Market Review from Ofgem has called for a ban on cashback models in the energy sector.
The ruling was initially appealed by the IAB who urged Ofgem to consider the adverse effect to both consumers and competition in the market should the restrictions on cashback model go ahead. Furthermore, major affiliate networks including Affiliate Window and top cashback sites Quidco and TopCashBack also called for a revision on the initial report.
As it stands, these appeals have been unsuccessful and energy suppliers will be required to terminate their cashback offering as of 31st December 2013.
As the typical energy merchant sees the majority of their sales come via cashback affiliates, the new ruling will call for all energy merchants to review and alter their affiliate marketing strategy in order to remain successful in the affiliate marketing space in 2014.