Donore CU encourage members to switch to PrePayPower

[ClubMan]

I passed by Donore CU the other day on the bus.
In the window I noticed a poster encouraging members to switch to PrePayPower for their electricity service by offering them €50 credit if they did so.
While such prepay providers may be suitable in some cases my understanding (supported by a cursory look at bonkers.ie) is that they are generally more expensive than other options.
Seems like questionable tactics from this CU?

 

[Willy Fogg]

Hardly questionable if the charges are laid out to folks. One assumes no force is being applied.

 

[Seagull]

How much are the CU receiving from PrePayPower for each account signed up? I'm sure that the CU are not doing this without some incentive. Assuming they are getting some kickback, are they declaring this anywhere? Given the difference in rates, that €50 will disappear into the electricity meter very fast.

 

[MrEarl]

I passed by Donore CU the other day on the bus.
In the window I noticed a poster encouraging members to switch to PrePayPower for their electricity service by offering them €50 credit if they did so.
While such prepay providers may be suitable in some cases my understanding (supported by a cursory look at bonkers.ie) is that they are generally more expensive than other options.
Seems like questionable tactics from this CU?

Obviously, how this was worded is most important.

Were they recommending it based on it being the best service, cheapest or easiest to manage given the power was "prepaid" and as such, there were not nasty bills as a result of this service (for example) ?

I would imagine that PrePayPower are giving the credit union in question some sort of benefit in return for the credit union promiting them. It might be interesting to telephone the credit union and ask them, if one were curious. Ultimately, I am fine with it if they are being paid, as long as there is nothing under handed or misleading, the credit union does not breach any rules etc.

With pressure on many credit unions to earn enough to be able to pay their own electicity bills, it's somewhat ironic that this credit union may actually be earning from PrePayPower

 

[ClubMan]

I only caught a fleeting glimpse at the poster so didn't get to read all of the Ts&Cs.
Just seemed odd to me that a CU would encourage members to go with what is probably one of the most expensive electricity options on the market.
I thought that they were our friends? That's what the ads on the radio keep telling me...

 

[MrEarl]

I only caught a fleeting glimpse at the poster so didn't get to read all of the Ts&Cs. ...

Thats fair.

...Just seemed odd to me that a CU would encourage members to go with what is probably one of the most expensive electricity options on the market.
I thought that they were our friends? That's what the ads on the radio keep telling me...

All you say there is true. Without knowing the full details I guess we can only make reasonable assumptions for now and if we look at it through "rose-tinted" glasses, we might wonder if perhaps there was a discounted rate for CU members, or if the suggestion to go with this company was to help households on low incomes with tight budgets to manage their cash etc. All that said, it's down to the T&Cs as we all know.