Tag Archives: cheapest energy prices

Electricity, Energy, Energy Distribution, Projects, Services, Waste Management

Only 52% of Energy Customers Satisfied with Customer Service

A year of price cuts has seen the energy industry improve its image in the eyes of consumers, according to the latest independent Customer Satisfaction Report published today by uSwitch.com, the price comparison and switching service. 65% of energy customers are satisfied with their supplier – a 6% increase on last year when suppliers’ popularity suffered because of eye watering price hikes totalling 42% or £381.

However, while overall satisfaction levels have improved, there are still some key areas for concern, including customer service which remains a thorny issue with consumers. In fact, little over half of energy customers (52%) are satisfied with their supplier’s customer service and, tellingly, only 45% of people would recommend their supplier to somebody else. Despite price cuts averaging out at 4% or £54 in total this year, only 51% of customers think their supplier is giving them value for money. Although a 6% improvement on last year, it is still 5% lower than in 2007 when suppliers last cut prices.

Suppliers are engaged in an online price war, bringing out increasingly competitive new plans. But consumers are sceptical about whether their supplier has their best interests at heart. Only 40% of customers are satisfied that their supplier has them on their best deal.

The report, based on responses from over 5,000 energy customers in the UK, suggest that suppliers are gradually getting back on track, with satisfaction levels almost as high as those of October 2007, another price cut year. However, there are clear differences between the big six suppliers. While Scottish and Southern Energy (SSE) satisfies almost three quarters (73%) of its customers, poorest performer npower only satisfies 54%.

npower has been rated bottom for satisfaction by consumers for the second year running, but despite this has still seen an 8% improvement on last year. British Gas, which previously held the bottom slot (in 2007), has seen an 11% improvement in customer satisfaction this time.

Ann Robinson, Consumer Policy Director at uSwitch.com, says: “Last year’s hefty price increases damaged the public’s perception of energy suppliers. As a result, the industry saw a noticeable drop in satisfaction levels. This year, suppliers are starting to get back on track, winning customers over by cutting prices and bringing out increasingly competitive new plans. But if they are to make a real dent they have to focus on customer service – just 52% of people are happy with customer service, which is poor by any industry’s standards.

“With such clear differences between suppliers there is no excuse for consumers putting up with bad service. If you are not happy that you are on the best deal or getting value for money – speak to your supplier. Only around 1.3 million or 5% of households are on online energy plans and paying the cheapest energy prices in the market – consumers can do something about this. If you are still unhappy with the service you are getting, then it’s time to look around for a new supplier. There’s some good news here. Not only could you save up to £425 on your energy bill, but switching is also the one thing that suppliers consistently do well. Almost three quarters of customers (74%) are satisfied with this part of suppliers’ service.”

Via EPR Network
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Electricity, Energy, Projects, Services, Waste Management

Direct Debit Fears Could Cost Consumers £33.5 Million

Ofgem is being urged to act quickly to stem the flow of consumers ditching direct debits and opting to pay energy bills by cash or cheque instead. New data f r o m uSwitch.com, the independent price comparison and switching service, shows a 7.3% drop in the number of switchers paying by fixed monthly direct debit, falling f r o m 92% a year ago to 85.3% today. Across the market it could mean 342,000 households less a year taking up the option and losing out on discounts totalling £33.5 million as a result.

According to Ofgem, over 40% of customers pay their energy bills by direct debit. Not only is this payment method convenient, but it is cheaper too as suppliers give discounts to customers paying in this way. These amount to £98 a year on average. The impact on household bills is noticeable – while the average household energy bill for a customer on a standard plan paying by cash or cheque is £1,239, this drops to £1,141 on average for those paying by direct debit.

More importantly, paying by direct debit is the gateway to suppliers’ cheapest tariffs – these can be found on their online energy plans. To get them, consumers need to pay by direct debit. The average household energy bill for an online customer is £1,021 – £218 cheaper than for a customer on a standard plan paying by cash or cheque.

But despite the cost implications, consumers are starting to shun direct debits. According to uSwitch.com this stems back to last year’s 42% or £381 price hikes which only hit many direct debit customers this year. Almost a third (30%) only had their direct debits increased in the first three months of this year – even though the price increases happened last year. As a result, many were playing catch up to make up for months of under paying and so were shocked when their supplier advised them how much their direct debit had to be adjusted by to compensate.

Not surprisingly, when advised of increases to direct debits a third of people (33%) felt compelled to contact their supplier. Following this 4% cancelled their direct debit even though this would increase the cost of their energy. And they’re not alone – according to the new data there has also been a 217% increase in people choosing prepayment meters (up f r o m 0.6% to 1.9%) and a 106% increase in people choosing variable direct debits – up f r o m 1.6% to 3.3%. In total, these shifts in payment methods could see 351,900 households paying more for their energy than they need to this year.

“Paying by direct debit opens the path to the cheapest energy prices in the market – this is not something to give up without a fight. If you are worried about the amount you are paying, contact your supplier to find out whether the monthly payment can be lowered. Make sure you are paying the lowest possible price for your energy by shopping around, cut down on the amount of energy you use and make sure you or your supplier is taking regular meter readings. Above all, be aware that coming off fixed monthly direct debit and paying by cash, cheque or variable direct debit will cost you money. This should always be a last resort.”

Via EPR Network
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