New research reveals that just four in ten consumers (40%) trust Britain’s energy suppliers. The last few years of turmoil and focus on the industry have eroded trust further, with 45% of consumers now trusting suppliers less than they did a couple of years ago. However, with suppliers redoubling their efforts to re-build relationships with their customers, the findings also indicate that some greenshoots are starting to show:
Just four in ten consumers (40%) trust energy suppliers
While one in ten consumers (10%) have come to trust energy suppliers more in the last two years, 45% have come to trust them less
Of those who distrust their supplier, almost half (48%) say it’s because they do not give good value for money while 37% blame a lack of openness or transparency
Those who do trust their supplier have been won over by easy-to-understand bills and information (49%), good customer service (43%), ease of communication (39%) and helpfulness (36%)
Greenshoots: over three quarters of consumers (79%) were satisfied with the last contact they had with their supplier while others report improvements in service and attitude in the last year.
New research from Uswitch.com, the independent price comparison and switching service, reveals the depth of the breakdown in trust between energy suppliers and consumers. Complaints, poor customer service and record-high energy prices have all contributed to consumer trust crumbling. Now, just four in ten (40%) trust Britain’s energy suppliers and, while one in ten (10%) have come to trust them more in the last two years, 45% have come to trust them less.
Of those who distrust their supplier, almost half (48%) say it’s because they do not give good value for money while 37% blame a lack of openness or transparency. However, poor communication also seems to be key – a quarter (25%) distrust their supplier because they don’t provide easy-to-understand bills and information, while 17% think suppliers communicate with them badly and 12% say they make it difficult for the consumer to communicate with them.
With the current emphasis on cutting energy costs, whether through energy efficiency or moving to a better deal, a third of those who don’t trust their supplier (33%) say it’s because they don’t try to help people to reduce their energy bills.
The findings suggest that winning over energy customers isn’t rocket science. Those who do trust suppliers cite straightforward bills and information (49%), good customer service (43%), ease of communication (39%) and helpfulness (36%) as being key. And in fact these are the areas suppliers are focussing on as they lay out their individual agendas for re-building trust.
The findings also show some welcome greenshoots. More than half of bill-payers (52%) have had contact with their energy supplier, besides receiving a bill, within the last six months, while over three quarters of consumers (79%) were satisfied with the last contact they had.
Consumers are also starting to notice suppliers’ efforts to improve in the last year. Two in ten (19%) think their energy supplier has demonstrated that they want their custom while just over one in ten (13%) say that bills are clearer and easier to understand. Others have seen an improvement in helpfulness (6%) and more focus on customer service (6%),while one in ten (9%) think that suppliers have made an effort to improve their image.
Ann Robinson, Director of Consumer Policy at Uswitch.com, says: “The breakdown in trust between consumers and energy suppliers is symptomatic of a far deeper malaise. The simple fact is that this market is not working for consumers, which is why it’s now critical that Ofgem gets the prescription right and sets it firmly on the road to recovery.
“In a healthy market, competition forces prices down and innovation and service up – consumers feel empowered to vote with their feet and this in turn helps to keep companies on their toes. This isn’t happening in the energy market, and it’s no coincidence that just four in ten consumers trust suppliers at the same time as switching is at an all-time low. If we are to see this market succeed then Ofgem has got to turn this low-level of engagement around – this is the yardstick by which the success of its reforms should be measured.
“In the meanwhile, the good news for consumers is that suppliers do seem intent on pulling up their socks. But if you are unhappy with the progress being made, let your supplier know. Ultimately, you have the power and the choice to shop around – if your supplier wants to keep you then they will have to listen and respond. And of course there really is no reason for putting up with poor value for money – there is currently almost £250 difference between the cheapest and most expensive tariffs on the market. If you do not feel you are getting value for money you have the opportunity to vote with your feet and look elsewhere.”
Research conducted by YouGov online between 8th and 14th November, 2012. A total of 5,071 UK energy customers took part in the survey.
In response to: Thinking about energy suppliers in general, not just your own current supplier(s), how trustworthy do you consider them to be?’
In response to: ‘‘Thinking about energy suppliers in general, not just your own current supplier(s), has the amount you trust them changed over the last two years?’ 27% said ‘Yes I trust them a little less’ and 18% said ‘Yes I trust them a lot less’. Overall, 45% trust their supplier less than two years ago. 2% answered ‘Yes I trust them a lot more’ and 8% responded ‘Yes I trust them a little more’. Overall, 10% trust their supplier more than two years ago.
In response to ‘Why don’t you trust your gas/electricity/dual fuel supplier?’ Asked of those who had responded previously that they don’t trust suppliers.
In response to ‘You said that you trust your gas/electricity/dual fuel supplier, for which of the following reasons, if any, is that?’
In response to: ‘Thinking about the most recent time you had contact with your gas/electricity/duel fuel supplier (by contact we mean an email, letter (but not a bill), a visit to your property, someone stopping you in the street, in a store or shopping centre, or you contacting them in some way) how satisfied were you with the experience of contacting or being contacted by your gas/electricity/dual fuel supplier?’
In response to ‘When did you last have contact with your gas/electricity/dual fuel supplier? By contact we mean an email, letter (but not a bill), a visit to your property, someone stopping you in the street, in a store or shopping centre, or you contacting them in some way’ 53% had had contact (other than receiving a bill) with their supplier within the last 6 months.
In response to ‘Thinking of your current gas/electricity/dual fuel supplier over the last year, which of the following do you agree with?’
Based on a medium user consuming 3,300 kWh of electricity and 16,500 kWh of gas on E.ON’s dual fuel standard tariff paying by cash or cheque with bill sizes averaged across all regions – average bill size is £1,370 a year. This compares with £1,134 a year for the equivalent usage for a direct debit customer on SSE’s Discount Energy Bonus April 2015 (with paperless billing) – a £236 difference
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Uswitch is the UK’s top comparison website for home services switching. Launched in September 2000, we help consumers save money on their gas, electricity, broadband, mobile, TV, and financial services products and get more of what matters to them. Last year we saved consumers over £373 million on their energy bills alone.
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