Energy companies must tackle rising tide of consumer dissatisfaction

Thursday 12th January 2012

It’s been another big week for energy news, with customer complaints, inaccurate meter readings and a Which? survey suggesting that wronged customers are missing out on as much as £4m a year in compensation.

The ‘Big Six’ energy companies received over four million complaints in the year up to September 2011, with mistakes on bills and inaccurate meter readings being cited as the biggest source of frustration. Some customers are overcharged on monthly direct debit payments, while others are paying too little and then face demands for large amounts.

The Which? annual energy company satisfaction survey has also reveals how poorly the Big Six in particular are rated by their customers, with all except SSE achieving less than 50% satisfaction. In contrast, smaller providers, make up the top five positions in the league table including Ovo Energy with 76% and Good Energy topping the list with 84%.

However, this customer dissatisfaction with the Big Six in particular comes as no surprise, and the lack of trust between big energy providers and their customers is something I have discussed on many occasions.

The smart meter rollout has the potential to appease customers by providing accurate meter readings to ensure direct debit payments and bills are realistic and fair. But there is evidently so much more that needs to be addressed.

At the start of this year, our CEO Chris Saunders, predicted that 2012 could be the year that sees the start of the break up of the so-called ‘Big Six’ energy providers, as consumer pressure instigates dramatic changes in the market.

With smaller energy providers, along with retail brands such as Marks & Spencer and Sainsbury’s, heading up the Which? satisfaction league table, and complaints to the Big Six high on the news agenda, there’s never been a more critical time for energy providers to put consumer trust and customer relationships at the heart of their proposition – or they risk losing market share forever

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