Trust in utilities continues to decline, finds the latest Harris Interactive consumer research for Utility Week, although this is not fuelling support for renationalisation.

Prices and accusations of profiteering have been the focus of negative media coverage of the utilities industry for a number of years, and this has had an inevitable impact on how much trust the public are willing to place in their respective suppliers.

In recognition of this conundrum, Utility Week launched an annual series of surveys, in association with Harris Interactive, of a nationally representative audience of utility bill payers to gauge awareness of utility suppliers, as well as seek their feedback on transparency and fairness of pricing, government intervention and trust.

This is the third such survey, and the results tell of consumers who are still unsure of the industry and its intentions, despite utilities’ best efforts to persuade them otherwise. Trust in utilities continues to decline and the number of those feeling they are being overcharged has grown. The better news for the sector is that support for renationalisation is unchanged.

The survey results provide ample food for thought, and point to avenues for utility companies to explore to help build relationships and bolster trust.

The supplier balance

Over two-thirds (62 per cent) of respondents say their current energy supplier is one of the large, big six energy companies. Twenty per cent say they are with a medium-sized supplier, 13 per cent with a small company, and 5 per cent with a local or municipal energy supplier.

Interestingly, these figures are largely unchanged over the past three years, despite many a headline during that time telling the tale of a dramatic exodus of customers fleeing from the so-called fat cat ways of the big six.

Billing and clarity

It has long been identified within the industry that there are issues relating to whether consumers are aware or able to understand what their tariff includes and where their money goes. There is a perception that costs are being hidden or masked, and this is something utilities are trying hard to overturn. Woven into clarity of billing is the key issue of transparency, without which suppliers cannot hope to gain or maintain their customers’ trust.

Energy

There has been a marginal increase in levels of understanding since last year’s survey, of 2 per cent. In 2017, 31 per cent found their bill quite easy to understand and 24 per cent found it very easy. This year’s results show 33 per cent find their bill quite easy to understand and 24 per cent find it very easy.

Noticeably, those in the 18-24 age group are far more likely say they don’t know if they understand their energy bill or not, or say they struggle to understand it, compared with all the other age groups surveyed.

This presents an obvious opportunity for utilities to target that demographic in a different way in order to improve these figures.

Over half of respondents (58 per cent) are aware that their bills subsidise renewable energy and government energy efficiency schemes, 63 per cent know their bills fund the energy networks, and 53 per cent know their bills pay for the smart meter rollout.

Water

Over the three years this survey has been in operation, understanding of water bills has steadily decreased. This has meant that for the first time, energy and water bills are both on a near equal standing in this respect.

Thirty-one per cent say they find their bill easy to understand, and 26 per cent find it very easy to understand.

Around seven in ten respondents agreed that their water bills should be clearer about the different costs that make up their charge and should be more helpful in terms of ways in which they personally could save money.

Trust

When it comes to trust, it’s not the prettiest of pictures. Trust in utility suppliers has continued to decrease this year, with water and wastewater providers only slightly ahead of their energy counterparts. Trust in energy suppliers saw the biggest fall this time around. Respondents generally mistrust companies because they feel they are just out to make a profit.

As to what can be done to improve this state of play, just under half of respondents say they would have more trust in their energy suppliers if they made less profit, and around a third would trust their energy supplier more if their bill was easier to understand.

Thirty-one per cent say they would have more faith if they were able to see how much energy they’re using day to day, which is good news for the smart meter rollout currently under way, because it will enable consumers to do exactly that.

Support for nationalisation not increasing

When questioned on the issue of the renationalisation of energy companies, more than 36 per cent think it’s a good idea, with one saying. “At present the energy suppliers are too expensive and to have a publicly owned energy supplier can only mean a better deal for the consumer”.

But 21 per cent do not agree, and 43 per cent remain unsure. One says: “I think it should be in the public domain and be competitive. If Labour got their way there would be one company and no price competition.”

This state of play has remained all but static since the last survey in 2017, which again flies against some media coverage suggesting the public are behind renationalisation.
Thirty-seven per cent of those surveyed would support Labour’s suggested renationalisation of the water industry, while 23 per cent would not. Again, this figure is largely unchanged since the last survey.

Reasons given for trust

“I have no reason to mistrust them.”

“There are lots of deals and money-saving schemes.”

“There is such a lot going on now, that it needs to be studied, but all the suppliers I have been with have always treated me as a person and not just a number, and I have been able receive the best tariffs.”

“I have had a long relationship with the company and have received continued good service.”

“They seem to be doing a fair job to me.”

Reasons given for mistrust

“They seem to be more interested in profit than their customers.”

“They are always ready to put up their tariffs with lame excuses as to why they are doing so.”

“They are all about shareholders and profits, much to the despair of the consumers.”

“They are profiteering and it is distasteful.”

“Out to make money. They don’t care or fix any problems.”