Energy lags behind other utilities for customer satisfaction

Statistics published by the UK Regulators Network (UKRN) show energy lags behind other utilities in terms of customer satisfaction.

Information published by the network shows energy customer satisfaction levels with energy suppliers range between 73-78 per cent, with an average score of 74 per cent.

In comparison, satisfaction levels in telecoms vary from 96 per cent for the top performing provider in the mobile sector, to a 79 per cent satisfaction level for the lowest performer, a broadband provider.

There was a higher level of satisfaction from the water sector, with Thames Water receiving the lowest score of 83 per cent, yet most customers said they would not recommend their water supplier.

Information includes net promoter score (NPS) in the water, energy and telecoms sectors. NPS is calculated as the proportion of consumers who are promoters of their supplier/provider minus those who are detractors.

Consumers are asked how likely they are to recommend their supplier, with a score of 50 or above considered “excellent”.

The water sector was given an average NPS of 17, while energy was given -6.

Telecoms came out on top for NPS, with one supplier being given an NPS of 53 – the highest of any sector.

Meanwhile the report also included the latest results from the UK Customer Satisfaction Index (UKCSI)  which is published twice a year and is seen as the national benchmark of consumer satisfaction.

The UKCSI provides a view of how each sector performs based on five dimensions: experiences with the organisations; complaint handling; and perceptions of an organisation’s customer ethos, emotional connection and ethical behaviour.

Water is only marginally in front of energy on most counts but the sector did have the best score out of any utility for complaints handling.

The index found that both energy and water are behind telecoms and the banking sector, with overall scores of 71 and 73 respectively.

Energy was seen as the worst for complaint handling, with a score of 55, while water was given a score of 65 – the best out of any sector.

Energy was also scored worst for customer experience (72), while water received 75 – the second lowest.

Banks received the highest score for experience (81) and also the highest for customer ethos, emotional connection and ethics.

In response to the report Mary Starks, director of consumers and markets at Ofgem, said: “We are committed to improving transparency in the energy sector to enable consumers to make informed decisions and support measures to do this across all regulated utilities and services.

“The UKRN’s scorecard is a welcome development towards this objective and will help ensure companies across all sectors look to improve the service they give to consumers.”

John Russell, senior director of strategy and planning at Ofwat, said “I welcome the publication of the first iteration of the UKRN performance scorecards.

“Turning data into actionable insights is one of the key themes of Ofwat’s new strategy, and I am confident that bringing together these metrics into one place will make it easier for stakeholders and the public to understand how well regulated businesses across our sectors are performing.”

A spokesperson for Ofwat added that although the data showing satisfaction among household customers was pleasing, it’s warned companies not to become complacent, because the data showed a decline in satisfaction from the previous year’s figures.

It acknowledged that likelihood to recommend was a difficult survey question for customers who have no ability to switch provider and believe likelihood to recommend a provider are best considered as part of a wider analysis of customer experience.

Meanwhile, Consumer Council for Water, which provided the data, said the major difference between water and energy is that the energy industry records telephone complaints, CCWater will include also these figures from April.