Energy suppliers disliked most by homeowners, survey finds

Gas and electricity companies have fallen below other service providers when it comes to their standing with consumers, according to a survey of 10,000 British homeowners by website Energy Switching.

More than half (59 per cent) of homeowners responded that gas and electricity providers were their most disliked suppliers, followed by telecoms and broadband chosen by 25 per cent, water with 6 per cent, and then house insurance and mortgage providers with 5 per cent of the vote each.

Of those polled 71 per cent reported having regular problems with their gas and electric providers. This was the highest rate of problems among providers, with 65 per cent saying they had regular problems with their telecoms and broadband, and 56 per cent saying the same of their water supplier.

Once they had a problem, 65 per cent admitted they did not have faith that suppliers, regardless of industry, would fix it.

When questioned on what factors they felt were most important when choosing a service provider, the most popular was cheaper pricing, selected by 71 per cent of those surveyed, followed closely by good customer service at 61 per cent.

The start of April saw Ofgem’s revised price cap come into effect, raising the maximum level by £117 to £1,254.

After a string of energy supplier failures, Ofgem recently announced it was raising the standard of entry for prospective companies in order to improve standards for customers.

The survey by Energy Switching found that a company’s ethical behaviour (5 per cent) and how well the brand is recognised (4 per cent) is of little importance to customers when choosing a supplier compared to price and service.

Finally, respondents were asked which of their suppliers had increased prices over the last five years, with gas and electric once again leading the way, with 78 per cent saying they were paying more now than previously. Water came a close second at 71 per cent, followed shortly after by telelcoms with 67 per cent.

Matthew Vickers, chief executive at the Energy Ombudsman, commented: “These survey results show that there is a long way to go in the fight to build trust and confidence in the energy sector.

“While some of the headline findings are a concern, suppliers can draw encouragement from the fact that customer service is a key consideration for consumers when shopping around.

“Every supplier has the ability to provide good customer service, and part of our role as an ombudsman is to help them do just that.

“As more and more consumers realise the difference between cheap pricing and value for money, customer service is becoming the key battleground for energy suppliers looking to achieve sustainable growth.”

In April, the latest published data showed that the most frequent energy complaints to the Ombudsman were about billing, switching, and customer service.