Over 60% say energy complaints take too long to resolve

Only a quarter of customers said they were satisfied with the time it took their energy supplier to resolve a complaint, a new report from Ofgem has found.

The consumer perceptions of the energy market Q1 report comes from a joint tracking survey by the energy regulator and Citizens Advice.

The report, which analyses data collected from more than 3,200 people in January this year, found that among those who had made a complaint in the previous three months, 38 per cent took more than a month to resolve – an increase of 10 per cent from the previous quarter.

In total, there was a 13 per cent increase from the previous quarter in those reporting satisfaction with the overall handling of their complaint (47 per cent). However, of those who had their complaint dealt with, 64 per cent said they were dissatisfied with the time it took to resolve it, with only a quarter reporting satisfaction (neutral and ‘don’t know’ responses were not counted).

More than a quarter of complaints (27 per cent) were around billing, while pricing was the second most complained about topic (23 per cent). Almost a fifth (17 per cent) complained about issues with their smart meter/ in-home display.

In response to the findings Jodi Hamilton, relationships director at the Energy Ombudsman, said there was “room for improvement” on the time it takes to resolve complaints. She further warned that the impact of coronavirus will likely see another increase in the proportion of complaints taking over a month to resolve.

She said: “The vast majority of energy suppliers work hard to resolve complaints quickly and effectively.

“However, the fact that only a quarter of consumers surveyed were satisfied with the time taken to resolve their complaint shows there is room for improvement across the sector.

“Given the operational impact of Covid-19 on suppliers, it’s likely that the next quarterly report will show a further increase in the proportion of complaints taking over a month to resolve.

“As we gradually emerge from lockdown over the coming weeks and months, it’s important that the different parts of the industry work together to ensure that consumers’ desire for speedy resolution of complaints is met wherever possible. This will need to be balanced with an appreciation and understanding of the unprecedented challenges suppliers are facing.”

Satisfaction with supplier

Around three quarters of consumers said they were satisfied with their supplier, which remains consistent with previous quarters. A similar proportion (71 per cent) were satisfied with customer service. Those aged 65 and over or those who pay by direct debit have consistently shown higher satisfaction with customer service.

More than 70 per cent said they were satisfied with the accuracy and ease of understanding of bills. However of those who were not satisfied, more than three quarters (76 per cent) said they felt it was unclear how the bill was calculated.

Of those who had contacted their supplier by phone, satisfaction with the service received was steady between Q4 2019 and Q1 2020. However, it was significantly lower compared to the first half of 2019.

Of those who recalled communication with their supplier in the last six months, 42 per cent received information on the choice of tariffs their supplier has on offer – a new low for the tracker.

Switching

All participants were asked if they had ever switched or had considered switching supplier.

The proportion of customers switching remained high at 57 per cent, slightly below Q4 2019 but above all earlier quarters: Q4 2019 (58 per cent) vs 52 per cent Q1-Q3 2019 and 53 per cent Q4 2018.

Those in the 16-34 age bracket were among those less likely to switch, with just 40 per cent having done so.

Awareness of the price cap

The survey also looked into awareness of the price cap.

There has been little change in awareness of the cap since Q3 2019 and understanding of the principle of the cap has remained similar compared to previous quarters.

More than a fifth (22 per cent) said they were aware of the mechanism, lower than the 29 per cent peak seen in Q2 2019. Informed awareness of the cap was the same as last quarter – 17 per cent have heard of it and understand it, below the 22 per cent peak in Q2 2019.

Smart meters

Of those who were surveyed, 1,400 have a smart meter. Of these, 67 per cent said they were satisfied with their device.

Responding to the research, an Energy UK spokesperson said: “It’s pleasing to see the survey showing that around three quarters of energy customers remain satisfied with their supplier.

“It also reveals that customer satisfaction with the overall handling of complaints has actually increased.  While the time taken to resolve their complaint is significant for customers, other factors such as good communication and the outcome can be just as important for them.

“When ‘normal’ work starts to resume, we look forward to working with Ofgem to continue to improve outcomes for customers.”