Utilities see record levels of complaints

Complaints about the standard of customer service from utility companies have reached record levels, according to the latest UK Customer Satisfaction Index (UKCSI).

Published twice yearly by the Institute of Customer Service, the survey polls 10,000 customers to track the impact of customer service on business performance.

It found that despite the average customer satisfaction score for utilities rising by 1.8 points year-on-year to a score of 74.5, more than a fifth of customers (20.8%) have experienced problems with their service in the past six months. This is the highest level the sector has seen yet – an increase of 6.2 percentage points from January 2021 and 4.4 percentage points higher than the UK all-sector average (16.4%).

The average satisfaction score for utilities is 3.9 points below the UK average. The sector ranked 12th out of the 13 covered by the survey but was 1.1 points above local public services.

The average score for energy companies grew by 1.9 points to 74.1, whilst the average for water companies increased by 2.1 points to 75.9.

With a score of 69.2, non-domestic supplier SSE was both the lowest rated utility and the lowest rated energy company. Scottish Power was the lowest ranked domestic supplier, scoring 70.5.

Meanwhile, Southern Water, with a score of 70.8, was the lowest ranked water company.

A spokesperson for Southern Water said while the company’s score has considerably improved, there is “plenty more to do”.

They added: “Last summer our customers learned that we had historically let them down badly. The Environment Agency court judgement in July over events between 2010 and 2015 has triggered justifiable anger in customers.

“We have heard our customers loud and clear – and more importantly listened to what they want us to do. With additional funding from a new majority shareholder we are determined to prove every day Southern Water is a different company and deserving of customer trust.”

UK Power Networks (UKPN) was the highest rated utility with a score of 85.4 and ranked 4th across all sectors. Octopus Energy white label M&S Energy (84.1) and Octopus Energy itself (83.3) also fared well, with both also placing within the top 50 organisations.

The report found increases over the past 12 months in the proportion of customers issues relating the quality or reliability of goods and services (39.5%), as well as their suitability (24%) and availability (22%). The proportion referencing cost (16.9%) and staff attitude (10.9%) declined.

The average level of customer effort to resolve issues rose by 0.8 points to 5.5 out of 10. The number of customer experiences that were rated as right first time dropped by 2.1 percentage points to 73.4%, which was 6.5 percentage points below the UK all-sector average.

Respondents were additionally asked to identify the top three things the organisation they dealt with should do in order to improve service. For the utilities sector, customers said organisations should develop more knowledgeable staff, make it easier to contact the right person  and improve website navigation.

Commenting on the report, Jo Causon, chief executive at the Institute of Customer Service, said: “The latest UKCSI results show the number of customers experiencing a problem with an organisation overall is at its highest ever level, although satisfaction with complaint handling and overall satisfaction has improved.

“This suggests many organisations have got better at service recovery and adapted to new ways of working.

“However, the current crisis facing the energy sector and further potential issues within the water sector could cause further service challenges. Those organisations in the top 10 make it easy to contact the right person, show they care about their customers, and build trust by making them feel reassured.”