Energy firms failing on all fronts

Only 7% of UK consumers can recall a good customer experience from a utilities provider.

According to new research from Aspect, consumer ambivalence and rocketing prices are driving customers to competitors.

The new study looked into the views and expectations of consumers, particularly around how satisfied they were with the service that they received from 13 different types of organisation, including gas, electric and water suppliers.

The research found that only 7% of consumers can recall a good customer experience from a utilities provider in the last 12 months.

Looking at overall service and how satisfied consumers are with the customer service they receive from various suppliers, utilities providers sit in the middle. Over a third of consumers feel neutral towards these providers, with 37% on average stating this.

The research also found that over a quarter of consumers (26%) stated that one bad customer service experience would lead them to cancelling their account with either their gas supplier or electric/energy supplier.

Of those who did switch providers in the last 12 months, the vast majority (69%) stated that they switched as a result of the product/service being cheaper with another supplier. Price is still the main factor for consumers switching providers, and with utility bills due to continue rising, the price war between providers is likely to gain even more traction.

However, the second most noted reason for switching providers is ‘consistently bad service’ – with 20% stating this.

“It should be concerning to providers in the utilities sector that customers are not engaging with them, especially with such a commodity and considering that the only differentiator they have against their competitors is the customer service provided,” said Mark King, Senior VP Europe and Africa at Aspect. “Electricity and gas suppliers should take note as to how easy it is for consumers to switch, and not lean on the fence when it comes to making them happy.”