14th Jul 2014 10:55
LONDON (Alliance News) - The UK Energy Ombudsman said on Monday that complaints about energy companies more than doubled in the first-half of 2014, reaching their highest ever level.
The ombudsman said that the number of complaints for the six months ended June 30 came in at 22,671 compared with 10,598 for the same period the previous year, surpassing even 2013's full-year complaints.
The company added that in June particularly, the level of complaints reached the highest monthly rate on record, reaching 4,124, a three-fold increase on its June 2013 figures.
The ombudsman said billing related issues account for 84% of the complaints during the first-half, with transfer-related issues also up significantly despite recent industry approval for energy companies to reduce the time it takes consumers? to transfer suppliers to just three working days.
?The spike in complaints is in part a result of the rising cost of living, but also as a result of consumers becoming more aware of their rights ? and feeling more empowered to act and fight for a fair deal. Addressing these concerns is crucial to restoring consumer confidence in the sector," Chief Energy Ombudsman Lewis Smith said in a statement.
The news adds to significant flak against the "big six" energy suppliers in the UK, which were formally referred, by market regulator Ofgem, to the Competition and Markets Authority for a full investigation last month.
The regulator proposed the investigation in March, saying that the market needs a full investigation "to clear the air," with the investigation expected to reassure consumers and complement Ofgem's reforms for a simpler, clearer and fairer energy market.
Ofgem's own recent assessment of the energy market, along with the Office of Fair Trading and the CMA, found that competition is not working for consumers in the UK, and that growing profits, coupled with price hikes, have intensified public distrust of suppliers
The regulator said at the time that the CMA will begin its investigation immediately and is likely to publish final decisions by the end of 2015.
The Big Six energy firms are Centrica PLC-owned British Gas, E.ON, EDF, Npower, ScottishPower and SSE PLC.
Energy prices have become a contentious political issue of late, with bill increases toward the end of 2013 blamed on a combination of higher wholesale prices, rising costs for maintaining infrastructure, and the cost of the government's green energy taxes.
In December, UK Chancellor George Osborne announced that customers of the Big Six energy companies would see an average GBP50 reduction in their bills based on reductions in green and social levies.
Prime Minister David Cameron later announced a review of energy pricing and competition in the Commons, coupled with a pledge to cut green taxes next year.
Opposition leader Ed Miliband has said Labour will freeze energy prices for two years if elected to power in 2015, prompting energy companies to warn that they may not be able to fund investments and warnings from critics who say companies may raise prices even more ahead of any freeze.
Centrica shares were up 0.5% to 306.10 pence, while SSE shares were down 0.7% to 1,537.00 pence, putting it amongst the top five FTSE 100 fallers on Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
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