28th Sep 2015 13:29
LONDON (Alliance News) - Citizens Advice has said the UK is facing a "customer service lottery" when it comes to choosing an energy supplier after new data showed a drastic variation in the customer service being provided by the main energy suppliers in the UK, including independent providers.
The data shows that both the Big Six energy suppliers and smaller independent firms have mixed results when it comes to complaints at a time when the UK energy industry is under increased scrutiny about how customers are treated.
SSE PLC has the lowest level of customer complaints in the UK industry, which is twenty times lower than the amount of complaints received by competitor ScottishPower, which had the highest level of complaints in the second quarter, according to new data from Citizens Advice.
Citizens Advice said the results proved customers face a "customer service lottery".
The quarterly-complied data from Citizens Advice was the first time complaints data of the 18 largest energy suppliers operating in the UK market.
SSE came top of the table after only receiving 47 complaints per 100,000 customers, almost twenty times fewer than the 944 complaints per 100,000 customers of ScottishPower, which came bottom of the complaints table.
British Gas, owned by Centrica PLC, came fourth on the table with 83 complaints per 100,000 customers.
EDF energy was in second with 64 complaints per 100,000 customers, E.ON was in fifth place with 89 complaints per 100,000 customers whilst nPower was near the bottom in 15th place with 577 complaints per 100,000 customers.
The rest of the complaints table was made up of the UK's smaller independent suppliers, which have been gaining ground from the Big Six energy suppliers as consumers increase switching activity to source the best deals.
Last week, data from independent energy market consultancy firm Cornwall Energy showed independent suppliers in the UK now hold a collective market share of 13.4% and acquired more new energy accounts in the three months ended July 31 than they held in total four years ago, which it said represented the independent suppliers "breaking the stranglehold" of the Big Six.
London-listed Good Energy PLC came sixth in the table with 91 complaints per 100,000 customers.
The best performing independent supplier was Ecotricity, which came in third place with 70 complaints per 100,000 customers. Of all the independent suppliers, only Good Energy, Ecotricity and Green Star Energy managed to stay under the 100 complaint mark, according to the data.
Previous research from Citizens Advice has found that two-thirds of customer complaints are about billing issues.
"Consumers need the whole picture on energy suppliers, so they can choose who to buy their energy from on the basis of what?s most important to them whether that?s price or service. Complaints are a significant part of this, and people will rightly question why some energy firms have nearly 20 times as many complaints as others," said Citizens Advice Chief Executive Gillian Guy.
"We welcome the improvements some firms have made on complaints, but the worst performers still have a very long way to go. We urge the CMA to use its ongoing review into the energy market to make sure all energy customers are getting the service they deserve," she added.
The UK energy market is currently being investigated by the Competition and Markets Authority after UK energy regulator Ofgem, in June 2014, referred the electricity and gas supply market to the CMA over concerns about features of the market which were preventing, restricting or distorting competition.
The findings of the CMA's report were due to be published before the end of 2015, but last week the investigation was pushed back by between four-to-six months so that the CMA could consider the many detailed responses received from suppliers, consumer groups, government and regulators to the provisional findings and range of potential remedies published in July, it said.
The CMA now intends to publish its provisional decision on remedies in January 2016 with a view to reaching its final decision by the end of April 2016.
SSE shares were down 0.4% to 1,445.64 pence per share on Monday afternoon whilst Centrica shares were down 1.1% to 221.30p. Good Energy shares were up 1.1% to 228.0p.
By Joshua Warner; [email protected]; @JoshAlliance
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