Over the last ten years, customers have become increasingly more demanding in terms of the service that they expect from companies. At the same time, and as part of the same trend, governments have acted to make it easier and more straightforward to complain, particularly in industries such as telecoms, utilities and finance. They have set up new regulators and ombudsmen...
Figures released this week by the Energy Ombudsman show that complaints against energy companies in the UK are at their highest ever level. They more than doubled, from 10,598 in the first six months of 2013 to 22,671 in the same period of 2014. 84% of complaints related to billing and this news follows previous large fines for misselling for a number of utilities.Driven by a desire to open up the...
1st January 2014 saw a major change in the utility sector, as new Ofgem regulations came into force. Designed to create a clearer market, suppliers are now limited to offering eight tariffs to customers (four each for electricity and gas), which will be structured more simply. The aim is to make it easier to compare prices from different suppliers and therefore encourage switching to ensure consum...
The maze of different tariffs and deals offered by utility companies has long been criticised for confusing consumers and making it difficult for them to find the best deal for their particular needs. Two new announcements, from the Prime Minister David Cameron and industry regulator Ofgem aim to make it simpler – and in doing so increase the importance of customer service in the sector.&nbs...
electricity (Photo credit: Terry Freedman) The utility sector has often struggled with customer service but new figures seem to show that performance is improving. The latest quarterly statistics from Consumer Focus found that overall complaints about the six major energy companies fell by 7% in the first quarter of 2012. This meant that the average number of complaints was 77 per 100,000 cu...
In the past the UK utility industry has had a poor reputation for customer service. This has led to tough action from regulator Ofgem, for example fining npower £2 million and British Gas £2.5m for mishandling customer complaints in 2011.This week the government launched a new raft of planned measures that will tighten protection for consumers even further. These include direct compens...
If you needed a reminder of the importance of customer service to the bottom line, this week’s £2 million fine for utility npower for mishandling customer complaints demonstrates the financial cost of poor customer service processes. The punishment, levied by energy regulator Ofgem, follows a £2.5 million fine for British Gas in July 2011 for similar issues. In its judgement...
This week Scottish Power became the first of the big UK utilities to announce price increases, a move that its competitors are expected to follow shortly. At the same time, regulator OFGEM has criticised utilities for product and price complexity in its Retail Market Review.Both of these factors place a great emphasis on how utilities are performing when it comes to customer service – partic...