Energy News

70% of Brits hacked off with energy supplier

Wednesday 25 January, 2012

By Martin Fagan

Despite being unhappy with energy prices, less than a third of Brits switch supplier for a cheaper deal, research finds.

Over two-thirds of British consumers are unhappy with the prices charged by their energy provider, but less than a third bother to switch supplier, according to new research.

The study, undertaken by YouGov on behalf of technology solutions provider Avanade, also found that 58% of respondents said they were unhappy about the level of service given by providers. Just 12% said they felt loyal towards their energy provider in comparison to other energy providers.

When asked about the three most important attributes when choosing energy providers, nearly two-thirds cited customer service as most important.

Price aside, when asked about what extra features and incentives that would entice people to switch providers, discount vouchers, bundle packages and loyalty schemes came out on top. Furthermore, personal customer service came out as another attractive offer, with 15% of those surveyed saying it could persuade them to switch providers.

Analysing the results of the study, Avanade believes the onset of a new generation of consumers means energy switching habits are set to change. In the 18-24 age bracket, 50% changed providers in the last year compared with just 26% of over-55s.

“The younger demographic is more willing to make the move,” said Daryn Edgar, senior director at Avanade.

“Homeowners are hugely frustrated that, while energy prices have soared, customer service seems to have diminished, and no market can sustain this level of discontentment for long, especially given the threat of a host of new entrants.

“Energy companies need to ensure they’re putting the right offerings in place to ensure they can cope with the changes happening in the industry and ensure they’re not freezing out customers along the way,” Edgar concluded.

In a separate move to encourage Brits to switch supplier, Co-operative Energy has called for energy providers to waive the exit penalties on fixed-price tariffs so that customers are free to switch and benefit from cheaper prices.

The customer-owned supplier has pledged to pay the penalties of any customers who switch to it from another supplier.