Monday, 23 March 2015

Complaints & Energy Bills Continue to Rise

Complaints & energy bills continue to rise

Increasingly shrewd energy consumers were exercising their rights and challenging poor service by suppliers, according to the Energy Advice Line.

Julian Morgan, managing director of the price comparison, switching and advice service welcomed new figures showing a massive increase in the number of disgruntled customers lodging complaints against energy companies.

But he said it was disappointing that customers still had so much to complain about at a time when Ofgem was supposedly reforming the energy market with the best interests of consumers in mind.

According to the new figures, complaints to Ofgem have almost tripled over the past year as bills soared and the energy market came under the political and regulatory spotlight. A record 52,308 complaints were made in 2014 – 191% more than in 2013 and over four times the number received in 2012.

The vast majority of complaints (85%) centered on billing problems, with incorrect bills accounting for 14% of that figure, while 18% were concerned with customers not receiving their bills. Last year also saw a record number of complaints recorded in one month – 5445 in July.

The second most common cause for complaint concerned switching accounts, which constituted 12% of all complaints – up 184% on 2013, and possibly linked to increased numbers of consumers trying to switch suppliers in 2014.

“It’s good news that consumers are aware of their rights and complaining when they feel the need, “ Mr Morgan said. “It is of course, very bad news that consumers have so much to complain about.

“Reforms being made to the UK energy market have improved things for consumers in some respects – greater public scrutiny of suppliers and new rules to simplify make billing for example – but there is obviously a long way to go.

“Mistakes on bills, complicated bills and bills not actually being received by customers is still proving a massive problem and suppliers really do need to get their house in order on this front.
“It’s also troubling to see that so many consumers are complaining about the switching process.”

Mr Morgan said that the average household spent around £1265 on energy last year – £53 more than in 2013 and £271 more than three years ago.

“Changing supplier should be quick and simple because it is the best and cheapest way for consumers to get the best deals. Switching should not be as problematic as it is and Ofgem needs to focus on this area as a matter of priority.

“In the meantime, our advice to customers is to keep checking the market and switch regularly using a reliable and independent switching service like the Energy Advice Line.  Many of our customers are very relieved to find out that we actually handle many of the problems highlighted in these figures.”

The Energy Advice Line is one of the UK's leading price comparison and switching services for business and domestic energy customers. It is also an advocate for energy market reform and has campaigned for a better deal for energy users, including calling for a ban on cold calling and changes to regulations to make it easier for all consumers to switch suppliers.

The service is completely independent and free. Consumers can quickly and simply search the market for the best available energy deals from an extensive panel of small and large energy suppliers. The service also offers a free advice line for business energy customers.

For further information visit www.energyadviceline.org.uk