Thursday, 20 July 2017

Does better service mean better prices?

Consider service as well as price

Business energy users and households should consider customer service as well as price when choosing a supplier, according to the Energy Advice Line.

The call follows a newspaper survey that showed a huge disparity between suppliers when it came to total spending on customer service.

“Instances of very poor customer service and bungling by energy suppliers still abound and this comparison of spending sheds interesting light on possible reasons why,” Mr Morgan said.

“The difference between the highest and lowest spenders on customer service is significant, so it seems sensible to consider factors in addition to price when making a decision on which supplier to go with.”

The Telegraph newspaper defined customer service to including complaints handling as well as simple requests such as a change of address, and any technology that customers can use to communicate with their supplier.

Of those suppliers who responded to the request for information about spending on customer services, Scottish Power rated the highest at £42 per head per year. However, this included a one-off investment to improve out-of-date IT systems and does not reflect ongoing investment in customer services. Ofgem banned the firm from recruiting new customers last month until it had fixed its customer services problems.

First Utility was ranked second highest spender at £26 per customer each year, followed by British Gas (£16), E.On (£14) and npower (at least £6.67). EDF and SSE refused to disclose their customer services spending.

“We help countless customers each year who contact us in desperation and frustration at the terrible standards of customer service offered by their supplier,” Mr Morgan said.

“Resolving a problem with a bill, or even changing something as simple as an address, can prove to be a time-consuming and infuriating exercise. If you are a business this can be an expensive waste of time.

“We would urge all customers not to make price the only factor when choosing supplier, although value-for-money is obviously crucial.

“Our expert advisers, who know the energy industry well, can help you make the right informed choice.”

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