J.D. Power and Associates Reports: Customer Satisfaction with Electricity and Gas Utility Providers in the UK Increases as Prices Decline and Customer Service Improves
By J.d. Power And Associates, PRNEMonday, November 1, 2010
Increasing Use of Energy Monitors Is Helping Customers Reduce Energy Usage and Monthly Bill Amounts
LONDON, November 2, 2010 - Despite growing pressure on UK household budgets, electricity and gas
customers are reporting higher satisfaction with their overall experience
with utility providers, according to the J.D. Power and Associates 2010 UK
Electricity and Gas Supplier Customer Satisfaction Study(SM) released today.
In particular, lower reported monthly bill amounts and improved satisfaction
with customer service have elevated overall satisfaction.
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Overall satisfaction with electric utility providers has improved to an
average of 620 on a 1,000-point scale in 2010, an increase of 30 points from
2009. Satisfaction with gas utilities improves by 34 points from 2009 and
averages 647 in 2010.
The study finds that monthly customer-reported bill amounts have
decreased in 2010, compared with 2009. Monthly electricity bills in 2010
average 48.85 pounds Sterling-3 percent lower than in 2009. For gas
customers, monthly bills in 2009 average 47.58 pounds-a decrease of 5 percent
from 2009.
In 2010, satisfaction with customer service has improved notably,
particularly among customers who contact their energy supplier about their
account. Satisfaction with the call centre experience has improved
significantly compared with 2009, with customer-service-related complaints
down considerably and increased rates of call resolution.
Increasing penetration of energy monitors in households has helped
customers reduce their energy consumption and pay closer attention to their
usage. In 2010, 12 percent of households in the UK report having an
electricity energy monitor, of which 64 percent indicate that the monitors
have helped them reduce their energy usage.
"The overall improvement with utility providers in 2010 is encouraging
news for the utility industry in the UK," said Gordon Shields, research
director at J.D. Power and Associates. "The increasing existence of
electricity monitors, in particular, has yielded benefits for both suppliers
and customers. Through electricity monitors, customers have the ability to
more closely manage their usage, which helps reduce bill amounts-both of
which can help elevate overall satisfaction. Furthermore, the monitors
reinforce the message from suppliers that lowering usage is important, and
helps build the perception that utility companies are looking out for
customer best interests."
The study, now in its 11th year, examines customer satisfaction with
electricity and gas utility suppliers by examining six factors. For
electricity suppliers, the factors are price and value; customer service;
power quality and reliability; environmental responsibility; billing and
payment; and meter reading. For gas suppliers, the factors are price and
value; supply quality and reliability; customer service; environmental
responsibility; billing and payment; and meter reading.
Electricity Supplier Rankings
Atlantic ranks highest among electricity suppliers with a score of 658,
and performs particularly well in the price and value and customer service
factors. Scottish Hydro (641) and Southern (640) follow Atlantic in the
segment rankings. Scottish Hydro performs particularly well in the power
quality and reliability and environmental responsibility factors, while
Southern performs well in the customer service and billing and payment
factors.
Gas Supplier Rankings
Among gas utility suppliers in the UK, EDF ranks highest with a score of
673 and performs particularly well in environmental responsibility and price
and value factors. Following in the rankings are E.ON (667) and Atlantic
(666). E.ON performs particularly well in the billing and payment and price
and value factors. Atlantic performs well in the price and value and customer
service factors.
The study finds that, compared with 2009, fewer utility customers in 2010
indicate they are likely to switch suppliers within the next 12 months.
Switching intent among electric customers has declined by 3 percentage points
to an average of 26 percent in 2010. The percentage of gas customers who
indicate they are likely to switch providers averages 25 percent in 2010-a
decrease of 2 percentage points from 2009.
"With increasing focus on loyalty incentives in the industry, suppliers
have been able to improve the perceived value customers receive from the
energy provider," said Shields. "Some suppliers have successfully instituted
cashback and loyalty points programs as means of promoting value to
customers."
The 2010 UK Electricity and Gas Supplier Customer Satisfaction Study is
based on 2,835 responses from domestic electricity customers and 2,839
responses from domestic gas customers throughout the UK. The study was
fielded in August and September 2010.
Electricity Suppliers
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Customer Satisfaction Index Ranking J.D. Power.com Power Circle Ratings
(Based on a 1,000-point scale) For Consumers
Atlantic 658 5
Scottish Hydro 641 4
Southern 640 4
E.ON 636 4
EDF 630 4
Swalec 627 4
Industry Average 620 3
npower 613 3
British Gas 601 2
ScottishPower 598 2
Customer Satisfaction Component Weights
Electricity Suppliers
Price and Value 25%
Customer Service 20%
Power Quality and Reliability 18%
Environmental Responsibility 16%
Billing and Payment 12%
Meter Reading 9%
Gas Suppliers
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Customer Satisfaction Index Ranking J.D. Power.com Power Circle Ratings
(Based on a 1,000-point scale) For Consumers
EDF 673 5
E.ON 667 4
Atlantic 666 4
Scottish Hydro 661 4
Southern 655 4
Swalec 653 4
Industry Average 647 3
British Gas 643 3
ScottishPower 638 3
npower 615 2
Customer Satisfaction Component Weights
Gas Suppliers
Price and Value 23%
Supply Quality and Reliability 19%
Environmental Responsibility 18%
Customer Service 18%
Billing and Payment 12%
Meter Reading 10%
About J.D. Power and Associates
The European headquarters of J.D. Power and Associates is located in
Munich, Germany. With world headquarters in Westlake Village, California,
U.S.A., J.D. Power and Associates is a global marketing information services
company operating in key business sectors including market research,
forecasting, performance improvement, training and customer satisfaction. The
company's quality and satisfaction measurements are based on responses from
millions of consumers annually. J.D Power and Associates is a business unit
of The McGraw-Hill Companies.
About The McGraw-Hill Companies
Founded in 1888, The McGraw-Hill Companies (NYSE: MHP) is a global
information and education company providing knowledge, insights and analysis
in the financial, education and business information sectors through leading
brands including Standard & Poor's, McGraw-Hill Education, Platts, and J.D.
Power and Associates. The Corporation has more than 280 offices in 40
countries. Sales in 2009 were US$5.95 billion. Additional information is
available at www.mcgraw-hill.com/.
J.D. Power and Associates Media Relations Contacts:
Gordon Shields, Guildford, Surrey; UK; +44-1483-207609;
gordon.shields@jdpa.com
John Tews; Troy, Mich.; USA; +1-248-312-4119; media.relations@jdpa.com
No advertising or other promotional use can be made of the information in
this release without the express prior written consent of J.D. Power and
Associates. www.jdpower.com/corporate.
Gordon Shields, Guildford, Surrey, UK, +44-1483-207609, gordon.shields at jdpa.com, or John Tews, Troy, Mich., USA, +1-248-312-4119, media.relations at jdpa.com, both of J.D. Power and Associates
Tags: J.D. Power and Associates, London, November 2, United Kingdom
