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Energy market ‘not working’ as just 4 in 10 trust suppliers

Joanna Faith
Written By:
Joanna Faith
Posted:
Updated:
22/02/2013

Energy companies have their work cut out in the battle to win over the British public after new research found just 40% of consumers trust their providers.

Of those who distrust their supplier, almost half (48%) said it is because they do not give good value for money, while 37% blamed a lack of openness or transparency.

A quarter (25%) slammed energy companies for not providing easy-to-understand bills and information, according to findings from uSwitch.com.

A third of those who do not trust their supplier (33%) said it is because they do not try to help people to reduce their energy bills.

Earlier this week regulator Ofgem warned consumers to brace themselves for soaring energy bills as coal-fired power stations close at a faster rate than expected and the UK will be forced to buy more gas from abroad.

However, in a positive move Ofgem confirmed yesterday that energy providers will have to tell customers if they are able to get a cheaper tariff.

Under new reforms set to come in this summer, the amount customers could save if they were to switch to their suppliers’ best deal will appear on their bills.

Meanwhile, the latest findings revealed some good news. More than half of bill-payers (52%) have had contact with their energy supplier, besides receiving a bill, within the last six months, while over three quarters of consumers (79%) were satisfied with the last contact they had[5].

Ann Robinson, director of consumer policy at uSwitch.com, said: “The breakdown in trust between consumers and energy suppliers is symptomatic of a far deeper malaise. The simple fact is that this market is not working for consumers, which is why it’s now critical that Ofgem gets the prescription right and sets it firmly on the road to recovery.

“In a healthy market, competition forces prices down and innovation and service up – consumers feel empowered to vote with their feet and this in turn helps to keep companies on their toes. This isn’t happening in the energy market. If we are to see this market succeed then Ofgem has got to turn this low-level of engagement around – this is the yardstick by which the success of its reforms should be measured.”


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