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LONDON (Alliance News) - The number of complaints made against energy companies in the UK rose by more than 23% in 2015, according to the Ombudsman Services, but energy companies are starting to show signs of improvement.
There were a total of 65,168 complaints made against energy companies in the UK during 2015, compared to only 52,937 complaints in 2014, with billing issues still the top issue for consumers - accounting for 83% of complaints made last year.
The other major problem for consumers, accounting for 9% of all the complaints made, is difficulty in switching tariff or supplier, an area which had been, and still is, under scrutiny as the UK government tries to encourage switching suppliers in an attempt to bring bills down.
"Energy complaints rose by nearly a quarter over the course of last year as customers continue to be more vocal about their discontent with suppliers," said Lewis Shand Smith, chief ombudsman.
However, recent figures imply energy companies are starting to show signs of improvement, with complaints in the last three months of the year falling by 29% to 10,896, compared to 15,370 in the same period in 2014, according to the Ombudsman.
"Towards the end of the year, we've seen some suppliers take some encouraging steps, particularly when it comes to improving their billing processes, but there's still more that can be done," said Shand Smith.
Energy UK, the trade body representing energy companies, blamed some of the increase on the "significant system issues" that some companies faced in 2015, and said the fall in complaints in the final quarter of the year demonstrated "the investment companies have been making to put customer first."
"Customer service is important for energy suppliers. Companies work hard to get things right and, when things do go wrong, most complaints are dealt with by the end of the next working day with no more than a phone call. Suppliers work with the Ombudsman to resolve any issues customers may have with their supplier," said Energy UK.
London-listed energy companies include Centrica PLC, which owns British Gas, SSE PLC, biomass and coal power generator Drax Group PLC and National Grid PLC. Retailers Marks & Spencer Group PLC and J Sainsbury PLC also have energy supply divisions in the UK.
The increase in complaints announced Monday will likely emphasise the ongoing focus on the UK energy market following accusations made by Ofgem earlier this month that UK energy companies were over-charging customers as prices have failed to fall in line with significant drops in wholesale costs.
Wholesale energy costs have fallen by around a third over the last 12 to 18 months, and make up nearly half of a domestic bill that is paid by customers.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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