What a start to the year it’s been for the big six. If they thought 2014 was tough, they might have their work cut out this year.
The recent update from the Competition and Markets Authority (CMA) claimed that between 2012 and 2014, more than 95 per cent of dual-fuel customers of the big six could have saved up to £234 by switching tariffs or suppliers.
This hammer blow comes just weeks after these same suppliers bowed to pressure to pass on reductions in the wholesale price of gas to customers. However, with price cuts ranging from 1.3 to 5.1 per cent (and taking various amounts of time to come into effect), the announcements were not without criticism.
As the sole ombudsman to the energy sector, our own complaints figures echoed this dissatisfaction, with the number of complaints about energy suppliers in January reaching a record high of 6,775 – almost double the number made during January 2014 and a 47 per cent increase on December 2014. Billing-related issues continue to be the biggest driver, accounting for 85 per cent of disputes recorded in January. Of these, many relate to inaccurate invoicing or the failure to produce a bill at all.
While the CMA attributes a general apathy among customers to switch suppliers, our latest complaints figures suggest more people than ever are willing to vote with their feet. Complaints relating to sales and transfers reached their highest level, accounting for 13 per cent of the total in January.
Lewis Shand Smith, chief ombudsman