The 2015 Consumer Action Monitor, commissioned by the ombudsman, revealed that the number of complaints made to the energy industry reached nearly 7.3 million in 2014, representing 11 per cent of overall complaints made.
A comparison with last year’s figures shows a fall in the proportion of active complaints in the energy sector, down from 17 per cent in 2013.
But the report say this is “no reason for complacency”, as the number of cases dealt with by the ombudsman itself has almost tripled in the past year, in part fueled by greater use of social media which provides customers with a platform for complaining directly to companies.
Data shows that more than 20 million complaints to all sectors were made last year through social media such as Facebook, Twitter and consumer forums.
Speaking at the briefing, chief ombudsman Lewis Shand Smith suggested the sharp rise in the number of complaints in the past year are evidence that customers are “less willing to stand for poor service and poor quality”.
“However,” he continued, “we’re also seeing millions of problems that aren’t taken up with suppliers.”
The report highlights cynicism and mistrust towards big businesses as a major factor in customers not following up complaints, with 33 per cent of people believing big businesses are only interested in money and many under the impression that complaining “just isn’t worth the hassle”.
This year will see new alternative dispute resolution legislation bring these services into more sectors, meaning more routes for customers to seek redress.
Shand Smith said: “This can only be a good thing, not just for consumers, but for forward-thinking companies that value their brands and reputations.”