Utilities sector ranks worst for customer service

The utilities sector still ranks below all others in terms of customer satisfaction, according to the Institute of Customer Service.

The latest UK customer satisfaction index (UKCSI) gave utilities a score of 71.4, the lowest in 13 sectors of the economy.

Despite this, the sector has made the biggest improvement since the same time last year, up 2 points from 69.4 scored in July 2014.

Of the 16 utility companies that received a UKCSI score in both July 2014 and July 2015, seven increased their score by more than one point but six saw their score drop by at least one point.

Ovo Energy was the only utility firm to score in the top 50, ranking top of the sector and 13th overall.

EDF Energy improved levels of customer satisfaction at a significantly greater rate than any other organisation in the sector, scoring 5.6 higher than last year. United Utilities came second, improving its score by 4.7 points.

The Institute of Customer Service said the UKCSI suggested more companies are focusing on customer service, driven by a combination of competition, regulatory pressure and the desire to restore trust and reputation.

Chief executive Jo Causon said: “The [utilities] sector as a whole must realise that customer satisfaction is heavily influenced by elements such as recommendation or loyalty and, in turn, impacts the bottom line.

“If customer service is not treated as a strategic business concern, on the boardroom agenda each week, there is a risk that customers will turn to competitors in search of better service. Strong customer service isn’t just nice to have, it is central to the success of a business and a key competitive advantage.”

A report from Citizens Advice last month found that complaints have risen for five of the big six energy firms by almost half in the first quarter compared to last year. In the same week, Ofgem had secured free energy and a clearing of outstanding debt for 1,000 Npower customers until their complaint is resolved after the supplier failed to provide a final resolution to their ombudsman complaints within the allowed time period.

The latest Ombudsman Services figures, released earlier this month, revealed that the number of complaints has steadily decreased since March as energy suppliers improve their customer service.