Energy: Where is customer service going wrong?

Summary

According to the Institute of Customer Service (UKCSI), satisfaction with customer service is at its lowest in nearly a decade. Sectors like utilities, transport, insurance, and service have all seen significant declines, indicating widespread dissatisfaction with customer service quality. 

Which? recognise that effective customer service is crucial for businesses, especially when things go wrong. Unfortunately, some companies routinely fail their customers, leaving them frustrated and stuck in endless loops trying to get help. As part of the Customer Service Counts campaigns, Which? is calling for companies to urgently improve and make it easier for customers to get timely and effective solutions.

Our latest research compares the energy sector's performance with other industries, highlighting providers with poor customer service. The key findings are:

1. Energy is the second bottom sector for overall customer service in 2024
2. Consumers are most dissatisfied with the time taken to reach the right person who can help resolve their query
3. Scottish Power and British Gas are the poorest-performing providers for customer service  

The remainder of this article will explore each of these in more detail. 

Energy is one of the worst sectors for customer service

In our recent research, we ran an online survey of 4,101 UK adults with 1,724 of these having contacted their energy provider in the last 12 months (42% of UK adults). However, of these people, the majority have been in contact with their providers a lot more recently than a year ago - 8 in 10 (85%) people had made contact in the last 6 months and 63% had done so in the last 3 months. 

For overall customer service across the sectors, we found that energy did not perform very well. They were the second to bottom sector with a net satisfaction score of +51 for overall customer service - 68% of people were satisfied and 17% were dissatisfied, giving a net score of +51. This score sat 6 points below the combined sector average (+57) and 21 points below the top performing sector - financial services (+72).

Consumer satisfaction with overall customer service by sector

The energy sector also sat second to bottom for customers experiencing problems in customer service. 4 in 10 (42%) of people surveyed who had contacted their energy provider in the last year reported having at least one problem. Delivery companies performed the poorest with 49% of people who’d contacted delivery companies experiencing a problem. 

Consumers experiencing at least one problem with customer service by sector

Energy customers are dissatisfied with the time taken to reach an advisor who can help to resolve their issue

Consumers showed the highest satisfaction levels this year in the ease of finding contact information (e.g. phone number, email, live chat) with a score of +63, and in the variety of contact options provided and how seriously the advisor took their issue or query, both scoring +57. 

The most pressing challenges are when customers attempt to connect with an advisor capable of resolving their issues, scoring notably lower at +45 and how long it took to get their issue resolved, which was +46. 

These issues underscore a crucial distinction from mere call waiting times. Initial contact with an advisor may not always lead to an immediate resolution of the issue. Often, this first advisor is unable to provide the necessary assistance, resulting in the customer being transferred to different departments. Each transfer adds to the overall time required to resolve the problem, extending well beyond the duration of the initial call. This process of multiple call transfers can significantly delay reaching a satisfactory solution in a reasonable time. Industry metrics often focus on call waiting times as a representation of good customer service, but this can be misleading as it only addresses part of the problem. It is not sufficient for delivering good customer service. Our research suggests that genuine customer satisfaction hinges on accessing the right person who can effectively resolve your queries. 

Consumer satisfaction with aspects of energy provider’s customer service

Scottish Power and British Gas are the worst culprits 

Our research reveals that consumers are most dissatisfied with the customer service from Scottish Power and British Gas. Scottish Power received the lowest scores, with only +34 satisfaction rating for overall customer service - 17 points behind the sector average of +51 and 29 points behind the top provider. British Gas fared slightly better but still ranked second from the bottom with a score of +43, 20 points behind the top provider. 

Consumer satisfaction with key aspects of energy provider’s customer service, by providers net satisfaction scores

It is worth noting that when comparing the lowest performing provider’s scores against last year’s results, both Scottish Power and British Gas have made some improvements. For example, for how long it took to get in touch with someone that can help, British Gas scored a poor +16 last year which has increased to +30, and how long it took to get an answer to your issue has increased from +23 to +39. Likewise, Scottish Power has jumped from -13 to +23 for reaching someone who can help, and +3 to +33 for time taken to reach a resolution. 

The recent improvements for both providers are encouraging, but they remain at the bottom of the satisfaction table when compared to their competitors, continuing to create numerous problems for their customers. Our survey revealed that over half (55%) of people surveyed who had recently contacted Scottish Power, and exactly half of those for British Gas (50%) experienced at least one issue with customer service. 

When examining the specific issues, almost half (45%) of people with customer service problems said that they endured long wait times before speaking to a Scottish Power advisor. There are challenges that also extend beyond just waiting times; customers need to reach someone who can help them effectively. For Scottish Power, almost a third (30%) of customers with problems complained about the provider giving them false promises (30%), poor advice or support (26%), or having dismissive or unhelpful advisors (24%).  

Meanwhile for British Gas, nearly half (46%) of those with problems reported long wait times, with other significant issues included being passed between departments without receiving a helpful response (29%) and being given poor advice or support from advisors (25%).

These findings show that, despite overall improvements, Scottish Power and British Gas still have substantial work to do to enhance their customer service delivery.

Consumers experiencing at least one problem with customer service by sector, by providers

Conclusion

Our research underscores significant challenges in the energy sector’s customer service, ranking it as the second bottom overall in 2024. Consumers are particularly dissatisfied with the time it takes to contact an appropriate advisor and the overall time needed to resolve their issues. These insights underscore the critical distinction between mere call waiting times and actual problem resolution.

Energy providers must focus not just on answering calls promptly but on ensuring customers are directed to the right person who can effectively handle their queries. Industry metrics that focus on call waiting times as measuring good customer service can be misleading, as customer satisfaction is determined by the quality and efficiency of the resolution process.

Despite some encouraging results from providers, disparities in customer satisfaction levels persist. Scottish Power and British Gas has a long way to go and highlights a critical need for improvements. Although some progress has been made, these providers remain at the bottom of the satisfaction ranking, with many customers still experiencing multiple issues. Addressing these persistent problems is essential for enhancing customer service in the energy sector and ensuring that consumers receive the support they need promptly and effectively.

It is never OK for companies to provide sub-standard customer service, but in essential sectors providing vital services millions rely on every day such as energy and broadband, it is completely unacceptable. As part of the campaign, Which? has written to Scottish Power and British Gas about their poor performance in our research. We are calling on them to give consumers the customer service they deserve and clearly communicate the steps they are taking to improve. 

Methodology

Yonder, on behalf of Which?, conducted an online survey of 4,101 nationally representative adults aged 18+. Respondents were asked if they had contacted companies in the following sectors in the last 12 months; their energy provider, their broadband provider, an airline, a booking site, a financial service, a home improvement company, a delivery company or a retailer. We captured 1,724 respondents who had contacted their energy provider in the last year. The survey was conducted between 3rd and 15th May 2024. 

Customer service satisfaction metrics

We asked respondents who contacted their energy provider in the last year to rate how satisfied or dissatisfied they were with their experience when contacting their provider's customer service. They rated the following three statements against a 5-point satisfaction scale where “1” was very dissatisfied and “5” was very satisfied. 

1. How easy it was to find contact information
2. The variety of contact options provided
3. How long it took to get in touch with a person that could help
4. How seriously the customer service representative took your issue/ query
5. How well the customer service representative kept you informed about the progress of your issue /query
6. How long it took to get an answer to your issue /query
7. How well your issue/ query was dealt with
8. How well my issue/query was resolved
9. Overall customer service

We also asked respondents to tell us what problems they encountered when they contacted their provider. The list of problems they selected from was developed by analysing thousands of stories of poor customer service submitted to the Which?’s Cast study tool, as part of our Customer Service Counts campaign.