Reports: Customer Satisfaction with Electricity and Gas Utility Providers in the UK Increases as Prices Decline and Customer Service Improves Increasing Use of Energy Monitors Is Helping Customers Reduce Energy Usage and Monthly Bill Amounts LONDON: 2 November 2010 Despite growing pressure on UK household budgets, electricity and gas customers are reporting higher satisfaction with their overall experience with utility providers, according to the J.D. Power and Associates released today. In particular, lower reported monthly bill amounts and improved satisfaction with customer service have elevated overall satisfaction. Overall satisfaction with electric utility providers has improved to an average of 620 on a 1,000-point scale in 2010, an increase of 30 points from 2009. Satisfaction with gas utilities improves by 34 points from 2009 and averages 647 in 2010. The study finds that monthly customer-reported bill amounts have decreased in 2010, compared with 2009. Monthly electricity bills in 2010 average 48.85 3 percent lower than in 2009. For gas customers, monthly bills in 2009 average 47.58 a decrease of 5 percent from 2009. In 2010, satisfaction with customer service has improved notably, particularly among customers who contact their energy supplier about their account. Satisfaction with the call centre experience has improved significantly compared with 2009, with customer-service-related complaints down considerably and increased rates of call resolution. Increasing penetration of energy monitors in households has helped customers reduce their energy consumption and pay closer attention to their usage. In 2010, 12 percent of households in the UK report having an electricity energy monitor, of which 64 percent indicate that the monitors have helped them reduce their energy usage. The overall improvement with utility providers in 2010 is encouraging news for the utility industry in the UK, said Gordon Shields, research director at J.D. Power and Associates. The increasing existence of electricity monitors, in particular, has yielded benefits for both suppliers and customers. Through electricity monitors, customers have the ability to more closely manage their usage, which helps reduce bill amounts both of which can help elevate overall satisfaction. Furthermore, the monitors reinforce the message from suppliers that lowering usage is important, and helps build the perception that utility companies are looking out for customer best interests. The study, now in its 11th year, examines customer satisfaction with electricity and gas utility suppliers by examining six factors. For electricity suppliers, the factors are price and value; customer service; power quality and reliability; environmental responsibility; billing and payment; and meter reading. For gas suppliers, the factors are price and value; supply quality and reliability; customer service; environmental responsibility; billing and payment; and meter reading. Electricity Supplier Rankings Atlantic ranks highest among electricity suppliers with a score of 658, and performs particularly well in the price and value and customer service factors. Scottish Hydro (641) and Southern (640) follow Atlantic in the segment rankings. Scottish Hydro performs particularly well in the power quality and reliability and environmental responsibility factors, while Southern performs well in the customer service and billing and payment factors. (Page 1 of 2)
Gas Supplier Rankings Among gas utility suppliers in the UK, EDF ranks highest with a score of 673 and performs particularly well in environmental responsibility and price and value factors. Following in the rankings are E.ON (667) and Atlantic (666). E.ON performs particularly well in the billing and payment and price and value factors. Atlantic performs well in the price and value and customer service factors. The study finds that, compared with 2009, fewer utility customers in 2010 indicate they are likely to switch suppliers within the next 12 months. Switching intent among electric customers has declined by 3 percentage points to an average of 26 percent in 2010. The percentage of gas customers who indicate they are likely to switch providers averages 25 percent in 2010 a decrease of 2 percentage points from 2009. With increasing focus on loyalty incentives in the industry, suppliers have been able to improve the perceived value customers receive from the energy provider, said Shields. Some suppliers have successfully instituted cashback and loyalty points programs as means of promoting value to customers. The Customer Satisfaction Study is based on 2,835 responses from domestic electricity customers and 2,839 responses from domestic gas customers throughout the UK. The study was fielded in August and September 2010. About J.D. Power and Associates The European headquarters of J.D. Power and Associates is located in Munich, Germany. With world headquarters in Westlake Village, California, U.S.A., J.D. Power and Associates is a global marketing information services company operating in key business sectors including market research, forecasting, performance improvement, training and customer satisfaction. The company s quality and satisfaction measurements are based on responses from millions of consumers annually. J.D Power and Associates is a business unit of The McGraw- Hill Companies. About The McGraw-Hill Companies Founded in 1888, The McGraw-Hill Companies (NYSE: MHP) is a global information and education company providing knowledge, insights and analysis in the financial, education and business information sectors through leading brands including Standard & Poor s, McGraw-Hill Education, Platts, and J.D. Power and Associates. The Corporation has more than 280 offices in 40 countries. Sales in 2009 were $5.95 billion. Additional information is available at http://www.mcgraw-hill.com/. J.D. Power and Associates Media Relations Contacts: Gordon Shields, Guildford, Surrey; UK; +44-1483-207609; gordon.shields@jdpa.com John Tews; Troy, Mich.; USA; (248) 312-4119; media.relations@jdpa.com No advertising or other promotional use can be made of the information in this release without the express prior written www.jdpower.com/corporate. # # # (Page 2 of 2) NOTE: Four charts follow.
Customer Satisfaction Index Scores Electricity Suppliers (Based on a 1,000-point scale) 500 550 600 650 700 JDPower.com Power Circle Ratings TM for consumers: Atlantic 658 Scottish Hydro 641 Southern 640 E.ON 636 EDF 630 Swalec Industry Average 620 627 npower 613 British Gas 601 ScottishPower 598 Source: J.D. Power and Associates Charts and graphs extracted from this press release must be accompanied by a statement identifying J.D. Power and Associates as the publisher and the J.D. Power and Associates Customer Satisfaction Study SM as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. JDPower.com Power Circle Ratings are derived from consumer ratings in J.D. Power studies. For more information on Power Circle Ratings, visit jdpower.com/faqs. No advertising or other promotional use can be made of the information in this release or J.D. Power and Associates survey results without the express prior written
Customer Satisfaction Component Weights Electricity Suppliers Billing and Payment 12% Meter Reading 9% Price and Value 25% Environmental Responsibility 16% Customer Service 20% Power Quality and Reliability 18% Source: J.D. Power and Associates Charts and graphs extracted from this press release must be accompanied by a statement identifying J.D. Power and Associates as the publisher and the J.D. Power and Associates 2010 UK Electricity and Gas Supplier as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in this release or J.D. Power and Associates survey results without the express prior written
Customer Satisfaction Index Scores Gas Suppliers (Based on a 1,000-point scale) 500 550 600 650 700 JDPower.com Power Circle Ratings TM for consumers: EDF 673 E.ON 667 Atlantic 666 Scottish Hydro 661 Southern 655 Swalec Industry Average 653 647 British Gas 643 ScottishPower 638 npower 615 Source: J.D. Power and Associates Charts and graphs extracted from this press release must be accompanied by a statement identifying J.D. Power and Associates as the publisher and the J.D. Power and Associates Customer Satisfaction Study SM as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. JDPower.com Power Circle Ratings are derived from consumer ratings in J.D. Power studies. For more information on Power Circle Ratings, visit jdpower.com/faqs. No advertising or other promotional use can be made of the information in this release or J.D. Power and Associates survey results without the express prior written
Customer Satisfaction Component Weights Gas Suppliers Billing and Payment 12% Meter Reading 10% Price and Value 23% Customer Service 18% Supply Quality and Reliability 19% Environmental Responsibility 18% Source: J.D. Power and Associates Charts and graphs extracted from this press release must be accompanied by a statement identifying J.D. Power and Associates as the publisher and the J.D. Power and Associates 2010 UK Electricity and Gas Supplier as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in this release or J.D. Power and Associates survey results without the express prior written