Complaints about npower and Scottish Power double

New billing systems cause problems for energy customers

Almost twice as many complaints were made about npower and Scottish Power in January to March this year, compared to the last three months of 2013, reveals Citizens Advice and Citizens Advice Scotland.

The national charity and consumer advocate has released its latest complaints league table which sees npower firmly at rock bottom in sixth place, with Scottish Power above in fifth. Both suppliers have introduced new billing systems which have prompted a rise in complaints.  Complaints about all suppliers have increased, although the rise was only slight for some firms.

Complaints about npower:

• 592.4 per every 100,000 customers in January to March 2014 (that’s one complaint for every 168.8 customers).
• 306.8 per every 100,000 customers in October to December 2013.

Complaints about Scottish Power:

• 197.7 per every 100,000 customers in January to March 2014 (that’s one complaint for every 505.8 customers).
• 100.5 per every 100,000 customers in October to December 2013.

The latest energy complaints table, based on complaints made between January and March 2014 is below.   The best performing big six supplier is at the top and worst at the bottom.

The rise in complaints to npower reflects that the supplier has overcome some of the earlier problems with its new billing system, which means more consumers are now receiving bills.  But as the bills are very late the impact can mean that people have to find hundreds or thousands of pounds to cover the cost and that leads to complaints

Since Citizens Advice last released its complaints league table, Ofgem has now launched an investigation into npower’s billing problems.  Following concerns raised by Citizens Advice npower has committed to writing off outstanding payments for vulnerable customers (those who receive Warm Home Discount) who have not had a bill for six months and the extended payment terms for these customers could be up to three years.

Citizens Advice Chief Executive Gillian Guy said:

“The knock-on effect of poor billing systems can turn household budgets upside down. Many people do not have the spare cash to cover the cost of a large bill that suddenly lands on their doorstep.

“While we recognise npower is receiving more complaints because it is starting to get over some of the earlier issues, it needs to do more to stop consumers’ problems escalating.  Offering repayment plans and discussing ways they can help consumers from the off will nip issues in the bud and remove the need to complain.

“Scottish Power has an opportunity to learn from other suppliers’ new billing system failures and address these problems now so more consumers won’t have cause for complaint.

“A rise in complaints about all suppliers is concerning.  Suppliers won’t win the trust of customers back unless they show they understand what consumers need, recognise the financial pressures many people are under and are able to sort out problems quickly. This is something that all suppliers can act on now.”

Tips for energy customers

• Complain to your energy supplier as soon as you experience a problem.
• If you have not received a bill but are expecting one, try to put money aside to you are able to pay when you do eventually get the bill.
• Energy companies are only allowed to back bill for energy you used in the last 12 months, anything older than that should be written-off where the supplier is at fault.  
• Ask for some sort of compensation for the time you spent on trying to sort out problems and the financial impact of late billing for example reduce the balance of the bill and cover the cost of phone calls.  
• Npower customers who have received a late bill can contact the supplier on 0800 9759065
• Scottish Power has increased the opening hours of its call centre to 10pm to help deal with customer queries.  
• Suppliers must take into account ability to pay when setting debt repayment levels.  
• You can get advice from the Citizens Advice energy consumer line on 03454 04 05 06.
• If you are struggling to resolve your complaint you can raise it with the energy ombudsman on 0330 440 1624.

Notes to editors:

1. Data is weighted ratio per 100,000 customers.  Weightings have been allocated to reflect the seriousness of the complaint and the time and effort spent by the consumer to get their problem resolved. The weightings in the model place greater emphasis on situations where the consumer has had to repeatedly contact their supplier, or another agency, because the company has failed to deal with their problem. The measures used in the model are outlined in the methodology.
2. Citizens Advice now holds Consumer Futures a statutory duty to provide information to consumers. The performance model to accurately illustrate relative energy company performance which will give consumers access to the information they need to make informed switching decisions. We believe it is essential that the performance model reflects all elements of the new complaint handling regime and uses a basket of measures including those from independent bodies.
3. This year the Citizens Advice service celebrates its 75th anniversary. We’ve planned a year of activity running from January to December 2014. Contact the press office to find out more.
4. The Citizens Advice service comprises a network of local bureaux, all of which are independent charities, the Citizens Advice consumer service and national charity Citizens Advice. Together we help people resolve their money, legal and other problems by providing information and advice and by influencing policymakers. For more see the Citizens Advice website.
5. The advice provided by the Citizens Advice service is free, independent, confidential, and impartial, and available to everyone regardless of race, gender, disability, sexual orientation, religion, age or nationality.
6. To find your local bureau in England and Wales, visit www.citizensadvice.org.uk. You can also get advice online at www.adviceguide.org.uk
7. You can get consumer advice from the Citizens Advice consumer service on 03454 04 05 06 or 03454 04 05 05 for Welsh language speakers
8. Citizens Advice Bureaux in England and Wales advised 2.1 million clients on 6.6 million problems from April 2012 to March 2013. For full 2012/2013 service statistics see our quarterly publication Advice trends
9. Citizens Advice service staff are supported by more than 22,000 trained volunteers, working at over 3,000 service outlets across England and Wales.