2 Handling complaints
9. Energy and post are essential services which play
an important role in modern life. Disruption to these services,
especially electricity, can have serious implications for customers,
particularly vulnerable consumers. Both markets can suffer from
poor service. Persistent postal problems include lost and mis-delivered
mail. In energy, some consumers have received late and inaccurate
bills, and suppliers have unfairly blocked their customers from
switching to cheaper providers.
10. Consumers who suffer poor service can complain
to the company concerned. If they are not satisfied with the response,
they can refer the complaint to the relevant consumer body. Between
2001 and 2003, the volume of complaints has increased to 87,600
for Energywatch and to 27,500 for Postwatch (Figure 1).
Figure 1:
Complaints received by Energywatch and Postwatch[13]
| Energywatch
| Postwatch |
| 2001-02
| 87,300 | 6,300
|
| 2002-03
| 109,600 | 15,800
|
| 2003-04
| 87,600 | 27,500
|
| TOTAL |
284,500 | 49,600
|
Source: Energywatch and Postwatch
11. The complaints cover a wide range of problems.
The most significant complaints in the energy market concern problems
with billing (43% of complaints); difficulties in changing supplier
(25%); and overly aggressive sales tactics, particularly from
door-to-door salespeople (8%). In the postal market, consumers
complain about a range of issues (Figure 2). The largest
single source of complaints, at around 25%, is lost mail, and
Royal Mail estimating that around 14.5 million letters are lost
each year.[14] Figure
2: Main types of complaints by Postwatch in 2002-03[15]
| Complaint
| % of complaints
| Main activity
|
| Lost mail
| 25%
| Campaign in 2002. Evolved into a campaign on mis-delivery starting in 2004. Major research planned on lost mail in 2004-05.
|
| Redirection service failure
| 8%
| Study in 2003-04. Results currently being evaluated.
|
| Misdelivery
| 8%
| Current campaign. Commissioned Misdelivered Mail Research from MORI. Summary published April 2004.
|
| Inadequate response
| 6%
| Mystery shopping by MORI of complaints handling at Consignia (Royal Mail) May 2002.
|
| Damaged mail
| 5%
| Research by MORI on Christmas Postal services in 2001. Lobbied Royal Mail Group to introduce a new information system in post offices that prompts staff to ask customers prescribed questions to minimise damaged mail.
|
Source: PwC benchmarking review of Energywatch
and Postwatch (March 2004)
12. Although there are now other companies offering
a postal service, virtually all complaints about post concern
Royal Mail. In the energy market, Energywatch monitors both the
total number of complaints and the companies involved. Figure
3 shows the volume of domestic complaints by company for the
first 9 months of 2004-05 and that the majority concerned the
accuracy and timeliness of energy bills. Figure
3: Complaints to Energywatch for each major company[16]
| Company
| Number of complaints
|
| Billing |
Direct selling | Transfer to another supplier
| Total |
| British Gas Trading | 8,075
| 1,205 | 2,741
| 12,021 |
| Npower | 7,054
| 187 | 1,880
| 9,121 |
| Powergen | 5,759
| 106 | 2,007
| 7,872 |
| Scottish Power | 3,327
| 203 | 1,585
| 5,115 |
| EdF | 2,081
| 32 | 742
| 2,855 |
| Scottish and Southern | 562
| 120 | 281
| 963 |
| Total | 26,858
| 1,853 | 9,236
| 37,947 |
Source: Energywatch
13. 86% of consumers who referred complaints to Energywatch
were satisfied with the way it handled the case.[17]
In addition, for the first time in 2004, it calculated that in
2004 it achieved just under £10 million in refunds and compensation
to consumers from its complaints handling.[18]
14. Only 72% of consumers were satisfied with the
way Postwatch handled complaints, partly because around a quarter
related to lost mail, where it is difficult for Postwatch to resolve
the problem. Its satisfaction levels have fallen in all areas
except politeness, with for example customer satisfaction with
speed of response falling from 86% to 75% between 2001-02 and
2003-04.[19] Following
the Committee's hearing, it has started to report the compensation
it has achieved. In 2004-05, it achieved compensation or goodwill
payments of £314,700 for consumers.
13 C&AG's Report, Figure 4 Back
14
ibid, Figure 5, para 1.14 Back
15
C&AG's Report, Figure 5 Back
16
Ev 44-51 Back
17
C&AG's Report, para 2.8 Back
18
Q 3 Back
19
C&AG's Report, para 2.8, Figure 11 Back
|
