Customer satisfaction with utilities companies in the UK has experienced a significant decline over the past year, as revealed by the latest UK Customer Satisfaction Index (UKCSI) released by the Institute for Customer Service.
The utilities sector finds itself at the bottom of the customer satisfaction rankings, with an average satisfaction score of 69.5 out of 100, down by 4.6 points compared to July 2022.
While rising costs contribute to the discontent, the report highlights poor complaint handling and shortages of customer service staff as the key factors behind this decline.
The UKCSI covers a wide range of top FTSE 250 companies, underlining how the ongoing cost-of-living crisis is impacting businesses’ reputation and financial performance.
Within the energy sector, customer satisfaction has witnessed a significant drop of 5.3 points, reaching 67.9 out of 100.
Average satisfaction with price and cost has also declined by 1 point, settling at 5.6 out of 10.
Moreover, there has been a decrease of 0.8 points in the perception of energy companies conducting their business practices ethically, resulting in a score of 6.4 out of 10.
These scores mark the lowest across all sectors.
Similarly, average satisfaction with water companies has also experienced a decline of 3.5 points, now resting at 72.6.
Joanna Causon, Chief Executive of the Institute for Customer Service, said: “While the overall index has declined by 1.8 points, several findings give cause for concern. Every sector has lower customer satisfaction than a year ago, with the biggest downturn in Utilities and Transport.
“More than half of the 275 organisations that appear in the UKCSI have received a lower customer satisfaction rating than they did a year ago.
“The adverse impact of a poor customer experience appears to have got worse, with customers more likely to experience a negative reaction when they report a problem and wait longer for their problem to be resolved.”
