Utility Week

Customers UTILITY WEEK | 29TH JUNE - 5TH JULY 2018 | 25 Citizens Advice has dismissed concerns that the deal between SSE and Npower's parent company, Innogy, will nega- tively impact competition in the energy market. In its written response to the probe into the proposed SSE and Npower merger, the consumer watchdog admitted the £3 billion deal would likely result in some lessening of competition within ENERGY Citizens Advice dismisses SSE-Npower merger competition fears the gas and electricity markets. However, it expects this dilu- tion of competition to be limited and unlikely to breach the Com- petition and Markets Authority's (CMA) competition tests. Citizens Advice said despite choice being reduced, the introduction of a default tariffs cap will mitigate the scope for consumer harm. It also dispelled fears the merger would reduce switching. Switching reached record levels last year, with 5.5 million electric- ity customers deciding to change supplier. Last month, nearly half a million customers switched supplier – a 13 per cent increase compared with May 2017. In February, the CMA launched a review of the proposed merger, which would see Npower and SSE combine to deliver energy services to This week Iresa receives 'worst- ever' score for service Supplier received more than 9,000 complaints per 100,000 customers in Citizens Advice ranking Iresa Energy has been named the worst energy company for customer service amid record complaint levels. The latest energy star rating table by Citizens Advice ranks Iresa bottom with a score of 0.35 stars out of five for its customer service between January and March 2018. It received more than 9,000 complaints per 100,000 customers – the worst-ever complaints score recorded by Citizens Advice. The score is five times higher than the next worst sup- plier, Toto Energy, which received 1,800 complaints. Toto was criticised earlier this year for transferring customers to Utilita Energy without adequate communication. Iresa could imminently face an extension on the ban that prevents it taking on new customers or even have its licence revoked if it fails to convince Ofgem it has got its "house in order". The company has been unable to take on new custom- ers since March as a result of the provisional order from Ofgem. It is also subject to a separate longer-term investi- gation by the regulator, which launched in February. Citizens Advice suggested the failings of small energy suppliers reveal flaws in the regulation of the industry and demonstrate the need for Ofgem to "tighten" its licensing rules. Chief executive Gillian Guy said: "The regulator's upcoming review of licensing rules must do two things: make it easier to stop unprepared suppliers from entering the market and take poorly performing companies out of the market faster." So Energy came top of the class for the second con- secutive quarter, with 4.8 stars out of five. SSE was the best performing of the big suppliers, scoring 4.25 stars. Iresa declined to comment. KP PAN-UTILITY Rising number of customers unable to pay their utility bills Utilities providers must do more to help consumers, with more than a quarter (26 per cent) unable to pay a household bill, according to a new report. The study from outsourced customer contact firm Echo Man- aged Services shows that this figure has increased by 10 per cent since a similar poll in 2016. According to the report, ongoing price hikes across a range of sectors – including gas and electricity – in addition to a particularly harsh winter and rising inflation may have contributed to these unforeseen bill amounts. The report questioned 1,000 UK residents on their experi- ences, knowledge and attitudes to household debt, and found some troubling comparisons with regards to the state of consumer finances. When asked why their house- hold's payments may have been late in the past, respondents highlighted a steep increase in the cost of living: 35 per cent of people said their monthly income was not enough to cover their outgoings, so some bills had to wait. This compares with 28 per cent of people who stated this reason in 2016. The report also found an 8 percentage point drop in the amount of people who forgot to pay their bill (41 per cent in 2016 compared with 33 per cent in 2018). According to the report, this could be due to consumers' heightened awareness of their finances, given the impact of growing affordability concerns. Consumers are also taking longer to clear their debt, with a general shi towards later payment taking place across the board. In 2016, almost half (49 per cent) of repayments were made immediately aer receiv- ing a first reminder, but this has dropped to 41 per cent. In 2016, just 19 per cent of people said they would only make payment following receipt of a final reminder letter, but this has increased to 27 per cent. WATER Business Stream in efficiency pledge Water retailer Business Stream plans to help customers reduce water consumption by 20 per cent as part of its water efficiency pledge announced on 25 June. The commitment is expected to generate "greater environmen- tal and financial savings" for its customers. Business Stream said its customers have saved more than 38 billion litres of water to date, which equates to almost £75 million in financial savings and more than 66,000 tonnes in CO2 savings. The company plans to work with customers, particularly those who have not previ- ously adopted water efficiency measures, to identify and deliver "solutions for their needs". Guy: unprepared suppliers should be barred 11.5 million UK customers. Fol- lowing an initial probe, the CMA concluded the deal warranted "further in-depth scrutiny" over fears it would reduce competi- tion and increase prices. Speaking to Utility Week, SSE said it welcomed Citizens Advice's findings and looked forward to further engagement with stakeholders during the review process.

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