Public Has Lost Trust in Energy Companies as EDF Admits Rise in Prices
September 16, 2011 TheFreshOutlook  |
As winter approaches, the last of the UK’s six big power suppliers announces increases in its gas and electricity prices.
The last of the UK’s power companies, EDF, has announced a 4.5% rise in electricity prices and a 15% rise in gas prices starting from November 10.
After months of fuel companies announcing an increase in rates, first initiated by Scottish Power in August, the surprising announcement from EDF comes after their chief executive, Vincent Rivaz, admitted that the public has lost confidence in the energy industry.
Rivaz released the statement: “Despite numerous regulatory enquiries, we recognise there remains a widespread lack of understanding and suspicion of the industry as a whole, among the public, customers in general, politicians, regulators and others.
“It is important this perception is addressed. The energy challenges Britain faces are far too important and can only be addressed in a world with trust, open dialogue and mutual understanding.
“If a Competition Commission inquiry is necessary to build this trust, then it is a step that should be taken.”
Recently named the worst-performing energy firm in a customer satisfaction survey, EDF claimed that, despite the price rise, it would remain the cheapest dual-fuel provider, claiming its rates to be £53 a year cheaper than some its competitors.
When asked about the customer satisfaction survey, a spokesperson for EDF told The Fresh Outlook: “We are obviously very disappointed with the results of the Consumer Focus research. We’ve invested over £160 million in new customer service systems to allow customers to manage their accounts in the way they have told us they want to.”
They added that a number of small temporary problems implementing the new system had caused delays but they would be resolved as soon as possible.
The rise in the major fuel company’s rates, including British Gas and npower, comes at a challenging time for most British households when every one percent rise in gas and electricity prices results in approximately 40,000 households entering into fuel poverty, joining the estimated 7m British households which already are.
Richard Lloyd, executive director of consumer group, ‘Which?’, said: “This announcement will come as little surprise to EDF Energy customers who have watched one after another of the major suppliers announce similar increases. But that won’t make it any the less welcome - with household budgets already squeezed and inflation rising, many people will struggle to heat their homes this winter.”
For anyone struggling with their current rates, see the options available and get free advice at:
http://www.which.co.uk/energy/energy/guides/how-to-cut-energy-costs/
By Laura Beard
[Image courtesy of David Roberts]
