NMa: Complaints Procedures of Energy Companies Unsatisfactory According to Consumers

Consumers consider the complaints procedures of energy companies to be unsatisfactory. This appears from extensive research conducted by the Netherlands Competition Authority (NMa) amongst approximately 2000 customers of the 10 largest energy companies. The research took place in the final quarter of last year and included consumers who had submitted a written complaint to the energy company between May and November 2005.

The Office of Energy Regulation (DTe), the part of NMa which commissioned the research, asked consumers to assess the quality of complaints procedures in relation to four aspects: the period in which the complaint was settled (given an average score of 3.7), customer friendliness (an average score of 5.6), the degree of care taken (an average score of 3.8) and satisfaction with the settlement of the complaint (an average score of 3.9). Consumers only gave a barely satisfactory score for customer friendliness. The remaining aspects were give unsatisfactory scores. "This is cause for concern because customer confidence in the energy market is related to the way in which companies deal with their complaints," according to Peter Plug, Director of DTe. "The administrative backlogs with which energy companies were confronted in the past year have been almost entirely eliminated. The priority now is for the companies to sort out the final part of their service provision, namely the settlement of complaints. It is not without reason that this is one of the factors on which we base our decision on whether an energy company qualifies for a supply licence."

DTe will give consumers insight into the performance of energy companies in relation to the settlement of complaints through its website. Earlier publications by DTe on the performance of energy companies clearly resulted in an improvement in their business processes. The energy companies are now required to submit a plan of action. At the end of 2006, the regulator will carry out further research into the settlement of complaints by the 10 large energy companies. Parties who wish to be reassessed earlier may notify DTe of this.

The consumer research was prompted by complaints received by DTe about the quality of complaints procedures. Consumers indicated that they were annoyed, in particular, by the long deadlines (for receiving a reply) and failure to adhere to agreements.