NMa: slight increase in consumer confidence in energy market

Consumer confidence in the energy market is showing a slight increase. Consumers are more satisfied with customer services and complaint processing procedures provided by energy companies. Also, the reliability of information given out by energy companies was rated as having improved.

This is apparent from recent research carried out by the Netherlands Competition Authority. As part of an annual monitoring scheme, the agency has set up a survey of consumer experience in the energy market, which was liberalised in 2004. 'Aspects that have been a focus of our work over the past few years now show improvement. Still, there is a world to win if we look at how consumers rate the accessibility of information that is made available', comments Peter Plug, Director of the Office of Energy Regulation with the NMa.

Consumers indicate that they are not likely to switch to another energy provider in the next few years. This is not only due to consumers qualifying the information provided as being opaque and poorly presented, but should also be related to the fact that consumers in general are happy with their current provider. Plug: 'Because of a lack of sound information that is suitable for comparison, the energy market is not sufficiently dynamic. Consumer willingness to switch is low, which in its turn is one of the major entry barriers for new energy providers.'

In the months ahead, the NMa will continue to focus on improving transparency in the energy market so that consumers will be able to make a well-informed choice. In this respect, the regulator highly values uniform price notification. Also, it will closely monitor the performance of energy companies in the transitional phase towards a number of important market developments, and intervene to help along developments wherever necessary. In this context, the unbundling of energy companies, changes in the meter market and the introduction of a supply model are relevant. 'In order to retain and increase the confidence of energy consumers, it is vital that this development phase is completed successfully', so says Plug.

The report published today also explores the variety of products on offer to consumers and price development in the energy market. Apart from the low willingness among consumers to switch their energy provider, new players also face other entry barriers that hinder competition. The research agency SEO Economisch Onderzoek has charted these entry barriers in a separate research report. The NMa will determine shortly which barriers can be removed.

Monitoring reports may be downloaded from the NMa website (https://www.acm.nl). Consumers who want to compare energy companies may visit the website of ConsuWijzer (https://www.consuwijzer.nl/ ) for further information on price comparison websites. The website also features scorecards, which the NMa publishes every quarter. These scorecards rate the timeliness of bills sent out after a switch or change of address.