Prepared for Prepared by June 2014 amp Background Fieldwork for this survey was conducted between 10 th March and 2 nd April 2014 Questionnaire length was 25 minutes Survey data collection methodology was face to face interviewing via CAPI administered in the respondent ID: 685408
Download Presentation The PPT/PDF document "CER Residential Gas Results 2014" is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.
Slide1
CER Residential Gas
Results 2014
Prepared for:Prepared by:June 2014
&Slide2
Background
Fieldwork for this survey was conducted between 10
th March and 2nd April 2014 Questionnaire length was 25 minutesSurvey data collection methodology was ‘face to face’ interviewing via CAPI, administered in the respondent’s home - 1007 respondents interviewedMargin of error on a sample of this size is +/- 3%. F
or smaller subsamples the margin will be greater. For example, a base of 194 and 170 exist for electricity and gas switching within the past 12 months = a margin of error of +/- 7.1% and +/- 7.5% respectively. A total of 120 paired sampling points throughout Republic of IrelandThe sample is representative across geography, gender, age, socio-economic status and supplierThe survey is comparable to 2010, 2011, 2012 and 2013 surveys in sample approach and representivitySlide3
Notes on results presented
Percentage breakdowns are rounded to the nearest whole number to retain accuracy of results. This means that figures presented on charts may not sum to 100% due to rounding
3Slide4
Respondent ProfileSlide5
Respondent profile – age, social class, location
(Base: All gas customers – 1,014)
Surveys completed across 120 paired sampling pointsProportions reflect the current residential gas population6% of respondents lived in an apartment9% of respondents receive the natural gas allowance
Age profile of respondents
Social grade of respondents
Location of respondents
Type of Home
2012
2013
2014
Dublin
68%
69%
70%
Cork city
11%
11%
11%
Limerick
3%
5%
5%
Cork county
3%
4%
2%
Waterford
4%3%3%Kilkenny2%3%2%Drogheda3%3%3%Portlaoise1%1%1%Carlow0%1%1%Dundalk1%1%1%
* Social grade definition: AB-Upper/Middle category, C1C2-Lower Middle and Skilled Workers, DE-Unskilled workers, F-FarmersSlide6
6
Claimed Market Share: Residential Gas Suppliers
(Base: All gas customers – 1,014)
BGE retains the largest market share, however this is declining to the benefit of Electric Ireland.
(Proportion of respondents with each supplier)Slide7
Satisfaction with current supplier
Overall satisfaction
in the market stands at 82%, down from 85% in 2013.Electric Ireland and Flogas satisfaction scores are relatively stable year-on-year. Airtricity and BGE have registered declines in overall satisfaction this wave.
Overall satisfaction by current supplier
Overall satisfaction trends
Base: 1014 157 635 184 27Slide8
8
Satisfaction with current supplier by demographics
(Base: All gas customers – 1,014)
Younger and older customers are more satisfied with their gas suppliers.
Satisfaction by Gender
Satisfaction by Social Class
Satisfaction by Age
Satisfaction by RegionSlide9
Billing & PaymentSlide10
Respondent profile – bill delivery and frequency
(Base: All
who receive a bill - 834)Most consumers still receive a printed bill by post. However, the proportion receiving electronic bills via email/website have increased this year – most notably from Airtricity.BGE customers are most likely to still be receiving a bill, although this figure is reducing
Method for
receiving bill
Method of receiving a bill – by supplier
EI
BGE
Airtricity
Flogas
2014Slide11
Reported payment models
Respondent profile
– payment models, bill size and knowledge of charges(Base: All gas customers – 1,014)
Reported Prepayment has increased this year to 18%.Payment models vary by supplier with BGE and EI having the highest proportion of prepayment. When asked to estimate expenditure on natural gas based on typical winter and summer spend, most consumers were not able to
estimate the unit cost of natural gas (92%), nor the supply charge (standing charge 90%).
Estimated winter and summer bill size
Bill size
Average winter
monthly
spend
Average summer
monthly
spend
2012
2013
2014
2012
2013
2014
*
Usage
based bills (Base: 704)
€
113
€126
€309
€47€49€99Equaliser (Base: 122) €89.25€122€135 €79€122€135Prepayment (Base: 180) € 118€144€116 €110€68€56Able to provide estimateAverage estimate201220132014201220132014Unit cost12%19%8%6.5c5.4c6.2cSupply charge(every 2 months)17%11%10%€20.25€19.95€17.23Estimates of unit cost and supply charge(Base: All gas customers – 1,014)11*NB usage based bills were based on 2 monthly bills 2014Slide12
Respondent profile –payment methods
(Base: All
not on prepayment - 834)A majority (60%) of consumers not on prepayment, pay their gas bill using direct debit – this has been steadily increasing.The small increase in the proportion paying by direct debit is driven by an increased proportion of Airtricity customers paying with this method
Prevalence of direct debit (excluding consumers on prepayment)
Prevalence of direct debit (excluding consumers on prepayment) by supplier
12Slide13
Respondent profile –
Free
Gas allowance (Base: All gas customers – 1,014)Across the entire population, 9% of natural gas consumers state that they are in receipt of the natural gas allowanceVariation in FloGas reflects small sample sizeFigures for other suppliers remain stable given the sample sizes.
Proportion of consumers in receipt of Free Gas allowance – by supplier
13
*
*: Small sample sizeSlide14
Bill payment history, arrears and payment plans
(Base: All gas customers – 1,014)96%
of consumers do not believe that they are in arrears now or at other times16% state that they part pay their bill and therefore may be on payment plans – although the customer does not recognise this as being in arrearsThis is a decline from 2013 (-6% points).This is also reflected in the small proportions claiming to be currently or previously on a payment plan or state that they were previously disconnected (less than 1% in each case).
14
Stated bill payment record
29% of those ever in arrears have been directed to outside assistance on budgeting energy efficiency advice or services by their supplier
(new question added 2014).Slide15
Bill payment history, arrears and payment plans
About half of consumers (53%) are at least somewhat aware of the potential to make an arrangement to pay – note this has declined year-on-year.
In addition a lower proportion (30%) are aware that they must be offered a prepayment meter if they are in arrears.Awareness of availability of arrangement and
prepayment meter
15
Aware that can make arrangement
(
Base: All not on prepayment – 834)
Aware must be offered prepayment meter
(Base: Never been disconnected – 1005)Slide16
Self Disconnection of Gas Prepayment Meter
Just 16 people have ever self disconnected their gas prepayment meter, 11 of these have done so more than once.The majority of these have only disconnected for a number of hours, with the main reason being that they were unable to buy credit at the time in question.
Incidence of Self Disconnection of prepayment meter(Base: All gas customers – 1,014)Incidence of Self Disconnection- Ever self disconnected- More than once16 people
11 people(Base: All ever self disconnected – 16)Length remained disconnected:
A couple of hoursA day
More than one day
71%
4%
24%
I was
unable to buy credit at the time in question
56%
I was short of money to pay credit
22%
I was on holidays or away from the property at the time
22%
Reason for self
disconnection
(Base: All ever self disconnected – 16)Slide17
Competition & DeregulationSlide18
Unprompted awareness of 1 or more suppliers
Other than BGE
Residential Gas: Awareness of suppliers(Base: All gas customers – 1,014)
Unprompted awareness of gas suppliers
94% mentioned BGE or
Bord
Gais
unprompted
79% of these mentioned
Bord
Gais
Awareness of competition has dropped slightly with 74% of respondents recalling a supplier other than BGE
2013 score was 80%
The most recent entrant,
Energia
, received an unprompted recall of 14%, while recall of Airtricity, and EI slow a drop. Total awareness (spontaneous and prompted) of
Energia
stands at 51% compared to 56% for
FloGas
.
* Energia entered the residential market in 2014Slide19
Satisfaction competition(Base: All gas customers – 1,014)
The majority of consumers are satisfied
with the existence of competition in the residential consumer electricity market – similar proportions for 3 years.However, the large decrease registered last year in the proportion of customers who agree that competition has improved service, has remained in 2014.Over the year the small increase in the disagree score suggests that competition is gradually starting to impact on service experience.
Satisfaction with existence and level of competition
Agree
Disagree
Satisfied with current level of competition among gas suppliers
Competition has improved the service I receive from gas suppliersSlide20
20
Satisfaction with level of competition by current supplier
FloGas customers most satisfied with level of competition in the gas market.
Very satisfied
Satisfied
Base: 1014 635 157 184 27
*Caution: Small baseSlide21
Awareness of current price control(Base: All gas customers – 1,014)
Awareness of current price control regulation remains at
a similar level as 2013.The level of understanding of the current regulation remains low with 40% correctly identifying the current approach to regulation – this does not vary by supplier.One third of consumers (32%) believe that all natural gas prices are subject to regulation.
21
Understanding of how prices are set
Overall
BGE
Competitors
2012
2013
2014
2012
2013
2014
2012
2013
2014
All natural gas suppliers are allowed to set their own prices
23%
19%
28%
22%
19%
30%
NA
20%
25%
Prices set by some natural gas suppliers are regulated which means that their prices must be approved by CER40%38%40%40%38%41%NA38%38%The prices set by all natural gas suppliers are regulated37%40%32%37%40%29%NA40%37%None of these10%9%-11%9%-NA8%-Slide22
Ability to understand offers from gas suppliers
(Base: All gas customers – 1,014)
20% of consumers stated that they had small degree or no understanding (2013: 20%).20% of consumers stated that they not aware of the offers (an increase on the 14% in 2013).Clearly connected with age with those in the 56-64 and 65+ age cohorts least likely to be unaware of offers (26% and 29% respectively).
22
Understanding of gas suppliers’ offers
Not aware of offers – by ageSlide23
Ability to compare offers from gas suppliers
(Base: All gas customers – 1,014)
16% of consumers stated that they found comparison of offers difficult (a decrease from 24%: 2013).37% stated that they found the comparison easy or very easy.30% of consumers stated that they had not attempted to compare offers (an increase from 21%: 2013).This has increased across all age groups apart from under 25 – back to 2012 levels amongst older age groups.
23
Assessment of difficulty with comparing offers
Not attempted comparison of offers – by ageSlide24
Received information from supplier on upcoming price changes within the last 6
months
(Base: All gas consumers–1,014)
Price Changes
Awareness of price changes announced by different suppliers since October
2013
(Base: All gas
consumers–1,014
)
Reason for price increases being
announced
(
Base: All
awareness of price changes–474)
Just over one third are aware of receiving upcoming price change information from suppliers for the last 6 months – similar to electricity.
Most believe the cost of energy is increasing resulting in rising
gas prices
.Slide25
Price Changes by Supplier
(Base: All gas customers – 1,014)
No difference in the incidence of customers who claim to have received information about upcoming price charges in the next 6 months, however FloGas customers claim to be the most aware about price changes announced by different suppliers since October 2013.25
Received information from supplier on upcoming price charges within the past 6 months
Aware of price change announced by different suppliers since October 2013
Base: 635 157 184 27
Base: 635 157 184 27Slide26
Awareness of Bord Gais business names
(Base: All gas customers – 1,014)
Awareness of Bord Gáis Networks continued to increaseLevel of awareness among Bord Gáis Energycustomers however is slightly behind that of non-BGE customers.
26
Awareness of
BGE and BGN
business names
Awareness
BGE
non-BGE
2012
2013
2014
2012
2013
2014
BGN
64%
72%
77%
68%
72%
82%
BGE
77%
83%
75%81%80%76%
Awareness of BGE and BGN business names By current supplierCurrent supplierSlide27
Customer understanding of the roles of gas supplier and BG Networks
(Base: All gas customers – 1,014)
27
TrendRepairing gas leaks
Maintaining the Network
Transmission and distribution of gas
Reading the meter
Responsibilities of gas supplier and BGN
A greater understanding of the role of BGN evident with increases for:
Reporting gas leaks
Maintenance of the network
Transmission/distribution
Reading the meter is significantly more associated with the supplier with only 34% associating it with BGN.Slide28
Customer understanding of the roles of gas supplier and BG Networks
– BGE customers
(Base: All BGE customers – 635)28
TrendRepairing gas leaks
Maintaining the Network
Transmission and distribution of gas
Reading the meter
Responsibilities of gas supplier and BGN
Scores for BGE customers remain
quite similar
to the overall marketSlide29
Customer understanding of the roles of gas supplier and BG Networks
(Base: All gas customers – 1,014)
29
TrendBilling and payment
Seeking approval of terms and conditions from the regulator
Responsibilities of gas supplier and BGN
29
About two thirds 68% recognise the billing and payment role of the supplier – similar to 2014.
An increase registered in the proportion who believe BGN is responsible for seeking approval of terms and conditions from the regulator (44% vs 31% in 2013).Slide30
SwitchingSlide31
Proportion switching in previous year by year
Switching – rates
(Base: All gas customers – 1,014)Switching rates declined back to 2012 levelsSwitchbacks similar to previous years at 21% (2013: 22%; 2011: 18%). The proportion of gas consumers who switched their electricity supplier is identical to gas switching levels.
21% of switchers switched back to their previous supplier.29% of those on direct debit switched at least once in last 12 months.
31
21% switched back to previous supplier
Switched ElectricitySlide32
Level of switching in last 12 months by Age
Switching by Age & Social Class
(Base: All gas customers – 1,014)
Level of electricity switching in last 12 months is consistent across age groups aged 26+. Those aged 18-25 years show a lower level of switching at 10% however.Highest level of switching apparent amongst the AB social class at 28%.
Level of switching in last 12 months by Social ClassSlide33
Non-Switchers by Age
Profile of those who never switched
(Base: All gas customers – 1,014)
18-25s and 65+ age groups are the least likely to switch, as are blue collar social classes.
Non-switchers by social class
Total Never SwitchedSlide34
Switching – Dual Fuel vs Electricity only & Gas only switching
Proportion switching at least once in the last 12 months
Those on dual fuel most likely to have switched provider in the last 12 months.
Base: (411) (603) (603)Slide35
Prevalence of package, channel and billing changes
Investigating and switching packages
2% of consumers contacted their supplier to investigate changing packageHowever, among
consumers who didn’t switch, 7% actually changed package (2013: 4%)2% of customers with natural gas extended to a dual fuel product (was 7% in 2013)
Low score for BGE reflects the current market share among natural gas consumersThe higher proportion of Electric Ireland customers switching to dual fuel reflects that company’s strength in the electricity
market.
Overall
EI
BGE
Airtricity
FloGas
%
%
%
%
%
Contacted supplier about changing package
2
5
1
5
3
Changed package (among those who didn't switch)
2
4
14-Extended to dual fuel (among those who didn't switch and use natural gas)
2602-Change payment channel130
3-Changed billing frequency11033SupplierSlide36
Contact method used to switch supplier
(Base: All
who switched last 12 months - 170)36
Method used to
switch supplier
Method used to switch – by current supplier
Most (66%) of switchers completed the switch during a visit to their home
This is a decrease from 2013 (74%).
Airtricity and EI rely on home visits to sign up switchers, while a significant proportion (28%) of those who switch to BGE proactively made contact with the supplier via the telephone, a further 24% of BGE switchers used the website to sign up.Slide37
Reasons for switching – most important factors
As expected desire to save money on the gas bill remains a primary or important factor in the decision to switch by most consumers 85% ‘wanted to save money on their gas bill’
81% ‘expected to get more savings’While 52% wanted to ‘avail of a combined dual fuel offer’37
Reasons for switching during last 12 months
(where
>32%
state factor is primary/important)
Not a factor
Primary/important
I want to save money on my gas bill
I expected to get more savings
To avail of a combined offer for electricity and natural gas
My bill increased in size because my previous supplier had increased prices
I want to support competition in the marketplace
I received a larger than expected billSlide38
Reasons for switching – other factors
Among the other factors tested, a significant proportion of consumers who had recently switched identified each as not at all important in the decision to switch
Suggests that these factors are focused on sub-groups in the population61% stated that being unhappy with customer service was not a factor. Thus it was less important vs. 2014. 38
Reasons for switching during last 12 months
(where
<27%
state factor is primary/important)
Primary/important
Not a factor
I expected the customer service from the
new
supplier would be better
My previous supplier had recently announced a price rise
I was unhappy with the service I have received from my former supplier
I preferred the payment methods available from my new supplier (for instance equal payments throughout the year)
I wanted to receive my bill more often
*I
want a supplier that would supply gas generated in a more environmentally friendly way
I preferred the online billing option from my new supplier
I moved to a new home and my new supplier had been used by the previous resident (or landlord)
I did not find the bill understandable
*Question added 2014
n/aSlide39
Comparison of most often reasons sited as primary or important reasons for switching back
Reasons for switching back
Top reasons for switching back are driven by price and potential savings – or lack of delivery of savings from the new supplierService also features but to a lesser extent than in 2013 as just 23% of individuals who switched back rated it as an important reason for switching back, 43% in 2013.
39
39
I want to save money on my bill
I expected to get more savings by returning to my original supplier
To avail of a combined offer for electricity and natural gas
My original supplier contacted me with a better offer if I would switch back
The price I received from my new supplier was not as good as I had expected
I received a larger than expected
bill
I
was unhappy with the service I have received from my new supplier
2013
2014
Switch-back
All Switchers
63%
85%
82%
85%
Switch-back
All Switchers
60%
68%
73%
81%Switch-backAll Switchers43%59%54%52%Switch-backAll Switchersn/an/a49%n/aSwitch-backAll Switchers46%n/a41%n/aSwitch-backAll Switchers46%30%40%32%Switch-backAll Switchers43%24%23%24%Slide40
Reasons for
not switching
– most important factors Satisfaction with the service received and lack of reason to switch are the most commonly mentionedTrust is a significant reason rated as primary or important by 46% of consumers who haven’t switched (albeit a significant increase in those claiming it is not a factor)This was selected as the primary reason for not-switching by 46% of Electric Ireland customers who have not switched
Reasons for not switching during last 12 months (where >22% state factor is primary/important)
Primary/important
Not a factor
I like the service that I receive from my current supplier
I have no reason to switch
I prefer to remain with a gas supplier that I trust
I do not believe that the level of discount are sufficient to justify switching
I do not believe that the prices will be a low as the alternative supplier claims
I will not save sufficient money to make it worth my while to switch
I find it hard to determine how much I would save if I switched
I am concerned that receiving my natural gas allowance would be too inconvenient if I switched.
I am concerned that they may not stay in the gas market for a long time
n/a
n/aSlide41
Less frequently rated reasons for not switching
Concerns about reliability of supply now down to 19% (was 35% in 2013).Only 8% cited lack of awareness of the ability to switch.A similar proportion have had a bad experience of switching other suppliers before (8%).
41
Reasons for not switching during last 12 months
(where
<20
% state factor is primary/important)
41
I am concerned about whether the alternative supplier will be as responsive if there is a gas outage or leaks
I intend to switch but I have not got around to it
I would be charged a penalty by my current supplier.
I am not able to switch because of the contract with my current supplier
I was not aware that you could switch.
I have had a bad experience of switching other services (such as electricity, telephone or mobile phone operators)
n/a
*Questions added 2014
n/a
Primary/important
Not a factorSlide42
FGA and switching
FGA recipients are less likely to switch than the entire population
10% switched in the previous 12 months (compare to 18% for entire population)FGA specific reasons are rarely selected as primary or important with FGA recipients focusing on trust, lack of a reason to switch and liking the current service.
42
Rate of switching among
FGA recipients - 96
Reasons for not switching – related to FGA
Reason for not switching
Selected by over 40%
as primary or important
(Base: All FGA recipients who did not switch)
% rated primary/
significant
2012
2013
2014
Like service
59%
57%
54%
Prefer to stay
with trusted supplier
69%
63%
49%
No
reason to switch69%61%48%Concerned that receiving FGA would be too inconvenient15%17%24%Concerned that might not continue to receive FGA if switched 14%23%21%42Slide43
Rating the overall experience of switching
Experience of switching
(Base: All who switched in past 12 months – 170)
43
Process
’12
’13
‘14
’12
’13
‘14
Knew
who to contact
77%
79%
76%
9%
5%
8%
Understood what
was required
87%
84%
83%
7%
4%
3%
Understood what was offered by the new supplier85%83%85%6%7%3%Actual changeover went smoothly88%88%87%6%2%5%understood length of time that the prices offered applied for85%82%82%5%8%7%understood the amount of deposit I would need to pay 63%60%64%11%15%15%+-
Outcome
’12
’13
‘14
’12
’13
‘14
Bill reduced by expected amount
81%
58%
66%
13%
14%
17%
New supplier service satisfactory
83%
80%
85%
8%
7%
2%
Understood
the terms
82%
80%
89%
7%
9%
3%
Experience of process and outcome
The switch process scores are similar to 2013 with 90% rating the overall experience as easy (identical to 2013). However a better bill outcome evident, with 66% stating the bill reduced by expected amount (58% in 2013).
Thus not surprising that likelihood to switch in the next 12 months has increased.
+
-Slide44
Switching: Contact by suppliers
(Base: All gas consumers – 1,014)Over half of consumers have been contacted by another natural gas supplier during the previous 12
months – this has declined for the second year.The most common method of contact remains by a home visitThere are similar levels of contact among customers of the different suppliersBGE customers remain least likely to have been contacted (46%) compared to Electric Ireland (54%).44
Level of contact in previous 12 months
Level of contact in previous 12 months – by current supplierSlide45
Rating of factors which would increase switching and impact of information sources on switching
(Base: All gas consumers – 1,014)ToU
tarriffs and info on how to reduce gas usage had the highest impact on intention to switch.Prepayment and energy advice have lower impact.One third of consumers would consider switching to a group scheme. 29% of consumers believe a price comparison web-site would significantly impact on their intention to switch, with website calculators, info on consumption and brochures comparing price savings all having similar impact.
Would you consider switching if…
Agree
Impact of information sources on switching
Significantly increase
Another supplier offeredSlide46
Assessment of Sales ProcessSlide47
Consumer acceptance of call/phone contact
(Base: All who received visit/phone contact – 496)
Appropriate of call to door /phone contactOverall – Base: 469Over 65yr – Base: 97
‘12
‘13
’14
‘12
‘13
’14
‘12
‘13
’14
‘12
‘13
’14
Approach of sales person
73%
62%
64%
11%
18%
17%
73%
57%
73%
13%
22%
13%Number of contacts77%64%67%10%16%13%80%60%73%7%25%7%Understood the deal offered86%67%69%5%11%9%87%49%71%13%18%9%No unreasonable pressure to sign-up77%66%65%13%16%15%87%58%72%7%21%12%Understood T&Cs89%65%66%6%13%10%87%52%70%13%22%12%Not concerned if I said no77%66%71%13%14%14%73%63%69%20%14%11%
Tone of conversation was appropriate86%
79%
73%
4%
7%
9%
87%
75%
81%
0%
7%
7%
Consumer rating of call/phone contact from suppliers
+
-
47
+
-
Among those who had been contacted by phone or received a house call in the last 12 months, the sales approach was rated similar to 2013 (note this was noticeably lower than 2012).
The scores for concerned if said no (14%) and unreasonable pressure to sign up (15%) are comparatively high and should be monitored
Among the over 65 group, an improvement registered in the rating of the approach. Slide48
Consumer acceptance of call/phone contact
(Base: All who received visit/phone contact – 496)
Appropriate of call to door /phone contactTotal ’14RegionContactDublin
Rest of LeinsterMunster
Phone
Mail
Home visit
Approach of sales person
64%
61%
79%
69%
63%
32%
67%
Number of contacts
67%
66%
62%
69%
64%
32%
69%
Understood the deal offered
69%
68%
63%71%71%
43%70%No unreasonable pressure to sign-up65%64%77%66%70%30%67%Understood T&Cs66%66%62%66%64%37%68%Not concerned if I said no71%70%69%74%76%45%72%Tone of conversation was appropriate73%71%87%76%74%43%76%Consumer rating of call/phone contact from suppliers48Those in rest of Leinster most satisfied with approach of salesperson, no unreasonable pressure and tone of conversation. Those who received a home visit show most positive ratings across the most areas, while those who received contact via mail are consistently the least satisfied. Slide49
Consumer response to advertising
(Base: All who received visit/phone contact – 496)
Reaction to advertising
2012
2013
2014
2012
2013
2014
Advertising straight forward
62%
55%
34%
11%
11%
21%
Advertising clear on prices
60%
47%
35%
17%
15%
20%
Advertising clear on conditions
58%
48%
36%
18%14%19%Advertising clear on savings67%51%35%13%12%20%Clear on how to translate advertised savings into my bill57%46%31%18%17%25%The response to advertising is as expected lower than the response to the direct contactThe proportion agreeing with the statements has declined significantly from 2012A significant minority (1 in 5) now disagree that advertising is; straightforward, clear on prices, conditions and savings. Plus one quarter disagree that its ‘clear on how to translate advertising savings into my bill’. Consumer rating of advertising contact from suppliersOverall+-Slide50
Dual FuelSlide51
Residential:
Level and reasons for take-up of dual fuel
Among consumers with natural gas and electricity, 52% continue to use a single supplier.Results combine data from electricity and gas surveysThe factor most often rated as important is greater savings overall when gas and electricity are purchase together. However the importance of this has declined over the years. Convenience of a dual supplier and greater reduction in gas prices have increased in importance this year.
% of consumers with a single supplier for gas and electricity
Single
supplier
Two
suppliers
Rating of potential factors – single supplier
Important factor
Not a factor
The greater reduction in electricity prices offered if your business also used the same supplier for gas
The greater reduction in gas prices offered if you also used the same supplier for electricity
The greater saving overall
The convenience of having a single supplier for both
Aspects of the service provided by your supplier - for both electricity and gasSlide52
Take-up and interest in dual fuel: Reasons for not taking up dual fuel
Among consumers with both natural gas and electricity with different suppliers for each, satisfaction with the service provided by each supplier was the only reason identified as important by a majority
A majority of respondents identified most other suggestions as not a factorRating of potential factors - separate suppliers
Important factor
Not a factor
52
% of consumers with a single supplier for gas and electricity
Single
supplier
Two
suppliers
Not aware that it was possible to get both fuels from one supplier
Do not want to accept additional conditions such as paying by direct debit or getting the bill online
Prefer two separate bills with two different suppliers
Savings are greater if your business uses two different suppliers
Satisfied with the service provided by our current supplier for each and see no reason to switch
You do not trust a single supplier to provide both electricity and gas
Do not want to receive a single bill for both gas and electricity
You are concerned about what would happen if your business fell behind on payments for either
n/aSlide53
Bill Clarity & Information SupportsSlide54
Overall satisfaction with your understanding
of your gas bill
Understanding of the bill(Base: All gas consumers – 1,014)Satisfaction with gas bill (including how much gas you use and how much you are charged for it) is reasonable with little variation between
supplier (FloGas edges ahead).This suggests that either the bills are similar in style or that there is a lack of consumer engagement
Note that while overall satisfaction is similar to 2013, the strength of ‘very satisfied’ has increased. Note the nature of billing is changing with more electronic/email billing evident.
Overall satisfaction with your understanding
of your gas bill – by current supplier
2013
67%
71%
67%
70%
73%Slide55
Typically open and read bill when
received
(Base: All gas consumers – 1,014)
Interaction with Gas
Bill
Part of bill typically looked
at
(Base: All who open bill – 778)
While the vast majority open their bill, the focus is on the total bill amount, followed by bill payment
date. Slide56
Rating the bill(Base: All gas consumers – 1,014)
Electric
Ireland scores converged with market averagesVariability in FloGas scores reflect the small sample size 21% of respondents would prefer to receive bills more frequently (25% in 2013).( ) bracketed figures = difference vs 2013Change vs 2013(+2%)
(+8%)(=%)
(-2%)
(-15)
Understand the calculation of the bill
Bill is easy to understand
Bill makes it easy to understand the
gas used
Makes it easy to understand the
gas
charged for
Change
vs
2013
(+4%)
(+10%)
(+4%)
(-5%)
(-8%)
Change
vs
2013
(-2%)
(+5%)
(-3%)
(-8%)(+4)Change vs 2013(+2%)(+11%)(+1%)(-7%)(-3%)Slide57
Complaint HandlingSlide58
Complaint handling – propensity and topics
7%
of respondents had complained within the last 12 monthsThis is similar to 2012 and to the electricity researchReasons for complaints were more diverse, with ‘Other’ reasons being referenced more in comparison to previous years. ‘Other’ reasons focused mainly on issues relating to gas leaks, meter problems and boiler services. A greater proportion of complaints were made to suppliers
Proportion of respondents who complained over last
year
(Base: All gas consumers – 1,014)
Complaint topic
(Base: All who made a complaint – 64)
’12
’13
’14
Billing and payment
70%
52%
42%
Late payment or disconnection
6%
2%
2%
Connection/modification of supply
4%
12%
10%
Reliability of supply/power failures/supply issues
2%
12%10%
Issue related to switching2%4%1%Other13%12%29%
Complaint made to(Base: All who made a complaint–64)Slide59
Complaint handling – awareness of process
(Base: All gas consumers – 1,014)
45% of consumers knew that they could complain to CER (slight decline this year)Only 1% had lodged a complaint with CER in this researchMost consumers understand who they should complain to.
Knowledge of how to make a complaint
Awareness of who to complain toSlide60
Satisfaction with handling and timeliness
(Base: All who made a complaint – 64)
Satisfaction across Suppliers with problem handling and time taken to resolve are comparatively low.Satisfaction with the outcome is similar to the electricity research (gas: 48% satisfied, electricity 45% satisfied), but Gas does score lower on satisfaction with the overall handling.
Satisfaction with outcome:
48% (-4%)
Supplier
Satisfaction with handling:
31% (-13%)
Satisfaction
with time taken:
36% (-2%)Slide61
Interest in PrepaymentSlide62
Interest in prepayment
20% of consumers stated some level of interest in prepayment metersThe decline compared to 2013
is in part driven by the increased uptake in prepayment (note some of last years enthusiasts have already switched)Level of interest in prepayment (among those without
prepayment meters – 826)
Not at all interested
Very interested
Potential benefits (among those interested/very
interested - 100)
Reasons for being interested in receiving a prepayment meter
focus more on; ‘control of bill’, ‘one less bill’, ‘no estimated bills’ and ‘lack of fear of disconnection’.Slide63
Comparative Rating of Prepayment and Bill Payment by Supplier
Base: All currently on prepayment - 180
63
Those on prepayment are much more satisfied with the payment scheme vs
billpay
. Little variation in satisfaction across suppliers.
(
FloGas
and Airtricity base too small)Slide64
Rating of perceived benefits among consumers on prepayment
Base: All currently on prepayment - 180
Prepayment clearly remains the preferred option to bill pay by consumers on prepaymentA significant majority rate each of tested reasons as a primary reason for using prepaymentRating the experienced benefits – among those with prepayment
Comparative rating of prepayment and bill payment
- among respondents currently on prepayment
Compared to receiving and paying bills after you have consumed the
electricity, how would you rate a prepayment meter where you pay
in advance…
64Slide65
Vulnerable & Priority CustomersSlide66
Vulnerable consumers: Prevalence and level of registration
(Base: All gas consumers – 1,014)
Almost 1 in 5 gas customers are aware of the priority status registration, with those aged 56+ being most aware.
Awareness of priority status registration
66
Awareness of priority status registration x ageSlide67
Vulnerable
C
onsumers: Level of registration8% of respondents stated that they lived in households eligible for priority status. However, just 1% of respondents are actually registered.The most common reason for not being registered was that they did not know it was possible to register.
Incidence of those who are eligible for registration vs those who actually registered(Base: All gas consumers – 1,014)
67
Reasons given for not registered when aware of opportunity to register
(Base: All eligible but not registered – 76)Slide68
Vulnerable Consumers: L
evel of registrationJust 8% of the total base were eligible for registration as vulnerable customers. However, just 11% of these were registered, with the highest proportion of those registered being among the 56-64 year age group.
Incidence of those who are eligible for registration and actually registered
68
* Caution extremely small base sizes
Base: 85 Slide69
Reasons for registering
The most common reason for lack of registration is that they did not know that it was possible to register
Reason RatedOverall201220132014Did not know that I could register80.0%78.8%83%
Do not know who to contact in order to register1.5%
4.4%-
Do not think that I need to register as I can manage without
gas occasionally
1.5%
3.5%
14%
Would be concerned about giving that sort of confidential information to my
supplier
0.0%
2.7%
-
Other
3.1%
0.9%
2%
Don't know
7.7%
6.2%
1%
Reasons for not registering among consumers
who state they are eligible but unregistered
Prevalence of vulnerable customersSlide70