CER Residential Electricity Results 2016

Transcription

1 CER Residential Electricity Results 2016 Prepared for: Prepared by: & May 2016

2 What to look out for in this presentation Rising satisfaction levels across all suppliers. Evidence of migration to electronic channels for bill receipt Knowledge of cost composition (unit and standing charge) of the bill remains low Improved awareness of competitors, particularly more recent competitors in the market Limited evidence of engagement with offers, probably underpinned by perceived lack of clarity of the offers available Evidence of an active market, with increased competitive customer contact across all suppliers Customers continue to demonstrate sticky behaviour, notwithstanding the high level of contact activity i.e. limited switching activity Some concern about the perceived ease of switching Emerging concern about the tone and frequency of the customer interaction Switching inertia is increasingly demonstrated by automatic rollover at contract renewal time Bill understanding is quite low, as just half (48%) of electricity customers can easily identify if their bill is an actual reading or an estimate 3

3 Respondent & Market Profile 4

4 Respondent profile age, social class, location Base: All adults Age profile of respondents Social grade of respondents 45% 45% 39% 50% 55% 50% 22% 23% 21% 21% 19% 23% 18% 18% 20% 15% 15% 16% 16% 16% 18% 7% 7% 3% % 4% 6% ABC1 C2DE F Respondents distribution is representative of the national population (of all utility decision makers). Surveys were completed across 120 paired sampling points. Type of Home 2% Apartment 98% House Location of respondents County Dublin 29% 29% 26% Cork 9% 11% 16% Galway 4% 4% 5% Kildare 2% 2% 1% Meath 4% 4% 3% 2016 Other * 51% 49% 49% * Other all other countries * Social grade definition: AB-Upper/Middle category, C1C2-Lower Middle & Skilled Workers, DE-Unskilled workers, F-Farmers. 5

5 Incidence of having Natural Gas in home and gas provider (Base: All adults ,002) Do you also use Natural Gas in your home? Gas Provider (All who have natural gas 316) Bord Gais % % 60% 32% (34%) Electric Ireland 23 20% 68% SSE Airtricity 12 16% (66%) Energia 6 2% Yes Flogas 2 2% ( ) = 2015 No The incidence of those who use natural gas in their home remains consistent with 2015 levels at 1 in 3. Bord Gáis continues to be the main provider despite experiencing a decline of -4%pts. SSE Airtricity has also experienced a decline in market share vs 2015 levels, to the benefit of Energia (+4% pts). 6

6 Market share: residential electricity suppliers Base: All adults ,002 Electricity Market shares trends 60% 58% 61% 63% 62% 60% 21% 23% 25% 19% 17% 15% 19% 18% 15% 15% 14% 12% 5% 0% 2% 3% 5% 4% Electric Ireland BGE SSE Airtricity Prepaypower Energia (Proportion of respondents with each supplier) Electricity market shares consumers with both gas and electricity (Dual Fuel) 48% 46% 43% 37% 32% 26% 28% 35% 25% 26% 29% 34% 41% 17% 19% 10% 4% 3% 8% 4% 0% 0% Electric Ireland BGE SSE Airtricity Prepaypower Energia (Proportion of respondents with each supplier) Electric Ireland continues to hold the largest market share across the entire residential electricity market. Bord Gáis energy however has now replaced Electric Ireland as the main energy provider across dual fuel customers (+6% pts vs 2015). The main changes in the market centre on: Electric Ireland s share of the market has been in gradual decline, especially among the dual fuel sector, while BGE has increased its share. SSE Airtricity s continues to gradually decline; among the total electricity market and also the dual fuel sector. Energia has been active in the market and now claims 8% of all dual fuel customers. PrePayPower s market share of the electricity has remained stable, but declined among dual fuel customers 7

7 Satisfaction with current supplier Base: All adults ,002 Overall satisfaction with current supplier Overall satisfaction by current supplier 84% 89% 83% 81% 86% 89% 100% 90% 80% 87% 84% 83% 92% 87% 83% 85% 81% 84% 77% 91% 89% 89% 89% 85% 89% 85% 83% 82% 70% 77% 75% % Electric Ireland BGE SSE Airtricity PrePayPower Energia Overall satisfaction with current supplier has been gradually improving over the last three consecutive waves. BGE customers reported the highest level of satisfaction at 91%. All other providers recorded similar satisfaction levels at 85%-89%. Satisfaction has improved across the majority of providers, most noticeably Bord Gáis Energy and SSE Airtricity. The main reason for dissatisfaction with current supplier continues to be respondents experiencing a price increase/prices being too expensive. 9

8 Billing & Payment 11

9 Respondent profile bill delivery and frequency Base: All who receive any bill Method for receiving bill Method of receiving a bill by supplier* 25% (20) Website (2) 3% 3% 38% 5% 42% 3% 44% 5% 35% 0% 14% 4% 20% 4% 14% 1% 32% 2% 11% 2% 13% 1% 14% 2% 18% 7% 64% Website 63% 52% 52% 59% 89% 74% 79% 65% 89% 83% 84% 79% Post 15% 18% 20% 20% 25% Post 71% (77) () = SSE Airtricity 2016 SSE Airtricity BGE 2016 BGE Electric Ireland 2016 Electric Ireland 30% 2016 Energia Energia *: Selection of multiple methods possible The incidence of customers receiving their electricity bill via has increased again this wave after a period of stabilisation in Energia & SSE Airtricity customers show the highest tendency of receiving their bills via . 12

10 Respondent profile payment models Base: All adults , Payment models trends since 2011 Payment models by supplier 6% 4% 5% 1% 1% 3% 3% 2% 1% 1% 2% 5% 8% 7% 9% 9% 5% 7% 7% 9% 6% 11% Household budget/direct deductions Prepayment (keypad) 3% 1% 1% 1% 5% 5% 5% 1% 0% 7% 4% 8% 10% 16% 26% Household budget/direct deductions Prepayment (keypad) Prepayment (token meters) Prepayment (token meters) 86% 86% 84% 78% 79% 74% Equaliser 75% 66% 82% 82% Equaliser Receive and pay the bills Receive and pay the bills SSE Airtricity BGE Electric Ireland Energia The majority of customers continue to receive and pay their bills, however the incidence of customers on Equaliser prepayments has increased on 2015 levels and now stand at 1 in 10. BGE and SSE Airtricity customers continue to be more likely to be on an Equaliser payment structure. Additionally, some 16% of all customers are on a night saver tariff (identical to 2015 levels). 13

11 Frequency of prepayment statements (Base: All on prepayment - 163) Elec Ire Current Supplier BG SSE Airtricity Prepaypower Statement at least three times per year detailing consumption and any money owed 47% % % % % One statement of your usage per year 38% Don't know 15% *Caution small base Almost half of prepayment customers receive a statement three times per year. PrepayPower customers are most likely to receive an annual statement. Question added * Caution small base

12 Respondent profile payment methods Base: All who receive any bill Prevalence of direct debit Base: 16 All receive any bill Proportion in receipt of FEA Base: All adults ,002 59% 63% 80% 78% 74% 72% 70% 68% 83% 52% 47% 47% 46% 44% 50% 46% 39% 39% 34% 35% 51% 49% 44% 42% 40% n/a n/a Overall Electric Ireland BGE SSE Airtricity Energia 21% 21% 15% 17% 19% 13% 15% 16% 14% 16% 11% 8% 10% 10% 8% 10% 8% 10% 5% 6% Overall Electric Ireland 6% 2% n/a n/a n/a n/a n/a n/a n/a n/a n/a BGE SSE Airtricity PrePayPower Energia 10% in 5 of all those who receive a bill currently pay by direct debit which brings the use of direct debit to its highest level yet. SSE Airtricity and Energia customers are the most likely customers to pay by direct debit. With regards to FEA, the proportion of all customers on FEA has experience a slight increase (+4% pts), after a period of decline and is highest amongst BGE and Electric Ireland. 16

13 Awareness of costs: unit and standing charge Ability to estimate unit cost and standing charge Base: All adults Able to provide estimate Unit cost 25% 17% 21% 13% 12% Standing charge 20% 24% 25% 13% 12% Among consumers able to provide an estimate (Base: 118) 41% 50% 37% 54% 28% 20% Estimate of unit cost Average: 14.85c 2% 17% 11% 12% 44% 42% 36% 33% 35% 16% 13% 6% 9% 3% <=10c 10c to 15c 15c to 20c >20c The incidence of customers who are able to provide an estimate of unit costs and standing charge shows no improvement on the low levels reported in The unit cost and standing charge estimates provided were highly variable, with the average estimated unit cost being 14.85c (12.75c in 2015) and the average standing charge being ( in 2015). 17

14 Competition & Deregulation 21

15 Awareness of electricity competitors (Base: All adults ,002) Unprompted awareness of Electricity Suppliers Prompted awareness of Electricity Suppliers 96% 2294% 94% 92% 88% % 68% 66% 60% 58% 58% 55% 54% 52% 48% 29% 27% 25% 18% 12% 12% 5% 2% 17% 14% 4% % 96% 96% 93% 90% 92% 94% 89% 87% 89% 90% 86% 87% 83% 82% 81% 69% 63% 64% 63% 54% 55% 54% 49% 38% 25% 9% 2% 3% 0% 0% % Electric Ireland BGE SSE Airtricity PrePayPower Energia* Pinergy* PandaPower*** Electric Ireland BGE SSE Airtricity Prepay power Energia* Pinergy* PandaPower*** Unprompted awareness reflects top of mind presence in the consumer mind and provides a good estimate of perception of competitive activity in a market. ***Added 2016 Spontaneous awareness (the true measure of awareness) has improved across the newer entrants to the energy market; PrepayPower, Energia, Pinergy and PandaPower. BGE has also experienced an increase at spontaneous level, while awareness of Electric Ireland and SSE Airtricity has declined. At a total awareness level (prompted), awareness of the more established companies; Electric Ireland, BGE and Airtricity has been in steady decline across a number of waves. 22

16 Awareness of electricity offers on the market (Base: All adults 1,002) Electric Ireland Current supplier Bord Gáis Energy SSE Airtricity Prepaypower Energia All adults % % % % % Offers where the unit price of electricity is fixed for a certain time, usually 12 or 24 months 41% Offers based on receiving Cashback or credit to your account after you change supplier Offers based on a certain % reduction on the unit rate of electricity Offers based on a % reduction on your entire bill 17% 25% 32% Offers based on your membership of the suppliers rewards or loyalty scheme Offers based on a % reduction on the standing charge 9% 15% None of these 35% Over one third of electricity customers are not aware of any electricity offers which are currently on the market. Current customers of SSE Airtricity and Energia show the greatest awareness of offers, while current customers of Electric Ireland are less likely to be aware of what offers are currently on the market. 25

17 Ability to compare & understand offers from electricity suppliers (Base: All aware of electricity offers 672) Understanding of electricity suppliers offers Switched last 12 months Not switched past 12 months 4% 21% 25% 31% 17% 2% 10% 16% 33% 19% 16% 3% 9% 17% 32% 21% 16% 5% 2016 Total Switchers Non Switchers % ever used a price comparison website to check energy prices 11% 23% 9% (Base: all respondents 1002) Assessment of difficulty with comparing offers 6% 14% 26% 29% 9% 54% of those who used a price comparison site found comparing offers easy. 16% Very difficult Difficult Neither easy nor difficult Easy Very easy Not attempted comparison 26% of consumers who claim to be aware of current electricity offers stated that they have a small degree, or no understanding, of these offers (29% in 2015). Those who switched within the past 12 months claimed a higher understanding of current offers vs non switchers (48% vs 35%) 20% of customers who are aware of electricity offers which are currently on the market find it difficult to compare offers (down from 1 in 5 in 2015). 1 in 6 however, stated that they had not attempted to compare offers (2015: 21%). 1 in 10 of all adults claimed to have used a price comparison website to compare offers rises to 23% among last 12 month switchers. 26

18 Factors which would help to compare offers (Base: All adults 1,002) Any help All who find comparing offers difficult Clear indication / disclosure of all applicable charges 47% 58% Highlighting the duration of any discounts (e.g. 12, 18 months, etc.) 43% 52% Present an annual bill amount on in all advertising / marketing material comparing suppliers 37% 44% Clear indication/disclosure of all applicable charges was thought to be the most helpful aspect which would help customers when comparing offers. 29

19 EI ESB Networks Customer understanding of the roles of electricity supplier and ESB Networks Base: All adults Responsibilities of ESB Networks and the electricity supplier Supplier ESB Networks Both Generation of electricity 30% 32% 31% 22% 50% 54% 59% 63% 13% 6% 6% 8% Repairing power failures 28% 26% 27% 18% 58% 63% 65% 70% 10% 6% 5% 6% Maintenance of the electricity grid 27% 26% 26% 17% 58% 62% 66% 70% 10% 5% 5% 6% Reading the meter 62% 63% 57% 52% 24% 23% 33% 33% 9% 4% 5% 6% Billing and payment 70% 78% 67% 68% 18% 14% 25% 23% 9% 4% 5% 5% Awareness of ESB Networks role in generating electricity, repairing power failures and maintenance of electricity grid is gradually improving. 30

20 Switching & Engagement 32

21 Switching: Contact by Suppliers (Base: All adults 16+ 1,002) Contacted by other supplier with a view to switching in the past 12 months Contact Channel Phone 9% 10% 15% 44% (51%) 56% (49%) Mail 5% 4% 9% In person Home Visit Contact by Supplier 36% 40% 40% Electric Ireland 48% 47% 50% ( ) = 2015 Yes No Bord Gáis 41% 56% 68% SSE Airtricity 49% 49% 68% PrePayPower 41% 43% 57% Energia n/a n/a 64% Suppliers appear to have been more active in trying to attract non customers vs 2015 levels (+7% pts). The most common method of contact continues to be home visits, however phone and contact via mail has also increased. BGE, SSE Airtricity & Energia appear to be the most proactive overall during the past 12 months. 33

22 Switching rates and supplier shares Base: All adults ,002 Proportion switching by year (at least once in last 12 months) Proportion switched in last 12 months x supplier 20% (22% in 2015) of those on dual fuel switched at least once in past 12 months 44% 26% 29% 16% 12% 16% 12% 12% % (30% in 2015) of switchers switched back to previous supplier 6% Electric Ireland 22% 18% 16% BGE SSE Airtricity PrePayPower Energia The overall rate of switching has remained steady with 2015 levels at 12%. Energia holds the largest share of switchers, within the last 12 months. 22% of switchers switched back to their previous supplier (30% in 2015 & 27% in 2014), while 20% of dual fuel customers switched supplier in past 12 months (22% in 2015 & 26% in 2014). 34

23 Profile of those who have never switched (Base: All adults ,002) Total never switched Non switchers x social class Non-Switchers x Area 79% 58% 47% 53% 65% 56% 62% Total AB C1C2 DE F Urban Rural Non-Switchers x Age Non-Switchers x Region 79% 56% 52% 54% 55% 72% 60% 61% 49% 63% Dublin Leinster Munster Conn/Ulster Younger and older customers are the least likely to have ever switched electricity suppliers. Farmers are also less likely to have switched. 36

24 Contact method used to switch suppliers (Base: All who switched in past 12 months 143) Method used to switch Method used to switch by supplier switched to 39 65% 61% 55% 56% 12% 9% 9% 6% 22% 22% 18% 19% % 7% 7% 6% 7% 3% 4% 1% 0% 1% 0% 0% 3% 4% 5% 6% 0% 6% 9% 9% 7% 0% 17% 14% 15% 20% 23% 30% 22% 15% 9% 14% 30% 10% 3% 39% 60% 61% 53% 39% 47% 22% 0% 0% 0% 0% 5% 9% 7% 10% 7% 8% 25% 28% 15% 0% 24% 12% 17% 3% 10% 12% 10% 10% 75% 63% 64% 63% 62% 57% Price comparison website Supplier website Phone (initiated contact) Phone (contacted) Home visit Home Visit Phone (contacted) Phone (initiated contact) Supplier website Price comparison website Urban 57% 7% 20% 9% 6% - Rural 54% 13% 17% - 11% - Writing EI* BGE* SSE Airtricity* Prepay* Energia* power *Caution small base size Switching continues to be mainly carried out during a visit to their home. However, switching via price comparison websites has been gradually increasing. 39

25 Electricity - Switching Package/option with existing supplier (Base: All non-switchers - 859) For Non switchers - Changed the package or offer with existing supplier e.g. for a better discount 5% 95% (98%) Yes ( ) = 2015 (2%) No 5% of non-switchers changed their package with their supplier to avail of a better discount (similar to 2015 levels). 41

26 Switching intention (Base: All non-switchers 859) Started / attempted to switch but did not complete the switch Why did not complete the switch ANY Important Reason ANY Not Reason When I tried to switch, my supplier contacted me with a better offer % (97%) 3% (3%) The switching process became too complicated The supplier informed me that they were cancelling the switch due to my arrears with my current supplier I could not receive the necessary code for my PAYG device I was informed by my old supplier that I would incur a fee for breaking my contract early The supplier informed me that they would be seeking a larger deposit due to my arrears with my current supplier The switch was taking too long ( ) = 2015 Yes No I changed my mind and no longer wanted to switch I was informed that I would no longer receive the FEA allowance on my bill Similarly to 2015 findings, just 3% of non-switchers started to switch but didn t complete the process. The main reasons given for not switching were due to suppliers giving a better offer when customers said they were switching and the switching process becomes too complicated. 45

27 Experience of switching Rating the overall experience of switching (Base: All who switched last 12 months 143) 91% 84% 91% 91% 81% Likelihood of switching in next 12 months among any switchers % likely to switch again within 12 months 46% 46% 41% 30% 33% 33% 31% 30% 30% Easy 23% 45% 38% 50% 61% 48% Very easy Ease of switching has fallen back on 2015 levels (-10% pts), while likelihood to switch again in the next 12 months has remained steady since

28 Experience of switching process (Base: All who switched last 12 months 143) 47 Rating the overall experience of switching Knew who to contact 75% Trend - % agree with statement 2016 Trend 85% 74% 87% 80% 75% Reflective of the decline in the overall ease of switching. Rating of the various aspects involved in the switching process have also fallen back on 2015 levels. Understood what was required Understood what was offered by the new supplier 79% 80% 94% 88% 85% 86% 79% 94% 90% 89% 89% 80% Understanding of the deposit amount has remained steady since 2012 however. Actual changeover went smoothly 81% 94% 90% 89% 89% 81% Understood duration of offered prices 79% 90% 82% 86% 86% 79% Understood amount of deposit required 65% 66% 59% 58% 66% 65%

29 Rating of outcome switching supplier and package Rating the overall experience of switching supplier (Base: All who switched last 12 months 143) Rating the overall experience of the actual switching package with current supplier (Base: All who switched package - 86) Factor Trend - % agree with statement 2016 Trend Factor Trend - % agree with statement Bill reduced by expected amount 73% 70% 62% 74% 69% 73% Bill reduced by expected amount 66% 67% 61% 62% 70% New supplier service satisfactory 85% 85% 78% 86% 85% 85% Understood the terms 83% 88% 75% 81% 83% Understood the terms 81% 86% 84% 89% 85% 81% Complied with the terms 79% 86% 72% 72% 76% The incidence of switchers who found their bill to have reduced by the amount they expected has improved, while understanding of terms and conditions has declined on 2015 levels. New supplier providing a satisfactory service has remained steady however. Among those who have switched their package there has been an improvement in all aspects. 48

30 Most frequently rated reasons for not switching 53 Reasons for not switching during last 12 months Reason I prefer to remain with an electricity supplier that I trust I like the service that I receive from my current supplier Primary/important 2016 Trend Did not switch & did not consider switching Did not switch but considered switching* 56% 51% 51% 53% 51% I have no reason to switch 44% 45% 42% 44% 46% I do not believe that the level of discount are sufficient to justify switching 54% 55% 55% 51% 61% 56% 54% 50% 39% 39% 43% 31% Considered switching among non switchers 16% Yes 84% No 27% 31% Trust and current supplier satisfaction continue to be the main reasons for not switching. Among those who have never switched and did not consider switching, trust is also their main reason for not switching. For those who didn t switch but considered it, satisfaction with current supplier is the main deterrent to switching. I do not believe that the prices will be a low as the alternative supplier claims 42% 37% 36% 31% 32% 26% I will not save sufficient money to make it worth my while to switch I am concerned that I would not continue to receive my free electricity allowance if I switched (FEA only) 39% 34% 46% 30% 25% 32% 29% 30% 28% 28% 31% I like the service that I receive from my current supplier x supplier It has never occurred to me to switch. 23% 17% 26% 26% 34% Electric Ireland 49% I am concerned about whether the alternative supplier will provide a reliable supply of electricity I am concerned about whether the alternative supplier will be as responsive if there is a power outage 25% 15% 24% 28% 19% 24% % 25% 21% 20% BGE 52% SSE Airtricity 51% PrePayPower 48% *Caution small base

31 Less frequently rated reasons for not switching Reasons for not switching during last 12 months Primary/ important 2016 Reason Did not switch & did not consider switching Did not switch but considered switching I find it hard to determine how much I would save if I switched 35% 24% I find the terms and conditions relating to the offers to be confusing 20% 21% Switching would take too much time and be too complicated for me 15% 20% I would be charged a penalty by my current supplier for leaving 12% 20% The pricing of the offers were not clear n/a 20% The terms of the available contracts were too long n/a 19% I would no longer receive the FEA allowance on my bill 34% 19% I am concerned that they may not stay in the electricity market for a long time 9% 18% I find the range of options offered to be confusing 25% 18% I have had a bad experience of switching other services (such as gas, telephone or mobile phone operators) 13% 15% I did not want a new supplier to ask my current supplier if there were arrears on my account 6% 15% Other bill are a priority 12% 14% I have had a bad experience of switching electricity supplier before 12% 13% 11 7 The terms and conditions of the offers were not clear 20% 13% 11 9 With my chosen payment method I would not save sufficient money to make it worth my while to switch n/a 13% 13 9 I would be charged a penalty by my current supplier. 12% 12% I am not able to switch because of the contract with my current supplier 14% 11% 9 11 I didn t switch as I would have had to choose direct debit to avail of the offer n/a 11% I intend to switch but I have not got around to it 10% 10% 9 9 I may have to pay a deposit if I switch n/a 10% 11 8 I do not believe that I am able to switch because of arrears on my account 6% 10% 11 9 It is not possible for me to switch due to outstanding arrears on my electricity account 6% 10% i was not aware that you could switch. 3% 8% 8 3 I did not know I could switch 5% 8%

32 Rating of factors which would increase switching and impact of information sources on switching (Base: All adults ,002) Another supplier offered Would you consider switching if Recommendation from family/ friends Same price - more environmentally friendly generation Prepayment Better service such as energy advice or online billing Tariffs which included cheaper electricity at some times (balanced with more expensive electricity at other times) More information about how to reduce my electricity usage such as an online system which allowed me to check my usage over the previous year If a supplier offered greater discounts for my chosen payment methods* *Question added Agree 35% 27% 33% 33% 36% 26% 27% 33% 28% 17% 19% 23% 27% 20% 22% 34% 20130% n/a % % % 20130% n/a % % % % 38% 46% 39% 33% 37% 47% 45% 37% 48% 60% 58% 48% 45% 53% 52% 34% 48% 45% 34% 45% 45% 32% 45% Disagree More information on how to reduce electricity usage and tariffs which include cheaper electricity at some times are the elements which would have the biggest impact on switching. A group scheme which customers could avail of and more information on bill about electricity consumption would have the biggest impact on consumers with regards to switching. 55 Impact of information sources on switching A group-scheme (from work or sport/other association) that I could avail of Price comparison website Website with a potential savings calculator More information on bill about electricity consumption A brochure comparing prices and examples of potential savings of typical households % 15% 13% 11% 10% 13% 13% 10% 12% 13% 12% 9% 16% 13% 12% 11% 14% 14% 12% 11% Significantly increase 14% 15% 18% 27% 17% 11% 17% 25% 16% 12% 16% 24% 21% 12% 20% 27% 21% 12% 18% 24% Increase

33 How customers typically react once they have been with an electricity supplier for 12 months (Base: All adults 1,002) All adults Automatically continue on with the supplier irrespective of what tariff is applied 58% 60% Look at any options/offers my supplier sends and select the best for me Automatically continue on with the supplier knowing the default tariff that is charged 6% 14% 13% 19% Look around to see if there are better offers available from other suppliers Look at any options/offers my supplier sends but just let it go to the default tariff that is charged Contact the supplier to renew/negotiate the tariff/package you are on Switch supplier 13% 12% 3% 8% 3% 6% 1% 3% The majority of customers typically continue with their supplier after the initial 12 months is up, irrespective of the tariff. 57

34 Interest in offers/discounts expiration reminder (Base: All adults -1,002) Interest in expiration reminder Format would like to receive reminder Base: all who would like reminder % 51% 49% Yes No By letter 41 By 27 % Yes By phone 21 Elec Ireland 43 Bord Gáis 55 SSE Airtricity 63 Energia 57 By text 11 Half of electricity decision makers would be interested in an expiration reminder, with the majority wishing to receive this in post. 60

35 Interest in offers/discounts expiration reminder (Base: All who would like a reminder 511) When to receive a reminder Information would like included on notification When would like to receive reminder % An estimate of the savings available if you changed price plans with your supplier 77 1 month before the offer comes to an end 75 Information on the availability of electricity / gas supply offers and how you may obtain information about such offers/plans 68 Clarification as to whether there are fees for early termination, if you switch 55 2 weeks before the offer comes to an end Days before your offer is due to come an end 21 7 Details about accredited price comparison websites Details that you require to make a switch, such as your unique customer MPRN number etc in 4 of those who would like a reminder would like to receive it one month before the other comes to an end. The main information which consumers would like detailed on the reminder would be an estimate of the savings available. 61

36 Assessment of Sales Process 62

37 Consumer acceptance of call/phone contact (Base: All who were contacted by other suppler 583) Consumer rating of call/phone contact from suppliers Appropriate of call to door /phone contact 2016 Trend Over 65yr (Base: 115) Number of times contacts 56% 89% 66% 66% 60% 56% 66% 56% 51% 47% Understood the deal offered 57% 90% 72% 61% 58% 57% 60% 35% 48% 46% No unreasonable pressure to sign-up 56% 94% 90% 89% 89% 81% 75% 60% 54% 51% Understood T&Cs 55% Not concerned if I said no 59% Tone of conversation was appropriate 60% 90% 75% 59% 57% 55% 81% 73% 70% 63% 59% 90% 75% 59% 57% 60% % 38% 45% 46% 83% 63% 62% 47% 83% 65% 67% 51% Declines noted in the ratings of sales person approach in 2015 have continued to into 2016, albeit non overtly significant. However, this has been a downward trend for a number of years. Sales ratings among those aged 65+ years are also still declining, most significantly on not concerned if I said no and tone of conversation was appropriate. 63

38 Bill Clarity & Information Supports 69

39 Interaction with Electricity Bill Base: All adults Open and read bill when received Parts of bill typically looked at (Base: All who read bill in detail - 321) Never Amount of bill 91% Yes sometimes 14% (12%) 45% (39%) 10% (10%) 31% (39%) Yes, I open every bill and read it in detail Bill payment date Whether my meter reading is an actual or an estimate Consumption in last period Meter Reading 83% 68% 65% 64% Yes, I open every bill, but only look at the total amount due ( )=2015 Price of electricity Arrears 60% 39% The vast majority of electricity customers open their bill and read at least some part of it, with the main focus being on the total bill amount, followed by bill payment date. 70

40 Incidence of submitting own meter reading in past 12 months (Base: All adults -1,002) Submitting meter reading in past 12 months 23% 21% 21% 11% 12% 12% 35% 8% 43% 27% Yes, whenever the bill is estimated Yes, when I have a larger than expected bill 67% 69% 67% 59% Never 40% Total. Electric Ireland Bord Gais SSE Airtricity Energia Almost 7 in 10 electricity customers have never contacted their supplier with an actual meter reading, highest among Electric Ireland & Bord Gáis Energy customers. Energia customers, followed by SSE Airtricity customers, are the most likely to contact supplier with meter reading however. 71

41 Rating the bill Base: All adults ,002 Current Supplier Received Bills Elec Ireland Bord Gais SSE Airtricity PrePay- Power Energia By post Online % % % % % % % % Bill makes it easy to understand the electricity used Bill is easy to understand Makes it easy to understand the elecctricity charged for Understand the calculation of the bill Bill makes it easy to understand the tariff I am on and idenfity all components A large proportion of neutrals are evident in response to the question. Hence, less positive results tend to be reported on supplier independent commissioned studies. Bord Gáis Energy and Energia customers appear to have the greatest understanding of their bill, as do those who receive their bill via online (albeit demographics may be having an impact here). 72

42 Incidence of easily identifying when a bill is estimated or actual meter readings (Base: All adults -1,002) Easily identified Estimate vs Actual meter Readings How they can easily identify if estimate or actual meter reading Base: All easily identify Estimate vs Actual % Says Estimate/written on the bill 48 52% 48% Yes No Any 'E' Estimated bill always higher/ usually higher. Clearly marked My bills are consistent 1 I always check meter reading 1 Read it 1 % Yes Elec Ireland 50 Bord Gáis 48 SSE Airtricity 49 Looking at the meter reading Using Prepay You can see the meter reading on the back of the bill Just half of electricity customers can easily identify if their bill is an actual reading or an estimate. Among those who can identify, says estimate and E are the distinguishing elements. 74

43 Elements of the bill which are unclear (Base: All adults 1,002) Unclear on the bill (Base: 1002) Elec Ireland Bord Gais Current Supplier SSE Airtricity PrePay- Power Energia Received Bills By post Online % % % % % % % % Unit price per kilowatt hours (kwh) MPRN Number Meter reading (KWh used) Standing charges None of these Only 1 in 5 electricity customers rated kwh, MPRN number, meter reading and standing charges were unclear on their bill, while 2 in 3 said none of the referenced elements were unclear. 75

44 Extent to which the following would be useful in understanding energy consumption and help to make informed switching choices Elements would be useful (Top Factors) 0 Price being charged for the period to which your current bill relates compared with that of the same period last year Agree 48% Disagree 20% Price paid for the previous twelve months (i.e. for your bill in March you would receive information for the period March of the previous year - February of this year) 45% 25% Consumption for the period to which your current bill relates compared with that of the same period last year 45% 24% Your consumption for the previous twelve months (i.e. for your bill in March you would receive information for the period March of the previous year - February of this year) 44% 23% Your consumption for a billing period compared with that of an average customer 44% 26% Your bill price for a billing period compared with that of an average customer 39% 26% Relative pricing and consumption would be most helpful in aiding consumers to make informed choices. 76 Question added 2016

45 Attention given to electricity bill vs other bills (Base: All who have each service ) Q. Rank the following bills in terms of how much attention you pay to your bill relative to your electricity bill More attention to...(bill) than my electricity bill Same level of attention to my...(bill) and my electricity bill Less attention to...(bill) than my electricity bill Rent / mortgage Mobile phone bill/credit Health insurance Car insurance Home insurance Life insurance / mortgage protection TV Service provider, eg Sky, UPC Waste / Bin service Net diff More Less Important The electricity bill is viewed as relatively less important compared with rent/mortgage, car insurance, home insurance, health insurance and life insurance/mortgage protection. 77

46 Smart Metering 79

47 Smart Metering (Base: All Adults 1,002) Residents were asked their opinion on smart metering. The following information was read out to respondents before being asked a series of questions: Smart Meters are the next generation of energy meter. They will replace the traditional electricity and gas meters removing the need for a home visit to read the meter. This will eliminate the need to use estimates whenever a meter cannot be read. Smart meters work by communicating with you and your energy provider giving a detailed view of actual energy usage throughout the day and night. This provision of actual consumption information delivers benefits such as; Providing customers with a mechanism to reduce their electricity bill by enabling consumers to shift some of their electricity usage away from (more expensive) peak consumption times; Informing consumers of their actual usage in electricity and gas therefore allowing them to avoid unnecessary consumption and cost; and Helping the environment through reducing overall energy production. Q. Would you be willing to share the information collected on the smart meter with your supplier? 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 58% 54% Overall Electric Ireland 71% Bord Gais energy 62% 60% SSE Airtricity PrePayPower 3 in 5 electricity customers are open to sharing information with suppliers in order to avail of new tariffs and services. 52% Energia 80

48 Smart Metering (Base: All Adults 1,002) Reactions to smart metering are broadly positive. Q. In office display devices can provide you with both up to date and historical information on your energy consumption. Would you find this type of information helpful in managing your home energy consumption? 40% Overall 60% Yes No Q. Would you continue to use an in-home device to assist in managing your costs? (Base: all would find info helpful 523) 100% 80% 60% 40% 20% 0% 87% 87% 88% Overall BGE Electric Ireland 72% 84% 93% *Energia SSE Airtricity Prepay Power 100% 80% 60% 40% 20% 0% 72% BGE 54% Electric Ireland 63% Energia 70% SSE Airtricity 59% Prepay Power *Caution small base

49 Complaint Handling 82

50 Complaint handling propensity and topics Base: All adults ,002 Proportion of respondents who had reason to complain over last year (Base: All adults ) Knowledge can be made to the CER 15% 45% 45% 40% 36% 38% 47% Aware you can complain to CER 15% of respondents claimed that they had a reason to complain within the last 12 months. Awareness of knowing can complain to the CER has improved with half of respondents now aware (+9% pts). 83

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