Our relationship with energy
Me and my supplier
Non-existant, distant and outdated. This is how people described their relationship with their energy supplier to us in three words. It’s clear that people have a high level of apathy towards their provider.
Even more tellingly, 14% of people we spoke to didn’t even know who their provider was.
When dealing with utilities, most people follow the path of least resistance; pay the bill and don’t think about it—even if it feels expensive.
This is evidenced by:
- Only 52% of customers are satisfied with their supplier
- 50% increase in customer complaints since beginning of 2011
- 43% don’t trust their energy suppliers to be open and transparent (up 4% from 2016)
- Less than 30% switched their energy provider, despite it being easier than ever to do so
Me and my energy
Every person we spoke to during our research said they were at least somewhat conscious about the environment and where their energy comes from, but this rarely translated to actions. This is reflected in a huge number of studies that suggest despite the availability of providers offering renewable energy sources, people are reluctant to switch unless the price is right.
These are a few reasons why there is a disconnect between people's current energy choices and their potential positive impact on the environment:
We don’t know how the whole energy system works
Switching is perceived to be long and painful—even by those with no prior experience of switching
We don’t trust renewable energy claims made by providers
We don't trust the new wave of providers with our hard earned money
We don't care enough to investigate if there is a better option
Small problems take priority over large problems; we feel we can make a difference to our own lives but we can’t change the world by ourselves
On making everyday choices that positively impact the environment.
On not being convinced enough to switch to a renewable energy provider.
We overpay for our indifference
Energy providers and consumers don’t speak the same language. As consumers, we don’t connect the energy we use with bills that talk about price per kilowatt hour, so we don’t really know what good looks like. We don’t understand (or care) how the costs are calculated, just the figure at the end of the bill.
Our expectation is driven by what we think we “should” be paying, based on prior experience or what others around us pay. But we still perceive switching to be hard.
16m UK households on a Standard Variable Rate (SVR) tariff
£7bn overpaid by those households in a single year
The average available variable tariff is £1135 per year vs the cheapest available tariff which is £827 per year.
There is a £308 yearly price difference between an average variable rate and the cheapest available tariff. Add in dual fuel discounts and direct debit discounts, and the cost of our indifference is plain to see.