CER Residential Electricity Results 2015 - CRU Ireland · 7 Market share: residential electricity...
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CER Residential Electricity Results 2015 Prepared for: Prepared by: &
Transcript of CER Residential Electricity Results 2015 - CRU Ireland · 7 Market share: residential electricity...
CER Residential Electricity Results 2015
Prepared for:
Prepared by:
&
2
Background
● Fieldwork for this survey was conducted between 25th February – 25th March 2015.
Questionnaire length was 25 minutes
● Survey data collection methodology was ‘face to face’ interviewing via CAPI, administered in the respondent’s home – 1,001 respondents interviewed
Margin of error on a sample of this size is +/- 3%. For 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 Ireland
● The sample is representative across geography, gender, age, socio-economic status and supplier
● The survey is comparable to surveys conducted from 2010-2014 in sample approach and representivity
4
Respondent & Market Profile
5
Respondent profile – age, social class, location Base: All adults 16+ - 1001
● Respondents distribution is representative of the national population (of all utility decision makers). Age profile and social class are similar to previous waves.
● Surveys were completed across 120 paired sampling points.
Age profile of respondents Social grade of respondents
Location of respondents
County 2012 2013 2014 2015
Dublin 30% 29% 29% 29%
Cork 5% 11% 9% 11%
Galway 6% 6% 4% 4%
Kildare 5% 5% 2% 2%
Meath 4% 4% 4% 4%
Other * 38% 45% 51% 49%
Type of Home
97%
3%
Apartment
House
* Other – all other countries * Social grade definition: AB-Upper/Middle category, C1C2-Lower Middle & Skilled Workers, DE-Unskilled workers, F-Farmers.
AB* C1C2* DE* F*
12%
58%
25%
4%
12%
58%
25%
4%
12%
58%
25%
4%
2013
2014
2015
18-25 26-35 36-45 46-55 56-64 65+
7%
23% 22%
18%
15% 16%
7%
22% 21%
18%
15% 16%
7%
23%
21%
18%
15% 16%
2013
2014
2015
6
Incidence of having Natural Gas in home and gas provider (Base: All adults 16+- 1,001)
● One third also use natural gas in their home, with Bord Gais being the main provider, followed by Electric Ireland.
34%
66%
Do you also use Natural Gas in your home?
Yes
No
Gas Provider (All who have natural gas – 333)
20
16
2
2
Bord Gais
Electric Ireland
Airtricity
Flogas
Energia
%
60
7
Market share: residential electricity suppliers Base: All adults 16+ - 1,001
● Electric Ireland continues to hold the largest market share across the entire residential electricity market and also among duel fuel consumers (use both electricity and natural gas).
● The main changes in the market centre on:
Airtricity’s share has been gradually declining over the last three consecutive waves; among the total electricity market and also the dual fuel sector.
Prepaypower has been gradually increasing its market share and now holds 5% of the total market.
Electricity Market shares trends Electricity market shares – consumers with both gas and electricity
(Proportion of respondents with each supplier) (Proportion of respondents with each supplier)
48% 46%
43%
26%
19%
29% 26%
32%
28%
10%
4%
0%
3%
2012 2013 2014Electric Ireland BGE Airtricity
Prepaypower Energia
60% 58% 61% 63% 62%
19% 18%
12% 15%
14% 21% 23%
25%
19%
17%
0% 2% 3% 5% 1%
2011 2012 2013 2014 2015
Electric Ireland BGE Airtricity Prepaypower Energia
9
Satisfaction with current supplier Base: All adults 16+ - 1,001
● Overall satisfaction with current supplier has improved after a dip experienced during 2013-2014.
Satisfaction has improved across a providers, most noticeably Bord Gais Energy which has improved by +8% pts
The main reason for dissatisfaction with current supplier is due to respondents experiencing a price increase/prices being too expensive.
Overall satisfaction with current supplier Overall satisfaction by current supplier
84% 89%
83% 81% 86%
2011 2012 2013 2014 2015
83%
92%
85% 84%
89%
84%
87%
81% 77%
85% 87%
83%
77% 75%
82% 83%
60%
70%
80%
90%
100%
2011 2012 2013 2014 2015
Electric Ireland BGE Airtricity Prepay Power
10
Satisfaction with current supplier x demographics Base: All adults 16+ - 1,001
● Younger and older customers are more satisfied with their electricity suppliers. In terms of social class, farmers are the most satisfied, as are those who live in Rest of Leinster/Munster regions. No difference in satisfaction by gender.
84% 89% 89% 82%
Dublin Rest of Leinster Munster Conn/Ulster
Satisfaction x Region
87% 89%
79%
96%
AB C1C2 DE F
Satisfaction x Social Class
87% 86%
Male Female
Satisfaction x Gender
90% 85% 83%
88% 89% 87%
18-25 26-34 35-45 46-55 56-64 65+
Satisfaction x Age
11
Billing & Payment
12
Respondent profile – bill delivery and frequency Base: All who receive any bill - 814
● There has been little variation in how customers receive their bills, as the incidence of those receiving their bills via online methods appears to be stabilising.
Airtricity customers continue to show the highest tendency of receiving their bills via email.
Method for receiving bill Method of receiving a bill – by supplier*
*: Selection of multiple methods possible
15% 18%
20% 21%
2012 2013 2014 2015
84% 83% 89% 92% 79% 74%
89% 89%
52% 52% 63% 61%
14% 13% 11% 8% 14% 20%
14% 8%
44% 42% 38% 36%
1% 2% 2% 2% 4% 4% 0% 4% 3% 5% 3% 7%
201520142013201220142015201320122015201420132012
Website
Post
Airtricity BGE Electric Ireland
Post
77%
21%
Website
2%
13
Respondent profile –payment models Base: All adults 16+ - 1,001
13
● The majority of customers receive and pay their bills, however the incidence of customers on prepayment has been gradually increasing since 2011.
Airticity and BGE companies are more likely to be on Equaliser compared to EI customers.
● Additionally, some 16% of all customers are on a night saver tariff.
Payment models – trends since 2011 Payment models – by supplier
86% 86% 84% 78% 79%
5% 9% 9%
9% 6%
4% 3% 2%
5% 7%
1% 3% 5% 8%
6% 1% 1% 2% 1%
2011 2012 2013 2014 2015
Household
budget/direct
deductions
Prepayment
(keypad)
Prepayment
(token meters)
Equaliser
Receive and pay
the bills
80% 78% 86%
11% 10%
4% 3% 6%
5% 5% 6% 3% 1% 0% 1%
Airtricity BGE Electric Ireland
Household
budget/direct
deductions
Prepayment
(keypad)
Prepayment
(token meters)
Equaliser
Receive and
pay the bills
15
Respondent profile –payment methods Base: All who receive any bill - 850
15
● 52% of all those who receive and pay their bills, currently pay by direct debit – which brings the use of direct debit to its highest level yet.
Airtricity customers continue to show the highest prevalence of direct debit.
● With regards to FEA, the proportion of all customers on FEA has been gradually declining over the last two consecutive waves.
Prevalence of direct debit
Base: All receive a bill/pay fixed amount - 804
Proportion in receipt of FEA
Base: All adults 16+ - 1,001
Overall Electric Ireland BGE Airtricity
47%
34%
51%
78%
44%
35%
40%
72%
47%
39%
44%
68%
46%
39% 42%
74%
52%
46% 49%
70%
2011 2012 2013 2014 2015
Overall ElectricIreland
BGE Airtricity Prepay Power
15% 21%
8% 5%
na
17% 21%
10% 10%
na
13% 16%
10% 8%
na
11% 14%
8% 6% 2%
2012 2013 2014 2015
16
Awareness of costs: unit and standing charge
● The incidence of customers who are able to provide an estimate of unit costs and standing charge has declined significantly and is now at its lowest level.
● The unit cost and standing charge estimates provided were highly variable, with the average estimated unit cost being 12.75c and the average standing charge being €26.37.
Ability to estimate unit cost and standing charge Base: All adults 16+ - 1001
Able to provide estimate
’12 ’13 ‘14 ’15
Unit cost 25% 17% 21% 13%
Standing charge 20% 24% 25% 13% <=10c 10c to 15c 15c to 20c >20c
41%
20%
33%
6%
50%
2%
44%
3%
37%
11%
36%
16%
54%
12%
25%
9%
2012 2013 2014 2015
Average: 12.75c
Estimate of unit cost
Among consumers able to provide an estimate… (Base: 132)
19
Disconnection (Base: All adults – 1,001)
● Just 1% of customers claim that their electricity supply was disconnected during the last 12 months.
1%
99%
Electricity supply disconnected in the last year?
Yes No
20
Competition & Deregulation
21
Awareness of electricity competitors (Base: All adults 16+ - 1,001)
21
● Unprompted awareness reflects top of mind presence in the consumer mind and provides a good estimate of perception of competitive activity in a market.
● Spontaneous awareness (the true measure of awareness) has improved across all suppliers, with the exception of Electric Ireland.
● At a total awareness level (prompted), slight declines have been noted across BGE and Airtricity, with increasing awareness of Prepaypower, Energia and Pinergy.
Unprompted awareness of Electricity Suppliers Prompted awareness of Electricity Suppliers
*Added 2014 ** Added 2015
ElectricIreland
BGE Airtricity Prepaypower Energia* Pinergy*
96%
58%
68%
2%
94%
55%
68%
5%
94%
48%
60%
12% 12%
4%
92%
52%
66%
25%
18% 14%
2012 2013 2014 2015
86%
90% 92%
9%
2% 0%
89% 87% 89%
25%
3% 0%
96%
87%
94%
54% 55%
38%
96%
83%
90%
63% 63%
54%
1%
ElectricIreland
BGE Airtricity Prepaypower
Energia* Pinergy* Vayu**
2012 2013 2014 2015
22
Awareness of gas suppliers (Base: All with gas – 333)
22
● Bord Gais Energy continues to achieve the highest unprompted and prompted awareness of all gas providers.
● However spontaneous awareness of competitors such as Airtricity, Flogas and Energia has increased.
87%
38%
11%
43%
4%
92%
51%
20%
44%
7%
BGE Airtricity FloGas Electric
Ireland
Energia
Unprompted awareness of gas suppliers
2014 2015
95%
66%
32%
49% 53%
96%
67%
39% 47%
62%
BGE Airtricity Energia FloGas Electric
Ireland
Prompted awareness of gas suppliers
2014 2015
24
Awareness and perceived impact of deregulation (Base: All aware of deregulation – 346)
● 3 in 5 believe that deregulation has increased the number of offers on the market, while 2 in 5 believe that the quality of offers has improved since deregulation. Note when presented about half the market are aware of offer types within the market.
● 2 in 5 have also noticed improvements in the service they receive from their supplier and over a third believe that deregulation has lowered the cost of electricity.
Impact of deregulation
This has improved the service I receive from electricity suppliers
This has lowered the price I pay compared to what I would have to pay if the regulator set the prices
This has improved the quality of offers on the market**
This has increased the number of offers on the market**
Agree Disagree
**Questions added 2015 – relativities of 2014 data may be affected.
39%
39%
33%
36%
0%
57%
0%
43%
27%
22%
38%
27%
n/a
13%
n/a
19%
2014
2015
2014
2015
2014
2015
2014
2015
25
Awareness of electricity offers on the market (Base: All adults – 1,001)
27%
22%
20%
12%
52%
Offers where the unit price of electricity is fixed
for a certain time, usually 12 or 24 months
Offers based on receiving Cashback after you
change supplier
Offers based on a certain % reduction on the
unit rate of electricity
Offers based on your membership of the
suppliers rewards or loyalty scheme
None of these
Current supplier
Electric Ireland
Bord Gáis Energy
Airtricity Prepay-power
554 123 189 101
% % % %
24 32 29 35
19 22 28 33
16 26 21 29
9 16 16 22
57 43 45 44
%
● Awareness of electricity offers is low at overall level.
Current customers of Prepaypower 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.
All adults
26
Ability to compare & understand offers from electricity suppliers (Base: All aware of electricity offers – 487)
● 1 in 5 customers who are aware of electricity offers which are currently on the market find it difficult to compare offers.
● A similar number stated that they had not attempted to compare offers (21%).
● Just 9% of all adults claimed to have used a price comparison website to compare offers – rises to 23% among last 12 month switchers.
Assessment of difficulty with comparing offers
Understanding of electricity suppliers’ offers
● 29% of consumers who claim to be aware of current electricity offers stated that they have a small degree, or no understanding, of these offers.
2015 Total
Switchers Non Switchers
% ever used a price comparison website to check energy prices (Base: all respondents 1001)
9% 23% 13%
9%
20%
28% 26%
17%
Do notunderstand
A smalldegree
Someunderstanding
Mostlyunderstand
Fullyunderstand
2015
5%
15%
20%
28%
11%
21%
Verydifficult
Difficult Neithereasy nordifficult
Easy Very easy Notattemptedcomparison
2015
24% of those who found comparing
offers easy used a price comparison
website
Switched last 12 months
7% 17% 23% 30% 22%
Not switched past 12 months
10% 20% 29% 25% 16%
27
Understanding of Electricity Suppliers’ offers x Current Supplier (Base: All aware of electricity offers – 487)
Understanding of Electricity Suppliers’ offers x Current Supplier
Base: 487 236 70 105
9% 9% 9% 8%
20% 21% 20% 19%
28% 28% 27% 31%
26% 27% 22%
27%
17% 16% 23%
16%
Total Electric Ireland Bord Gais Energy Airtricity
Fully understand
Mostly understand
Some understanding
A small degree
Do not understand
● There is little variation in the understanding of electricity suppliers’ offers by customers across the various suppliers.
28
What switchers actually compared when reviewing prices (Base: All switched in last 12 months)
● When comparing offers across suppliers the total monthly bill amount is the main aspect being compared.
1 in 5 just look at the offer.
28
Total
Current Supplier
Electric Ireland
Bord Gáis
Energy
Airtricity Prepay-power
Others
Base: 133 40 13 31 26 23
% % % % % %
The total monthly bill amount 47 49 37 52 43 46
The cost per unit of electricity 22 21 36 15 20 26
The annual average bill amount 22 27 15 25 18 15
The total standard rate 17 24 14 20 8 8
The percentage increase/decrease that is advertised 9 15 17 5 8 -
None of these – just look at the offer 18 11 16 17 28 28
When you compared prices from other electricity suppliers which of the following did you actually compare?
* Caution small base
29
Customer understanding of the roles of electricity supplier and ESB Networks Base: All adults 16+ - 1,001
29
● Awareness of ESB Networks role in generating electricity, repairing power failures, reading the meter and maintenance of electricity grid is improving.
● However slight increase in confusion over billing.
2012 2013 2014 2015
Generation of electricity
Repairing power failures
Maintenance of the electricity grid
Reading the meter
Billing and payment
Responsibilities of ESB Networks and the electricity supplier
Supplier ESB Networks
2012 2013 2014 2015
ESB N
etw
ork
s
EI
2012 2013 2014 2015
10% 13% 6% 6%
8% 10% 6% 5%
8% 10% 5% 5%
6% 9% 4% 5%
7% 9% 4% 5%
Both
47% 50% 54% 59%
26% 24% 23% 33%
56% 58% 63% 65%
58% 58% 62% 66%
34% 30% 32% 31%
29% 28% 26% 27%
26% 27% 26% 26%
72% 70% 78% 67%
2012 2013 2014 2015
61% 62% 63% 57%
18% 18% 14% 25%
2012 2013 2014 2015
31
Switching & Engagement
32
Switching: Contact by Suppliers (Base: All adults 16+ 1,001)
● There has been little change in the incidence of customers who recall being contacted by competitors.
● The most common method of contact continues to be home visits, with Bord Gais appearing to be the most proactive overall.
49% 51%
Contacted by other supplier with a view to switching in
the past 12 months
Yes
No
Contact Channel
2014 2015
Phone
9% 10%
Mail 5% 4%
In person – Home Visit
36% 40%
2014 2015
Electric Ireland 48% 47%
Bord Gais 41% 56%
Airtricity 49% 49%
Prepaypower 41% 43%
Contact by Supplier
(47%)
(53%)
( ) = 2014
33
Proportion switching by year (at least once in last 12 months)
Switching – rates and supplier shares Base: All adults 16+ - 1,001
● The overall rate of switching has dropped back to 2013 levels at 12%.
● Prepaypower holds the largest share of switchers, with 23% of it’s base having switched in the last 12 months.
30% of switchers switched back to their previous supplier (27% in 2014), while 22% of dual fuel customers switched supplier in past 12 months (26% in 2014).
22% (26% in 2014) of those on dual fuel
switched at least once in past 12 months
30% (27% in 2014) of switchers switched back to
previous supplier
26% 29%
16%
12% 16%
12%
2010 2011 2012 2013 2014 2015
Proportion switched in last 12 months x supplier
7%
9%
16%
23%
Electric Ireland BGE Airtricity Prepaypower
34
Satisfaction with new suppliers Base: All who switched in last 12 months
34
● 3 in 5 last 12 month switchers claim that their experience with their new provider is as expected – identical to 2014 levels.
● Positively 29% believe that the service is better/much better than expected (also in line with 2014)
Airtricity and Prepaypower have experienced a decline in those rating the service as much better/better than expected, albeit off a small base.
Satisfaction with new supplier
2% 2% 1% 2% 5% 7% 0% 3% 0% 0%
3% 4% 4% 0% 0%
0%
4% 3%
2% 3%
6% 6% 4%
0%
9% 0% 5%
10%
9% 14%
59% 60% 64%
60%
49%
52%
66%
67%
28%
49%
20% 17% 21%
22% 20% 33%
18% 4%
24%
23%
11% 12% 6%
15% 16%
8% 6% 14%
37%
11%
2014 2015 2014 2015 2014 2015 2014 2015 2014 2015
Total Electric Ireland Bord Gais Energy Airtricity* Prepaypower*
Much better than expected
Better than expected
As expected
Worse than expected
Much worse than expected
Have not yet received a bill from
my new supplier
*Caution small base
35
Total never switched
Profile of those who have never switched (Base: All adults 16+ - 1,001)
● Younger and older customers are the least likely to have ever switched electricity suppliers. Farmers are also less likely to have switched, as are those living in the Conn/Ulster and Leinster regions – interestingly these cohorts (younger, older and farmers) also claim to be the most satisfied with their current supplier.
Non switchers x social class
77%
67%
53%
63% 70%
74%
18-25 26-35 36-45 46-55 56-64 65+
66%
Total
Non-Switchers x Age Non-Switchers x Region
63% 66%
63%
74%
AB C1C2 DE F
63% 69%
63% 69%
Dublin Leinster Munster Conn/Ulster
Non-Switchers x Area
64% 68%
Urban Rural
36
Switching-Duel Fuel vs Electricity only and Gas only switching (Base: All adults 16+ - 1,001)
● Dual fuel customers show the highest incidence of having switched suppliers in the past 12 months.
Proportion switching at least once in the last 12 months
Base: (166) (835) (835)
22%
9%
1%
Dual Fuel Switched Electricity
(non dual fuel)
Switched Gas
(Non dual fuel)
12% of all electricity customers have
switched in the last 12 months
37
Level of switching in last 12 months x Age
Switching x Age & Social Class (Base: All adults 16+ - 1,001)
● Level of electricity switching in last 12 months is highest among the 36-45 age group. There is little variation across social class.
Level of switching in last 12 months x Social Class
12%
4%
12%
16% 14%
11%
7%
Total 18-25 26-35 36-45 46-55 56-64 65+
12% 12% 11% 13%
10%
Total AB C1C2 DE F
40
Electricity - Switching Package/option with existing supplier (Base: All non-switchers - 619)
● Only 2% of non-switchers changed their package with their supplier to avail of a better discount.
2%
98%
For Non switchers - Changed the package or offer
with existing supplier – e.g. for a better discount
Yes
No
45
Most frequently rated reasons for not switching
45 ● Trust and current supplier
satisfaction are still the main reasons for not switching.
● Among those who have never switched and did not consider switching -satisfaction with their current provider is their main reason for not switching.
● For those that didn’t switch but considered it – did not believe the prices/believe they would save sufficiently, but also trust and satisfaction with current supplier exists.
Reasons for not switching during last 12 months
Reason
Primary/important 2015
Trend
Did not switch & did not consider switching
Did not switch but considered
switching*
I prefer to remain with an electricity supplier that I trust
59% 29%
I like the service that I receive from my current supplier
61% 23%
I will not save sufficient money to make it worth my while to switch
50% 28%
I have no reason to switch 49% 27%
I do not believe that the level of discount are sufficient to justify switching
47% 26%
I do not believe that the prices will be a low as the alternative supplier claims
37% 33%
I find it hard to determine how much I would save if I switched
37% 24%
I would no longer receive the FEA allowance on my bill (FEA only) 40% 17%
I am concerned that I would not continue to receive my free electricity allowance if I switched (FEA only)
32% 34%
I find the range of options offered to be confusing
25% 23%
60% 61% 56% 54%
34% 39% 34% 46%
61% 51% 44% 45%
31% 42% 37% 36%
15% 28% 24% 35%
74% 54% 55% 55%
19% 22% 19% 25%
2012 2013 2014 2015
25% 32%
n/a n/a n/a 34%
30% 39% 39% 43%
*Caution small base
I like the service that I receive from my current supplier x supplier
Electric Ireland 46%
BGE 15%
Airtricity 22%
Prepaypower 17%
Considered switching among non switchers
18% Yes
82% No
46
Less frequently rated reasons for not switching
● Also, those that did not switch but considered it, are more likely to mention; previous bad experience, never got around to it, concern that suppliers would not stay in the market, and outstanding arrears.
Reasons for not switching during last 12 months
Primary/ important
2015
Reason 2014 2015 Did not switch & did not consider
switching
Did not switch but considered
switching
I find the terms and conditions relating to the offers to be confusing 18% 20% 20% 20%
I am concerned about whether the alternative supplier will be as responsive if there is a power outage
28% 19% 21% 10%
I may have to pay a deposit if I switch 18% 17% 21% 4%
It has never occurred to me to switch. 23% 17% 19% 7%
I am concerned about whether the alternative supplier will provide a reliable supply of electricity
25% 15% 16% 7%
Switching would take too much time and be too complicated for me 20% 15% 17% 8%
I am not able to switch because of the contract with my current supplier 7% 14% 14% 15%
I have had a bad experience of switching other services (such as gas, telephone or mobile phone operators)
7% 13% 12% 17%
I would be charged a penalty by my current supplier. 5% 12% 11% 15%
I have had a bad experience of switching electricity supplier before 6% 12% 11% 20%
Other bill are a priority n/a 12% 11% 18%
I intend to switch but I have not got around to it 9% 10% 7% 24%
I am concerned that they may not stay in the electricity market for a long time 16% 9% 7% 24%
I did not want a new supplier to ask my current supplier if there were arrears on my account
6% 7% 9% 0%
It is not possible for me to switch due to outstanding arrears on my electricity account
5% 6% 5% 13%
I do not believe that I am able to switch because of arrears on my account 6% 6% 5% 7%
I did not know I could switch n/a 5% 5% 8%
I was not aware that you could switch. 4% 3% 2% 6%
49
Switching intention (Base: All non-switchers – 249)
● Just 3% of non-switchers started to switch but didn’t complete the process.
● The main reasons given for not switching were due to mind change and suppliers giving a better offer when customers said they were switching.
3%
97%
Started / attempted to switch but did not complete the switch
Yes No
Why did not complete the switch - 27
30
30
16
12
12
10
9
8
5
52
60
77
75
81
84
74
79
85
I changed my mind and no longer wanted toswitch
When I tried to switch, my suppliercontacted me with a better offer
The switching process became toocomplicated
I was informed by my old supplier that Iwould incur a fee for breaking my contract
early
The switch was taking too long
The supplier informed me that they werecancelling the switch due to my arrears with
my current supplier
I could not receive the necessary code formy PAYG device
The supplier informed me that they wouldbe seeking a larger deposit due to my
arrears with my current supplier
I was informed that I would no longerreceive the FEA allowance on my bill
ANY Important Reason
ANY Not Reason
50
Rating the overall experience of switching
Experience of switching (Base: All who switched last 12 months – 118)
● Ease of switching and likelihood to switch again in the next 12 months remains steady with 2014 findings (albeit the very easy score has increased).
● 30% of switchers are likely to switch again in the next 12 months.
Likelihood of switching in next 12 months – among switchers % likely to switch again within 12 months
74%
45% 38%
50% 61%
23%
46% 46%
41% 30%
97% 91%
84% 91% 91%
2011 2012 2013 2014 2015
Easy
Very easy
32%
23%
33% 31% 30%
2011 2012 2013 2014 2015
51
Rating the overall experience of switching
Experience of switching process (Base: All who switched last 12 months – 118)
51
● The smoothness of the actual change over remains positive, despite some decline in knowing who to contact this wave.
● Increase noted in those understanding the deposit amount.
Trend - % agree with statement
2015 Trend
Knew who to contact 80%
Understood what was required
86%
Understood what was offered by the new supplier
89%
Actual changeover went smoothly
91%
Understood duration of offered prices
86%
Understood amount of deposit required
66%
86% 85% 74% 87% 80%
92% 94% 88% 85% 86%
95% 94% 90% 89% 89%
94% 94% 90% 94% 91%
90% 82% 86% 86%
2011 2012 2013 2014 2015
66% 59% 58% 66%
52
Rating the overall experience of switching supplier (Base: All who switched last 12 months – 118)
Rating of outcome – switching supplier and package
● Some decline noted in the incidence of switchers who found their bill to have reduced by the amount they expected and understanding of terms and conditions.
● Among those who have switched their package there has been an improvement in the understanding of the terms.
Factor Trend - % agree with statement
2015 Trend
Bill reduced by expected amount
69%
New supplier service satisfactory
85%
Understood the terms
85%
Rating the overall experience of the actual switching package with current supplier (Base: All who switched package - 84)
Factor
Trend - % agree with statement
2012 2013 2014 2015
Bill reduced by expected amount
66% 67% 61% 62%
Understood the terms 83% 88% 75% 81%
Complied with the terms
79% 86% 72% 72%
72% 70% 62% 74% 69%
92% 85%
78% 86% 85%
2011 2012 2013 2014 2015
91% 86% 84% 89% 85%
53
Rating of factors which would increase switching and impact of information sources on switching (Base: All adults 16+ - 1,001)
● Recommendation from family/friends and tariffs which include cheaper electricity at some times (TOU) are the top two elements which would influence switching.
● A group scheme which customers could avail of continues to have the biggest impact on consumers, albeit this is closely followed by a price comparison website and more information on the bill about electricity consumption.
Would you consider switching if…
Agree Disagree
Impact of information sources on switching
Significantly increase
An
oth
er s
up
plier o
ffered
Increase
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
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
35%
27%
33%
36%
26%
27%
28%
17%
19%
27%
20%
22%
na
27%
31%
na
29%
29%
38%
46%
39%
37%
47%
45%
48%
60%
58%
45%
53%
52%
48%
45%
45%
45%
201320142015
201320142015
201320142015
201320142015
201320142015
201320142015
10%
15%
13%
10%
13%
13%
12%
13%
12%
16%
13%
12%
14%
14%
12%
14%
15%
18%
17%
11%
17%
16%
12%
16%
21%
12%
20%
21%
12%
18%
2013
2014
2015
2013
2014
2015
2013
2014
2015
2013
2014
2015
2013
2014
2015
54
Rating of factors which would increase switching and impact of information sources on switching x switchers v non switchers (Base: All adults 16+ - 1,001)
Would you consider switching if…
Agree
Impact of information sources on switching
Significantly increase
An
oth
er s
up
plier o
ffered
Recommendation from family/ friends
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)
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
33
31
29
27
22
19
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
Same price - more environmentally friendly generation
Switchers Non-
switchers
41% 34%
41% 35%
38% 32%
33% 31%
35% 19%
27% 18%
13
13
12
12
12
18
17
16
20
18
Switchers Non-
switchers
45% 32%
44% 33%
39% 29%
40% 38%
36% 34%
Increase
● Those who have switched in the last 12 months would be influenced to consider switching by a range of factors.
55
How customers typically react once they have been with an electricity supplier for 12 months (Base: All adults – 1,001)
58%
14%
13%
6%
3%
3%
1%
Automatically continue on with the supplier
irrespective of what tariff is applied
Look at any options/offers my supplier sends
and select the best for me
Look around to see if there are better offers
available from other suppliers
Automatically continue on with the supplier
knowing the default tariff that is charged
Look at any options/offers my supplier sends
but just let it go to the default tariff that is…
Contact the supplier to renew/negotiate the
tariff/package you are on
Switch supplier
Current supplier Switchers (ever)
Electric Ireland
Bord Gáis
Energy Airtricity
Prepay-power
Yes in past 12 months
No- not in past
12 months
554 123 189 101 133 249
% % % % % %
66 52 45 45 30 43
12 18 16 13 27 21
9 14 22 23 30 19
6 7 6 5 2 8
3 5 4 1 2 3
3 3 5 10 1 6
1 1 1 3 5 0
● The majority of customers typically continue with their supplier after the initial 12 months is up, irrespective of the tariff.
● Airtricity and Prepaypower customers and those switching in the past 12 months are more likely to look around to see if there are better offers available from other suppliers.
All adults
57
Assessment of Sales Process
58
Consumer acceptance of call/phone contact (Base: All who were contacted by other suppler – 495)
Over 65yr (Base: 83)
2012 2013 2014 2015
67% 66% 56% 51%
67% 60% 35% 48%
67% 75% 60% 54%
83% 64% 38% 45%
83% 83% 63% 62%
100% 83% 65% 67%
Appropriate of call to door /phone contact
2015 Trend
Number of contacts 60%
Understood the deal offered 58%
No unreasonable pressure to sign-up 61%
Understood T&Cs 57%
Not concerned if I said no 63%
Tone of conversation was appropriate 68%
Consumer rating of call/phone contact from suppliers
● Some declines noted in the ratings of sales person approach, albeit non overtly significant. However this has been a downward trend for a number of years.
● Some improvement noted among those aged 65+ Years, however scores still declining for; number of contacts, and pressure.
89% 66% 66% 60%
90% 72% 61% 58%
87% 74% 66% 61%
90% 75%
59% 57%
81% 73% 70% 63%
90% 75% 59% 57%
2012 2013 2014 2015
64
Bill Clarity & Information Supports
65
Open and read bill when received
Interaction with Electricity Bill Base: All adults 16+ - 1001
Parts of bill typically looked at (Base: All who read bill in detail - 377)
The vast majority (4 in 5) open their bill, with the main focus being on the total bill amount. Only 2 in 5 open every bill. 1 in 10 never open their bill.
39%
39%
12%
10%
Yes, I open every bill, but only look at the total amount due
Never
Yes sometimes
Yes, I open every bill and read it in detail
97%
84%
74%
67%
66%
60%
47%
Amount of bill
Bill payment date
Whether my meter reading is an
actual or an estimate
Consumption in last period
Meter Reading
Price of electricity
Arrears
68
Complaint Handling
69
Complaint handling – propensity and topics
● 3% of respondents had complained within the last 12 months, with the majority of those who made a complaint initially contacted their supplier.
Proportion of respondents who complained over last year (Base: All adults 16+ - 1001)
Complaint topic Total
Current or previous supplier (e.g. Airtricity, BGE, Electric Ireland, Energia, Flogas,Prepaypower, Pinergy)
54%
ESB Networks 27%
Bord Gais Networks/Gas Networks Ireland 10%
Other 6%
Don't know 4%
Complaint made to (Base: All who made a complaint – 37)
6%
5%
4%
3%
2012 2013 2014 2015
71
Complaint handling – awareness complaints can be made to the CER (Base: All adults 16+ - 1,001)
Knowledge can be made to the CER
45% 45% 40%
36% 38%
2011 2012 2013 2014 2015
Aware you can complain to CER
● 2 in 5 customers are aware that complaints can be made to the CER.
72
Interest in Prepayment
73
Prepayment: Awareness of PPMS additional service charge Base: All adults – 1,001
● 28% are aware of additional charges for PPMS, with Airtricity customers being least aware.
Awareness of additional service charge on non network PPMs provided by supplier
Awareness x supplier
Yes
28%
No
72% 25
34 21
66
36
75 66
79
34
64
Electric
Ireland
BGE Airtricity Prepay
Power
Others
No
Yes
74
Interest in prepayment (Base: All not on prepayment – 814) 74
● Just 11% of consumers (not on prepayment) stated some level of interest in prepayment meters – this level has been in decline since 2013
The highest level of interest was in C1C2 (10%), DE (13%) and 18-25 (17%)
Level of interest in prepayment (very interested & Not at all interested) – by social grade and age
Level of interest in prepayment
Not at all interested Very interested
Any not interested %
Any interested %
42%
47%
45%
61%
68%
11%
9%
11%
11%
8%
13%
16%
16%
13%
10%
12%
13%
14%
8%
7%
19%
12%
12%
6%
4%
2011
2012
2013
2014
2015
79
71
74
72
81
84
83
76
72
84
17
12
11
11
7
8
8
10
13
8
18-25
26-35
36-45
46-55
56-64
65+
AB
C1C2
DE
F
77
Comparative rating of prepayment and bill payment x supplier
● Overall, those on prepayment feel the payment method vs bills is more satisfactory (3 in 4).
● Electric Ireland customers show the highest level of prepayment satisfaction vs bill pay, albeit of a small base
Bord Gais customers currently on prepayment are the most likely to rate prepayment as less satisfactory to receiving and paying bills. Note small base size.
Base: All currently on prepayment - 187
* Caution small base size
1%
8%
5%
11%
21%
53%
Much more satisfactory
More satisfactory
About the same/no
difference
Less satisfactory
Much less satisfactory
Don’t know
78
Why non payment customers don’t want a PAYG meter (Base: All not interested in prepayment – 623)
● Fear of credit running out at an inconvenient time and the perception that the cost of electricity may be more expensive on prepayment are the main reasons cited for not being interested in getting a prepayment meter.
Not interested in prepayment Any important factor Any not important factor
47
47
45
31
27
23
14
12
6
40
31
39
41
54
56
62
68
67
I would be afraid my credit would run out at inconvenient times such as when I am awayor when I have friends or family around
The cost of electricity using this meter might be more expensive than the regular meter
Making sure the meter is in credit would be too much hassle for me
These meters are only for households that cannot pay their bills
I just did not know enough about it to agree to move to this type of payment
I am afraid I will be charged for the meter installation
This option would stop me from switching to other suppliers
I would be concerned about what my friends would think if I chose this option
My landlord did not provide permission
