More than half of us don't trust energy companies

A uSwitch study shows just four in 10 consumers have confidence in suppliers with trust plummeting over the past two years.

The price comparison service found poor customer service and record-high gas and electric bills are to blame.

It found customers feel energy firms do not give good value for money with almost 40 per cent surveyed complaining about a “lack of transparency”.

Customers who do trust their supplier say it is down to easy-to-understand bills, good customer service and ease of communication.

The findings come as regulator Ofgem calls for “tough new standards of conduct” ahead of a shake up of the energy market this summer.

Ann Robinson, director of consumer policy at uSwitch, said the findings reflect a “deep malaise” in the industry.

She said: “The simple fact is that this market is not working for consumers, which is why it’s now critical that Ofgem gets the prescription right and sets it firmly on the road to recovery.

“In a healthy market, competition forces prices down and innovation and service up – consumers feel empowered to vote with their feet and this in turn helps to keep companies on their toes.

“This isn’t happening in the energy market, and it’s no coincidence that just four in ten consumers trust suppliers at the same time as switching is at an all-time low.
Prime Minister David Cameron last night welcomed Ofgem’s move to force energy firms to “put people before profits” with reforms this summer.

The regulator said changes involve a cap on tariffs to make it easier for customers to compare deals and shop around.

They will ensure a “simpler, clearer and fairer” energy market.

Mr Cameron said: “Our aim is that consumers will get the best possible energy tariff - no tricks, no loopholes - and we will use the powers we gained in the Energy Bill earlier this month to make sure this happens.”

Ofgem plans to force energy suppliers to give customers clearer bills and offer no more than four deals for each fuel type to prevent confusion.

Chief executive Alistair Buchanan said it will be  “the most radical shake-up of the energy bill market since competition began”.

Energy companies which do not co-operate will be forced using the new legislation, the Government has said.

Edward Davey, Secretary of State for Energy, said the reforms were “absolutely vital” to reduce the “bamboozling array of tariffs on offer.”

Ukip last night said the Government was able to bypass legislation forcing British power plants to close to meet eco-targets.

Earlier this week Ofgem warned supplies were like a roller coaster, “heading downhill fast” with dilapidated stations set to close over the next three years.

It means Britain would be reliant on overseas supplies forcing annual household bills to a possible £3,000 a year by 2020.

Ukip MEP Roger Helmer  said a clause in EU legislation allows the Government to appeal against plant closures to prevent an energy shortfall.

He said: “We are closing perfectly good coal-fired power stations because of the EU’s Large Combustion Plant Directive.

“However there is a Get-Out-Of-Jail Card.

“In the legislation written in Brussels it clearly states that if a member state was facing an exceptional problem they can apply to the Commission to extend the time frame on coal power station closures.

“Even if the Commission refuses, the member state can go over their heads to the Council.”