Customers go cold over energy price hikes
Energy companies measured a drop in buzz earlier in June as it was announced that Scottish Power would be increasing its prices in August, with other companies expected to follow suit and announce increases in the coming weeks.
Feeling the pinch from the significant increase in wholesale prices for gas and electricity, plus the apparent rising cost of meeting the government’s environmental and social programmes and of distributing electricity via the National Grid, the energy giant revealed that they would be raising their gas bills by 19 per cent and electricity bills by 10 per cent. Naturally, the public has not taken kindly to this, with buzz levels for Scottish Power shifting from -3.6 points on 7 June to a low of -38.2 points on 14 June. Media reports that the other “big five” energy providers are expected to follow suit and increase prices also caused significant buzz drops within the sector with Scottish and Southern Energy faring worst as scores fell from -3.6 to -17.6 points between 7 and 17 June.
Consumer perception of brand value also took a hit due to the news, as the “big six” all saw a decrease in scores over the same period. Scottish Power saw value scores fall from -13.5 on 7 June to -27.1 points a week later, whilst British Gas, tracking lower than its competitors, recorded a drop of 13.4, from -21.9 points on 7 June to -35.3 points on 21 June.
It’s worth keeping any eye on the other “big five” over the coming weeks as to how their scores fare if they follow Scottish Power’s lead and announce further price increases.
Stephan Shakespeare is the chief executive of YouGov