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CER Residential Gas Results 2014
Prepared for:
Prepared by:
June 2014
&
2
Background
● Fieldwork for this survey was conducted between 10th March and 2nd April 2014
Questionnaire length was 25 minutes
● Survey data collection methodology was ‘face to face’ interviewing via CAPI, administered in the respondent’s home - 1007 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 2010, 2011, 2012 and 2013 surveys in sample approach and representivity
3
Notes on results presented
● Percentage breakdowns are rounded to the nearest whole number to retain accuracy of results. This means that figures presented on charts may not sum to 100% due to rounding
3
4
Respondent Profile
5
Respondent profile – age, social class, location(Base: All gas customers – 1,014)
● Surveys completed across 120 paired sampling points
Proportions reflect the current residential gas population
● 6% of respondents lived in an apartment
● 9% of respondents receive the natural gas allowance
Age profile of respondents Social grade of respondents
18-25 26-35 36-45 46-55 56-64 65+
8%
23% 23%
20%
14%13%
6%
22%21%
23%
13%
15%
3%
20%
26%
21%
13%
17%
3%
20%
26%
21%
13%
17%
2011
2012
2013
2014
Location of respondentsType of Home2012 2013 2014
Dublin 68% 69% 70%
Cork city 11% 11% 11%
Limerick 3% 5% 5%
Cork county 3% 4% 2%
Waterford 4% 3% 3%
Kilkenny 2% 3% 2%
Drogheda 3% 3% 3%
Portlaoise 1% 1% 1%
Carlow 0% 1% 1%
Dundalk 1% 1% 1%
94%
6%
Apartment
House
AB* C1C2* DE* F*
15%
59%
26%
0%
12%
55%
28%
5%
15%
59%
26%
0%
2012
2013
2014
* Social grade definition: AB-Upper/Middle category, C1C2-Lower Middle and Skilled Workers, DE-Unskilled workers, F-Farmers
6
BGE Airtricity Electric Ireland FloGas Other
78%
16%
0% 2% 2%
69%
21%
8%2% 0%
65%
21%
8%2% 4%
59%
17% 19%
5%0%
2011201220132014
Claimed Market Share: Residential Gas Suppliers(Base: All gas customers – 1,014)
• BGE retains the largest market share, however this is declining to the benefit of Electric Ireland.
(Proportion of respondents with each supplier)
7
Satisfaction with current supplier
● Overall satisfaction in the market stands at 82%, down from 85% in 2013.
● Electric Ireland and Flogas satisfaction scores are relatively stable year-on-year.
● Airtricity and BGE have registered declines in overall satisfaction this wave.
Overall satisfaction by current supplier Overall satisfaction trends
Overall Electric Ireland BGE Airtricity FloGas
82% 81% 83%77%
83%
2011 2012 2013 2014
95%
82% 81%
89%88% 87%
83%
75%
84% 83%
77%
88%
76%
84%83%
Electric Ireland BGE Airtricity FloGas
Base: 1014 157 635 184 27
8
Satisfaction with current supplier by demographics(Base: All gas customers – 1,014)
• Younger and older customers are more satisfied with their gas suppliers.
Male Female
81% 83%
Satisfaction by Gender
Satisfaction by Social ClassSatisfaction by Age
Satisfaction by Region
AB C1C2 DE
82% 83%79%
18-25 26-34 35-45 46-55 56-64 65+
82% 79% 80% 78%85% 88%
Dublin Outside Dublin
82% 81%
9
Billing & Payment
10
Respondent profile – bill delivery and frequency(Base: All who receive a bill - 834)
● Most consumers still receive a printed bill by post. However, the proportion receiving electronic bills via email/website have increased this year – most notably from Airtricity.
● BGE customers are most likely to still be receiving a bill, although this figure is reducing
Method for receiving bill Method of receiving a bill – by supplier
2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014
55%
69% 61%
92% 90% 85%
62% 61%
32%
62%
79% 75%
44%
29%29%
6% 8% 11%
38% 40%
52%
38%
13% 18%
9% 5% 9%2% 2% 3% 8% 6%
12%0% 4% 4%
WebsiteEmailPost
EI BGE Airtricity Flogas
Website6%
Email23%
Post69%
Don’t know2%
2014
2012 2013 2014
18% 18%23%
11
Reported payment models
Respondent profile – payment models, bill size and knowledge of charges(Base: All gas customers – 1,014)
● Reported Prepayment has increased this year to 18%.
● Payment models vary by supplier with BGE and EI having the highest proportion of prepayment.
● When asked to estimate expenditure on natural gas based on typical winter and summer spend, most consumers were not able to estimate the unit cost of natural gas (92%), nor the supply charge (standing charge 90%).
Estimated winter and summer bill size
Bill size Average winter
monthly spend
Average summer
monthly spend
2012 2013 2014 2012 2013 2014
*Usage based bills (Base: 704)
€ 113 €126 €309 €47 €49 €99
Equaliser (Base: 122)
€89.25 €122 €135 €79 €122 €135
Prepayment (Base: 180)
€ 118 €144 €116 €110 €68 €56
Able to provide estimate
Average estimate
2012 2013 2014 2012 2013 2014
Unit cost 12% 19% 8% 6.5c 5.4c 6.2c
Supply charge(every 2 months)
17% 11% 10% €20.25 €19.95 €17.23
Estimates of unit cost and supply charge(Base: All gas customers – 1,014)
11 81%
8% 11%0%
76%
11% 12%0%
70%
11% 18%1%
201220132014
*NB usage based bills were based on 2 monthly bills 2014
12
Respondent profile –payment methods(Base: All not on prepayment - 834)
● A majority (60%) of consumers not on prepayment, pay their gas bill using direct debit – this has been steadily increasing.
● The small increase in the proportion paying by direct debit is driven by an increased proportion of Airtricity customers paying with this method
Prevalence of direct debit (excluding consumers on prepayment)
Prevalence of direct debit (excluding consumers on prepayment) by supplier
12
Airtricity BGE EI FloGas
74%
42%
81% 81%
72%
47%
80%75%
82%
45%
77% 74%
2012 2013 2014
2012 2013 2014
46% 43% 40%
54% 57% 60%
Pay by direct debit Pay other ways
13
Respondent profile –Free Gas allowance (Base: All gas customers – 1,014)
● Across the entire population, 9% of natural gas consumers state that they are in receipt of the natural gas allowance
● Variation in FloGas reflects small sample size
● Figures for other suppliers remain stable given the sample sizes.
Proportion of consumers in receipt of Free Gas allowance – by supplier
13
*
*: Small sample size
Overall FloGas Electric Ireland
BGE Airtricity
12%
24%
10%
13%
8%
13%
4%
12%
15%
8%9%11%
9%11%
5%
2012 2013 2014
14
Bill payment history, arrears and payment plans(Base: All gas customers – 1,014)
● 96% of consumers do not believe that they are in arrears now or at other times
● 16% state that they part pay their bill and therefore may be on payment plans – although the customer does not recognise this as being in arrears
This is a decline from 2013 (-6% points).
● This is also reflected in the small proportions claiming to be currently or previously on a payment plan or state that they were previously disconnected (less than 1% in each case).
14 Stated bill payment record
77%
20%
2% 1%
74%
22%
2% 1%
80%
16%
3% 1%
2012 2013 2014
29% of those ever in arrears have been directed to outside assistance
on budgeting energy efficiency advice or services by their supplier
(new question added 2014).
15
Bill payment history, arrears and payment plans
● About half of consumers (53%) are at least somewhat aware of the potential to make an arrangement to pay – note this has declined year-on-year.
In addition a lower proportion (30%) are aware that they must be offered a prepayment meter if they are in arrears.
Awareness of availability of arrangement and prepayment meter15
2012 2013 2014 2012 2013 2014
33% 28%
47%56% 61%
70%17% 27%
16% 0%0%
0%50% 44%
37% 44% 39%30%
Aware Somewhat aware Not aware
Aware that can make arrangement(Base: All not on prepayment – 834)
Aware must be offered prepayment meter(Base: Never been
disconnected – 1005)
16
Self Disconnection of Gas Prepayment Meter
● Just 16 people have ever self disconnected their gas prepayment meter, 11 of these have done so more than once.
● The majority of these have only disconnected for a number of hours, with the main reason being that they were unable to buy credit at the time in question.
Incidence of Self Disconnection of prepayment meter(Base: All gas customers – 1,014)
Incidence of Self Disconnection
- Ever self disconnected- More than once
16 people11 people
(Base: All ever self disconnected – 16)Length remained disconnected:- A couple of hours- A day- More than one day
71%4%
24%
I was unable to buy credit at the time in question
56%
I was short of money to pay credit 22%
I was on holidays or away from the property at the time
22%
Reason for self disconnection(Base: All ever self disconnected – 16)
17
Competition & Deregulation
18
Unprompted awareness of 1 or more suppliersOther than BGE
Residential Gas: Awareness of suppliers(Base: All gas customers – 1,014)
Unprompted awareness of gas suppliers
● 94% mentioned BGE or Bord Gais unprompted
79% of these mentioned Bord Gais
● Awareness of competition has dropped slightly with 74% of respondents recalling a supplier other than BGE
2013 score was 80%
● The most recent entrant, Energia, received an unprompted recall of 14%, while recall of Airtricity, and EI slow a drop. Total awareness (spontaneous and prompted) of Energia stands at 51% compared to 56% for FloGas.
2012 2013 2014
74%80%
74%
91%
37%
7%0%
96%
62%
51%
20%
0%
95%
66%58%
20%
0%
94%
52% 50%
17% 14%
2011201220132014
* Energia entered the residential market in 2014
19
Satisfaction competition(Base: All gas customers – 1,014)
● The majority of consumers are satisfied with the existence of competition in the residential consumer electricity market – similar proportions for 3 years.
● However, the large decrease registered last year in the proportion of customers who agree that competition has improved service, has remained in 2014.
Over the year the small increase in the disagree score suggests that competition is gradually starting to impact on service experience.
Satisfaction with existence and level of competition
2012
2013
2014
2012
2013
2014
63%
65%
64%
70%
55%
54%
12%
11%
12%
9%
15%
19%
Agree Disagree
Satisfied with current level of competition among gas suppliers
Competition has improved the service I receive from gas suppliers
20
Satisfaction with level of competition by current supplier
• FloGas customers most satisfied with level of competition in the gas market.
Very satisfied
Satisfied
Total Bord Gais Energy
Electric Ireland Airtricity FloGas*
44% 40%51% 44%
56%
20% 21%14% 25%
18%64% 61% 65% 69%
75%
Base: 1014 635 157 184 27
*Caution: Small base
21
Awareness of current price control(Base: All gas customers – 1,014)
● Awareness of current price control regulation remains at a similar level as 2013.
● The level of understanding of the current regulation remains low with 40% correctly identifying the current approach to regulation – this does not vary by supplier.
● One third of consumers (32%) believe that all natural gas prices are subject to regulation.
21
Understanding of how prices are set
Overall BGE Competitors
2012 2013 2014 2012 2013 2014 2012 2013 2014
All natural gas suppliers are allowed to set their own prices
23% 19% 28% 22% 19% 30% NA 20% 25%
Prices set by some natural gas suppliers are regulated which means that their prices must be approved by CER
40% 38% 40% 40% 38% 41% NA 38% 38%
The prices set by all natural gas suppliers are regulated
37% 40% 32% 37% 40% 29% NA 40% 37%
None of these 10% 9% - 11% 9% - NA 8% -
22
Ability to understand offers from gas suppliers(Base: All gas customers – 1,014)
● 20% of consumers stated that they had small degree or no understanding (2013: 20%).
● 20% of consumers stated that they not aware of the offers (an increase on the 14% in 2013). Clearly connected with age with those in the 56-64 and 65+ age cohorts least likely to be
unaware of offers (26% and 29% respectively).
22
Understanding of gas suppliers’ offers Not aware of offers – by age
Do no
t und
erstan
d at
all
Under
stan
d to
a sm
all d
egre
e
Som
e un
dersta
nding
Mos
tly u
nder
stan
d
Fully
und
erstan
d
Not a
war
e of
the
offer
s av
ailable
9%15%
34%
20%
8%14%
7%13%
31%25%
9%14%
9% 11%
23% 22%14%
20% 201220132014
18-25 26-35 36-45 46-55 56-64 65+
15%14%
7%
14%18%
25%
15% 16% 13%10% 9%
20%18% 16% 17% 16%
26%29%
201220132014
23
Ability to compare offers from gas suppliers(Base: All gas customers – 1,014)
● 16% of consumers stated that they found comparison of offers difficult (a decrease from 24%: 2013). 37% stated that they found the comparison easy or very easy.
● 30% of consumers stated that they had not attempted to compare offers (an increase from 21%: 2013).
This has increased across all age groups apart from under 25 – back to 2012 levels amongst older age groups.
23
Assessment of difficulty with comparing offers Not attempted comparison of offers – by age
5%
17%23% 23%
5%
26%
5%
19%24% 26%
6%
21%
5%11%
18%
25%
12%
30%
2012 2013 2014
18-25 26-35 36-45 46-55 56-64 65+
33%
25%
15%
25%
34%39%
35%
20% 19%16%
20%
29%23% 24%
27% 29%
36%39%
2012 2013 2014
24
Received information from supplier on upcoming price changes within the last 6 months(Base: All gas consumers–1,014)
Price Changes
Awareness of price changes announced by different suppliers since October 2013(Base: All gas consumers–1,014)
Reason for price increases being announced(Base: All awareness of price changes–474)
Just over one third are aware of receiving upcoming price change information from suppliers for the last 6 months – similar to electricity.
Most believe the cost of energy is increasing resulting in rising gas prices.
36%
64%Yes
No
48%52%
Yes
No
Cost of energy is increasing
Regulartor imposed increases
Supplier has increased costs
Don’t know
55%
18%
21%
17%
25
Price Changes by Supplier(Base: All gas customers – 1,014)
● No difference in the incidence of customers who claim to have received information about upcoming price charges in the next 6 months, however FloGas customers claim to be the most aware about price changes announced by different suppliers since October 2013.
25
Received information from supplier on upcoming price charges within the past 6 months
Aware of price change announced by different suppliers since October 2013
Bord Gais Electric Ireland Airtricity FloGas
36% 35% 35% 36% Yes
Bord Gais Electric Ireland Airtricity FloGas
44%
54%47%
68%
Yes
Base: 635 157 184 27 Base: 635 157 184 27
26
Awareness of Bord Gais business names(Base: All gas customers – 1,014)
● Awareness of Bord Gáis Networks continued to increase
Level of awareness among Bord Gáis Energycustomers however is slightly behind that of non-BGE customers.
26
Awareness of BGE and BGN business names
AwarenessBGE non-BGE
2012 2013 2014 2012 2013 2014
BGN 64% 72% 77% 68% 72% 82%
BGE 77% 83% 75% 81% 80% 76%
Awareness of BGE and BGN business names By current supplier
Current supplier
BGN BGE
56%
79%
66%
79%72%
82%79%75%
2011201220132014
27
Customer understanding of the roles of gas supplier and BG Networks(Base: All gas customers – 1,014)
27
Trend
Repairing gas leaks
Maintaining the Network
Transmission and distribution of gas
Reading the meter
Responsibilities of gas supplier and BGN ● A greater understanding of the role of BGN evident with increases for:
Reporting gas leaks
Maintenance of the network
Transmission/distribution
● Reading the meter is significantly more associated with the supplier with only 34% associating it with BGN.
53% 56% 58% 66%
0% 7% 6% 4%24%31% 28% 24%
57% 59% 58% 66%
0% 5% 5%4%19% 30% 29% 24%
40%59% 55% 65%
0%
6% 7%4%
34%
29% 29% 26%
2011 2012 2013 2014
24% 34% 25% 34%0%
5%4%
3%52%
55% 65% 54%
BGN Both Supplier
28
Customer understanding of the roles of gas supplier and BG Networks – BGE customers(Base: All BGE customers – 635)
28
Trend
Repairing gas leaks
Maintaining the Network
Transmission and distribution of gas
Reading the meter
Responsibilities of gas supplier and BGN
● Scores for BGE customers remain quite similar to the overall market
53% 56% 57% 59%
7% 6% 5%24%31% 30% 31%
57% 59% 58% 60%
5% 5% 4%19%
29% 29% 30%
40%59% 56% 60%
6% 8% 3%53%28% 29% 32%
2011 2012 2013 2014
24% 34% 30% 40%5% 4%
3%56%
50% 60% 50%
BGN Both Supplier
29
Customer understanding of the roles of gas supplier and BG Networks(Base: All gas customers – 1,014)
29
Trend
Billing and payment
Seeking approval of terms and conditions from the regulator
Responsibilities of gas supplier and BGN
29
● About two thirds 68% recognise the billing and payment role of the supplier – similar to 2014.
● An increase registered in the proportion who believe BGN is responsible for seeking approval of terms and conditions from the regulator (44% vs 31% in 2013).
19%31% 22% 26%
0%4%
4% 3%
57%
62% 70% 68%
2011 2012 2013 2014
21% 31% 31% 44%0%11% 12%
9%47%38% 40% 34%
BGN Both Supplier
30
Switching
31
Proportion switching in previous year by year
Switching – rates(Base: All gas customers – 1,014)
● Switching rates declined back to 2012 levels
Switchbacks similar to previous years at 21% (2013: 22%; 2011: 18%).
The proportion of gas consumers who switched their electricity supplier is identical to gas switching levels.
● 21% of switchers switched back to their previous supplier.
● 29% of those on direct debit switched at least once in last 12 months.
31
2012 2013 20141% 1% 1%
17% 14% 17%
82% 84% 82%
No
Yes, swiched once
Yes, switched more than once
21% switched back to previous supplier
1%16%
83% No
Yes, swiched once
Yes, switched more than once
Switched Electricity
32
Level of switching in last 12 months by Age
Switching by Age & Social Class(Base: All gas customers – 1,014)
● Level of electricity switching in last 12 months is consistent across age groups aged 26+. Those aged 18-25 years show a lower level of switching at 10% however.
● Highest level of switching apparent amongst the AB social class at 28%.
Level of switching in last 12 months by Social Class
18-25 26-35 36-45 46-55 56-64 65+
10%
19% 19% 18% 17%19%
AB C1C2 DE
28%
16% 16%
33
Non-Switchers by Age
Profile of those who never switched(Base: All gas customers – 1,014)
● 18-25s and 65+ age groups are the least likely to switch, as are blue collar social classes.
Non-switchers by social class
18-25 26-35 36-45 46-55 56-64 65+
80%
62%58%
63% 61%67%
AB C1C2 DE
39%
65%68%
Total
62%
Total Never Switched
34
Switching – Dual Fuel vs Electricity only & Gas only switching
Proportion switching at least once in the last 12 months
● Those on dual fuel most likely to have switched provider in the last 12 months.
Dual Fuel Switched Electricity (non dual fuel) Switched Gas (non dual fuel)
28%
10%
14%
Base: (411) (603) (603)
35
Prevalence of package, channel and billing changes
Investigating and switching packages
● 2% of consumers contacted their supplier to investigate changing package However, among consumers who didn’t switch, 7% actually changed package (2013: 4%)
● 2% of customers with natural gas extended to a dual fuel product (was 7% in 2013) Low score for BGE reflects the current market share among natural gas consumers The higher proportion of Electric Ireland customers switching to dual fuel reflects that
company’s strength in the electricity market.
Overall EI BGE Airtricity FloGas
% % % % %
Contacted supplier about changing package 2 5 1 5 3
Changed package (among those who didn't switch) 2 4 1 4 -
Extended to dual fuel (among those who didn't switch and use natural gas)
2 6 0 2 -
Change payment channel 1 3 0 3 -
Changed billing frequency 1 1 0 3 3
Supplier
36
Contact method used to switch supplier(Base: All who switched last 12 months - 170)
36
Method used to switch supplier Method used to switch – by current supplier
● Most (66%) of switchers completed the switch during a visit to their home This is a decrease from 2013 (74%).
● Airtricity and EI rely on home visits to sign up switchers, while a significant proportion (28%) of those who switch to BGE proactively made contact with the supplier via the telephone, a further 24% of BGE switchers used the website to sign up.
Airtricity BGE EI FloGas1 0 0 00 0 3
29
5
247
7
13
28
9
16
8
4
7
10
73
44
74
39 Home visit
Phone (contacted)
Phone (initiated contact)
Supplier website
Price comparison website
Writing
67%
7%
19%
5%1% 1%
74%
4%
17%
4%1% 0%
66%
7%
13%8%
5%0%
201220132014
37
Reasons for switching – most important factors
● As expected desire to save money on the gas bill remains a primary or important factor in the decision to switch by most consumers
85% ‘wanted to save money on their gas bill’
81% ‘expected to get more savings’
While 52% wanted to ‘avail of a combined dual fuel offer’
37
Reasons for switching during last 12 months (where >32% state factor is primary/important)
Not a factorPrimary/important
2013
2014
2013
2014
2013
2014
2013
2014
2013
2014
2013
2014
85%
85%
68%
81%
59%
52%
54%
42%
45%
33%
40%
32%
3%
12%
5%
9%
21%
33%
13%
50%
31%
51%
30%
60%
I want to save money on my gas bill
I expected to get more savings
To avail of a combined offer for electricity and natural gas
My bill increased in size because my previous supplier had increased prices
I want to support competition in the marketplace
I received a larger than expected bill
38
Reasons for switching – other factors
● Among the other factors tested, a significant proportion of consumers who had recently switched identified each as not at all important in the decision to switch
Suggests that these factors are focused on sub-groups in the population
● 61% stated that being unhappy with customer service was not a factor. Thus it was less important vs. 2014.
38
Reasons for switching during last 12 months (where <27% state factor is primary/important)
Primary/important Not a factor
2013
2014
2013
2014
2013
2014
2013
2014
2013
2014
2013
2014
2013
2014
2013
2014
2013
2014
40%
27%
40%
25%
24%
24%
26%
20%
19%
11%
10%
26%
10%
14%
8%
18%
6%
25%
55%
30%
63%
52%
61%
42%
53%
70%
79%
73%
47%
81%
68%
83%
60%
82%
I expected the customer service from the new supplier would be better
My previous supplier had recently announced a price rise
I was unhappy with the service I have received from my former supplier
I preferred the payment methods available from my new supplier (for instance equal payments throughout the year)
I wanted to receive my bill more often
*I want a supplier that would supply gas generated in a more environmentally friendly way
I preferred the online billing option from my new supplier
I moved to a new home and my new supplier had been used by the previous resident (or landlord)
I did not find the bill understandable
*Question added 2014
n/a
39
Comparison of most often reasons sited as primary or important reasons for switching back
Reasons for switching back
● Top reasons for switching back are driven by price and potential savings – or lack of delivery of savings from the new supplier
● Service also features but to a lesser extent than in 2013 as just 23% of individuals who switched back rated it as an important reason for switching back, 43% in 2013.
39
39
I want to save money on my bill
I expected to get more savings by returning to my
original supplier
To avail of a combined offer for electricity and natural
gas
My original supplier contacted me with a better offer if I would switch back
The price I received from my new supplier was not as
good as I had expected
I received a larger than expected bill
I was unhappy with the service I have received
from my new supplier
2013 2014
Switch-backAll Switchers
63%85%
82%85%
Switch-backAll Switchers
60%68%
73%81%
Switch-backAll Switchers
43%59%
54%52%
Switch-backAll Switchers
n/an/a
49%n/a
Switch-backAll Switchers
46%n/a
41%n/a
Switch-backAll Switchers
46%30%
40%32%
Switch-backAll Switchers
43%24%
23%24%
40
Reasons for not switching – most important factors
● Satisfaction with the service received and lack of reason to switch are the most commonly mentioned
● Trust is a significant reason rated as primary or important by 46% of consumers who haven’t switched (albeit a significant increase in those claiming it is not a factor)
This was selected as the primary reason for not-switching by 46% of Electric Ireland customers who have not switched
Reasons for not switching during last 12 months (where >22% state factor is primary/important)
Primary/important Not a factorI like the service that I receive from my current supplier
I have no reason to switch
I prefer to remain with a gas supplier that I trust
I do not believe that the level of discount are sufficient to justify switching
I do not believe that the prices will be a low as the alternative supplier claims
I will not save sufficient money to make it worth my while to switch
I find it hard to determine how much I would save if I switched
I am concerned that receiving my natural gas allowance would be too inconvenient if I switched.I am concerned that they may not stay in the gas market for a long time
n/a
20132014
20132014
20132014
20132014
20132014
20132014
20132014
20132014
20132014
54%54%
57%46%
59%46%
30%43%
33%32%
40%29%
30%26%
21%24%
0%22%
19%25%
17%33%
16%28%
31%27%
29%41%
27%41%
31%53%
52%56%
0%60%
n/a
41
Less frequently rated reasons for not switching
● Concerns about reliability of supply now down to 19% (was 35% in 2013).
● Only 8% cited lack of awareness of the ability to switch.
● A similar proportion have had a bad experience of switching other suppliers before (8%).
41
Reasons for not switching during last 12 months (where <20% state factor is primary/important)
41
I am concerned about whether the alternative supplier will be as responsive if there is a gas outage or leaks
I intend to switch but I have not got around to it
I would be charged a penalty by my current supplier.
I am not able to switch because of the contract with my current supplier
I was not aware that you could switch.
I have had a bad experience of switching other services (such as electricity, telephone or mobile phone operators)
n/a
*Questions added 2014
n/a
2013
2014
2013
2014
2013
2014
2013
2014
2013
2014
2013
2014
35%
19%
15%
14%
12%
12%
10%
8%
6%
8%
39%
61%
70%
70%
71%
70%
80%
81%
81%
80%
Primary/important Not a factor
42
FGA and switching
● FGA recipients are less likely to switch than the entire population
10% switched in the previous 12 months (compare to 18% for entire population)
● FGA specific reasons are rarely selected as primary or important with FGA recipients focusing on trust, lack of a reason to switch and liking the current service.
42
Rate of switching among FGA recipients - 96 Reasons for not switching – related to FGAReason for not switchingSelected by over 40% as primary or important(Base: All FGA recipients who did not switch)
% rated primary/ significant
2012 2013 2014
Like service 59% 57% 54%
Prefer to stay with trusted supplier 69% 63% 49%
No reason to switch 69% 61% 48%Concerned that receiving FGA would be too inconvenient
15% 17% 24%
Concerned that might not continue to receive FGA if switched
14% 23% 21%
42
2013 2014
89% 90%
10% 10%1% 0%
Yes switched more than once
Yes switched once
No
43
Rating the overall experience of switching
Experience of switching(Base: All who switched in past 12 months – 170)
43
Process’12 ’13 ‘14 ’12 ’13 ‘14
Knew who to contact 77% 79% 76% 9% 5% 8%
Understood what was required
87% 84% 83% 7% 4% 3%
Understood what was offered by the new supplier
85% 83% 85% 6% 7% 3%
Actual changeover went smoothly
88% 88% 87% 6% 2% 5%
understood length of time that the prices offered applied for
85% 82% 82% 5% 8% 7%
understood the amount of deposit I would need to pay
63% 60% 64% 11% 15% 15%
+ -
Outcome’12 ’13 ‘14 ’12 ’13 ‘14
Bill reduced by expected amount
81% 58% 66% 13% 14% 17%
New supplier service satisfactory
83% 80% 85% 8% 7% 2%
Understood the terms 82% 80% 89% 7% 9% 3%
Experience of process and outcome
● The switch process scores are similar to 2013 with 90% rating the overall experience as easy (identical to 2013). However a better bill outcome evident, with 66% stating the bill reduced by expected amount (58% in 2013). Thus not surprising that likelihood to switch in the next 12 months has increased.
+ -20141%4%5%
27%
63%Very easy
Quite easy
Neither easy or difficult
Quite difficult
Very difficult
44
Switching: Contact by suppliers(Base: All gas consumers – 1,014)
● Over half of consumers have been contacted by another natural gas supplier during the previous 12 months – this has declined for the second year.
The most common method of contact remains by a home visit
● There are similar levels of contact among customers of the different suppliers
BGE customers remain least likely to have been contacted (46%) compared to Electric Ireland (54%).
44
Level of contact in previous 12 monthsLevel of contact in previous 12 months – by current supplier
2012 2013 2014
12%8% 8%
5%
3%5%
48%50%
43%By home visit
By email
By phone
Airtricity BGE EI FloGas
64%
56%62%
67%
57%53%
65%60%
53%
46%
54% 56%
201220132014
2012 2013 2014
42% 45% 51%
58% 55% 49%
YesNo
45
Rating of factors which would increase switching and impact of information sources on switching(Base: All gas consumers – 1,014)
● ToU tarriffs and info on how to reduce gas usage had the highest impact on intention to switch.
● Prepayment and energy advice have lower impact.
● One third of consumers would consider switching to a group scheme.
● 29% of consumers believe a price comparison web-site would significantly impact on their intention to switch, with website calculators, info on consumption and brochures comparing price savings all having similar impact.
Would you consider switching if…Agree
Impact of information sources on switchingSignificantly increase
Anoth
er
supplie
r off
ere
d
Recommendation from family/friends
Prepayment
Better service such as energy advice or online billing
Suppliers offered tariffs which included cheaper gas at some times of the year
Supplier provided more info on how to reduce gas usage such as an online system
37%
28%
28%
0%
0%
34%
30%
34%
0%
0%
34%
22%
26%
34%
36%
201420132012
More information on bill about gas consumption
Brochure comparing prices and examples of potential typical savings
Website with a potential savings calculator
Price comparison website
Group scheme where best offers would be found for me
30%
29%
29%
0%
0%
32%
36%
26%
25%
25%
28%
26%
29%
29%
36%
201420132012
46
Assessment of Sales Process
47
Consumer acceptance of call/phone contact(Base: All who received visit/phone contact – 496)
Appropriate of call to door /phone contact
Overall – Base: 469 Over 65yr – Base: 97
‘12 ‘13 ’14 ‘12 ‘13 ’14 ‘12 ‘13 ’14 ‘12 ‘13 ’14
Approach of sales person 73% 62% 64% 11% 18% 17% 73% 57% 73% 13% 22% 13%
Number of contacts 77% 64% 67% 10% 16% 13% 80% 60% 73% 7% 25% 7%
Understood the deal offered
86% 67% 69% 5% 11% 9% 87% 49% 71% 13% 18% 9%
No unreasonable pressure to sign-up
77% 66% 65% 13% 16% 15% 87% 58% 72% 7% 21% 12%
Understood T&Cs 89% 65% 66% 6% 13% 10% 87% 52% 70% 13% 22% 12%
Not concerned if I said no 77% 66% 71% 13% 14% 14% 73% 63% 69% 20% 14% 11%
Tone of conversation was appropriate
86% 79% 73% 4% 7% 9% 87% 75% 81% 0% 7% 7%
Consumer rating of call/phone contact from suppliers
+ -
47
+ -
● Among those who had been contacted by phone or received a house call in the last 12 months, the sales approach was rated similar to 2013 (note this was noticeably lower than 2012).
The scores for concerned if said no (14%) and unreasonable pressure to sign up (15%) are comparatively high and should be monitored
● Among the over 65 group, an improvement registered in the rating of the approach.
48
Consumer acceptance of call/phone contact(Base: All who received visit/phone contact – 496)
Appropriate of call to door /phone contact Total
’14
Region Contact
Dublin Rest of Leinster
Munster Phone Mail Home visit
Approach of sales person 64% 61% 79% 69% 63% 32% 67%
Number of contacts 67% 66% 62% 69% 64% 32% 69%
Understood the deal offered 69% 68% 63% 71% 71% 43% 70%
No unreasonable pressure to sign-up
65% 64% 77% 66% 70% 30% 67%
Understood T&Cs 66% 66% 62% 66% 64% 37% 68%
Not concerned if I said no 71% 70% 69% 74% 76% 45% 72%
Tone of conversation was appropriate
73% 71% 87% 76% 74% 43% 76%
Consumer rating of call/phone contact from suppliers48
● Those in rest of Leinster most satisfied with approach of salesperson, no unreasonable pressure and tone of conversation. Those who received a home visit show most positive ratings across the most areas, while those who received contact via mail are consistently the least satisfied.
49
Consumer response to advertising(Base: All who received visit/phone contact – 496)
Reaction to advertising2012 2013 2014 2012 2013 2014
Advertising straight forward 62% 55% 34% 11% 11% 21%
Advertising clear on prices 60% 47% 35% 17% 15% 20%
Advertising clear on conditions 58% 48% 36% 18% 14% 19%
Advertising clear on savings 67% 51% 35% 13% 12% 20%
Clear on how to translate advertised savings into my bill 57% 46% 31% 18% 17% 25%
● The response to advertising is as expected lower than the response to the direct contact
● The proportion agreeing with the statements has declined significantly from 2012
A significant minority (1 in 5) now disagree that advertising is; straightforward, clear on prices, conditions and savings. Plus one quarter disagree that its ‘clear on how to translate advertising savings into my bill’.
Consumer rating of advertising contact from suppliers
Overall
+ -
50
Dual Fuel
51
Residential: Level and reasons for take-up of dual fuel
● Among consumers with natural gas and electricity, 52% continue to use a single supplier.
Results combine data from electricity and gas surveys
● The factor most often rated as important is greater savings overall when gas and electricity are purchase together. However the importance of this has declined over the years. Convenience of a dual supplier and greater reduction in gas prices have increased in importance this year.
% of consumers with a single supplier for gas and electricity
Single supplier
Twosuppliers
Rating of potential factors – single supplier
Important factor Not a factor
2010 2012 2013 2014
61%50% 52% 52%
39%50% 48% 48%
The greater reduction in electricity prices offered if your business also used the same supplier for gas The greater reduction in gas prices offered if you also used the same supplier for electricity The greater saving overall
The convenience of having a single supplier for both
Aspects of the service provided by your supplier - for both electricity and gas
201220132014
201220132014
201220132014
201220132014
201220132014
66%62%64%
61%59%
67%
81%76%
72%
61%56%
66%
53%55%54%
12%11%14%
14%14%14%
6%7%
10%
20%18%15%
22%17%19%
52
Take-up and interest in dual fuel: Reasons for not taking up dual fuel
● Among consumers with both natural gas and electricity with different suppliers for each, satisfaction with the service provided by each supplier was the only reason identified as important by a majority
A majority of respondents identified most other suggestions as not a factor
Rating of potential factors - separate suppliers
Important factor Not a factor52
% of consumers with a single supplier for gas and electricity
Single supplier
Twosuppliers
2010 2012 2013 2014
61%50% 52% 52%
39%50% 48% 48%
Not aware that it was possible to get both fuels from one supplier Do not want to accept additional conditions such as paying by direct debit or getting the bill online
Prefer two separate bills with two different suppliers
Savings are greater if your business uses two different suppliers
Satisfied with the service provided by our current supplier for each and see no reason to switch
You do not trust a single supplier to provide both electricity and gas
Do not want to receive a single bill for both gas and electricity
You are concerned about what would happen if your business fell behind on payments for either
201220132014
201220132014
201220132014
201220132014
201220132014
201220132014
201220132014
201220132014
0%11%
17%
23%27%
36%
42%40%
28%26%29%
59%59%61%
25%24%24%
30%32%
25%28%28%
n/a69%
63%
54%48%
40%
30%35%
41%34%33%
17%21%16%
50%45%
49%
43%41%
57%48%50%
n/a
53
Bill Clarity & Information Supports
54
Overall satisfaction with your understanding of your gas bill
Understanding of the bill(Base: All gas consumers – 1,014)
● Satisfaction with gas bill (including how much gas you use and how much you are charged for it) is reasonable with little variation between supplier (FloGas edges ahead).
This suggests that either the bills are similar in style or that there is a lack of consumer engagement
Note that while overall satisfaction is similar to 2013, the strength of ‘very satisfied’ has increased. Note the nature of billing is changing with more electronic/email billing evident.
Overall satisfaction with your understanding of your gas bill – by current supplier
Overall Electric Ireland
BGE Airtricity FloGas
69% 67% 70% 68%76%
2013 2014
3% 2%7% 6%
21%17%
55%
46%
12%23%
Very satisfied
Satisfied
Neither satisfied nor dissatisfied
Dissatisfied
Very dissatisfied
2013 67% 71% 67% 70% 73%
55
Typically open and read bill when received(Base: All gas consumers – 1,014)
Interaction with Gas Bill
Part of bill typically looked at(Base: All who open bill – 778)
While the vast majority open their bill, the focus is on the total bill amount, followed by bill payment date.
76%24%
Yes
No
Amount of bill
Bill payment date
Consumption in last period
Meter Reading
Price of gas
97%
88%
58%
53%
50%
56
Rating the bill(Base: All gas consumers – 1,014)
● Electric Ireland scores converged with market averages
● Variability in FloGas scores reflect the small sample size
● 21% of respondents would prefer to receive bills more frequently (25% in 2013).
( ) bracketed figures = difference vs 2013
Change vs 2013
(+2%) (+8%) (=%) (-2%) (-15)
Understand the calculation of the bill
Bill is easy to understand Bill makes it easy to understand the gas used
Makes it easy to understand the gas charged for
Overall Airtricity Bord Gais energy
Electric Ireland
Flogas0%
40%
80%55%
66%50% 57%
75%
Chart Title
Change vs 2013
(+4%) (+10%) (+4%) (-5%) (-8%)
Overall Airtricity Bord Gais energy
Electric Ireland
Flogas0%
40%
80%56%
68%52% 55%
68%
Chart Title
Change vs 2013
(-2%) (+5%) (-3%) (-8%) (+4)
Overall Airtricity Bord Gais energy
Electric Ireland
Flogas0%
40%
80% 58% 67%54% 58%
80%
Chart Title
Change vs 2013
(+2%) (+11%) (+1%) (-7%) (-3%)
Overall Airtricity Bord Gais energy
Electric Ireland
Flogas0%
40%
80%55%
68%51% 54%
65%
Chart Title
57
Complaint Handling
58
Complaint handling – propensity and topics
● 7% of respondents had complained within the last 12 months
This is similar to 2012 and to the electricity research
● Reasons for complaints were more diverse, with ‘Other’ reasons being referenced more in comparison to previous years. ‘Other’ reasons focused mainly on issues relating to gas leaks, meter problems and boiler services.
● A greater proportion of complaints were made to suppliers
Proportion of respondents who complained over last year(Base: All gas consumers – 1,014)
Complaint topic(Base: All who made a complaint – 64)
’12
’13
’14
Billing and payment 70% 52% 42%
Late payment or disconnection
6% 2% 2%
Connection/modification of supply
4% 12% 10%
Reliability of supply/power failures/supply issues
2% 12% 10%
Issue related to switching 2% 4% 1%
Other 13% 12% 29%
Complaint made to(Base: All who made a complaint–64)
Current/Previous supplier
BGN
NCA
CER
Other
Don't recall
64%
27%
2%
0%
9%
0%
77%
18%
1%
1%
0%
2%
90%
3%
1%
1%
1%
4%
2014
2013
2012
2012 2013 2014
5% 5%
7%
59
Complaint handling – awareness of process(Base: All gas consumers – 1,014)
● 45% of consumers knew that they could complain to CER (slight decline this year)
Only 1% had lodged a complaint with CER in this research
● Most consumers understand who they should complain to.
Knowledge of how to make a complaint Awareness of who to complain to
Know how to lodge a complaint
Aware you can complain to CER
68%
52%63%
45%
2013 2014
Curre
nt o
r pre
viou
s sup
plie
rBGN
The
Natio
nal C
onsu
mer
Age
ncy
The
Comm
issio
n fo
r Ene
rgy
Regul
atio
n
Other
Don't
know
67%
27%
1% 1% 1% 3%
63%
25%
0% 0% 3% 9%
2013 2014
60
Satisfaction with handling and timeliness(Base: All who made a complaint – 64)
● Satisfaction across Suppliers with problem handling and time taken to resolve are comparatively low.
● Satisfaction with the outcome is similar to the electricity research (gas: 48% satisfied, electricity 45% satisfied), but Gas does score lower on satisfaction with the overall handling.
Satisfaction with outcome: 48% (-4%)SupplierSatisfaction with handling: 31% (-13%) Satisfaction with time taken:
36% (-2%)
2012 2013 2014
21%8%
15%
12%
20%
28%
23%20%
5%
28% 40% 29%
16% 12%19%
Very satisfied
Satisfied
Neither satisfied nor dissatisfied
Dissatisfied
Very dissatisfied
2012 2013 2014
32% 32% 26%
16% 16% 19%
14% 14% 15%
24%30%
20%
17%8%
16%
2012 2013 2014
24% 32% 26%
10%14% 25%
21%11%
12%
24% 30%18%
17% 14% 13%
Very satisfied
Satisfied
Neither satisfied nor dissatisfied
Dissatisfied
Very dissatisfied
61
Interest in Prepayment
62
Interest in prepayment
● 20% of consumers stated some level of interest in prepayment meters
The decline compared to 2013 is in part driven by the increased uptake in prepayment (note some of last years enthusiasts have already switched)
Level of interest in prepayment (among those withoutprepayment meters – 826)
Not at all interested Very interested
Potential benefits (among those interested/very interested - 100)
● Reasons for being interested in receiving a prepayment meter focus more on; ‘control of bill’, ‘one less bill’, ‘no estimated bills’ and ‘lack of fear of disconnection’.
2012
2013
2014
45%
51%
71%
10%
13%
8%
18%
16%
8%
16%
12%
5%
10%
7%
7%
Means that I would not have to worry about being disconnected if I don't about being disconnected if I
don't keep up to date with the bill
Would mean that I would not get estimated bills any more
Would mean that I wouldn't get unexpectedly large bills
Would make me more aware of the cost of gas
Would mean that there is one less bill to think about
Would make it easier to manage money spent on gas
70%
70%
71%
67%
65%
67%
68%
69%
71%
69%
75%
71%
83%
80%
85%
76%
83%
79%
201420132012
63
Comparative Rating of Prepayment and Bill Payment by Supplier Base: All currently on prepayment - 180
63
● Those on prepayment are much more satisfied with the payment scheme vs billpay. Little variation in satisfaction across suppliers.
Total (Base 180) Bord Gais (Base: 136) Electric Ireland (Base: 30)1% 1% 0%1% 1% 0%
8% 9%4%
31% 28% 43%
60% 61%53%
Much more satisfactoryMore satisfactoryAbout the sameLess satisfactoryMuch less satisfactoryDon’t know
(FloGas and Airtricity base too small)
64
Rating of perceived benefits among consumers on prepaymentBase: All currently on prepayment - 180
● Prepayment clearly remains the preferred option to bill pay by consumers on prepayment
A significant majority rate each of tested reasons as a primary reason for using prepayment
Rating the experienced benefits – among those with prepayment
Comparative rating of prepayment and bill payment- among respondents currently on prepayment
Compared to receiving and paying bills after you have consumed theelectricity, how would you rate a prepayment meter where you pay in advance…
64
2012 2013 2014
3% 6%0%
4%7%
8%2%
3%1%
31% 21% 31%
61% 63% 60%Much more satisfac-tory
More satisfactory
Less satisfactory
About the same dif-ference
Much less satisfac-tory
Means that I would not have to worry about being disconnected if I don't about being disconnected if I
don't keep up to date with the bill
Would mean that I don't get estimated bills any more
Would mean that I don't get unexpectedly large bills
Would make me more aware of the cost of gas
One less bill to think about
Makes it easier to manage money spent on gas
90%
93%
93%
85%
90%
90%
92%
88%
99%
86%
95%
96%
95%
93%
98%
86%
95%
94%
2014
2013
2012
65
Vulnerable & Priority Customers
66
Vulnerable consumers: Prevalence and level of registration(Base: All gas consumers – 1,014)
● Almost 1 in 5 gas customers are aware of the priority status registration, with those aged 56+ being most aware.
Awareness of priority status registration
66
Total 18-25 26-35 36-45 46-55 56-64 65+
0.17 0.18
0.12
0.190.15
0.2 0.2
Awareness of priority status registration x age
67
Vulnerable Consumers: Level of registration
● 8% of respondents stated that they lived in households eligible for priority status. However, just 1% of respondents are actually registered.
● The most common reason for not being registered was that they did not know it was possible to register.
Incidence of those who are eligible for registration vs those who actually registered(Base: All gas consumers – 1,014)
67
Eligible for registration Registered
8%
1%
Reasons given for not registered when aware of opportunity to register(Base: All eligible but not registered – 76)
Did not know that it was possible to register
Did not know how to register
Do not think I need to register as I can manage without gas occasionally
Other
Don’t know
77%
6%
14%
2%
1%
68
Vulnerable Consumers: Level of registration
● Just 8% of the total base were eligible for registration as vulnerable customers. However, just 11% of these were registered, with the highest proportion of those registered being among the 56-64 year age group.
Incidence of those who are eligible for registration and actually registered68
* Caution extremely small base sizes
Total
11%
Base: 85
69
Reasons for registering
● The most common reason for lack of registration is that they did not know that it was possible to register
Reason RatedOverall
2012 2013 2014
Did not know that I could register
80.0% 78.8% 83%
Do not know who to contact in order to register
1.5% 4.4% -
Do not think that I need to register as I can manage without gas occasionally
1.5% 3.5% 14%
Would be concerned about giving that sort of confidential information to my supplier
0.0% 2.7% -
Other 3.1% 0.9% 2%
Don't know 7.7% 6.2% 1%
Reasons for not registering among consumers who state they are eligible but unregistered
Prevalence of vulnerable customers
2012 2013 2014
2 3 1
611
7
Not registered
Registered
