Consumers suffering 'financial distress' from utility firms

Published 4th Dec 2016

Consumers are suffering ''financial distress'' from utility and banking firms but don't know where to seek help, says a report by Which?

Its Scottish Consumer Insight Report 2016 reveals consumer trust and experience of essential markets such as energy, telecoms and banking.

It also contained a ''financial distress index'' which lists the 10 most and least affected constituencies in Scotland. The Competition and Markets Authority has already found that the issue is worse in Scotland.

The report found a quarter of Scottish households (23%) have switched their energy supplier in the last five years.

The energy industry also rated poorly in Scotland, with two-thirds (67%) of those quizzed saying they were worried about the price of energy. Energy companies were also rated as one of the least trusted industries, after car dealers and long-term financial products.

In the report's financial distress index, the area which suffered the most was Glasgow Maryhill and Springburn, followed by Glasgow Southside and Glasgow Provan. The areas least distressed were the Western Isles, Orkney and Aberdeenshire West.

Data from Scottish Consumer Insight Report 2016 also showed many Scots don't know where to seek help when they had a problem with their energy provider. One in five (21%) of those surveyed meanwhile, decided not to take action.

In other utilities, such as broadband, around four in ten (44%) households experienced service problems in the last two years. Two in five (31%) said they took no action to try to resolve it because it wasn't worth the effort to complain.

Which? called on the Scottish Government to use its new consumer powers to protect people's interests and create a new statutory organisation to support Scottish consumers.

Vickie Sheriff, director of campaigns and communications at Which? said: ''Our research shows that many people in Scotland are experiencing problems with their essential services but many don't go, or don't know where to go, to get help or advice. The Scottish Government has been given new powers and they present a real opportunity for ministers to be ambitious in the way they are used to benefit consumers.''