SSE, Centrica: Energy suppliers’ customer services go down, should you invest?

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SSE, Centrica: Energy suppliers’ customer services go down, should you invest?

 SSE, Centrica: Energy suppliers’ customer services go down, should you invest?
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Highlights

  • Energy customers are now experiencing deteriorating standards of customer service.
  • Data from Ofgem and Citizens Advice revealed that customer services are at their worst since 2017.

UK customers are facing deteriorating standards of customer services from energy suppliers, like delayed customer calls, email waiting times, and others, a recent study has found. The energy price cap is set to add an extra £58 a month or around £693 a year to UK households’ bills after regulator Ofgem lifted the price cap.

Data from Ofgem and Citizens Advice revealed that customer services are at their worst since 2017, with many customers facing rising call and email waiting times. The average call waiting time is now over 5 minutes. It was around 4 minutes in 2020.

Energy suppliers’ customer service sinks

2022 Kalkine Media®

In recent days, many energy suppliers saw their websites crash after customers rushed to submit their meter readings before 1 April. According to the latest ratings, M&S Energy and Octopus Energy were the highest-rated firm, followed by ESF Energy, Co-Operative Energy, Outfox The Market and Affect Energy. While the worst-performing energy suppliers were Ecotricity, Ovo Energy, E.ON Energy, Boost Power, British Gas, Utilita, and SSE. The lowest rating recorded was 1.7, down from 2.1 in the previous quarter.

Let us take a look at 4 FTSE-listed energy suppliers for investors to consider. A thorough research into stocks is always advisable before taking investment calls.  

 Good Energy Group Plc (LON: GOOD)

Good Energy Group Plc offers electrification solutions to the transport sector and produces renewable energy through solar energy. The company has recently reported an increase in its revenue by 11.8% to £146.0 million in FY2021, from £130.6 million in FY2020, driven by a surge in energy prices. However, it has reported a loss for the period of £4.1 million in FY2021. The company was given a rating of 2.95 out of five.

With the current market cap of £43.22 million, the FTSE AIM All-Share-listed renewable energy company’s share value has appreciated by 18.12% over the last one year and its year-to-date return stands at 4.25%, as of 8 April 2022. The company’s shares were trading at GBX 257.50, at 9:55 AM (GMT), as of 8 April 2022.

Also Read: M&S, Next, Frasers: Stocks to consider as shoppers’ footfall improves in UK 

Shell Energy

Shell Energy is a subsidiary of Shell Plc (LON: SHEL), which is a multinational oil and gas company that operates through four business divisions that include Integrated gas, upstream, downstream, and renewable and energy solutions. Recently, the energy giant has earned that it will lose around US$4 to US$5 billion in the first quarter from offloading its Russian assets and ensured that these changes do not affect adjusted earnings. The company was given a rating of 3.15 out of five.

With the current market cap of £157,362.91 million, the FTSE100-listed energy company’s share value has appreciated by 48.78% over the last one year and its year-to-date return stands at 32.17% as of 8 April 2022. The company’s shares were trading at GBX 2,143.50, up by 2.76%, at 9:55 AM (GMT), as of 8 April 2022.

Energy suppliers’ customer service sinks

2022 Kalkine Media®

SSE Plc (LON: SSE)

The multinational energy company, SSE Plc is engaged in generating renewable electricity. It develops and operates low carbon infrastructure and has one of the widespread electricity networks in the UK. The company’s subsidiary, SSEN transmission has recently agreed on terms for a £350 million private placement with Pricoa Private Capital. The company was given a rating of 2.75 out of five.

With the current market cap of £19,121.83 million, the FTSE100-listed energy company’s share value has appreciated by 19.31% over the last one year and its year-to-date return stands at 10.65%, as of 8 April 2022. The company’s shares were trading at GBX 1,804.50, up by 0.75%, at 9:55 AM (GMT), as of 8 April 2022.

Also Read: FERG, RMG, KGF: Can you hold these stocks looking in correction mode?

 

Centrica Plc (LON: CNA)

The multinational energy services and solutions company, Centrica Plc owns the largest UK energy and home services company, British Gas. British Gas was given a rating of 2.65 out of five and it has doubled the emergency credit for customers who are on pre-payment meters for their gas and electricity after a hike in energy bills.

With the current market cap of £4,745.35 million, the FTSE 250-listed energy company’s share value has appreciated by 43.17% over the last one year and its year-to-date return stands at 12.94%, as of 8 April 2022. The company’s shares were trading at GBX 80.76, up by 0.36%, at 9:55 AM (GMT), as of 8 April 2022.

Note: The above content constitutes a very preliminary observation or view based on market trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.

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