Energy companies in the UK 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% and electricity bills by 10%. Naturally, the public have not taken kindly to this, with Buzz levels for Scottish Power shifting from -3.6 points on June 7 to a low of -38.2 points on June 14. 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 June 7 and 17.
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 June 7 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 June 7 to -35.3 points on June 21.
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 themselves.