Consumer utility brand trusts declines, the majority seeks new retailers


Cogent has released the findings of a new study conducted to understand how consumers in Texas view the services which they are currently offered by their energy retailers.

The study has revealed that the majority of consumers do not trust their energy retailers.

According to the study:

  • One in four Texans has plans to switch to a new energy retailer
  • Consumers are mainly dissatisfied with the energy rate plans which they are being offered
  • Brand Trust index has declined by two points to 735
  • 16 energy retailers increased brand trust over the last year while 13 declined

Read more reports from Cogent here

  • 84% of Texans stated a need to trust an energy retailer before doing business with it
  • Of the one in four Texans who are now or will soon be shopping for a new REP, almost half have been with their REP two years or longer
  • After 17 years of deregulation, 38% of Texans prefer to purchase their electricity from an energy retailer, while 28% would like to use their incumbent utility
  • Of the incumbent utilities, AEP Texas (32%) and CenterPoint Energy (31%) have the strongest preference among Texans.

Chris Oberle, a senior vice president at Escalent, said: “The top Texas REPs are conscious of how trusted and valuable their brand is with consumers

“The good news for REPs is there is plenty of opportunities to build brand trust and attract new customers. Texans are open to hearing about and using new providers they can trust.

 “With so many provider brands to choose from and customers open to switching, successful REPs will need to become trusted brands to avoid losing profits on customer churn.”

The study included some 5,361 utility customers who were asked about utilities’ community support, customer focus, communications effectiveness, environmental dedication, local reputation, reliable quality, competitive rates, enhanced offerings, and billing and customer service.

For more information about the study, click here…