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Spanish energy users stay loyal despite billing errors

A survey by Spanish consumer group OCU reveals that 82 percent of energy users remain with their supplier despite one in three detecting billing errors.

Spanish energy users stay loyal despite billing errors

Spanish consumer group OCU found that 82 percent of energy users kept their provider over the past year despite one in three detecting billing errors.

The survey of 2,813 members and supporters by the Organisation of Consumers and Users, known as OCU, revealed that Spanish households maintain high loyalty to gas and electricity companies regardless of dissatisfaction with billing accuracy and customer service.

One in three users reported errors or a lack of clear information regarding rates in their contracts, according to the study published by reporter Andrea Garrote for Spanish newspaper La Razón.

Una factura de la luz y contadores
An electricity bill and meters. Photo: Jesus G. Feria / La Razon

Analysis of energy bills conducted by OCU indicates that some households pay up to 30 percent more than other customers using the exact same supplier. The organization attributed these price gaps to automatic rate updates and consumers remaining locked into uncompetitive contracts.

Six out of ten consumers have stayed with the same energy firm for more than three years. OCU stated that the figures reflect a widespread belief among householders that switching providers is not worth the effort because all energy companies operate in a similar manner.

The report comes after a costly period for Spanish consumers, with September recording the highest average electricity bill in four years at 104 euros for households on the regulated tariff.

Customer service complaints and billing disputes

A lack of clear information concerning changes and updates to tariffs was listed as the primary cause of consumer complaints alongside billing errors, unapplied discounts, incorrect consumption readings, and delayed invoices.

Customer service departments failed to resolve these incidents satisfactorily for a large portion of clients, with two out of three affected consumers expressing low satisfaction with the response received from their provider.

The lowest satisfaction scores involved situations where energy companies activated unrequested services or delayed the startup and registration of supplies.

Despite these problems, OCU emphasized that its survey results revealed significant differences between individual suppliers regarding customer service quality, billing transparency, and user satisfaction.

OCU collective purchasing initiative for gas and electricity

To address energy market disparities, OCU has launched its 10th Collective Purchase of Gas and Electricity under the slogan "One single voice, thousands of households."

The scheme aims to negotiate better rates for consumers by grouping thousands of household accounts together before holding a joint energy auction.

More than 18,000 households have already registered for the initiative, and OCU expects to enroll additional participants before the upcoming auction takes place.

Registration is free of charge and carries no obligation to switch companies. Once winning suppliers present their tariffs, each registered participant can decide whether to sign a new contract or remain with their existing provider.

OCU stated that a larger pool of participants will give energy companies stronger incentives to offer competitive and stable rates at a time when rising costs place heavy pressure on household budgets.

Understanding Spain's consumer group and energy tariffs

The Organisation of Consumers and Users, founded in 1975, is Spain's largest independent non-profit consumer rights body. The organization conducts market studies, monitors utility rates, and provides legal advice to protect consumer interests across the country.

Spain's retail energy sector operates under a dual market structure created during market deregulation in the late 1990s. Consumers choose between the regulated market, where prices fluctuate based on government formulas tied to wholesale market rates, and the free market, where commercial suppliers set fixed or variable contract terms.

Consumer advocacy groups in Spain advise householders to inspect their electricity and gas contracts periodically and compare available offers to prevent automatic contract renewals from moving them onto higher pricing tiers.

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