October 2, 2002—Electric utility companies across the United States are performing dramatically better than last year, according to the recently released J.D. Power and Associates 2002 Electric Utility Midsize Business Customer Satisfaction Study(SM).
The study’s nationwide customer satisfaction index has risen impressively—from 92 points in 2001 to 100 in 2002. Nearly every utility rates higher, with 35 of 41 utilities included in the study significantly improving their performance by at least four index points.
While only seven utilities had an overall customer satisfaction index of 100 or more in 2001, 22 utilities achieved a score of 100 or better this year. A score of 100 represents industry average.
“With several utilities moving way out in front of the pack, the other utilities need to pay more attention to satisfying their customers than ever before,” said Alan F. Destribats, executive director of the utility practice at J.D. Power and Associates. Power quality and reliability are now the most important factors comprising overall customer satisfaction. Company image also is an important component, but slides from first to second in impact. The other key components of overall satisfaction are price and value, billing and payment, and customer service. “Utility management attention and investment in power delivery are paying off,” said Destribats. “Midsize business customers reported the fewest number of interruptions this year.”
The study shows that performance in power quality and reliability has improved from an average of 5.3 interruptions per customer per year in 2000 and 2001 to 4.7 interruptions in 2002.
Retail sales of electricity continue to struggle. According to midsize business customers eligible to choose a new electricity supplier, less than 3 percent currently have an alternative supplier, while 9 percent had switched in 2001 and 5 percent in 2000.
The 2002 study also focuses on the interest of midsize business customers in energy and communication products and services. Customers were surveyed about their interest in various products and services and were asked to rate how well they think their electric utility would perform as a provider of these services.
For more information, contact J.D. Power and Associates.
