Consumers are cautious about energy companies – on average, these companies’ reputations are at a moderate level
T-Media’s Reputation&Trust of the energy sector focused on the general public’s perceptions of companies operating in the sector in Finland. The reputations of nearly all the energy companies surveyed are at a moderate level. Fortum was the only company rated as having a poor reputation in the survey.
Reputation&Trust of the energy sector, Finns rated the reputation of companies in the sector as moderate on average. Only the electricity company Fortum was rated as having a slightly poor reputation.
“The public’s attitude toward companies in the energy sector could be described as cautious. None of the companies surveyed in this round had a particularly good reputation, but at the same time, no company was found to have a truly poor reputation,” says Andrei Sergejeff, an expert at T-Media.
A total of more than 2,200 Finns participated in the study. The companies surveyed represent a broad spectrum of the energy sector. The companies included in the study ranged from nationwide electricity retailers to full-service energy companies that, in addition to electricity contracts, also provide district heating and electricity distribution.
Reputation management for electricity distribution companies is challenging
T-Media has studied the reputation of companies providing electricity network services, but these companies were not included in the overall energy sector survey. Sergejeff believes this partly explains the absence of companies with a truly poor reputation from the list. Finns often rate the reputations of electricity distribution companies as poor.
“Reputation management for electric utility companies is a challenge. It’s like rowing upstream with rubber oars. The costs of the companies’ investments in the power grid are easily overlooked by consumers. That’s why they may be seen as legalized robbers who, protected by their regional monopoly, extort unreasonable fees from consumers for electricity transmission,” says Sergejeff.
“The poor reputation of network companies that provide transmission services reflects poorly on the entire energy sector. In general, these companies are also seen as somewhat arrogant and unapproachable.”
Major changes in the energy sector are reflected in the company's reputation
The reputation of energy sector companies in 2023 is, on average, at a moderate level. In a survey conducted in August–September, energy sector companies received the highest average rating for their financial performance (3.50), but also a moderate rating for their products and services (3.18). Among the energy sector companies surveyed, employer reputation received the second-highest average rating (3.31). Innovation, administration, management, and corporate responsibility also received moderate ratings.
Figure: Average reputation score of the energy companies surveyed. The reputation score is calculated as the average of eight different sub-areas. The sub-areas are corporate governance, finance, management, innovation, interaction, products & services, workplace, and responsibility. A five-point rating scale (1–5) was used in the study.
“Based on the study, the perceptions associated with individual companies are not nearly as stark as the perceptions generally associated with the industry. When you shift from general perceptions of the industry to the level of individual companies, the picture immediately becomes more nuanced,” says Lauri Leppo, an expert at T-Media.
The biggest challenge for companies in the energy sector is interaction, which received the lowest average rating (3.04). Even so, this rating is still reasonable.
“Energy companies continue to maintain an open dialogue with the public, which is exceptionally valuable in this situation,” says Andrei Sergejeff.
“The energy sector is undergoing a profound transition. The shift away from fossil fuels, consumers becoming electricity producers themselves, and many other changes are all happening at the same time. Citizens need to be kept on board with this change, which places high demands on energy companies’ communications. Our research shows that, in the big picture, energy companies have succeeded in this at least to a reasonable extent.”
This is how we conducted the study
The aim of T-Media’s Energy Sector Reputation&Trust was to assess the reputation of energy sector organizations operating in Finland among the Finnish public. Data for the survey was collected via an online questionnaire between August 21 and September 6, 2023.
A total of 2,259 Finns participated in the survey. The survey targeted Finns aged 15–65 nationwide (excluding the Åland Islands). The sample was weighted to be representative of the population by gender, age, and region of residence.
More information
Andrei Sergejeff, Specialist
+358 50 3030204, andrei.sergejeff@reptrust-staging.fi-p.seravo.com
