A total of 15 energy retailers – representing 70 per cent of the domestic market – have voluntarily signed up to Energy UK’s new Vulnerability Commitment which has been launched today (1 December).
Signatories of the commitment, designed to complement existing licence requirements, have agreed to adopt a “collaborative, proactive and transparent” approach that will improve both the quality of support provided by them and customer awareness that such support exists.
There are several commitments that make up the overall Vulnerability Commitment. These include:
- Providing at least one alternative form of communication in addition to phone contact
- Providing a freephone number for customers in financial hardship where appropriate
- Only using High Court enforcement officers to recover debts where appropriate for a vulnerable customer, taking consideration of any wider vulnerabilities that may be exacerbated by court enforcement action
- Provide customers who have a new pre-payment meter (PPM) installed (or have their meter switched to PPM mode remotely) for debt reasons with a package of support including PPM tariff advice (including signposting wider financial assistance where applicable) and energy efficiency information (including entitlement to energy efficiency measures)
- Seeking feedback from customers on whether billing communications are understandable and implementing improvements where necessary
- Supporting the development of a best practice guide on using smart technology to identify self-disconnection
Companies that have so far signed up include British Gas, EDF, Scottish Power, Ovo, Octopus and Bulb.
The commitment builds on the work of the independently-chaired Commission for Customers in Vulnerable Circumstances which was established by the trade body in 2018.
Last year the commission made a number of recommendations of how to continually improve service for all customers, particularly those in the most need, including the creation of an independent code of conduct for suppliers.
The report found that despite examples of good practice, the quality and availability of support varied across the industry and that action was needed to better identify customers in vulnerable circumstances and improve the help given to them.
Energy UK said the commitment has been available for suppliers to sign up to since July this year, with signatories agreeing to be fully compliant by 1 January 2021. In addition, retailers who have signed up will be recognised in Citizens Advice’s energy supplier rating from this month onwards.
Energy UK’s deputy chief executive, Audrey Gallacher, said: “The energy sector provides an essential service and moved quickly to help customers affected by the pandemic by increasing the amount of support it gives. The Vulnerability Commitment is a result of our work with consumers and their representatives to better understand what help is needed.
“And the suppliers who have already signed up are sending an important message, which is that we want to go above and beyond existing measures and to continuously improve the quality of support to vulnerable households.”
Labour peer Larry Whitty, chair of the Commission for Customers in Vulnerable Circumstances, said: “It is heartening to see that Energy UK and a significant proportion of energy suppliers have made this commitment and taken up many of our Commission’s recommendations.
“In our report we found serious issues for vulnerable consumers in dealing with their suppliers; and a wide variation both between and within companies as to how effectively they recognised these difficulties and how they communicated with vulnerable customers.
“These commitments – made by companies covering most of the domestic market – should level up company performance and raise the standard everywhere to the benefit of vulnerable households in these difficult times, leading to more manageable bills in some cases and more effective customer service across the board.”
Welcoming the announcement Ed Dodman, director of regulatory affairs at the Energy Ombudsman, said: “It’s good to see energy suppliers taking steps to further improve how they support vulnerable customers. Energy UK deserves praise for the work it is doing to drive this agenda forward, particularly at a time when so many people require additional support due to financial pressure and other issues.
“We know from the complaints we handle that complicated and hard-to-understand bills are a real source of frustration for customers, including those in vulnerable circumstances, and can lead to a breakdown in trust between customer and supplier. It’s therefore encouraging to see suppliers signing up to improvements in this area.”
The full list of signatories so far:
- British Gas
- Bulb
- E
- Ecotricity
- EDF Energy
- Green Network Energy
- Green
- Octopus
- Outfox the Market
- Ovo
- Scottish Power
- So Energy
- Together Energy
- Utility Warehouse
- Yorkshire Energy