Distribution network operators (DNOs) have been heavily criticised by consumers over their communication and compensation strategies during Storm Arwen, a new report by Ofgem has revealed.
The ‘Customer experiences of Storm Arwen’ report was published on Thursday (9 June) alongside the regulator’s final overall report from its review into DNO’s responses to the storm which took place last November. The government’s Energy Emergencies Executive Committee also published the final report from its complementary review on the same day.
Ofgem undertook qualitative research by interviewing people who live in rural areas and were affected by an extended outage of more than 48 hours in order to understand their experiences.
While the research sample was small at just 22 consumers, Ofgem said its report provides “valuable insights into the experiences of affected customers”, which the regulator has considered in its review alongside other information obtained from stakeholders and DNOs.
One of the main issues highlighted was how power restoration times were communicated, with “widespread criticism” coming from the survey group of the accuracy of updates provided by DNOs.
Expected restoration times were amended “numerous times” during the course of the outage. This, the report said, meant people felt less able to plan mitigations, such as moving to alternative accommodation.
It was found that relatively few consumers received proactive updates from their DNO during the outage, even those on Priority Services Registers (PSRs).
Those who tried to call their network operator during the outage reported lengthy waiting times and some were not able to get through to a person.
“Even those who did get to speak to an agent generally felt that the person they were engaging with was not well-informed on who was affected by the outage, when their power was expected to be restored or what support was available in the meantime. Some also felt that the representatives they spoke to lacked empathy in the way they responded to their call,” Ofgem said.
Elsewhere, there was dissatisfaction with how compensation was handled by the networks, with “considerable confusion” being reported about what support could be offered to people who were vulnerable or had additional needs.
The absence of information on support measures on DNO websites meant that many, including vulnerable or PSR customers, assumed no support was available to them. It was also reported that call agents were not taking the opportunity to identify vulnerability when customers did get through.
Those who were aware of support tended to have heard about it via other means such as through word of mouth, social media, newspapers and elected representatives.
Furthermore, the nature of support for some was inadequate. Some low-income consumers said they could not afford to pay upfront for alternative accommodation or meals out and then reclaim it back at a later date.
The feedback from participants also suggested that some consumers may have received an additional goodwill payment from their DNO without needing to claim for this, while others did not.
“This resulted in people living in the same localities receiving different amounts of compensation in some cases which raised questions about the consistency and fairness of compensation payments,” Ofgem said.
Some respondents also had to wait up to several months after the storm to receive their compensation, while a few said that they received cheques addressed to the wrong person.
Those who had issues reported them being difficult to resolve, with dedicated email addresses no longer working and correspondences going unanswered meaning they had to recontact the DNO several times and in different ways to obtain a resolution.
Overall, while there was dissatisfaction with the perceived insufficiency of DNO communication and/or support provided, consumers generally felt those who were working to restore power were “working hard in challenging circumstances”.
The report made a number of suggestions for networks to improve their service in future scenarios. They included:
- Providing more realistic of when power will be restored, if necessary providing a worst-case scenario in the early stages when a more precise estimate cannot be given.
- Making it easier for people to contact their DNO by increasing the resourcing of response lines or providing alternative channels.
- Providing more training to customer service staff on the range of circumstances that could make someone vulnerable in an extended outage beyond the medical need for electricity.
- Upgrading support available to vulnerable customers, those affected by lengthy outages or those who have no water supply. This could include offering pre-paid hotel accommodation or portable generators.
- Being more proactive in their communication about compensation and clearer about the criteria for discretionary welfare payments.
Responding to the findings, David Smith, chief executive of the Energy Networks Association, said: “As well as implementing the recommendations set out by government and the regulator and enhancing customer service, network operators have also identified areas which will need increased investment to provide better energy security and service for customers in the long term. This is particularly important as severe weather events become more frequent.
“The six electricity distribution network operators have submitted these details in their business plans for the next five years and Ofgem is due to make its initial determination in the coming weeks.”
You can read Utility Week’s full coverage of Ofgem’s final report here.