Vulnerability is one of the most pressing issues across the utilities sector and there is a plethora of ideas on how to tackle it.
In our manifesto we are calling for more collaboration across industry and government in dealing with the most vulnerable customers and for the question of who is best placed to provide this support to be vigorously debated.
A keen advocate of further collaboration across sectors is the Money Advice Trust which runs National Debtline – free advice and resources to help people deal with their debts.
Joanna Elson, the trust’s chief executive, says: “We are increasingly hearing from people struggling with household bills including energy debts. A more joined-up approach across government, linking fuel poverty and problem debt, is needed to help address part of this challenge.
“There is also an important role for the third sector alongside suppliers through greater partnership working. This could include signposting to debt or energy saving advice, and helping people access financial help and other essential costs.”
In May this year an independent report by the Commission for Customers in Vulnerable Circumstances said the energy sector needs to take “urgent action” to better identify customers in vulnerable circumstances and improve the support given to them.
It added that the Citizens Advice Extra Help Unit, which is responsible for investigating complaints linked to vulnerability, has had to double its number of caseworkers in the last five years due to the volume of issues affecting customers in vulnerable circumstances.
One of the key recommendations of the report was the creation of an independently monitored code of conduct for suppliers to drive up standards of support for the vulnerable.
The new interim chief executive of Energy UK, Audrey Gallacher, tells Utility Week that one of the areas the trade body has been working on is with energy switching websites.
“Energy UK will be launching a new vulnerability charter to drive up standards of care for customers. We have been speaking to the switching sites about how we can make these enhanced services and commitments visible when people are making choices on switching to a cheaper deal.
“Arguably switching sites themselves could and should be signing up to this because they are starting to have much more enduring relationships with customers through auto-switching for example”, she says.
Currently, the balance of responsibilities is placing too much emphasis on utility providers and not enough on government. Another area which Energy UK believes can aid vulnerability is in house building.
Gallacher adds:“We have long been calling for a national energy efficiency programme to help sort out the state of our housing stock, which would reduce costs and obviously now as well would be making a significant contribution to meeting net zero by 2050.
“In better insulated homes people save money, carbon emissions are reduced and we are healthier. There is a definite role for government.
“We have seen pledges in the party manifestos to fund energy efficiency – and a significant retrofit programme is going to be necessary as we move to decarbonise domestic heating.”
Austerity is another matter affecting vulnerability.
Over the last decade, austerity measures have resulted in the removal of ring fencing from funds such as emergency benefit payments. In many cases emergency payments have ceased altogether which means there is now more pressure on utility companies to be helping customers through trusts and other mechanisms.
Furthermore, the largest energy suppliers look after a disproportionate amount of the vulnerable. Recent conversations within the sector have centred on whether or not it is fair that legacy suppliers should have to carry a disproportionate majority of the cost to serve vulnerable customers.
As a result, there has been the suggestion that in order to address the imbalance, a levy should be issued across the sector in order to support the cost of looking after those most in need.
A supplier for the vulnerable
Those who struggle to pay their energy bills will also be struggling to pay for other essential services such as water, therefore a more joined-up approach has been suggested recently.
One more radical course of action would be to explore the possibility of creating a pan-utility provider which specifically caters for vulnerable customers. That way all services will be tailored for those in need of help, allowing the companies to direct all their energy on those who are vulnerable.
In its consumer vulnerability report 2025, Ofgem recognised that other government departments, such as the Department for Work and Pensions (DWP), own benefits data which could be used to identify and support customers in vulnerable situations. Data sharing will be key if industry is to seriously tackle vulnerability.
Collaboration across industry will create a more level playing field and allow all consumers to benefit from all the market has to offer, not just those who are more affluent.
There is clearly more government can do to assist utilities in helping vulnerable customers. We hope the next government will be the one to tackle this issue head on.