Declining energy sector customer service strengthens case for consumer duty

Customer service ratings across the energy industry are among the lowest ever and are showing no signs of improving according to Citizens Advice.

The Chrarity, which tracks customer satisfaction levels through its star ratings, claims that the only way to improve the situation is by implementing a consumer duty into Ofgem’s framework of regulatory requirements.

The league table rates customer service between January to March this year, when record numbers came to the charity for help with energy issues. Average ratings have fallen by 10.5% compared to the same period in 2021, and have flatlined since the end of 2023.

Citizens Advice says customer service standards have still not returned to levels seen before the energy crisis, which caused many more people to need support from their suppliers with issues like debt and the forcefitting of prepayment meters.

It’s calling for the introduction of a Consumer Duty – a new set of rules that would give Ofgem stronger powers to hold companies to account and help bring an end to years of poor customer service.

The latest star rating puts EDF and Utilita at the bottom of the table, with Ecotricity at the top.

EDF, one of the highest scoring suppliers this time last year, has fallen to the bottom after its average call waiting times jumped from just under a minute to over five minutes in less than a year. Utilita has improved since last quarter, but remains one of the lowest rated suppliers.

There has been an improvement in average call waiting times following new guidance from Ofgem in December. However, companies are performing badly on their ability to resolve customer complaints, which has brought overall ratings down.

Citizens Advice says it’s helping more people than ever who have fallen behind on their energy bills. Research by the charity has found over five million people in the UK are living in households in debt to their supplier.

Energy companies are responsible for providing support, such as affordable payment plans, to people who can’t afford their bills. But the charity is concerned poor supplier service will lead to mistrust among consumers, which can make it harder for people to seek help when they need it most.

Dame Clare Moriarty, Chief Executive of Citizens Advice, said “When millions are struggling to afford the essentials, it’s completely unacceptable that energy companies are failing to give their customers proper support.

“Citizens Advice has long called for Ofgem to be given stronger powers to hold suppliers to account on customer service. That must include tackling the complaints backlog before next winter.

“News that bills are dropping slightly from July will be cold comfort for the record numbers seeking help from our advisers. The next government must introduce better targeted energy bill support for those struggling to keep the lights on or cook a hot meal.”
Scores for January to March 2024: