Utility Week

UTILITY WEEK | 27TH MARCH - 2ND APRIL 2020 | 29 Customers 10 - 11 November 2020 The Utility of the Future is also the theme of Utility Week Live taking place at the NEC in Birmingham on 10-11 November. Visit•www.utilityweeklive.co.uk for more information. Citizens Advice consumer survey fi nds some autoswitching sites provide a poor service The lack of regulation of third-party interme- diaries (TPIs) such as autoswitching services is leaving customers with "serious prob- lems", according to Citizens Advice. A total of 7 million people used a third party service to compare or switch their energy supplier in 2019 and this Œ gure is expected to rise as the UK moves towards net zero emissions by 2050. The charity's•Stuck in the Middle•report (see graphics, right and below) published earlier this month highlights how there is currently no direct regulatory oversight of energy TPIs, a generic term that includes price comparison sites and autoswitching sites, which also include energy brokers and bill splitting services, meaning consum- ers can struggle to resolve problems when they•arise. The report found that some autoswitch- ers were providing inaccurate or unclear information, making it di" cult for consumers to make informed choices about using the service. Some sites even listed suppliers that were no longer in business. It added that fewer than 15 out of around 70 energy suppliers are being o– ered by some autoswitching services claiming to cover the entire market. Other issues highlighted by the charity were: • Autoswitchers failing to cancel a switch, leaving customers stuck with a supplier they are unhappy with or facing exit fees • Bill splitting companies failing to pass on communications from suppliers, leaving people in unexpected debt • Consumers in vulnerable situations los- ing some of the services they rely on as a result of being switched without warning What protections do people expect? Customer focus Customers are treated fairly and there is good customer service Accuracy Information on services is up to date, including on contract lengths and exit fees Ease of use / clarity An emphasis on ensuring simplicity for customers Responsibility Support vulnerable groups Safety A high level of data protection Transparency Clear information about market coverage and how they are funded Customers are treated fairly and there is Customers are treated fairly and there is 50% 64% 60% 60% 60% 59% TPI describes a range of services They play a growing role in the energy market Their role will expand in future There are gaps in protections for consumers using energy TPIs Across all markets 1.1m people have made a complaint about a TPI service of switches in 2019 were completed using a third party service 44% Number using an automated switching service: 2019 ~300,000 2016 0 Unlike energy suppliers, TPIs aren't subject to regulatory oversight by Ofgem. When things go wrong consumers have fewer options to get things sorted Be transparent about how Be transparent about how they work Keep information on Keep information on products up to date Treat customers fairly Be clear and simple to use Protect personal data As TPIs take on a greater role, the gap in protections could increase the risk to consumers of using these services 70% of consumers think that energy price comparison sites and autoswitchers should be regulated Collective switches Smart TPIs Autoswitchers Price comparison websites Bill splitters Consumers want to see these gaps closed In 3 years time, 40% of households will have a smart appliance 1 appliance This means more consumers will use smart TPIs to manage smart appliances to access lower energy costs Over 75% of people think they should be able to get advice and support about complaints to TPIs and take their complaints to an Ombudsman if they need to Ofgem should regulate these services Our research suggests this would be most effective through an authorisation regime, similar to how the FCA regulates insurance TPIs A majority of consumers think TPIs should be required to:

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