Utility Week

22 | JANUARY 2023 | UTILITY WEEK Talking Points… The time for talk on vulnerability is over T he country is in the grip of a cost of living crisis, with in ation in double gures, energy prices rising at unprecedented rates, and debt levels spiralling. Our own independent research found that 27% of UK adults consider themselves to be vulnerable. With millions of UK households facing real nancial hardship, many more are likely to join the "vulnerable customer" category this winter. Against this backdrop, it's shocking but not unsurprising to read in Ofgem's recent report that domestic energy suppliers are continuing to fail their vulnerable customers. It found that all 17 rms in the review needed to improve. The report shone a spotlight on energy suppliers' inadequate support for vulnerable customers – but the problem is nothing new. Energy suppliers and the regulator have been discussing ways to better support vulnerable customers for years – yet the failings continue. It's time energy suppliers and the regulator stopped putting the onus on customers to disclose their vulnerability. Many people are reluctant to ask for help or admit they are struggling, and it is also incredibly diˆ cult for people to get through to the right person. Even for those willing to report their vulnerability to their energy supplier, it's unreasonable to expect consumers in challenging circumstances to navigate their way through the complex call-routing systems, and digital- rst approach that stands in their way. Energy suppliers must be far more proactive in nding out which customers are vulnerable; 82% of vulnerable people have not even been asked if they are vulnerable by their utility provider, and many have reached the end of what they can cope with and are in real trouble. The resources required to identify vulnerable customers already exist, such as the Vulnerability Registration Service – a central, independent register of vulnerable people, which helps utility companies and others to identify vulnerable customers and treat them fairly. If energy suppliers take proactive steps to identify their vulnerable customers, get in touch and discuss the issue at an earlier stage, many problems can be averted. Not only that, but supporting customers at a time when they need it most enables suppliers to build trust and strengthen customer relationships. Vulnerable customers who get help at the right time are less likely to get into debt and default on payments, meaning fewer problems further down the"line. While it is very clear that there are far too many points at which utility companies are continuing to fail their vulnerable customers, once vulnerable customers have been identi ed our research shows that there have been some positive steps taken in supporting them. For example, while only 18% of vulnerable people have been proactively asked by their utility provider if they are vulnerable, 84% of people said that when there was awareness of their vulnerable status, it was taken into consideration and they were treated more fairly. This awareness is key, but the onus must be on them to proactively identify their vulnerable customers rather than wait for those customers to come to them. The time for talking is over. All eyes are on the sector to see if they will nally choose to step up. Helen Lord, chief executive, Vulnerability Registration Service Comment: It is not good enough to rely on vulnerable customers identifying themselves as such – suppliers must be proactive. "I'm not laying the whole blame on Smart Energy GB but I'm just saying that I feel like it has not been money well spent. Would we have achieved 50% [coverage] anyway? Probably yes, in which case what's the point of it?" Bill Bullen, chief executive, Utilita on the slow pace of the smart meter rollout "The way we have regulated some fi rms in industries like energy or telecoms has been too soft, letting big, comfy incumbents get away with delivering services that are more expensive and lower quality than they should be." John Penrose MP, in an update to his competition review "The carrot not the stick has been helpful here. Incentivising with money off bills has encouraged behaviours we want to see." Susan Davy, chief executive, Pennon Group (owner of South West Water) on the company's Stop the Drop initiative, which o• ers customers money o• their bill if reservoir levels increase Quote, unquote expensive and lower quality than they should be." John Penrose MP update to his competition review Susan Davy Pennon Group (owner of South West Water) on the company's Stop the Drop initiative, which o• ers customers money o• their bill if reservoir levels [coverage] anyway? Probably yes, in which case what's the point of it?" Bill Bullen executive, Utilita on the slow pace of the smart meter rollout

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