Utility Week

UTILITY WEEK | MARCH 2023 | 9 Energy "There is nothing that can be said to excuse it. Every one of our customers deserves to be treated with respect, that's what I would expect of myself, that's what I expect of my colleagues, that's what I expect of our contractors." CHRIS O'SHEA, CHIEF EXECUTIVE, CENTRICA "I know many suppliers are struggling financially and there is a widwer affordability debate that needs to happen – I have already been clear that some kind of social tariff is needed … However, there are examples of best practice within the supplier community of really looking after vulnerable customers." JONATHAN BREARLEY, CHIEF EXECUTIVE, OFGEM "We need to return to a world where this is a product that is appropriate for some people when properly policed because otherwise debt and payment issues will spiral out of control. It is not an ethical position to allow households to get into unpayable debt." NIGEL POCKLINGTON, CHIEF EXECUTIVE, GOOD ENERGY "I am angered by the fact some (suppliers) have so freely moved vulnerable customers onto prepayment meters, without a proper plan to take remedial action where there has been a breach of the rules. I have only received half the picture as it still doesn't include enough action to offer redress to those who have been so appallingly treated." GRANT SHAPPS, SECRETARY OF STATE FOR ENERGY SECURITY AND NET ZERO "The Ofgem regulator should consider his position for failing on his responsibilities to energy customers subject to the forced installation of prepayment meters." GORDON BROWN, FORMER LABOUR PRIME MINISTER juxtaposition of that story next to Shell reporting £32 billion profits for 2022 – the highest in its 115-year history – made it look even worse. To add to the awful optics, that same day Ofgem delivered a damning verdict in its review of suppliers' customer service standards. This saw the regulator deliver the blunt verdict that customer service across energy retailers is "just not good enough" and Eon UK was highlighted for a "severe deterioration in standards" since its last review. All in all, it made for a miserable day, in a miserable month for energy retail. The bumper profits of £3.3 bil- lion announced by Centrica on 16 February only ramped up the criticism There is little point in saying that profits at Centrica's retail division actually fell by £46 million to £72 million in 2022, or that Shell is looking to offload its loss-making supply arm, or that Ofgem has accepted that call centres are facing unprecedented volumes and complexity of calls. People won't listen. Can you really blame them? As we know, there are thousands of dedicated, caring employees across the sector who are doing their best in difficult circumstances. Retailers are strengthening their teams as fast as they can and frantically trying to pre- pare them for the difficult situations they will encounter. But quite clearly much of the industry is failing to pro- vide the level of customer service the public demands. So, what can be done? One vulnerability expert reminds Utility Week that while energy retailers may be in the spotlight, the same issues are being faced by financial services firms, councils and property compa- nies among others. They point to the first of these sec- tors as one that can provide a model for energy, adding: "There has been a shi˜ in mindset. The changes that are taking place now are being done for the benefit of the customer, not compliance. And that has happened because of a very clear steer from the regulator on how it expects companies to act – what their end goal actually is. I don't see that from Ofgem." With frequent concerns aired about "micro-manage- ment" of the sector by Ofgem and the government, the suggestion of more regulatory intervention may elicit groans. However, with energy retailers bruised and battered by the headlines inflicted on them, Ofgem has an oppor- tunity to provide leadership. It can start by providing a clear stance on exactly what it wants retailers to do about customers racking up debt, where PPMs can play a role and how they are expected to respond to rapidly evolving definitions of vulnerability. If this dark period for energy accelerates answers to those questions, then at least some good will have come from it. James Wallin, editor Join in the debate Explore all these themes in depth at Utility Week's Customer Summit at the NEC in Birmingham, 21-22 March. Visit event.utilityweek.co.uk/customer/

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