Ofgem is steadfast in its commitment to protecting energy customers, especially focusing on how it can support the most vulnerable members of society.

To achieve this, the Consumer Impacts of Markets Conditions Survey (CIM) undertaken by BMG Research on behalf of Ofgem, is a pivotal tool for the regulator to understand the views of the UK’s energy consumers.

Launched in 2022 and now in its fifth iteration, CIM enables Ofgem to monitor how consumers have been affected by ongoing changes in the marketplace.

The latest survey was conducted in January and February, focusing on affordability. It also sought to understand whether a more stable energy market has influenced customers’ willingness to switch suppliers.

The findings also provide further insights into the drivers of consumer engagement with the market, helping give Ofgem a better understanding of the competition’s effectiveness in delivering consumer benefits.

In conducting the survey, BMG Research utilised online and face-to-face interviews among 3,439 customers as a representative sample of energy payers within the UK.

What were the key findings?

  1. Affordability
    • Nine percent of consumers stated they are behind on their household bills. Though this is lower than the previous survey’s results, it remains higher than the first in March 2022.
    • Similarly, nine percent stated they are also behind on their energy bill, with 53% saying they are struggling to pay for energy.
    • 27% stated they faced an affordability issue due to the cost of energy bills. While this is at the lowest level since Ofgem began tracking in March 2022, 57% of prepayment meter customers continue to report experiencing issues.
  2. Sources of support
    • 19% of the respondents stated they had reached out to either Ofgem, energy suppliers, the government, or charities for information, advice, or support with paying energy bills, down from 27% in the previous CIM.
    • However, 32% of those struggling with their energy bills did not think their supplier are aware of this. This suggests many consumers are not receiving the advice or support they need.
  3. Payment method and tariff preferences
    • Most consumers are happy with their current payment method and do not want to change (94%). However, only 48% are aware that energy costs vary by payment method. Amongst those who are aware, far fewer know the relative costs of each payment method.
    • Consumers often have a poor understanding of which tariff they’re on, with many claiming they are on a fixed tariff or a green tariff when official figures suggest this only accounts for a small portion of the market. Understanding of exit fees is also low, with a quarter (24%) believing that they would have to pay one, and a third (36%) saying they did not know if it applied to their own contract. These results continue to reflect a broader, long-standing theme from this survey of consumer confusion around some aspects of the energy market.
    • Regardless of their current tariff, some consumers are likely already able to flex their energy consumption through smart technology or many seem open to flexible energy consumption behaviours in the future.
  4. Energy market engagement

Despite greater choices available through a more competitive market, current market engagement remained unchanged from July 2023, and future engagement intentions decreased.

▪ Under a fifth (17%) said they have switched (to a new supplier or a different tariff with the same supplier) in the last 6 months, the same proportion (16%) as in July 2023.

▪ Just one in five (19%) said they might switch in the next 3 months, down from over one in four (28%) in July 2023.

Trust in the energy sector remains lower than other sectors with only one in three (36%) trusting energy suppliers in general. Despite this, levels of trust in, and satisfaction with a consumers’ supplier have improved, with three in five (60%) stating that they trust their supplier to treat them fairly and half (47%) stating that they trust them to charge them a fair price. This is now at its highest level since tracking began in March 2022.

This research is intended to:

  • measure overall consumer awareness, perceptions and experiences relating to changes in the energy market
  • analyse how different audiences have been affected by these changes
  • track how awareness, perceptions and behaviours vary over time.

 

The findings from the next CIM is expected to be made available near the end of 2024.