Many consumers struggle with their energy bills, sometimes for the first time, with Ofgem data showing that energy debt and arrears reached record figures of £3.3 billion in March 2024.
While Citizens Advice over the last year, found that more than 3 million people have been disconnected from their domestic energy supply because they could not afford to top up their prepayment meter – including more than 1.4 million since November 2023. They also found that over 5 million people live in homes with an energy debt and are at greater risk of turning off the heating or skipping meals to reduce costs.
Consumers voice
To understand consumers’ satisfaction with the quality of service they receive from energy suppliers including their experiences of debt and affordability support, Ofgem and Citizens Advice jointly commissioned The Energy Consumer Satisfaction Survey.
BMG Research conducted qualitative research interviews with a range of consumers who had been in contact with their suppliers about support with energy costs.
This research explored a range of customers’ journeys through suppliers’ support processes when they had fallen behind on their bills or run out of credit on their prepayment meter.
What were the main points?
- Participants described a range of experiences when contacting their supplier about support. There was a mix of both positive and negative experiences.
- Participants reported that rises in energy costs, increases in the cost of living, and difficulties understanding bills were reasons for needing supplier support.
- Some participants were unaware of being in debt or arrears until their supplier told them. Others found themselves in difficulty when they did not get a helpful response from their supplier, or when they were unable to agree on a way to resolve their problems.
- While several participants said they were able to contact their supplier easily by phone or email, others felt that they couldn’t speak to their supplier due to the ‘stigma’ of being in debt, often feeling as though others were more ‘deserving’ of support.
- Some respondents reported more positive interactions where they felt heard, and valued as a customers and that their personal circumstances were considered.
- Participants ultimately said they want suppliers to understand their situation, be kind and empathetic, and provide a range of suitable options for their circumstances.
How was the research conducted?
Fieldwork for this research was conducted from 2 February to 20 March 2024, consisting of 31 in-depth interviews with domestic energy consumers in England, Scotland and Wales (Great Britain).
Due to the timing of the fieldwork, some of the findings reflect participants’ experiences with their supplier before Ofgem introduced new consumer standards in December 2023.
All of those interviewed had fallen behind on their energy bills or had run out of credit on their prepayment meter and been in contact with their supplier about it.
Interviews were conducted either online, over the telephone or in person, and lasted up to one hour.
Click here to view the REPORT.
Working to protect consumers
As many households continue to struggle with their energy bills and energy debt reaches record levels, it is more important than ever that energy suppliers meet the needs of their customers.
Ofgem understands being in debt can be stressful for consumers and is working to protect current and future energy consumers by ensuring they are treated fairly.
The Regulator has and is taking steps to drive up consumer standards for energy consumers, to ensure that consumers struggling with their energy costs are provided with appropriate support from their supplier. It also works in partnership with others to mitigate the impacts of the energy crisis.
The consumer and behavioural research conducted on behalf of Ofgem is just one of the studies providing Ofgem with valuable insights into consumers’ needs and experiences to support its decisions.
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