The state of vulnerable customer support in the energy sector

Consumer energy debt is at an all-time high, reaching £3.1 billion in 2024, the highest rate since records began¹. Alongside this, vulnerability in consumers is growing, with 60% of UK adults struggling with bills² and 45% of the population now classed as vulnerable according to the FCA definition of vulnerability³. Increasing debt and vulnerability means suppliers are facing multiple new challenges in customer support in the energy sector. Including:

• Competing approaches and communications from customer support and debt collections teams.
• How to increase support offered to customers without increasing workload on customer service staff and contact centres.
• Stakeholder pressure amid growing levels of unpaid consumer debt.
• Lack of data demonstrating ROI for the company in improving customer service and vulnerability support.
• Lack of customer data on vulnerabilities or struggles faced to know what support to offer for optimum results.
• Low consumer trust and reluctance to disclose vulnerability to service providers for fear of detrimental service as a result.

But there is an innovative solution that can help both customers and companies. And it starts with one question. Are you okay?

Read on to find out more.

Current legislation

Ofgem’s Standard Licence Conditions (SLCs) include several related to vulnerable customer support in the energy sector, including SLC 0, 26 and 27. Ofgem also launched their Consumer Vulnerability Strategy back in 2019, which they will be relaunching in 2025 to re-focus on consumer support and improving PSR services.

This focus on vulnerable customer support coincides with a UK-wide shift, with Ofwat launching their ‘Service for all vulnerability guidance’ in 2024 and the FCAs ‘Guidance for firms on the fair treatment of vulnerable customers’ in 2021.

Where companies can innovate

Vulnerability can be fluid and complex. People may become vulnerable due to certain life events, or their current physical and mental health, this may be long-lasting or temporary. Additionally, vulnerabilities don’t occur in isolation. TellJO has found the average customer qualifying for a PSR has 7.1 vulnerabilities. So, how can energy companies effectively support these customers?

Make it easy

A customer in difficulty will most likely have other priorities. Only a motivated few will pick up the phone to call you or search your website for help with their situation. Also, consider that they’ll most likely have several other suppliers they’ll need to contact, adding to an already overwhelming task.

Customers are five times more likely to disclose digitally and to a third party. By asking the customer if they are okay, a wellbeing check can re-engage 33% of disengaged customers, including those in payment difficulty who may have been avoiding calls or letters, and 75% will opt for a payment plan. For those who simply can’t afford to pay, you’ll have consent-given data on their difficulties to allow you to make informed decisions on next steps.

Utilise consent-given data to introduce effective support initiatives

The best way to ensure any support you offer makes a difference is to know what difficulties your customers are experiencing, so you can tailor support accordingly. Reducing the risk of wasting time and resources creating initiatives that don’t have a tangible impact on customer wellbeing.

Utilising data in this way is different to asking customers what support they want and can produce more effective results. A customer in crisis may not know what they need or where to turn, but by understanding the problems customer groups are facing you can partner with expert organisations to deliver the right help. For example, we recently worked with E.ON Next, who used TellJO data to design a process map to support 5,000 of their terminally ill customers.

Want to know more?

Our latest report reveals the current state of innovation in vulnerable customer support. Plus it includes a case study of our work with E.ON Next. Download it here.

1. Ofgem, 2024. https://www.ofgem.gov.uk/press-release/welcome-fall-price-cap-high-debt-levels-remain

2. Financial Conduct Authority, 2022. https://www.fca.org.uk/news/press-releases/millions-britons-struggling-bills-warns-regulator

3. FCA, 2021. https://www.fca.org.uk/publication/finalised-guidance/fg21-1.pdf