More help for energy consumers in vulnerable situations
Blog
Rachel Fletcher
Publication date
Industry sector
Supply and Retail Market
Alan is in his 90s and has mobility issues. One day his granddaughter, who was visiting, was concerned to see him standing on a stepladder in the garage with a torch to read his meter. She contacted his supplier, and under the Priority Services Register was able to nominate herself to give meter readings on behalf of Alan.
Millions of customers in vulnerable situations benefit from free assistance from suppliers and network operators. This support is aimed at ensuring that customers like Alan are not disadvantaged in participating in the energy market, that they are kept safe and that they understand the communications they receive from energy suppliers. Free services include providing assistance for customers who struggle to read their meters, passwords so that customers can safely identify representatives who visit their house, and advance warning of power cuts and information on any help available during emergencies.
Our research suggests that too few of the people who need the services are using them. Not enough consumers – only a quarter - know about the services, and the onus is on customers to register themselves.
Meanwhile, this support is currently only available to customers who are disabled, chronically sick, of pensionable age, or have hearing or visual impairments. This misses out many consumers in need of help, for example people who are temporarily vulnerable because of their circumstances because they experience severe stress, illness or injury.
Also, the services themselves are too rigid and don’t encourage energy companies to take advantage of new technology such as smart meters. For example, customers can get free meter readings, but just on a quarterly basis.
More support: Suppliers required to identify signs of vulnerability from their customer interactions and offer Priority Services
Protecting and empowering consumers in vulnerable situations is a priority for Ofgem. The objective of our Consumer Vulnerability Strategy is clear; no customer should be disadvantaged or receive a worse service as a result of being in a vulnerable situation.
Which is why we’re changing Priority Services, making sure the consumers who are most in need can benefit.
From January we’ll be broadening the eligibility criteria for this extra support, to include any vulnerable energy customers who need it – even if their situation is temporary. This could include customers who have injuries, for example, that stop them topping up their meter.
Energy companies will be required to identify these customers, picking up on signs of vulnerability from their day-to-day interactions with customers and offering them the services. Separately, suppliers and network operators, will, in accordance with data protection and privacy laws, be required to share information about customers’ needs with each other.
We’ll also be giving companies much more freedom to be flexible and innovate, so that they listen to vulnerable customers and genuinely tailor services to their needs.
To be clear, this does not mean that customers who currently benefit from the Priority Services Register will miss out. There is nothing to stop people getting the help that they already receive. Meanwhile, ensuring that companies comply with the obligations put in place to protect vulnerable consumers is a priority for Ofgem.
The Priority Services Register services are only some of the important protections which are in place for consumers in vulnerable situations. And our reforms to ensure that suppliers recognise the importance of providing people like Alan with the support they need to engage in the market go beyond the changes to the PSR. We are about to consult on a new high level obligation on suppliers to identify consumers in vulnerable situations and to do all they can to protect and empower them.
Some suppliers have already been leading the way. Several have set up vulnerability teams, with more autonomy to agree tailored arrangements. One supplier has partnered with charities to broaden its customer service agents’ skills base, especially for those who work with specific vulnerable groups, such as the hearing impaired or customers with dementia. The supplier now has 800 Dementia Friends and 40 Dementia Champions across the business.
We want to get to a place where energy companies – which have the relationship with customers and hear from them thousands of times a day – are doing the detailed thinking about what customers need. Our changes to Priority Services are an important step in doing so.