Citizens Advice response to Ofgem’s consultation on a framework for consumer standards and policy options to address priority customer service issues
Citizens Advice welcomes the opportunity to respond to this consultation. Addressing shortcomings in these areas is vital for tackling the scale of challenges facing energy consumers in the current cost of living crisis. The three topics noted, involuntary pre-payment meter (PPM) installation, contact ease, and tailored advice/support for customers struggling with their bills, are the areas which our data indicate are most urgently in need of reform and regulatory action ahead of the coming winter.
The scale of the crisis facing energy consumers over the course of this year cannot be understated. Citizens Advice has been highlighting the indicators which demonstrate the extent to which domestic energy consumers are coming to our services for help in our Cost of Living Dashboard. The reforms proposed by this consultation will help to address some of these challenges, and we therefore support the overall objectives of the proposals.
We therefore note that:
The number of people we supported who couldn’t afford to top up their prepayment meter is 69% higher than in April 2022 and 426% higher than in April 2021.
The quantity of fuel vouchers we have provided through our Local Citizens Advice Network is still at historically high levels.
By the end of April 2023, we had helped over 110,000 people with energy issues - the highest number at this point of any year on record.
As the energy industry adapts to forthcoming licence changes, we note the importance of proactively working to increase visibility of support available from energy suppliers. Energy consumers may not know that support is available to set affordable repayment plans or keep them on supply. This creates a risk that consumers in vulnerable circumstances are simply unaware of any support packages, no matter how helpful they could be. It is therefore crucial that any support introduced under these new rules is proactively and repeatedly communicated by suppliers to their customers ahead of the winter. This will help to make sure that people can access support which is available.