Sluggish improvement in energy company customer service, according to Citizens Advice league table
New Citizens Advice star rating shows energy supplier customer service has returned to pre-energy crisis levels
But three in five households are still served by suppliers which score below average
Charity is urging firms to continue improving service so people can access support this winter, as record numbers seek help with energy debt
The latest Citizens Advice energy star rating measures customer service between April to June this year. The average rating is now 3.07, which is a rise of almost 13% since the start of 2024 and a return to levels seen before the energy crisis.
However, the charity warns more needs to be done as three in five customers are served by suppliers which score below average in the league table. This comes after Ofgem recently challenged suppliers to improve customer service, amid complaints about billing problems and the sector lagging behind others with higher customer satisfaction, such as banking.
Citizens Advice says people deserve better from their energy supplier and is renewing its call for a Consumer Duty, a new set of rules to give Ofgem stronger powers to hold companies to account and set a higher bar for customer service in the energy industry.
With the charity already helping record numbers who have fallen behind on bills, it is urging firms to continue upping their game so that people can access the support they need this winter.
The latest star rating puts Utilita at the bottom of the table, with Ecotricity at the top. Overall, energy companies performed better in their ability to resolve customer complaints, and call wait times have also continued to improve.
Five million living in households in debt to their supplier
Research from Citizens Advice shows one in four people are so worried about increases in energy costs that they say they will be forced to turn off their heating and hot water this winter. It also found that five million people are currently living in households in debt to their supplier.
Energy companies are responsible for providing support, like affordable payment plans, to people who can’t afford their bills. The charity is encouraging people to get in touch with their supplier if they need help.
Dame Clare Moriarty, Chief Executive of Citizens Advice, said:
“We’re bracing ourselves for another challenging winter. Whilst suppliers’ customer service improved in the spring, firms need to continue upping their game to ensure people can access support in the colder months.
“Citizens Advice has long called for a Consumer Duty to give Ofgem stronger powers to ensure higher customer service standards in the energy industry, which is still far behind that of other sectors.
“With energy debt at a record high, and the removal of previous support packages, the government must also urgently introduce targeted bill support that reflects the realities of people’s energy needs.”
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Notes to Editors
Citizens Advice star rating (April-June 2024) compares energy suppliers' customer service in England, Wales and Scotland by looking at information from a number of sources. Information about complaints comes from the Citizens Advice consumer service, the Extra Help Unit and Energy Ombudsman. Citizens Advice uses its statutory legal powers to request information on customer service from suppliers. Information on membership of customer guarantees comes from Energy UK. Energy suppliers are given a score out of 5 for each category. 1 is poor and 5 is excellent (a zero score is given if a supplier does not provide the necessary data). Suppliers then receive an overall star rating out of 5. Not all categories are weighted equally, with some counting more towards the final score than others. Further information on the methodology can be found here.
Citizens Advice launched the star rating in December 2016. From Q3 2016 to Q3 2017 the star rating measured performance on bills and ease of contact based on customer surveys. From Q3 2017 onwards these were measured based on data submitted by suppliers. Additional changes were made to the methodology in Q4 2020, including adding new customer service metrics. From Q3 2023, the billing and switching metrics were removed. The methodology, including all changes, was developed in consultation with suppliers and other stakeholders.
Historic Star Rating data is available online here.
In 2023 the FCA began implementation of the Consumer Duty for financial service providers which ‘sets higher and clearer standards of consumer protection across financial services, and requires firms to put their customers’ needs first’. Previous Citizens Advice analysis has shown how the same approach in energy would deliver better outcomes for consumers, by delivering higher service standards, making it easier for Ofgem to hold firms to account and future proofing regulation as new energy products and services emerge during the net zero transition.
By the end of August, we had helped more people with energy debts (67,188) so far this year than we had by this point in any other year. This is a 62% increase from the number we had helped by the end of August in 2021 (41461). In August 2024 alone, we helped 9441 people with energy debts, which is the highest number of people we've ever helped for energy debts in August. This data is available on our Cost of Living Dashboard.
On 10th September Ofgem published its vision for service standards in the energy sector which it describes as ‘amongst the lowest rated industries’ and ‘significantly behind leading sectors which currently have the best rated customer service’.
Our latest report, Fixing the foundations: The need for better targeted support for energy consumers, is available online. The findings reveal that one in four people (25%, the equivalent of 16.5 million people) are so worried about increases in energy costs that they say they will be forced to turn off their heating and hot water this winter. This increases to 31% of households with children, and 39% of bill payers on a low income. The press release is available online.
Citizens Advice is made up of the national charity Citizens Advice; the network of independent local Citizens Advice charities across England and Wales; the Citizens Advice consumer service; and the Witness Service.
Our network of charities offers impartial advice online, over the phone, and in person, for free.
Citizens Advice helped 2.66 million people face to face, over the phone, by email and webchat in 2022-23. And we had 60.6 million visits to our website. For full service statistics see our monthly publication Advice trends.
Citizens Advice service staff are supported by more than 16,000 trained volunteers, working at over 1,600 service outlets across England and Wales.