Energy suppliers censured by Scots groups over 'unacceptable' service

They said retrospective action such as the issuing of fines "after things have gone wrong" limits the extent to which it can drive "necessary culture change".

They said that improvements to energy supplier customer services responses were "urgent and essential".

The SEIC, a coalition of frontline advice bodies supporting energy consumers in Scotland including Citizens Advice Scotland, Advice Direct Scotland and Age Scotland found that members reported "significantly increased demand for the front line services they provide".

As clients were found to have "deeper and wider problems" with debt poor customer service performance on the part of some energy suppliers was highlighted as "exacerbating affordability issues".

A new analysis by SEIC said that problems included long delays in answering calls to mainstream consumer lines, inadequate resolution of problems and as a consequence, a "growing need" for repeat calls.

"[The energy regulator] Ofgem’s advice to consumers is that their first action, if concerned about any aspect of their bills or affordability, should be to contact their supplier, " said the SEIC in a new study. "It is of immediate and ongoing concern that there are barriers in some cases to them taking this action. We are aware that Ofgem is currently considering these issues, which have been raised by many stakeholders across GB.

"In addition to the immediate problems this causes for consumers, for SEIC members and other frontline advice organisations and partners, inadequate customer service is far from an academic issue. While the extent varied, all agencies reported increased demand from consumers who would normally deal with issues directly with suppliers themselves, but who sought agency assistance because they were unable to get through."

The trade association, Energy UK said that with a "steep" rise in demand wait times were "inevitable".

Last year Ofgem said that ScottishPower were one of three energy suppliers with "severe" weaknesses in helping customers struggling to pay bills.

Ofgem's review found failures with 16 firms in being able to identify which customers were having payment difficulties and a lack of help with payment plans.

A full market review, found that ScottishPower along with two other suppliers, TruEnergy and Utilita had “severe weaknesses” in the way they support struggling customers, while five, E, Good, Green Energy, Outfox and Bulb, were found to have some issues in the support they provide.

Among its key findings, Ofgem said it uncovered failures in companies being able to identify customers in payment difficulty and a lack of help given to those needing crucial payment plans, while others had a “non-existent” policy relating to struggling customers.

It came as the Government stepped in to cap a typical duel fuel household bill at £2,500 per year in a bid to tackle skyrocketing energy bills which for many were unaffordable. That remained double the amount being paid the previous winter.

SEIC said: "Assisting those consumers – through no fault of their own - is taking time that could and should be more effectively used in support of longer term income maximisation or energy efficiency aims for those in greater need of support. This is negatively impacting access to services for consumers at a time when affordability concerns mean demand is already high.

"SEIC members were universally clear that these circumstances require significant action to address consumers’ problems comprehensively and should in no way become acceptable as the ‘new normal’. These are linked but separate issues – improvements in service standards and long term solutions to managing unsustainable levels of debt among consumers unlikely ever to be able to repay it are both needed."

The SEIC said there needed to be continuing financial support for consumers affected by rising energy bills in the short term and greater clarity on longer term financial support.

They also called for improvements to the delivery of energy efficiency schemes and greater investment in the energy advice sector to help consumers access support Lewis Shand Smith, the chair of Consumer Scotland's energy consumers committee said: "The group believes its proposals will bring long term benefits to consumers in Scotland."

A spokesman for the Energy UK, trade association said: “During a period when energy bills have reached levels, it’s unsurprising that – like the advice bodies themselves - suppliers have been facing hugely increased call volumes with more customers needing more help than ever before. Suppliers have reported call volumes quadrupling and given the nature of the difficulties faced by many customers, these calls can also take longer to resolve, increasing the pressure on call centres further.

“Energy suppliers have invested hundreds of millions of pounds to support customers since the beginning of the pandemic in the form of financial relief, diversifying communication channels, training new employees and partnering with third-party organisations and charities. 

"However given such a steep rise in demand, it’s sadly inevitable that there’s been an increase in waiting times. Suppliers have had to deal an unprecedented set of circumstances resulting from the energy crisis – not just helping customers struggling to afford their bills but also quickly implementing and administering various Government support schemes - that have proved a lifeline to millions of those customers - and managing the disruption caused by 30 suppliers going out of business.

2While this combination of challenges might not be repeated again, the fact that the retail sector has been loss-making over the last few years does limit suppliers’ ability to invest in improving customer services further.                        

“However, the industry remains keen to work with both consumer groups and the regulator to see how they can further improve the service provided to customers in the face of such challenges.”