Consumers more tolerant of poor service in pandemic

Energy and telecoms customers became more tolerant of poor service from their provider during the first months of the pandemic, likely leading to a reduction in complaints, new research has found.

Ombudsman Services’ 7th annual Consumer Action Monitor (CAM) report surveyed more than 10,000 energy and telecoms customers between March and September last year.

The report found that in 2020 complaints about products and services fell “significantly” during the spring lockdown and remained at low levels through to the autumn.

In the previous six years the CAM reports have revealed an emerging trend of rising complaint numbers, peaking at 4.2 complaints per person in 2019.

There was a slight reduction in complaints recorded per person in March (3.7) before dramatically decreasing to 0.95 in May and further still in September to 0.86.

Greater tolerance

The report revealed four in 10 (41 per cent) consumers believe they became more tolerant of poor service during lockdown, with only 10 per cent saying the opposite.

Almost a quarter (24 per cent) of consumers who were unhappy with a product or service during lockdown, but did not complain, did so because they were more willing to be lenient in a uniquely challenging time.

Additionally the proportion of consumers that reported feelings of anger, stress, exasperation and anxiety about a complaint also fell significantly during lockdown.

Ombudsman Services said it was important to recognise the moves made by both sectors early on in the pandemic in order to reduce the impact on consumers.

In the energy sector, a series of measures were introduced last March to ensure the most vulnerable consumers were kept on supply and that those in financial hardship were assisted by their supplier.

“These measures, coupled with the wider financial support measures introduced by government, mustn’t be overlooked as potential contributing factors for the decline in complaints,” the report said.

Ombudsman Services added that its own complaints data for the March-September period also showed a decline in complaints numbers as did the data published by several energy and telecoms providers, showing this was not unique to the CAM research.

It will carry out more research in 2021 to gauge whether this was a pandemic phenomenon or whether Covid-19 was the catalyst for longer-term change in consumer behaviour.

Vulnerable consumers

The proportion of those who considered themselves vulnerable fell from 30 per cent in March to 24 per cent in September.

During the UK-wide lockdown in spring, more consumers considered themselves vulnerable for reasons unrelated to the pandemic (16 per cent) than Covid-related reasons (11 per cent).

Ombudsman Services said it believes the decrease in those identifying as vulnerable during a pandemic could be down to the support measures introduced by the government and devolved administrations, adding it is likely the full economic impact will be felt when support ends.

With this in mind the organisation said both it and the two sectors may need to prepare for a sudden increase of vulnerable customers requiring support.

Green credentials

Elsewhere, the report supported the view that an energy or telecoms provider’s green credentials are important to consumers.

A provider’s efforts to be green matter most to the youngest and oldest in society, with 66 per cent of both 17 to 24-year-olds and over-65s saying they were important.

Green credentials mattered more to women, with 64 per cent saying they were important compared to 58 per cent of men.

Furthermore more energy consumers felt their provider’s green credentials were important (65 per cent), compared to 56 per cent for telecoms providers.

At least 50 per cent of consumers in all social groups stated that a provider’s green credentials were important while 44 per cent of consumers said energy and telecoms providers must start to take the environmental protection agenda more seriously in the post-pandemic world.

Writing in the report Ombudsman chief executive Matthew Vickers said: “Over the last 12 months, energy and telecoms services have become even more important as consumers’ day-to-day lives changed dramatically.

“When faced with the challenges of the Covid-19 pandemic, consumers needed more than ever to feel confident and reassured that they were in safe hands.

“Consumers continue to rely on their providers to ensure crucial services are delivered effectively and efficiently not just now, but as we work towards a sense of normality in a post-pandemic world.

“But the challenges don’t end there. Looking to the future, policymakers have set several ambitious targets for meeting key infrastructure challenges around net zero, full fibre broadband and 5G.

“If these challenges are to be met, it’s vital that consumers have trust and confidence in the energy and telecoms sectors. We hope this report sets out some interesting ideas as to how that trust can be built, maintained and embedded beyond.”