Declining customer service scores strengthen case for consumer duty  

Customer service ratings across the energy industry are among the lowest ever, and showing no signs of improving.

Citizens Advice – which tracks customer satisfaction levels through its star ratings – claims that the only way to improve the situation is by implementing a consumer duty into Ofgem’s framework of regulatory requirements.

The body has been calling for a consumer duty for two years, similar to the FCA’s consumer duty which includes an overarching requirement to deliver good outcomes for customers – going further than Ofgem rules to simply treat customers fairly.

The duty includes specific requirements to ensure:

• Products offer fair value.
• Products are fit for purpose, meet customer needs and are targeted at those who’ll benefit
• Information is provided at the right time and presented in an easily understandable way
• Support meets consumers’ needs, so they can realise the benefits of services they buy

Citizen’s Advice claims that a prolonged period of poor customer service scores has strengthened the case for Ofgem to be given more powers to clamp down on energy retailers.

The latest star rating league tables, published today (25 June), show that average ratings have fallen by 10.5% compared to the same period in 2021, and have flatlined since the end of 2023 (see table below).

Clare Moriarty, chief executive of Citizens Advice, said: “When millions are struggling to afford the essentials, it’s completely unacceptable that energy companies are failing to give their customers proper support.

“Citizens Advice has long called for Ofgem to be given stronger powers to hold suppliers to account on customer service. That must include tackling the complaints backlog before next winter.

“News that bills are dropping slightly from July will be cold comfort for the record numbers seeking help from our advisers. The next government must introduce better targeted energy bill support for those struggling to keep the lights on or cook a hot meal.”

EDF and Utilita are named as the worst suppliers for customer service in Citizens Advice latest league table, with Ecotricity given the highest star rating. Ovo is the top-rated of the ‘Big Six’ energy retailers (see full table below).

EDF, was one of the highest scoring suppliers this time last year, but has fallen to the bottom of the rankings after its average call waiting times jumped from just under a minute to over five minutes in less than a year.

“We recognise our call answer times haven’t been up to the high standards we set ourselves and are committed to doing better, getting back to the market-leading service our customers expect,” an EDF spokesperson said. “We’ve recruited and trained more people at our Sunderland, Brighton and Exeter offices and are nearing the end of a complex transfer of our residential customers to a new IT system, resulting in more customer’s getting in touch as we navigate this process.

“Our priority is always to provide great customer service and resolve customer queries however they contact us and our customers rate us excellent on TrustPilot. We get as many emails, texts and WhatsApps as we do calls, but Citizens Advice places heavier weighting on call-wait times to calculate the overall score, which we’re calling on them to change.”

Utilita has improved since last quarter, but remains one of the lowest rated suppliers. The retailer has previously taken issue with how the rankings are calculated considering it is a prepayment meter specialist that is compared against the same criteria as mainstream credit suppliers.

In response to the latest ratings, a Utilita spokesperson said: “We must not underestimate how savvy consumers are today. They will realise the Star Rating contradicts other market-wide supplier assessments – including those of Ofgem, Trustpilot and Which? – where Utilita performs consistently well.

“The latest Star Rating is also an anomaly when its findings are compared to those of the Energy Consumer Satisfaction Survey.”

The in-depth report, jointly commissioned by Citizens Advice and the regulator, ranked Utilita second for customer service among mid to large-sized suppliers.

“As such, we look forward to ongoing dialogue to close the gap between the perception the Citizens Advice Star Rating gives, and the reality other rankings provide,” Utilita said.

Earlier this year, So Energy also blamed its low performance in the Citizens Advice star ratings on a change to the methodology in how the rankings are worked out.

Dale Vince, founder of Ecotricity, said: “The greenest outcome, the best service and a fair price are our three principles, so it’s great that Citizens Advice has ranked Ecotricity number one for customer service at a time when people need it most. It’s a testament to the work we put into looking after our customers, especially during this cost-of-living crisis.”

Joe Gordon, chief operations officer at OVO said: “I’m proud to see OVO’s commitment to our customers being recognised in the Citizens Advice league table.

“This reflects the hard work and care our support teams provide to our customers.”