Scottish DNOs ‘must do more’ for vulnerable customers

Scottish distribution network operators (DNOs) must do more to support vulnerable customers, a Citizens Advice Scotland (CAS) report has found.

The “Pylons, pipes and people” report highlights that Scottish DNOs are lagging behind other DNOs in their support for vulnerable consumers – outside business as usual activities.

It recommends the DNOs should “invest further” and “increase the reach of programmes for vulnerable consumers across all of Scotland”, supported by the appropriate organisations and Ofgem.

The report also found confidence in the RIIO-ED1 stakeholder engagement and customer vulnerability (SECV) incentive scheme was falling. It recommended Ofgem take steps such as improving the consistency in its approach to assessment and providing feedback, to re-establish confidence in the process.

CAS energy spokesman and author of the report Dr Jamie Stewart, said: “This research gives us insight into how the energy network companies in Scotland provide support to households and how their role may change as the energy system transitions to a smarter, greener grid.

“In particular, it highlights the fact that the two Scottish electricity DNOs are lagging behind in terms of their support for vulnerable consumers.

“We recognise that the Scottish DNOs – SSEN [Scottish and Southern Electricity Networks] and SPEN [SP Energy Networks] – have invested in a number of valuable programmes to support consumers over the years. However we suggest that Scottish DNOs should increase the reach of programmes for vulnerable consumers.

“Our research also found that Ofgem should improve the assessment process for the SECV incentive, to give companies confidence in the process; in particular by providing companies with better feedback.”

Dr Stewart’s research also found that whole system planning is necessary to ensure that electricity networks are integrated within local heat and energy efficiency strategies.

SSEN said it disagreed with the methodology used in the report, but recognises the need to further evolve its programmes.

A spokesperson said: “SSEN supports vulnerable customers in the north of Scotland through a range of voluntary initiatives including fuel poverty advice referrals, an energy efficiency gap funding programme and our resilient communities fund, which has so far delivered over £500,000 in financial support to not-for-profit community groups.

“We also actively manage and promote our Priority Service Register, which provides dedicated support to around 125,000 customers in the region who require additional help.”

A spokesperson for SP Energy Networks (SPEN) said: “Last year we delivered over 1250 support services to vulnerable customers, ranging from tariff switching to dementia support.

“We work with a range of partners to assist our vulnerable customers, and over three-quarters of a million people receive extra support on our priority services register.

“Nine out of ten of our own customers say they are happy with our service and the support we offer vulnerable customers, but we will work hard to continue making improvements.”

The report added protections for consumers such as appropriate redress and complaint handling for vulnerable consumers within community energy projects and new flexibility services must be prioritised.

Ofgem said the RIIO price controls have driven up customer service standards significantly but it still expects more from the companies in the next price controls.

A spokesman said: “Like Citizens Advice we also want to see improvements in the service vulnerable customers receive from network companies.

“Overall the RIIO price controls have driven up customer service standards significantly. However, we expect more from the companies in the next price controls from 2021.

“This is why we are setting up new, independent user and customer engagement groups to challenge the companies’ business plans and ensure that they reflect what consumers want and are willing to pay for.

“We offer all DNOs constructive, one to one feedback covering their performance under the stakeholder engagement incentive, and our observations on trends we have seen across the industry, as well as what constitutes outstanding performance.

“To drive up standards we need to see year on year improvement from the companies, therefore we have adjusted our expectations of their performance over time.”

In the wider energy industry there have also been calls for better support for vulnerable customers. Energy UK launched an independent commission in February, to look at how standards of support can be improved for customers in vulnerable circumstances.