The time for talk on vulnerability is over

With the UK in the grip of the worst cost of living crisis in memory millions of households are facing severe financial hardship, yet many are not getting the support they urgently need. Writing for Utility Week Helen Lord, chief executive of The Vulnerability Registration Service, argues now is the time for energy suppliers to step up and be more proactive in identifying those who are vulnerable.

The country is in the grip of a cost of living crisis, with inflation in double figures, energy prices rising at unprecedented rates, and debt levels spiralling. Our own independent research found that 27% of UK adults consider themselves to be vulnerable.

With millions of UK households facing real financial hardship, many more are likely to join the ‘vulnerable customer’ category this winter.

Energy suppliers failing vulnerable customers

Against this backdrop, it’s shocking but not unsurprising to read in Ofgem’s recent report that domestic energy suppliers are continuing to fail their vulnerable customers. It found that all 17 firms in the review needed to improve:

• Severe weaknesses: Good Energy, Outfox, So Energy, Tru Energy and Utilita
• Moderate weaknesses: E (Gas & Electricity), Ecotricity, Green Energy UK, Octopus and Shell
• Minor weaknesses: British Gas, Bulb, EDF, E.ON, Ovo, Scottish Power and Utility Warehouse.

The report shone a spotlight on energy suppliers’ inadequate support for vulnerable customers – but the problem is nothing new. Energy suppliers and the regulator have been discussing ways to better support vulnerable customers for years – yet the failings continue.

Some of the worst failings uncovered by Ofgem include suppliers not reading the meters of customers who are unable to do so themselves, not enabling vulnerable customers to contact them to top up their meter or request support, and setting debt repayment rates so high that vulnerable customers are effectively forced to self-disconnect.

What’s more, our research also found that the most vulnerable people in the UK are the most likely to be moved onto higher cost prepayment meters – 8% of vulnerable customers compared to 4% of the population.

More proactive approach urgently needed

It’s time energy suppliers and the regulator stopped putting the onus on customers to disclose their vulnerability. Many people are reluctant to ask for help or admit they are struggling, and it is also incredibly difficult for people to get through to the right person.

Even for those willing to report their vulnerability to their energy supplier, it’s unreasonable to expect consumers in challenging circumstances to navigate their way through the complex call-routing systems, and digital-first approach that stands in their way.

Energy suppliers must be far more proactive in finding out which customers are vulnerable, 82% of vulnerable people have not even been asked if they are vulnerable by their utility provider, and many have reached the end of what they can cope with and are in real trouble.

The resources required to identify vulnerable customers already exist, such as the Vulnerability Registration Service – a central, independent register of vulnerable people, which helps utility companies and others to identify vulnerable customers and treat them fairly. Individuals on the database may be classed as vulnerable for a whole variety of reasons, including financial circumstances, mental health, illness, disability, risk of coercion or fraud, Power of Attorney and many other vulnerability indicators. Many of these people do not feature on the Priority Services Register that many utility companies use to identify vulnerable customers.

Timely support benefits consumers and suppliers

When vulnerable people can’t get the help they need, their problems can quickly spiral out of control. Debts build up, utility supplies may be cut off, health deteriorates, and loan sharks move in. All of this can be prevented by early intervention.

If energy suppliers take proactive steps to identify their vulnerable customers, get in touch and discuss the issue at an earlier stage, so many problems can be averted. Not only that, but supporting customers at a time when they need it most enables suppliers to build trust and strengthen customer relationships. Vulnerable customers who get help at the right time are less likely to get into debt and default on payments, meaning fewer problems further down the line.

While it is very clear that there are far too many points at which utility companies are continuing to fail their vulnerable customers, once vulnerable customers have been identified our research shows that there have been some positive steps taken in supporting them.

For example, while only 18% of vulnerable people have been proactively asked by their utility provider if they are vulnerable, 84% of people said that when there was awareness of their vulnerable status, it was taken into consideration and they were treated more fairly.

This awareness is key, but the onus must be on them to proactively identify their vulnerable customers rather than wait for those customers to come to them. These individuals are already at breaking point, often facing extreme levels of debt, mentally unable to understand their finances or manage their day-to-day tasks, and physically far more reliant on energy.

The time for talking is over. All eyes are on the sector to see if they will finally choose to step up.