Secured more than £2.4m for vulnerable customers in the form of goodwill payments, bill reductions and guaranteed standards payments thanks to the Extra Help Unit. 3 Citizens Advice response to BEIS consultation on minimum energy efficiency standards in the private rented sector, Citizens Advice, March 2018.
Key projects/priorities and their outcomes
Priority 1: Cutting energy bills
We will continue to closely monitor the effectiveness of the cap and the new measures to introduce fairer deals. Citizens Advice has commissioned economic modeling of the potential impacts that a minimum energy efficiency standard could have.
Priority 2. Empowering and protecting energy consumers
We are actively involved in the rollout of smart meters in these forums and bilaterally with suppliers. Strengthening the Code of Practice for Smart Meter Installations to ensure that consumers receive tailored advice on energy efficiency around the installation of smart meters.
Monitoring
We published our guide to good practice on domestic complaints22 and raised awareness among small suppliers, particularly of the rules they need to follow when identifying sources of independent help and support. Following the high-profile collapse of some energy suppliers, we called for a strengthening of the licensing regime to protect consumers. This recommended a high entry threshold of 25 conditions of need for suppliers to demonstrate their understanding and ability to support customers with additional needs and low incomes.
Citizens Advice continues to advocate for consumers during this process and will closely monitor the impact of the transition from the prescriptive rules to the new general principles to ensure that protections are not weakened. Most consumers are referred to EHU by the Consumer Advice Service, although they may also be referred by the Energy Ombudsman, Ofgem, other advice agencies, MPs and local councils. 89% of domestic consumers and 88% of micro-enterprises that contacted EHU were satisfied or very satisfied with the quality of their service.
In November 2017, just under half (46%) of complaints were against small or medium-sized suppliers, even though they represent only 20% of the market.
Priority 3. Giving energy consumers a voice in decisions
The EHU also operates an 'Ask the Adviser' service, which provides support to other advice providers, to help them resolve a customer's energy or postal service complaint. Of microbusiness cases, more than two-thirds related to either debt and disconnection (37%) or invoicing (30%) issues. Conducted a survey with all energy grid companies on how they conducted stakeholder engagement in RIIO-1.
We will continue to work with Ofgem on the development of the next price control framework and monitor and work with network companies as they improve their approaches to consumer engagement. Energy networks have a duty to support vulnerable customers and some companies have worked with local Citizens Advice staff to help them meet their commitments, addressing issues such as affordability, accessibility and wider social issues. Local advice offices understand the needs of people in vulnerable situations in their area.
In 2017/18 we worked with energy networks and local citizen advice services to understand the extent to which these two groups were working together, explore the benefits of these schemes, build on the connections already in place and enable new connections .
Participation in technical working groups
Creating a simpler and fairer energy market
The energy label will be recalibrated step by step across the product groups and the European Commission is now developing the product database. Over the coming year we will work with stakeholders, including Ofgem, to develop a vulnerability indicator for stakeholders to compare suppliers. We will continue to work with Ofgem as the company enters the next phase of regulation and considers broader switching compensation.
Involvement of SMEs in the energy market We wanted to know more about the experiences and views of SMEs. The insights from the segmentation analysis will enable tailored policy responses to the diverse attitudes and behaviors of SMEs. It will also build on existing research into SMEs' perceptions of the energy organizations they work with (i.e. energy suppliers and brokers).
We will continue to use the evidence 34 to ensure that the interests and needs of micro-enterprise consumers are reflected in the rollout of smart meters.
Priority 5. Reducing rip-offs and bad practices that exploit consumer behaviour
These allow the investor to help finance the installation and maintenance of a renewable energy household heating system, and in return the household can then allocate their Renewable Heat Incentive (RHI) payments to the investor. In May 2017, the Conservative and Labor election manifestos included pledges to further intervene in the market to protect consumers. Savings will depend on the height of the cap and market conditions at the time, but early estimates averaged around £100 per household.39.
However, in the gas sector there was poor performance40 that needed improvement, and energy consumers lost out on at least £2.2 million, and possibly more, in the compensation they were entitled to in 2015/2016. We raised several challenges with the performance data at Ofgem that were hindering our ability to assess performance across all areas and the true extent of unclaimed customer compensation. Energy companies must send a copy of the brochure 'Know your rights in a changing energy market' to all their customers every year.
Once again, Citizens Advice 44 designed the leaflet, sent it to suppliers and then placed it on our website as part of our duty to publish it online.
Overview
To address the threat of mail fraud, we worked closely with partners in 2017/18 to coordinate activities and ensure that our joint efforts achieved maximum impact. Part of this work has been to ensure that our consumer education activities are based on a solid understanding of "what works". We commissioned new research on the effectiveness of current approaches to educating consumers about mail fraud, including whether or not they are based on best practice behavioral insights, and drew on information from qualitative research with consumer groups most vulnerable to fraud.
To maximize the impact of this work, we generalized the findings to create a toolkit for advisors and partner organizations that provides guidance on how to run more successful anti-mail and other scam awareness campaigns.
Priority 2. Supporting access to post Parcel services
One in five people in rural communities would find themselves isolated if their local post office closed. We have used the findings from our report on the use of rural post offices to call for more funding for post offices. The research has also shaped our discussions about the future of the rural post office network with stakeholders including Defra, Defra Minister Lord Gardiner and Action with Communities in Rural England.
The research will be used to understand the role self-service could play for the future of post office customers. Our 2017/2018 research shows that community-run post offices play a particularly valuable role in maintaining access to post office services in rural areas, where consumers often face poor transport links and do not have easy access to banks and wider retail and public services. We surveyed 93 community-run post offices – around half of the total in Britain – to understand their experiences of providing post office services.
We will also work with the Plunkett Foundation and Post Office Ltd to develop support materials for communities and consumers.
Priority 3. Ensuring postal services meet the needs of vulnerable consumers
The Government's consultation on 'The Future of the Post Office Network' sought to understand how communities could play a greater role in shaping how postal services are delivered in their local area. 400 mystery shopping visits to post office branches with - first time - disabled shoppers to assess current accessibility provisions. In March 2018, the Post Office Ltd agreed an action plan with the finance industry to promote banking in post offices that builds on the general principles outlined in this work for disabled postal customers.
We've been working with Post Office Ltd to encourage them to improve and raise awareness of their accessible branch locator. 63 Banks and post offices to raise awareness of the banking services available in local post. In 73% of cases we agreed improvements or received additional reassurances before Post Office Ltd implemented them.
Following our action, Post Office Ltd has now committed to making improvements in 100% of the branches where we raised our concerns.
Priority 4. Promoting consumer interests in a changing world The advent of the internet and privatisation of services have changed the postal
Cross Sector
This gives us unique insight into common issues faced by consumers in many different markets. This year we also focused on how companies can take advantage of consumer behavior – their habits, fears, perceptions and values – and in particular the “loyalty penalty” paid by those who do not want to switch suppliers regularly. We explored how this could disproportionately affect certain groups of people, such as vulnerable consumers.
Our unique research and customer data also helped inform the National Audit Office's study on vulnerable consumers in regulated industries. The study also suggested that greater clarity is needed to define the roles and responsibilities of regulators for supporting vulnerable consumers and more joined-up approaches are required to identify and address challenges. We also undertook a study into the impact of Brexit, exploring the potential effects of our departure from the EU on vital markets and their consumers, together with the scope to reshape the wider consumer landscape once we leave the EU.
In addition, we have presented our insights into the impact of Brexit on 84 at many events and given evidence in the House of Lords.
Priority 1. Making markets work for customers
Reducing bad practices that exploit consumer behaviour
Our publication, 'The Cost of Loyalty: Exploring How Long-Term Customers Pay More for Essential Services', has a number of recommendations for. The success of our work can be seen in the actions of government, regulators and firms. Specific steps have been taken by the FCA in the mortgage market and promises have been made to tackle the loyalty penalty by insurance companies.
While consumers are increasingly accepting that service providers will collect their data, most are still in the dark about how that data will be used. In 2017/2018 we explored the new types of intermediary services (NGI) that switch energy suppliers on behalf of consumers in the EU. Some vulnerable consumers experience the same problems across markets, such as those suffering from mental health conditions, the recently bereaved and consumers renting properties in the private sector.
We investigated whether switching suppliers more often, or using more flexible payment options such as smart pay-as-you-go tariffs, could help or pose risks for consumers in the energy market.
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