The rise in the cost of living will have a big impact on the money in consumers' pockets. We will continue to play a key role in representing the needs of consumers, particularly in the development and operation of energy efficiency schemes and incentives.
Making markets work for consumers
Supporting people to decarbonise their homes The UK Government has set a target for as many homes as possible to achieve EPC Band C by 2035. Improving the energy efficiency of homes will also help reduce energy bills and in tackling energy debt and fuel poverty. Undertake research to understand the barriers and experiences of people undertaking renovation and energy efficiency improvements in their homes.
Mail redirects give people continuity of mail so they don't lose important correspondence (utility bills, bank letters, etc.). Supporting people during energy market turmoil The pandemic and energy market turmoil have left many consumers in need of extra help and support. We have also advocated for solutions to some of the root causes of retail energy market turbulence, such as the cost of exiting suppliers.
We estimated that supplier outages in December 2019 cost consumers £97 million through the reciprocity of the Renewables Obligation (RO).
Making markets work for consumers Success stories
Our research found that people on lower incomes who are disabled or on benefits are less likely to choose diversions because of cost. We found that only a quarter of low-income movers used a diversion service, compared to two-thirds of high earners. We will continue to advocate that Ofcom should investigate the introduction of price controls to prevent prices from continuing to rise so steeply.
We also welcomed the consultation from BEIS on more frequent payments under the Renewables Obligation, which could significantly reduce costs for consumers in future supplier exits. In April 2021, we published Buy Now Pain Later, a report which highlighted how BNPL is causing problems for consumers. We found that current affordability assessments don't seem to be working and many people are being referred to debt collectors despite not being warned about it at checkout.
The consultation shares the core issues and solutions we identified in our research; smooth product design, information and understanding, affordability controls and fair and consistent treatment of people in financial difficulties.
Better value infrastructure
The post office also acts as a lifeline for people in rural areas, where almost 1 in 4 (23%) people visit a post office at least once a week. Build on the evidence from our research in 2021/2022 by continuing to monitor and scale up consumer use of post offices and the ongoing impact of post office closures. Work with Post Office Ltd (POL), Department for Business, Energy & Industrial Strategy (BEIS) and other stakeholders to tackle the worrying increase in consumer numbers.
Continue to engage closely with operators, charities and consumer groups to share knowledge and insights on postal developments through bilateral meetings, the Postal Advisory Group and monthly newsletters. Continue to participate in the Electric Vehicle Energy Task Force, advocating for a better complaint and redress process and consumer control over data. In December 2021 Citizens Advice was appointed by BEIS to represent consumers in the network heating market.
This new role will expand our current statutory role as a consumer advocate in the energy market, ensuring that the interests of district heating customers are represented as the sector adapts to the introduction of regulation and will grow to around 5.5 million homes by 2050.
A fair deal for consumers in vulnerable circumstances
Our research has found that in the last decade, 7 million people were unable to access their posts because they did not have a fixed address or someone intercepted it. The consequences include missed healthcare deals, missed employment opportunities, and the build-up of huge debts in people's names without their knowledge. To overcome this problem, we want to see an Address and Collection Service in place, providing access to post and services for people in unsafe or precarious living situations.
Track existing data and conduct organizational research to identify groups with intersecting identities who cannot access their posts. Work with stakeholders to explore how Address & Collect can ensure access to other key services such as financial and health services.
A fair deal for consumers in vulnerable circumstances
This situation is likely to worsen, with forecasts of a very large increase in the price cap from April 2021, reflecting higher wholesale prices and the cost of supplier failures. We will continue to advocate for more support to help families on the lowest incomes pay their bills, through adequate benefit payments, complemented by targeted support within the energy system to help those at particular risk of fuel poverty. The recent disruption caused by Storm Arwen highlighted the important role energy networks play in supporting vulnerable consumers during outages as well as other services.
We will also continue to advocate for reforms to the Warm Home Discount to better support low-income households. Continue to work with stakeholders including the Fuel Economy Board, UK and Welsh. Continue to provide government schemes aimed at fueling poor households such as Energy Company Obligations (ECO4), Home Improvement Grant, Social Housing.
Continue to monitor the lived experience of consumers in vulnerable conditions, including through in-depth qualitative research to identify further gaps in energy market support and measures to strengthen this.
A fair deal for consumers in vulnerable circumstances Success stories
Continuing our two-year strategy, we will further improve our energy advice services in 2022-2023, providing a smoother customer journey for people seeking advice and support in England and Wales. We will continue with our digital energy strategy and continue to introduce more personalized online energy advice to help people solve their problems and understand how to get extra help if needed. We will increase the number of community outreach partners we work with to enable more referrals to our energy counseling programs and other support services.
We will design, test and implement new processes, systems and referral pathways between services to improve our users' experiences. We will meet more demand, expand the number of referrals to our energy advisory services as well as increase the number of people supported through dedicated. We will test and test how we can extend referrals directly to the additional help unit from our energy consultancy.
With further pressure expected in the spring, when the energy price cap could rise by £400-500, we will continue to measure the prevalence of debt across sectors and call for further support from regulators and the UK.
Protecting consumers in rapidly evolving markets
The research focused on those in the private rented sector, those without savings and those without the necessary digital skills. The way we use energy in our homes and the energy system itself must change radically in order to allow consumers the lowest possible net zero costs. Consider the merits of different power system management models, including a system operation approach.
Investigate what support consumers of energy networks will need to ensure that people are not left behind in the efficient and fair delivery of the net zero transition. Help consumers understand flexible business models and get a fair deal that reduces the overall cost of the net zero transition. Achieving our net zero emissions targets will require more than 90% of homes to switch to low carbon heating.
This will mean systems such as heat pumps, biomass boilers, advanced storage heaters, network heating and hydrogen boilers needing to be installed in over 29 million homes in the UK, according to the Climate Change Committee.
Protecting consumers in rapidly evolving markets
Putting people at the center of parcel delivery The parcel market has grown rapidly in the last 10 years as more people shop online than ever before. At the same time, the parcel market and consumers' appetite for home delivery have a negative impact on the environment. These PUDO points can help overcome some of the structural problems in the parcel market.
We will further explore which markets are most affected by algorithms and AI, and explore the impact on UK consumers. We looked at buy now, pay later products and found that customer journey design has a big impact on consumer choices. The sign-up process is too simple and slick - we found that 2 in 5 people who used BNPL in the last year did so without realizing it - many then ended up with payments they found difficult to manage.
Our recent research has highlighted some examples of this - such as the use of behavioral 'nudge' and 'sudge' tactics in the booming Buy Now Pay Later market, or key pricing decisions being made by opaque and complex algorithms .
Protecting consumers in rapidly evolving markets Success stories
Representing energy consumers in the policy development process
Provisional expenditure 2022-23
In addition to our core work in energy consumer advocacy, we are also delighted to oversee the Big Energy Saving Network (BESN) and the Big Energy Saving campaign in 2022/23. We have proposed an increase of £467,130 in funding to Citizens Advice to deliver levy-funded energy awareness activities in England and Wales. This will provide energy consumers looking for help and support with a smoother journey to customers.
It will also allow us to further expand the provision of case support to energy consumers who need additional help and support. Citizens Advice will continue to expand the number of external community outreach partners we work with, as well as increase overall capacity in our energy services, enabling customers to be referred to the most appropriate specialist advice service about their personal circumstances. This provision includes our digital advice, customer service helpline and issue support.
1 Energy costs per household are based on the approximate contribution of household energy consumers only (by volume).
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