Recent research has unveiled a concerning trend in the UK's essential services sector. Which?, the consumer advocacy group, has found that households are losing up to £230 annually due to subpar customer service from energy and broadband providers. This financial impact is part of a larger issue, with an estimated £298 million and 27.3 million hours lost by customers unable to resolve their problems.
The study, conducted over 12 months leading up to May 2024, surveyed more than 4,000 individuals to assess the impact of poor customer service. In the energy sector, which has been fully open to competition since 1999, 17% of customers who contacted their provider eventually abandoned their efforts to resolve issues. Of these, 32% reported financial losses averaging £137.
Similarly, in the broadband sector, which has seen significant growth since the launch of commercial services in 2000, one in seven customers gave up seeking resolutions. Three in ten of these respondents faced financial setbacks, losing an average of £93.
Extrapolating these findings to the national level paints a grim picture. An estimated 1.2 million energy customers across the UK suffered £166 million in losses due to inadequate customer service. Meanwhile, approximately 950,000 broadband consumers experienced £89 million in financial setbacks after giving up on contacting their providers.
The research also highlighted common complaints among customers:
- Inability to reach customer service
- Disconnected phone calls
- Being passed between departments
- Long call waiting times
These issues resulted in significant time waste, with energy customers losing an average of 112 minutes and broadband customers losing 98 minutes of their time.
It's worth noting that the UK's telecommunications industry, which contributes over £30 billion annually to the economy, has seen substantial improvements in service quality. For instance, average broadband speeds have increased from 6.2Mbps in 2008 to over 60Mbps in 2024. However, these advancements have not necessarily translated into better customer service experiences.
The emotional toll of poor customer service is equally concerning. An estimated 8.9 million energy consumers and 9.2 million broadband consumers reported experiencing "emotional harm" due to these issues. This is particularly troubling given that these are essential services that millions rely on daily.
Rocio Concha, the director of policy and advocacy at Which?, expressed deep concern about the findings:
"Our research lays bare the dire state of customer service in the energy and broadband sectors with nearly £300 million lost to poor service in a single year. The impact in terms of wasted time and on people's emotional wellbeing is just as concerning. It is never OK for firms to provide sub-standard customer service, but in essential sectors providing vital services millions rely on every day, such as energy and broadband, it is completely unacceptable."
As the UK government aims for nationwide gigabit-capable broadband by 2030 and continues to promote renewable energy sources, it's clear that improvements in infrastructure must be accompanied by enhancements in customer service. Regulatory bodies such as Ofgem and Ofcom play crucial roles in overseeing these sectors, and consumers have recourse through entities like the Energy Ombudsman and the Communications and Internet Services Adjudication Scheme (CISAS) for dispute resolution.
The findings of this study underscore the need for significant improvements in customer service within these essential sectors. As the UK continues to advance technologically, with over 30 million broadband connections and a growing renewable energy sector, ensuring that customer support keeps pace with these developments is paramount for consumer satisfaction and financial well-being.