Ofgem's new Consumer Confidence Program aims to raise customer service standards in the energy sector

In response to low customer satisfaction in the energy sector, Ofgem has announced it will launch an ambitious ‘Consumer Confidence: a step up in standards’ programme, aiming to restore trust by raising customer service to the highest industry standard.  

This new vision sees a customer service culture that matches the high customer satisfaction scores seen in other sectors. Ofgem states that rising and volatile energy prices have impacted consumer trust and competition, meaning customer satisfaction levels have fallen to their lowest levels during the energy crisis.  

One major change Ofgem is considering is adopting a model similar to the Financial Conduct Authority’s (FCA) Consumer Duty, which is the biggest shake up in financial regulation in decades. The FCA’s shift from prescriptive rules to a principles-based approach has reshaped how firms approach customer care, and Ofgem seeks to follow a similar path, embedding consumer-centric values into the energy sector. If implemented, this would see a movement towards focusing on good customer outcomes, which Plain Numbers would welcome.  

Customer understanding is a key outcome of Consumer Duty and we believe Ofgem’s new programme is an exciting opportunity to focus on customer understanding in the energy sector. In our trials using the Plain Numbers Approach, we found that only 32% of people understood an energy firm’s monthly update. When we simplified communications, understanding rose to 57%. This highlights the importance of clear messaging, particularly in a sector as complex as energy. 

At a time when customers are focusing more keenly on their energy accounts, it is crucial that they can engage with and understand their options. For vulnerable customers, including those with low numeracy, clear and accessible communication is vital. Ofgem’s strategy must focus on these customers, ensuring they can make informed decisions about their energy choices. Approaches like Plain Numbers are critical to help them navigate increasingly complex products and bills. 

We are already working with partners in the energy sector who are leading the way in improving customer understanding and embedding the Plain Numbers Approach into their processes. However, more work is needed across the industry. As Ofgem works to rebuild trust, it is crucial for the energy sector to focus on transparency and customer-centric reforms. By embedding clear communication and learning from other sectors, the energy industry can evolve into one that not only meets but exceeds consumer expectations, driving lasting confidence and engagement.