How big is Energy's third party complaints problem?

Our latest blog highlighted the third party complaints problem faced by energy suppliers - but just how much of a problem is it?

Since 2019, complaints requiring third party support have increased 500%:

• Complaints requiring third party support have steadily increased since the start of the pandemic in Q4 2019, with the proportion stabilising at ~50% in the past 12 months
• As the cost-of-living crisis has taken effect, CAB numbers having continued to grow, and we’re consistently seeing 90% of third party complaints requiring their support
• Although the proportion of complaints requiring ombudsman intervention is also stable at c.10%, the volume increase has meant industry costs are spiralling, with our 2023 forecast suggesting a ~£20m increase in the last 12 months alone
• The top drivers for these complaints has remained consistent over time although Billing, likely not helped by issues with SMART and Migrations, was responsible for 53% of cases in the most recent figures published
• Suppliers should be looking to work closely with these third parties to better understand root causes and ensure appropriate process changes to help achieve the significant cost avoidance on offer to them

If you'd like to know more about complaints in the energy industry, contact Holly Odle.