Blog
Energy Switching - A return to the Big Six?
A familiar pattern is emerging in the Energy market. Analysis of switching behaviour and market share shows a concentrated landscape, dominated by six large suppliers. This leads us to ask – have we returned to the market structure of the 2010s? And where does this go next?
Energy Transition – A driving force for M&A in 2024
Decentralisation, decarbonisation, and digitalisation are driving a major transformation in energy. As suppliers make the shift to a greener future, new M&A trends are emerging, posing the question - how can dealmakers maximise this opportunity?
Are Water suppliers ready for the latest cost-of-living challenges?
The Institute of Customer Service (ICS) showed in their July 2023 UK Customer Satisfaction Index (UKCSI) that customers are more dissatisfied than ever, with the index at its lowest score for 8 years.
Pre-payment debt has increased 100% to £1bn since Q4-21
Over the past two years we’ve seen pre-payment meter (PPM) debts continuing to rise, and as of Q3-2023 they now stand at £1bn The amount of customers using their PPM to repay a debt has risen by 40% (up 220k to 750k), and the average debt balances have also risen by 40% (up £400 to £1,300) - resulting in a 100% (up £500m to £1bn) increase in total pre-payment meter debt.
Cost-value connection: Upstream efficiencies for long-term savings
Cost cutting is often the first change identified in tough conditions. Support functions are hit hard, damaging customer retention and satisfaction in the long term. Instead, a combined focus on cost and value is key for success.
Turning the tide – Complaints lessons for Financial Services
Complaints are on the rise in Financial Services. The FCA’s latest data (Oct-23) reports a 5% increase in volume between H2-22 and H1-23, and with regulatory pressure heightened across the industry – how can companies transform their approach to prevention and resolution?
Early-life collections – How to optimise your approach
As the demand for debt advice continues to break records (PayPlan, 2024), the pressure is mounting on Financial Services organisations to provide holistic, proactive support for those in difficulty.
Using machine learning to predict and prevent customer delinquency
During a recent engagement with a large Energy retailer, we helped their Debt team to apply machine learning analysis within the customer base, identifying trends to predict (and later prevent) delinquency. With a new insight into which customers may face financial difficulty, the supplier was able to implement pre-emptive support, through improved segmentation and tailored customer journeys.
An update on Energy Complaints Performance
Complaints challenges are set to continue in Q1. It’s a trend we’ve seen in recent years, that customers are more likely to complain during a period of high usage. However, based on current market conditions, this year’s uplift could be more significant than usual.
Could we see a Price Cap of £1,650 from April?
Based on the observation window so far, and a modelled view of the remaining window, we could see a Q2-24 Price Cap of ~£1,650 but a +/- £100 uncertainty. This gives a latest range of £1,550 - £1,760. By mid-January, we expect price uncertainty to be +/- £30 as the window closes out.
Total Ofgem reported debt is now at ~£3bn for Q3-2023
Total Ofgem reported debt is now at ~£3bn for Q3-2023, 50% (~£1bn) higher than Q3-2022. The primary driver is an £800m increase from accounts without No Arrangement in place to repay their debt.
How to build Tiger Teams for faster problem solving
The 'Tiger Team' - what is it? And when is it valuable? By bringing cross-functional experts together, this approach is ideal for tackling critical challenges at pace - such as a sudden spike in complaints volumes, and all the servicing challenges that come with it.
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