Have we lost trust in our energy sector?

by Graham Ayres, Chairman and CEO of Charis...

Over the last couple of years, consumer trust in the gas and electricity industry has dropped significantly.  This erosion of trust is primarily based on rising bills, particularly when record profit announcements are made by the big oil and gas producers. When headlines announcing that companies like Shell are making profits of $11.5 billion are published alongside other headlines telling stories of pensioners dying alone in unheated homes, it is no wonder that questions are being asked - and so they should be!

The complexities of the energy supply chain have resulted in a lot of misery on the streets of the UK. The conflation between energy retailers and energy producers creates a confused narrative that is not necessarily the true picture. The retailing part of the entire supply chain is particularly volatile - which is why the UK lost 28 gas and electricity providers back in 2021, leading to 4 million customers being hoovered up into the larger companies. Overall, the erosion of trust is exacerbating the levels of anxiety in our communities.

Rebuilding that trust through partnerships
Charis has been working with energy retailers since the company was first established 20 years ago and is uniquely positioned to understand and support the role and responsibility of the retailers to individual householders. There remains a statutory obligation for many energy companies to take care of those who are struggling in hardship, poverty or vulnerable circumstances. And there should be a social and moral obligation to help, which connects with wider corporate social responsibilities. Translating those obligations into practical, cost effective solutions is Charis' strength.

A clear example of this is the HACT-Charis partnership, whereby a dedicated portal through the Charis Shop was set up to give housing associations round-the-clock access to energy and cash vouchers.

Image © Adobe Stock

Lack of clarity in pricing
There’s a reason why people like Martin Lewis are so popular - he is constantly fighting for the man on the street. The language he uses, the issues he tackles - they are steeped in the everyday importance of saving the pounds and pennies of ordinary working families so that at the end of each month they have more disposable income in their pockets. He navigates the complexities of government policies, the deliberately complex rules and regulations or different services and tariffs, separating the good from the bad, unravelling the small print so that ultimately an individual can make a more informed decision.
 
It is the lack of clarity that has led to so much distrust. We all know that energy prices are caught up in the maelstrom of Ukraine, the pandemic, Brexit and any other world event that has taken place over the last few years. But political commentators and pundits all have their own versions of the whys and wherefores. For Charis, working with energy retailers, the real drive is to minimise the impact of the crisis on the most vulnerable in our society and ensure that our social landlord and housing association partners have the products and services readily accessible to help support their own residents.
 
Whatever the wholesale price, there is a lag behind that increase or decrease before it hits the consumer market, and until there is a greater sense of long-term calm, the predictability of fixed-rate tariffs is not going to be reintroduced.
 
Through the rest of 2023 and into the winter months of 2024, the UK as a whole is going to continue riding the wave of the energy crisis, even if those wholesale prices have dropped. Charis is increasing its efforts to ensure that housing associations and social landlords have access to emergency energy voucher schemes and other warm home discount schemes that will ensure the most vulnerable are not left without light, heat or food. The continuing pressures of poverty will have a marked impact on the emotional and physical well-being of your residents - the more we can work together to mitigate the damage, the stronger we will all eventually emerge from the darkest months.

In 2023 so far Charis, in conjunction with its Housing Association partners, has:

• Issued 35,000 energy vouchers
• Distributed 18,000 food vouchers worth over £1m; of which nearly 1,000 were for people without power or in an emergency
• Arranged the delivery and installation of over 500 energy efficient white goods
• To date in 2023, Housing Associations have distributed a total of £3.7m via the Charis Shop

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