Citizens Advice published a report, Access Denied: Digital disadvantage and exclusion in the energy market, on 4 November 2022, setting out how households that cannot or do not use digital services fare in the energy retail market1. The charity defines digital disadvantage as occurring "when one person or group of people receive different, more harmful experiences of digital services when compared to others", and links it to broader social disadvantage, including age, education, disability and deprivation1.
The report states that it is becoming harder for these consumers to take part in the energy market, because choosing a supplier and getting the best deal is more difficult without price comparison sites, and because "many suppliers have shifted their customer services to rely heavily on online channels"1. It adds that "Some suppliers have launched without a telephone line at all"1. Its central findings are that "digitally disadvantaged consumers are at much higher risk of loyalty penalties" and that "the offline services they rely on are getting worse"1.
"Over time these consumers risk being left behind by changes in the market."
The report says the number of people affected is likely to shrink over time, but that "a significant minority of people will remain digitally disadvantaged through the 2020s", and that the trend is likely to accelerate as energy products become more complex and reliant on smart energy technologies1. It frames the issue as a social one requiring broad government action, alongside steps by energy policymakers and industry, grouped under three headings1:
| Area for action | What the report calls for |
|---|---|
| Access to digital services | Higher take-up of broadband social tariffs among eligible households, and support for people who struggle to use digital services |
| Good outcomes in energy | Reducing loyalty penalty risk, affordable energy for those on low incomes, ensuring digitally disadvantaged people benefit from smart meters, and new products that account for their needs |
| Accessible, high quality services | Maintaining good offline contact channels, making digital services accessible, and raising customer service standards |
Citizens Advice also published a joint statement on digital disadvantage in the energy retail market with Age UK1.
Why it matters for households
For a household that manages its energy account by phone, post or in person, the practical route to a better tariff runs through price comparison sites and online account management, and the report says that route is harder to use for people who are digitally disadvantaged1. The loyalty penalty it describes is the gap between what a household pays by staying put and what a new customer pays, so a household that cannot easily switch may keep paying more for the same supply. That sits against the wider question of how far a home's energy costs depend on being able to shop around, which is covered in Energy Suppliers and Household Energy Independence.
The report also raises the prospect of offline contact channels narrowing further, at a time when energy complaints and redress routes assume a household can reach its supplier. Citizens Advice is one of the energy consumer bodies that advise households across the UK, with separate arrangements in Scotland and Northern Ireland.
What happens next
The report calls for action from government, energy policymakers and industry, but sets out no dated commitments or deadlines from any of them1. No response from government or from suppliers to the report has been reported1.
Sources1 cited
- Access Denied Digital disadvantage and exclusion in the energy market - Citizens Advice, citizensadvice.org.uk