Background
Water and energy are essential for daily life and public health. Broadband is often essential to interact with energy and water services, broader public services, banking and securing the most competitive prices.
In the 12 months to April/May 2024, the Competitions and Market Authority (CMA) conducted a survey that found 1 in 4 internet consumers, 1 in 5 energy consumers, and 1 in 13 water consumers experienced some form of consumer detriment which caused them stress, cost them money, or took up their time. Some consumer groups are at higher risk of, and face, more severe consequences from detriment.
Consumers cannot switch water supplier if service is poor. Even in competitive markets, consumers may still face poor customer service. The regulators Ofwat (water), Ofgem (energy) and Ofcom (broadband) have statutory responsibilities to protect against unfair treatment, poor service and unaffordable pricing. Where competition is absent or ineffective, regulatory oversight remains the primary safeguard against unfair treatment, poor service and unaffordable pricing.
Scope
The study will assess whether regulation in water, energy and broadband is working effectively, to ensure suppliers deliver customer service that meets expectations. The report will aim to:
- evaluate whether Ofwat, Ofgem and Ofcom have a clear understanding of the customer experience they want delivered, and a defined approach for achieving it
- assess whether the regulators’ actions are ensuring that their expectations are being met
- assess the regulators’ approaches to addressing problems facing customers that are at higher risk of experiencing harm or detriment
NAO team
Director: Anita Shah
Audit Manager: Simon Banner