Rising debt, soaring bills, and shifting expectations are some of the reasons why the utilities sector must transform their customer experience now. From the cost-of-living crisis to net zero targets, the UK and Ireland’s utilities industry is at a pivotal crossroads. Customers are overwhelmed, infrastructure is strained, and regulatory pressure is mounting. This moment demands a bold rethink of how we engage, support, and empower utility consumers.
At the heart of this transformation lies the customer experience: not merely a support function, but a strategic asset essential to business resilience, social responsibility, and long-term success.
The shifting expectations of today’s utility customer
Utilities are no longer passive service providers. The transition to net zero is placing new expectations on providers and customers alike. People are being asked to adapt their lifestyles in significant ways by adopting alternative heating solutions, embracing microgeneration, and managing consumption with greater precision. But this transformation introduces complexity for which many households are not prepared.
The modern customer expects transparency, proactivity, and ease of interaction. Yet, many still encounter confusing billing systems, impersonal service, and difficult digital journeys. When customers struggle to resolve a billing issue or can’t find help when a leak disrupts their home, the trust they place in their provider quickly erodes. In a time when costs are rising and environmental responsibilities are growing, customer trust is more essential—and more fragile—than ever.
Economic pressures are intensifying vulnerability
Rising costs are straining household finances across the board. In the energy sector, the price cap increase of 6.4% in April 2025 marks the third consecutive quarterly rise, pushing average bills up by £159 compared to last year. Nearly 6.1 million UK households are now living in fuel poverty. Meanwhile, energy debt levels have reached their highest point since 2012, with average electricity arrears at £1,568 per household.
The situation in the water sector is equally alarming. Households across England and Wales face steep price hikes, with some regions seeing water bills surge by over 40%. At the same time, customers already owe over £2 billion in unpaid water bills, and 40% report struggling to cope with the rising costs.
These trends are not just economic statistics—they are real signs of customer distress. As affordability pressures mount, the need for more personalised, empathetic and supportive customer experience strategies becomes vital.
Reimagining service to reduce complexity and build resilience
Addressing these pressures starts with proactively simplifying the customer journey. When simple actions like submitting a meter reading or updating an address require multiple contacts, it drains customer goodwill and operational efficiency alike.
Utilities that take the time to map customer journeys, understand pain points, and test improvements in live environments are seeing transformative results. Simplifying billing communications, redesigning online journeys for ease, and training advisors to provide more personalised service can significantly reduce complaints, repeat contacts, and inbound calls in trial settings.
Moreover, redesigning exception-handling processes such as unusual usage or suspected leaks—can shift customer interactions from reactive to proactive. Instead of customers chasing support, providers can identify issues early and communicate transparently, reducing anxiety and building long-term trust.
Harnessing data and technology for a sustainable future
The future of utilities lies in a blend of human empathy and intelligent automation. As more providers introduce Artificial intelligence and real-time analytics, the opportunity to anticipate customer needs and deliver seamless, contextual service is growing. But success depends on pairing technology with insight: understanding not just what customers do, but why they do it, and where support can be most impactful.
As the sector continues to evolve, providers who place the customer at the centre of transformation—across digital, operational, and strategic dimensions—will be best positioned to meet the challenges ahead.
Partnering for a more resilient, customer-focused future
The utilities sector stands at a defining moment. Rising costs, environmental mandates and evolving consumer expectations demand a new kind of customer relationship—one built on empathy, proactivity and insight. Now is the time to act. By reimagining the customer experience, providers can not only protect vulnerable households but also strengthen operational resilience and build trust for the long term.
Start your journey toward smarter, more human-centred customer engagement today:
