Ombudsman Services | Mar 16, 2022
Pricing, affordability and managing debt have never been higher on the agenda for regulators, providers, consumers and organisations like ours. The availability of social tariffs varies across the sector, but it would seem likely that concerns relating to affordability will rise given price increases in other markets and the impact on cost of living. We’ve seen great sector-wide progress in moving away from a static view of complaints to taking a more holistic approach. Clearly the need for this has never been greater.
There have been significant improvements in how the sector works with consumers who fall into debt, be that as a result of financial or non-financial vulnerability. Is there more that we can do as a sector to help consumers get the support they need, and ensure they are placed on the most suitable tariffs? This is something that we’re focusing on in the coming months.
The following scenario explores how our involvement in a case like this might look.
The consumer received an End of Contract Notification and were concerned that there wasn’t an affordable option for them in the new tariffs offered. They stated that they were on a low income, in receipt of some support benefit payments and struggling to pay their bills. Price rises and cost of living increases were also causing concern that they would be significantly worse off.
The consumer told us that being a long-standing customer of the provider, they were disappointed to learn that no discounts could be offered and the tariffs offered were the only ones available, in spite of telling the provider that they were in receipt of benefits. They didn’t want to move their services away, but felt they needed to check competitors’ pricing, finding it to be quite similar.
The End of Contract and Annual Best Tariff Notifications provide an indication of current prices versus the new tariff options when renewing a contract. However, when a consumer engages with a provider, we would expect them to undertake some further needs analysis.
We would expect the provider to review the consumers previous usage history and explore if there is a lower tariff than the current one, with lower inclusive allowances, which may still provide a suitable package to meet the consumer’s needs. Where one is available, the consumers eligibility to engage with a social tariff (enabling them to stay connected at a more affordable price) should also be considered.
In this scenario, given that the consumer made the supplier aware of their low income and benefit receiving status, we would assess whether the provider took the appropriate action.
While social tariffs may only be available to those with the lowest incomes, it’s really important that these avenues are explored with consumers in need of additional support, even if it’s only a temporary financial vulnerability.