How will Energy Suppliers be impacted by the Coronavirus Pandemic?

Thanks to technology and the expertise of our IT team, all of the employees at Dyball Associates are now working from home, however, for some organisations, this can prove to be an immense challenge.

Energy suppliers will have to overcome the difficulties remote working can create such as how do you manage customer calls and back-office tasks. Suppliers with large numbers of employees are likely to feel the pain far more than the smaller challenger suppliers.

The technology and processes needed to keep operations running smoothly like web chat services and call monitoring must be able to be accessed and utilised remotely. The current situation will be a huge test for an energy supplier’s ability to adapt and ensure that its workforce remains effective and engaged.

The closure of schools will also put a strain on a business with staff now having to look after and, in some cases, home educate their kids as well as find the time to focus on their jobs. Management will have to become more lenient with their employees during these unprecedented times.

Energy supply companies that have the right culture, the appropriate tools in place for staff to remote access systems and be aware of the potential cybersecurity risks will be best placed to ride out this period of uncertainty.

The lockdown rules established by the government on March 23rd are likely to last longer than the three weeks hinted at by Prime Minister Boris Johnson. That time frame will merely be the moment when the impact of the lockdown is assessed. Some reports suggest the government is prepared to keep the measures in place for as long as twelve weeks.

According to the experts at Imperial College London the social distancing measures could be in place for as long as eighteen months as the race to create a vaccine continues.

Businesses need to be prepared for the long haul and not expect to be back to normality anytime soon. For now, and the foreseeable future this is all our lives.

Thankfully technology now allows companies to provide a smoother transition to a working from home environment. Thanks to Software as a Service (SaaS) platforms many operations can be dealt with remotely from the office. Services such as Dyball’s CRM software and Managed Services allow energy supplier to continue to provide regular services for their customers creating more flexibility and reduced pressure for our clients.

The government has promised unprecedented support to businesses up and down the country, and yet there has been no mention as to whether those measures will be aimed at the energy sector. As a result, both B2C and B2B energy suppliers are going to be impacted.

There are some dire economic forecasts doing the rounds now and depending on just how effective the government’s stimulus measures turn out to be we may be heading for a recession or at a worse a global depression. Even with financial support, many companies will fail and those that don’t are going to experience a tough time of it.

B2B energy suppliers will need to identify their customers most at risk of failing and put in place measures to protect themselves and minimise their exposure. These measures could include excluding certain types of companies from registering as a customer or denying those that are requesting larger than normal security deposits.

Many customers are also likely to request more flexible payment plans or even request payment holidays entirely. These requests will need to be assessed and managed. A fine line needs to be made between offering support and ensuring your business stays afloat. Too harsh measures could damage your reputation and once this crisis is over you may find yourself struggling to win back those customers you may lose.

With most business workforces now working from home, a B2B energy supplier will see the energy usage of their customers decline. This can cause issues with billing and overcharging. To counter this, energy suppliers should request meter readings from all their customers to reduce the risk of inaccuracies.

There are a few different challenges B2C energy suppliers face. However, there are also opportunities. Chief of which is expanding their customers base.

With so many people at home (and bored) many will be turning their attention to their financial outgoings. This is a perfect time for many consumers to start looking for better offers when it comes to the cost of their energy. This is also likely to be a double-edged sword as with many employers laying off staff or people enable to work there is, unfortunately, an increased likelihood that the number of households will fall into energy poverty.

According to data by the Department for Business, Energy and Industrial Strategy (BEIS) as many as 20% of consumers could default on paying their energy bills. A driver for this is that during a pandemic many people have other priorities rather than paying utility bill such as if they fall sick or if a family member falls sick.

B2C energy suppliers need to prepare themselves for an increase in the number of customers switching over the coming months. To reduce the number of customers leaving you should ensure that you have competitive tariffs and offers available.

Other issues that suppliers may yet face is the possibility of being asked by the government to provide their customers with payment ‘holidays’ to help alleviate the financial burden on families and households. These measures haven’t been requested in the UK (yet), but energy suppliers should act and prepare for such an eventuality.

Unlike B2B suppliers, B2C suppliers will see the energy used by their customers rise. To avoid problems later, the supplier should prepare for this by ensuring meter readings are accurate and billing systems are ready to react accordingly.

For more advice and support for your energy supply business please get in touch with the experts at Dyball Associates.

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