Energy sector warned not to leave customers behind in shift to digital services

• Cadent’s latest Energy Diaries, produced alongside Thinks Insight & Strategy, explores the ways that different groups in society feel about managing their energy digitally.
• Over two thirds (69%) of the public are worried about the increased use of AI in government and public services.
• More than three in five (62%) are worried about the use of AI in customer service, such as chatbots.
• Two in five (40%) people living in fuel poverty cannot afford to repair or replace a digital device if it fails.

Cadent, the UK’s largest gas distribution network, has launched its annual Energy Diaries insights alongside Thinks Insight & Strategy, revealing that customers want to ensure technological progress in the energy sector does not come at the expense of choice, trust and human support.

As digital technology continues to influence how energy networks operate, the latest report – Energy Diaries: Gas in a digital age – explores how different groups in society feel about managing their energy digitally. And while many people believe that the UK is a digitally confident nation, the insights from Energy Diaries has found a more diverse picture.

The study found that although 94 per cent of the public can go online as much as they want, only two thirds (68%) feel confident to do most things they need to online. If a digital device fails, almost one in five (18%) cannot afford to repair or replace it. This figure rises to two in five (40%) when considering the findings from those living in fuel poverty.

Nearly three quarters of people (72%) say that greater reliance on digital services, or technology for heating, would require additional support for some people. One third believe they would require help themselves, while two in five (41%) say a family member would.

The report also highlights the importance of multi-channel experiences in the context of the energy transition. As the energy transition becomes more complex, and people are being asked to make decisions about how they heat their homes and use energy, the research identifies customer concerns.

Four in five (81%) of people, for example, are worried about misinformation or fake news online, while three quarters are calling for better online services. Over three in five (62%), meanwhile, are concerned about the use of AI in customer service, such as chatbots.

Dr Angela Needle, Director of Strategy at Cadent, said: Our latest Energy Diaries show that not only are people worried about the spread of misinformation, but there is a wariness of the use of AI and digital technology in public services and Government. It is clear, therefore, that communications must not digitally exclude people. Communications must be multi-channel for important operational work updates, vital safety campaigns, as well as signposting support for vulnerable households.

Cadent has a number of different routes to support its customers. This includes more than 250 Centres for Warmth, where customers living in vulnerable situations can access support with bills and energy efficiency, as well as learning about important gas and carbon monoxide safety advice. It has also expanded its fleet of Mobile Advice Centres to help rural communities and areas without a nearby centre, access the support.

Energy Diaries is Cadent’s flagship insight platform, delivered in partnership with Thinks Insight & Strategy. Each year, Cadent surveys over 2,000 members of the UK public to uncover their attitudes towards energy, fuel poverty and sustainability, helping to inform thinking and shape Cadent’s future strategy and decision-making.

This year’s focus – gas in a digital age – coincides with Cadent’s ambitions to consider the growing role of digital technology in its customers’ lives.

Dr Angela Needle said: Digital technology is influencing how Cadent operates, from managing increased demand to using robotics, smart sensors and advanced leak detection technology to improve safety, efficiency and customer service. Digital innovation is also enabling more biomethane and other green gas producers to connect to the network, supporting the transition to a lower-carbon energy system.

It is crucial, however, that customers have a choice, and we are committed to ensure everyone can access and manage energy services in a way that suits them. Whether that is what system they use in the energy transition, or how they choose to engage with us, we must ensure there are multiple options available.

Technology can make energy services simpler and more convenient, but this latest research shows that customers want choice, trusted information and human reassurance.

Jennifer Summers, Director at Thinks Insight & Strategy, said: It’s easy to get caught up in the excitement of how digital progression - and in particular AI - can enable organisations to deliver more and better support their customers. However, what this research shows is that while more people are online than ever, confidence in using technology and keeping up with the pace of change is still highly variable.

In fact, many are fearful of a world that is digital by default; both in terms of the skills needed to use changing services and the additional challenges digital brings in terms of cyber security, navigating AI generated content and protecting privacy. It is important that the utility sector continues to find ways to support these customers, through offline routes, having real people available in customer services and broader support and guidance in using new tools.

To read the full report, please visit www.cadentgas.com/energydiaries.