Energy and broadband customers lost £300m due to poor customer service

Energy and broadband customers lost an estimated £298 million and 27.3 million hours to poor customer service in a year

New Which? research has found energy and broadband customers lost an estimated £298m and 27.3 million hours to poor customer service in a year. 

Which? surveyed more than 4,000 people to uncover how many people had a customer service issue in the year to May 2024 and how poor customer service impacted their finances, time and emotional wellbeing. 

Around 8.9 million energy consumers and 9.2 million broadband consumers experienced emotional harm as a result of poor customer service, Which? said, based on its survey of more than 4,000 people.

Which? director of policy and advocacy Rocio Concha said:

‘Our research lays bare the dire state of customer service in the energy and broadband sectors with nearly £300 million lost to poor service in a single year. The impact in terms of wasted time and on people’s emotional wellbeing is just as concerning.

‘It is never OK for firms to provide sub-standard customer service, but in essential sectors providing vital services millions rely on every day such as energy and broadband, it is completely unacceptable.’

You could be eligible for compensation if your energy supplier fails to meet minimum customer service standards. Our broadband and phone guide tells you more about when you’re entitled to compensation for poor service and how to complain when things go wrong.

1.2 million energy customers left £166 million worse off

Among energy customers, 17% who had contacted their provider said they gave up trying to get their problem resolved due to the issues they experienced with customer service, while 32% of these consumers said they were left financially worse off at an average of £137 as a result.

In total, Which? estimated that 1.2 million energy customers were left £166 million worse off due to customer service issues forcing them to give up trying to get their issue resolved.

This research comes a week after Ovo was ordered to pay £2.4 million for its failures in handling the complaints of 1,400 customers.

950,000 broadband customers were £89 million worse off

In the broadband sector, 14% of those who contacted their broadband provider said they gave up seeking a resolution due to problems they experienced with customer service. Some 29% of this group claimed to be left financially worse off at an average of £93.

In total, Which? estimated that 950,000 consumers were £89 million worse off due to giving up contacting their broadband provider.

Latest data from the Communications Ombudsman shows a 54% rise in complaints about communications firms – including broadband companies – with complaints about service quality, billing and contract issues are the biggest problems.

‘Time-wasting’ customer service

A small proportion of consumers – between 1% and 2% – said they did not even contact their energy or broadband providers due to previous bad experiences with their customer service, bringing the total estimated loss across both sectors to £298 million.

Over a third of people who contacted their energy firm (35%) and broadband provider (36%) reported having at least one problem that wasted their time.

On average, Which? estimated those who experienced time-wasting customer service issues lost 112 minutes of their time due to energy problems and one hour and 38 minutes due to broadband problems.

In total, energy and broadband customers spent an estimated 27.3 million hours in a year on customer service issues – 13.9 million hours for energy customers and 13.4 million hours for broadband customers.