UK Utility Debt Survey

Recent research conducted for Accenture and Utility Week revealed that half of the respondents have reached or expect to reach the point in the next 12 months where their regular outgoings exceed their income.

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The Utility Debt Survey was undertaken in conjunction with Utility Week’s Debt Conference, which took place on 23rd October 2008 in London. The survey of 1001 UK consumers was undertaken at the end of August 2008.

UK households are facing difficult financial times:

• Over half of the respondents have reached or expect to reach the point in the next 12 months where their regular outgoings exceed their income.
• For 77% of households, electricity and gas bills are consistently among the three most expensive household bills; water bills come within the top three for only 22%.

Customers are determined to pay their bills on time:

• 75% say it is critical to pay off energy bills and 58% hold that view for water bills.
• 84% of customers are not currently delaying a water bill, rising to 88% for electricity and 91% for gas bills.
• However, one in three expects to delay bill payments in the next 12 months.
• The young (18-34 year-olds) are more likely to delay payments than over-55 year-olds by 40% to 27%).

More households intend to cut consumption back in the next year:

• Over half (53%) of those who delayed energy bill payments in the last 12 months have made efforts to reduce consumption and this will rise to 91% in the next 12 months.

More customers plan to seek better payment arrangements from their utility providers in the coming year:

• In the last 12 months 40% of those delaying payments have called on their utility company to seek a better arrangement and 68% plan to do so in the next 12 months.
• 74% of those who have delayed some bills in the last 12 months and who called their provider for a payment arrangement are satisfied or very satisfied with their utility supplier’s proposed payment arrangements.

The vast majority of consumers are satisfied with the nature of their bills:

• 75% are satisfied with the frequency, 68% with the detail and 66% with the clarity of their energy bills. Consumers are even more satisfied with the nature of their water bills.
• Of the few consumers who are dissatisfied/very dissatisfied with their bills frequency, most would prefer more frequent bills to make payment easier (63% for energy, 72% for water).

Utilities have an opportunity to help reduce households’ consumption with new products and services. Of those who want more help from utilities to cut their consumption:

• 65% want help to optimize their consumption.
• 37% want smart meters, 23% want prepayment devices for water and energy.
• Smart meters are particularly popular with the ABC1s (42%) and the 18-34 year olds (47%).