Energy & Utilities Insights

Insights

Actionable insights for the sector's most pressing topics

Challenges like rising debt, sustainability targets, and regulatory reforms are driving suppliers to fundamentally rethink how they operate. At the same time, these shifts present opportunities to differentiate, drive innovation, and enhance customer service. As organisations attempt to balance financial performance with compliance and customer satisfaction, staying ahead of competitors is crucial.

Leveraging the deep expertise of our industry specialists, we help energy and utilities providers to tackle these challenges, and capitalise on opportunities shaping the future of the sector.

INSIGHTS

Energy & Utilities

Transformation Energy Customer Service

Assessing leadership capability to drive excellence in customer operations

Energy and Utilities is undergoing significant change. With system migrations, large-scale restructures, and rapid growth, suppliers face a complex landscape that requires strong leadership to navigate – but how do you measure this strength?

Energy Customer Debt Policy and Regulation

Energy debt hits record £3.8bn, as Ofgem propose initiatives to raise standards

Energy debt has reached a new high of £3.8bn as of Q3-24, up £134m from the previous quarter, and £0.9bn over the past year. Alarmingly, £2.9bn (75%) of this debt remains without any repayment arrangement in place, with 2m customers in this bracket. Total debt has almost tripled since 2020, and the volume of customers without repayment arrangements is up 700k (55%) in the same period.

Transformation Energy

Suppliers can still hit smart targets, but installation is only half the battle

Q3-24 saw 700k smart meter installs, a ~3% rise, but this pace won’t meet the 74.5% target by Dec-25. Another 5m installs are needed, alongside addressing the 3.7m meters still operating in traditional mode. These persistent issues risk higher service costs and frustrated customers, while competitors are already capitalising on real-time data for personalised tariffs and stronger engagement. Here, we share practical steps to help address this dual challenge.

Energy Operational Turnaround

Keeping revenue leakage below 1% to stay competitive, and save ~£100m

Keeping revenue leakage below 1% is no longer just a benchmark for top performers, it’s essential for staying competitive. In this article, we explore what sets high performers apart, showing how the right mix of insight, controls and operational execution can mitigate high-value losses, and deliver significant performance gains. At BFY, we’ve worked with leading suppliers on solving their revenue leakage problems, leading to savings of over £100m per year in some cases.

Energy Policy and Regulation

Price Cap at £1,738 – stable bills, but customer support remains critical

Ofgem have today (22 Nov) announced a £21 (1%) increase in the energy Price Cap, rising to £1,738 from January 2025. This increase won’t significantly impact bills, but affordability challenges continue, as Ofgem and the government consider options to address the underlying issues.

Customer Debt Operational Turnaround Energy

Tailoring service for prepay is more critical than ever this winter

Demand from prepayment customers is expected to rise by 50% in winter, and with affordability challenges at unprecedented levels, bespoke service is needed more than ever. We look at what's needed to address the immediate impact here, laying the foundations for a sustainable, long-term approach. 

Broken umbrella blown over onto the sand on a beach.
Customer Debt Energy

Energy bills to rise ~£800m after Winter Fuel Payment cut

Analysis from BFY Group shows the ~10m customers losing their Winter Fuel Payment will pay an additional ~£800m in energy bills this winter vs last.

MHHS Transformation Energy

Creating a winning business readiness plan for MHHS

Ofgem’s deadline for Market-wide Half Hourly Settlement (MHHS) implementation is expected to be pushed back again, from December 2026 to May 2027. Given this is the most fundamental change to the electricity market since privatisation, the revised implementation timeline provides suppliers with a new opportunity to nail their readiness plan.

Transformation Customer Service Energy

Building a customer-centric leadership culture to transform service

The Energy and Utilities sector is evolving significantly - many are delivering system migrations, large scale restructures, and experiencing rapid growth. Universal in the success of navigating this, is the ability for operational leaders to translate these strategic changes, and land them successfully with those people closest to the customer.

Energy Strategy and Commercial

Domestic customer switching jumps to highest level since energy crisis

290k domestic customers switched energy supplier in September - the most since before the energy crisis.

MHHS Energy Strategy and Commercial

Dynamic tariffs saved £150 on electricity for typical customers in last 12 months

‘Typical’ customers would have saved £150 in the last 12 months on a dynamic time-of-use electricity tariff – but will need to be able to shift their consumption to achieve the same in 2025.

Customer Service Transformation Energy Policy and Regulation

Realising Ofgem's vision for a leading customer-centric Energy sector

Ofgem's customer service ambition makes it clear that today's service standards aren't deemed acceptable, with rising bills and record debt levels only amplifying these calls for change. It represents a new opportunity for suppliers to build a leading culture for customer-centricity, as we show here. 

Energy & Utilities

Meet the Team

Ian Barker

Managing Partner

Ian shapes the BFY vision and inspires our team to bring it to life, while remaining central to complex client engagements in Strategy, Commercial, and Operations.

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Rachel Littlewood

Director

Rachel leads our Financial Optimisation work streams, working with leaders to improve profitability & cashflow

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Tom Bromwich

Director

Tom leads client engagements with a particular focus on commercial strategy, pricing, customer acquisition and retention.

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Kelly Payne

Director

Kelly helps clients achieve operational excellence to improve customer outcomes, employee engagement, and optimising cost to serve.

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Kevin Scott

Director

Kevin leads client engagements with a laser focus on empowering clients to navigate large-scale events and market challenges.

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Energy & Utilities

Our Impact

Strategy
Project Lead: Tom Bromwich

Strategic analysis identifies ~£103m in opportunities for energy retailer

We delivered strategic analysis for a large energy retailer, identifying up to ~£103m in incremental revenue opportunities, through a comprehensive Market Scan Analysis and Sales Channel Maturity Assessment.

Debt
Project Lead: Rachel Littlewood

Cash recovery initiatives deliver ~£275m benefit for large Energy supplier

Our debt team supported a large Energy supplier with recovering their cash position, achieving a total benefit of ~£275m through collaborative initiatives.

Debt
Project Lead: Kev Brown

£4.5m in Bad Debt benefits for large energy retailer

We helped a large energy retailer to generate immediate in-year debt benefits through tactical interventions. Our programme delivered ~£4.5m in Bad Debt benefit and ~£8.5m in cash collection, all while maintaining customer and productivity measures within the operation.

Ian Barker Full Size Headshot
Complaints
Project Lead: Ian Barker

Large energy supplier avoids ~£7.5m in complaints costs

We supported a large energy supplier with a transformation programme, looking at how they can manage their complaints inflow and address the growing backlog. The programme transformed their complaints capability and resulted in ~£7.5m in cost avoidance.

Jonathan Paton, Senior Manager at BFY Group.
Debt
Project Lead: Jonathan Paton

Collections improvements deliver ~£5m cash for Water retailer

We supported a B2B Water retailer with a series of collections improvements, achieving a cash uplift of ~£5m in five months.

Debt
Project Lead: Jon Vincent

Tactical debt improvements deliver ~£7m cash for large Energy retailer

A large Energy retailer was facing significant challenges with customer debt, requiring improvements to their collections processes to mitigate this. Their total debt was ~£100m at the time of engaging BFY, with communication gaps present across the customer debt journey.

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