Affordability Is No Longer a Regulatory Issue. It’s a Brand Issue.

For those of us in the utility communications space, affordability is not a new conversation. In the last year, it has moved from a topic that was dealt with through rate cases and customer programs to a real brand issue. And for the customer, an emotional issue. 

Over my years working alongside utility communicators, I have learned one thing that I wish customers knew: the people who are working at their utility provider deeply care about customers, serving them in the best way possible, and keeping rates as low as they can. For communicators, the challenge is to develop messages and campaigns that help customers understand this care and rebuild trust with their providers.

As you are working through communications plans, there are a few things to keep in mind. 

Customers Experience Affordability Emotionally, Not Administratively

I recently read an article that talked about the lived experience of customers and how they gauge affordability. It is less about the inflation rate and more about “… the hole they feel in their pocket when the things they used to buy now cost a lot more. And when enough of the bills that account for their monthly expenses now get in the way of how they’d like to spend their paycheck. For many consumers, it feels like something fundamental has shifted.” 

The data here on this topic really backs this up.

A recent Ipsos poll found that nearly two in three (63%) billpayers say their electric and gas utility bills are adding to their financial stress. At the same time, another study found that 70% of Americans are wrestling with financial anxiety like never before, and 76% feel utterly isolated in the struggle.

Customer are worried and do not know where to turn. Many utilities have programs and tools to help and connecting customers with those can be one piece of helping them feel less alone in their struggle.

You may have read the recent ACSI 2026 Energy Utilities Study that looked at customer complaint rates and feedback, finding that there is increased sensitivity around cost. “Rising customer complaint rates and open-ended feedback point to growing sensitivity around cost — even as traditional price and value metrics remain relatively stable. The study notes tension suggests that customers’ lived experience of energy costs may be outpacing what headline satisfaction scores capture.” 

You have to look at each customer touchpoint with this in mind to ensure that it comes across with genuine empathy and care and connects them to tools that can help.

Affordability Shapes Trust in Utility Brands

Now more than ever, affordability is driving brand trust. Chris Oberle, with J.D. Power shared “While customers trust their electric and gas utilities to deliver reliable service, they do not feel like their utilities are going the extra mile to help them by keeping costs down, delivering personalized communications, demonstrating commitment to the environment or focusing on innovation.

This lack of brand trust is and will impact customer satisfaction, which ultimately impacts future regulatory outcomes. In the same study, J.D. Power found that “Utilities with appealing brands also enjoy higher customer loyalty, an increase in support for rate increases and a significantly higher percentage of customers willing to advocate for the utility.” 

Making sure that utilities, as a brand, are building trust with customers is job number one.

The Utilities That Handle Affordability Best Will Communicate It Differently

In today’s environment, rate changes and regulatory requests are no longer just being heard by the regulators, the customer’s input matters. Ensuring that you are connecting with them is critical.    

Communications need to be:

  • Proactive: Don’t wait until bills are highest to start connecting customers with tools that can help them save or budget.
  • Genuine and Empathetic: Customers have a pretty good gauge of when they feel a company is being genuine and when they are being “sold to.” You have great people and great stories to tell about how you are helping customers, take a breath and remember that.
  • Clear and Understandable: Some of the issues that are driving costs, like aging infrastructure and gas prices, may be hard for customers to connect with. You need to find ways to help them really understand what goes into their bill and tangible ways you are working to keep costs low.
  • Transparent: Customers want to know, really know, what you are doing to help keep their bill low. They also want to understand how the investments you are making in grid reliability and infrastructure are going to impact them. 

The conversation around affordability is something that I don’t anticipate slowing down in the near future. It is a topic that brands are going to need to face head on. Take time to review and digest the research and take a step back when reviewing messages to make sure you are looking at them through the lens of the customers.

 

Michelle Hill

Written by

Michelle Hill

President

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Alex Diethelm

New Business Manager

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