Capital Advisory
Utilities are navigating a period of change.
Customer vulnerability, once treated as a compliance concern, is now central to how trust, resilience and competitiveness are built. Growing cost of living pressures, a maturing understanding of vulnerability, a growing divide on access to sustainable infrastructure and shifting public expectations are creating new pressures and new possibilities. For leaders, this is not just about meeting obligations. It is about recognising vulnerability as a lens through which strategy, service and innovation must evolve.
Why now? What is driving the greater focus on customer vulnerability?
Several converging forces are driving the shift and focus on vulnerability.
Growing cost of living pressures
Rising prices for utility services such as energy, water and gas are placing unprecedented pressure on already strained households. Blunt but accessible Federal Energy Bill Relief ($300 per annum) is also set to end in December 2025 and increase stress for households experiencing or at risk of experiencing vulnerability. These utility services are not just regular commodities – they are cornerstones of economic participation, living standards and wellbeing.
Expanded understanding of vulnerability
Vulnerability is broader than just financial hardship and understanding of this is improving across industry. There is a greater awareness of factors such as medical conditions, digital literacy, product complexity, household infrastructure (e.g. insulation and efficiency) and instances of family and domestic violence, that all may increase the risk of experiencing vulnerability and impact on a customer’s ability to engage with utility services at any point in time.
Sustainability and infrastructure transition
Utilities are under increasing pressure to meet ambitious sustainability targets while modernising ageing infrastructure. These changes introduce complexity in service delivery and affordability. They also risk widening the growing gap between customers who can afford to participate and those who cannot (e.g. those who can understand and afford to purchase solar and battery products vs. those who are unable).
Shifting social licence and regulatory obligations
A spate of recent high-profile incidents has highlighted the growing social licence expectations placed on essential service and utility providers. Similar to trends observed in the banking sector in recent years, utility regulators such as the AER and Energy Services Victoria are tightening expectations and moving from reactive compliance to driving proactive support.
What are the key actions utility organisations can take?
There are three key actions utilities can take to ensure they embed vulnerability considerations into the business and drive trust, resilience and a sustainable transition for all.
1. Align on strategy
Utilities need a shared, organisation-specific understanding of customer vulnerability that is owned at the leadership level. Vulnerability should be reframed from a narrow compliance obligation to a strategic lens that shapes, informs and coordinates decisions across often siloed customer, operations and finance business units. When leaders view vulnerability as both a risk and strategic value driver, it strengthens customer trust, enables retention and growth, protects brand and social licence and can reduce total cost to serve. For energy retailers in particular, vulnerability can be just seen as a compliance risk, or it could be seen as an opportunity to drive parallel progress towards decarbonisation, energy equity and improved system resilience.
2. Develop fit-for-purpose services
Delivering better outcomes for customers experiencing or at risk of experiencing vulnerability starts with deep understanding of circumstances and needs. A human-centred approach is not only good practice, it is also good business. Embedding empathy into the service design improves engagement, reduces friction and drives customer trust. Utilities should design services and pathways around moments that matter – simplifying products, streamlining journeys and prioritising support that delivers the greatest impact for customers experiencing vulnerability or at risk of experiencing vulnerability. Strong operational foundations are required to deliver on this. It is imperative that utilities have the business fundamentals in place, such as reliable processes for payment difficulty notification, life support outages or Centrepay billing; trained and capable front-line staff; clear outcome-focused metrics; as well as robust governance and assurance frameworks to identify gaps proactively, resolve issues quickly and support continuous improvement in a rapidly changing environment.
3. Innovate and collaborate with key partners
Data, technology and partnerships are critical to moving from reactive management to proactive support. Advanced analytics and AI can help utilities identify early indicators of vulnerability – such as payment irregularities or usage anomalies – enabling timely and tailored interventions. Digital technology solutions such as smart meters, sensors and applications that are becoming increasingly accessible in the market can also offer opportunities to help customers better manage their usage and costs. However, customer vulnerability is a multifaceted problem and rarely sits within the boundaries of one organisation alone. Effective response requires cross-sector collaboration across housing, financial services, health, social services and government for instance to identify underlying needs and deliver targeted support that goes beyond traditional service boundaries. By working with external partners and contributing to policy reform – such as improving solar access for renters, increasing product efficiency standards or lifting housing insulation requirements, utilities can address the systemic drivers of vulnerability, strengthen social licence and create a more equitable and resilient system.
Who is going to rise to the challenge and realise the opportunity?
Vulnerability is changing the future of utilities and it’s no longer a compliance cost centre to manage on the side. The utilities that lead with empathy, insight and purpose will set the pace. The real challenge isn’t recognising that vulnerability matters but working out how to embed it and act on it. For leaders, this is an opportunity to design resilient infrastructure that drives customer trust and ensures ‘no one is left behind’ in the transition.
