How can utility providers win customer service in 2025?

Customer service has become a frontline issue for utility providers as they navigate industry disruptions. Commoditisation, high digital expectations, and growing pressure from regulators are reshaping how customers interact with their energy and water suppliers.  

A 2025 industry survey found that 60% of utility customers would switch providers for better service, while 83% expect real-time updates during outages. These findings underscoring how critical fast, responsive support has become to utilities providers. Delays in resolving simple issues, like login troubles or billing queries, can severely damage trust, increase churn, and inflate support costs. 

Utilities providers are responding to these trends. In an international survey of over 800 C-level executives from utilities, 37% said that the top business drivers for adopting enterprise software systems across the utilities sectors is optimising customer experience.  

This blog explores how providers in the utilities sector can transform customer service through emerging technologies. We’ll examine where customer service typically falters (long onboarding, passwords resets, and fragmented data access) and show how innovations like (Gen)AI, customer-centric self-service, and secure digital identity platforms serve as the foundation for this next-gen service model for seamless customer journeys. 

For a long time, utility providers relied on stable customer bases, regulated pricing, and minimal competition. But that landscape has shifted. Market liberalisation, digital-native competitors, and rising expectations of digital savvy customers moved customer service to the centre of business strategy.  

According to a 2025 Gitnux report, 89% of utility customers say customer service strongly influences their loyalty, and 44% of them abandon online journeys if they’re too complex or frustrating. Meanwhile, 78% of utilities now view CX as a key differentiator in retaining customers

According to Deloitte, today’s consumers expect utility interactions to be simple, informative, and flexible, with the option to speak to a person when needed. Both residential and commercial customers increasingly value dynamic, two-way communication, and want the ability to engage with their provider through multiple channels at different points. 

Beyond its obvious role in attracting and retaining customers, customer service has also become a key focus for compliance in the utilities sector. The European Union is making this clear through recent regulatory reforms. In 2024, the EU introduced new electricity market rules aimed at improving customer outcomes — from easier supplier switching and clearer billing to faster, more transparent service. Similarly, the European Commission’s 2023 initiative to protect vulnerable consumers during energy crises highlights the obligation of providers to offer timely, reliable support. These developments send a strong message: delivering high-quality customer service is a necessity to meet regulatory expectations and maintain customer trust. 

Protect your bottom line with the help of verified digital ID 

• Analogue processes and cumbersome onboarding: Despite the urgency to improve customer experience, many utilities still struggle with outdated processes that frustrate customers and inflate costs. Onboarding is often a key pain point: customers face lengthy, complicated forms, document uploads and manual identity checks that can delay activation by hours or even days, days with potentilally people dropping off because of the extensive process. A McKinsey survey showed that 60% of utiltities customers were less than fully satisfied with the channels available for contact, and almost 45% would prefer to use digital channels as their primary means of interacting with it — though only 22% were actually doing so. 

• Password management struggles: Password management remains another sore spot. Utilities frequently rely on email-based identity verification and password resets, which not only slow down access (due to cases like forgotten credentials) but also expose customers to security risks. A 2025 J.D. Power US Digital Experience study found that 32% of utility websites and mobile apps fail to meet basic navigation and usability standards, suggesting that login and authentication processes are often clunky or broken. 

• Duplicate or inaccurate customer records compound these problems. Inaccurate data leads to billing errors, disputes, and repeated service requests. Additionally, legacy IT systems worsen the situation by siloing customer data across departments, making it harder to deliver consistent, personalised support. This fragmentation contributes to higher call volumes and longer handling times.  

These inefficiencies feed into a costly cycle: customers abandon onboarding or turn to expensive support channels, while providers face rising service costs and struggle to retain loyalty in a market where switching has never been easier. 

Learn how digital identity technology can help your organisation overcome those challenges

Digital transformation has become a top priority for utilities suppliers seeking to boost revenue and operational efficiency. Between 2020 and 2021 alone, the sector’s investment in digital initiatives surged from 30% to 38.4% of overall spending. McKinsey’s analysis further underscores the impact of digital tools: leading utilities report up to 30% improvements in customer satisfaction on targeted journeys when using a digital platform. Below, we analyse how digitisation is used to enhance customer success:

Digital identity platforms are transforming how utility providers manage customer verification, authentication, data access, and document signing. By providing secure access to verified user identities, digital identity platforms enable utilities providers to automate Know You Customer (KYC) processes. This expedites onboarding new customers to minutes instead of hours or days, raising conversion rates and cutting costs associated with manual KYC processes.

Additionally, by offering a single, secure login method that replaces passwords and manual ID checks, these tools drastically reduce friction in the customer journey. Instead of struggling with forgotten credentials or lengthy form-filling, customers can identify themselves instantly and securely, enabling faster onboarding, simpler access, and smoother transactions. 

The integration of eID and e-signature capabilities also allows utilities to move away from paper-based contracts and in-branch identification, cutting wait times and simplifying everything from service activation to tariff changes.

Eneco in Belgium offers a strong example. By adopting digital identity platform itsme^®, the energy supplier streamlined customer onboarding and strengthened its security posture. New customers can now verify their identity and sign up in minutes, without physical paperwork or password management headaches.

The shift from analogue processes to verified digital flows helps utilities players to eliminate common pain points. For instance:

• Every customer account is tied to a verified individual, improving data accuracy and reducing the risk of duplicate or inconsistent records. Support teams can spend less time resolving identity mismatches or correcting administrative errors, and more time delivering responsive, helpful service. 

• Reduced operational costs by limiting manual interventions, redundant checks, and human error margins.

• As EU regulations increasingly mandate stronger consumer protections and greater digital transparency, digital identity tools are emerging as vital compliance enablers with regulations like eIDAS and GDPR, helping utilities meet legal requirements around data and identity. 

Utilities are adopting smarter customer service tools, with AI-assisted agents emerging as a key breakthrough. These tools give representatives instant access to relevant information, significantly reducing handling times and enabling them to resolve complex queries in real time.  

According to Salesforce, generative AI can streamline interactions for utilities support teams by pre-filling caller data and providing real-time context and sentiment analysis, speeding up resolutions and personalising service. AI also automates post-call tasks like generating summaries and updating knowledge bases, reducing administrative workloads and improving efficiency.

Chatbots and AI-driven insights are also playing a bigger role in how utilities deliver customer service. While many energy providers still underuse their customer data, generative AI opens up new opportunities to personalise the experience. For example, utilities can now create tailored energy usage reports to help customers manage consumption, resolve billing questions instantly through conversational chatbots, and proactively recommend products or services based on behavioural patterns.  

E.ON Next offers another strong example: the company uses Chattermill’s Customer Experience Intelligence platform to analyse feedback from channels like Trustpilot, emails, and phone calls. By applying natural language processing (NLP), the platform identifies sentiment and key issues at scale, giving E.ON a clearer view of what customers really need.

By integrating these AI capabilities, utilities can offer faster, more personalised, and more responsive customer service, driving higher satisfaction while controlling costs. 

Customer Relationship Management (CRM) systems are transforming how utilities manage customer relationships by centralising data and offering real-time insights. For example, Enel, one of Europe’s largest utility companies, leverages Salesforce’s cloud CRM to unify customer profiles, service history, and billing information. This enables their agents to deliver faster, more personalised support and empowers marketing teams to tailor offers based on usage patterns and preferences. 

4) Self-service portals and mobile apps  

Such portals are vital tools for utilities aiming to reduce call volumes and empower customers. For example, UK-based SSE Energy offers a customer portal and mobile app where users can monitor real-time energy consumption, manage billing, and report outages instantly. This digital self-service reduces reliance on call centres and enables faster issue resolution. Additionally, the app provides personalised energy-saving tips based on usage data, helping customers make informed decisions and boosting overall satisfaction. 

Continue reading: How is digital identity powering utilities sector innovation?

In today’s competitive and tightly regulated utilities landscape, customer service has become a strategic priority, critical not just for retention, but also for regulatory compliance. Digital transformation is no longer about future-proofing—it’s about staying relevant.

Traditional pain points like slow onboarding, password resets, billing disputes, and siloed data can no longer be dismissed as legacy issues; they directly impact customer trust and bottom lines. 

Leading utilities are tackling these challenges head-on by embracing smarter technologies. AI-powered support agents speed up resolutions and reduce call volumes; real-time usage insights empower customers to manage consumption proactively; and digital identity platforms eliminate friction while improving data accuracy and security. Together, these innovations enable providers to deliver fast, personalised, and compliant service at scale. 

Utilities that invest in modern, customer-centric tools are turning service into a competitive edge—one that drives loyalty, lowers costs, and meets the evolving expectations of the European energy consumer. 

Curious about the potential use cases of digital identity in your team?