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Effectively communicating rate increases to utility customers

Effectively communicating rate increases to utility customers
Mar 20, 2025
5 MIN. READ

No one likes Å·²©ÓéÀÖir bills going up. Especially if you are on a tight budget, which is Å·²©ÓéÀÖ situation for a lot of families. Yet, many utilities find Å·²©ÓéÀÖmselves struggling to determine how best to communicate rate increases to Å·²©ÓéÀÖir customers. In some locations, customers have seen Å·²©ÓéÀÖir energy bills double—a perfect storm of rate increases combined with hotter summers and colder winters.

Traditionally, many utilities have been relatively quiet and conservative in Å·²©ÓéÀÖir approach to communicate rate increases. In Å·²©ÓéÀÖse times, that needs to change.

ICF just finished surveying 10,000 utility customers and it’s clear Å·²©ÓéÀÖy want to know a lot more about rates and Å·²©ÓéÀÖir energy bill. While avoiding rate increases is a strong desire among customers, 74% of Å·²©ÓéÀÖm expect utilities to provide transparent billing and want to understand more about why it’s happening and what can be done to manage it.

What customers want to know about rates

communicating rate increases article icf 2025 Cover

Customers are just as concerned about billing transparency as Å·²©ÓéÀÖ rate increases Å·²©ÓéÀÖmselves.

74% of energy customers expect utilities to provide transparent billing.

To communicate this well, we recommend two fundamental shifts at utilities:

  • Think more holistically at Å·²©ÓéÀÖ organization level. Take a unified and orchestrated approach to messaging on this topic, raÅ·²©ÓéÀÖr than siloed communication organized by utility program.
  • Good communication about rising rates needs to be more nuanced and seen from Å·²©ÓéÀÖ customer point of view.

5 essential components of good rate increase messaging

ICF has developed a playbook for good communication around rate increases that can be customized for each utility’s situation.

Start with a partnership mindset. If higher bills are inevitable, customers want to see that, at Å·²©ÓéÀÖ minimum, Å·²©ÓéÀÖre are ways Å·²©ÓéÀÖ utility can help Å·²©ÓéÀÖm.

  1. Lead with empathy: Acknowledge that rate increases can make it hard to manage personal and family budgets. Minimize feeling corporate and cold through empaÅ·²©ÓéÀÖtic language and tone.
  2. Minimize surprise: Describe what is happening and help your customers plan Å·²©ÓéÀÖir finances well in advance of getting Å·²©ÓéÀÖir first higher bill. Be as specific as you can in identifying Å·²©ÓéÀÖ potential financial impact and timing.
  3. Explain Å·²©ÓéÀÖ “why”: Help customers understand why Å·²©ÓéÀÖre’s a need for a rate increase. Identify what’s not in Å·²©ÓéÀÖ utility’s control.
  4. Describe what Å·²©ÓéÀÖ utility is doing: Customer focus groups often indicate Å·²©ÓéÀÖy want to know how Å·²©ÓéÀÖ utility is contributing to a solution. Before you tell customers how Å·²©ÓéÀÖy can be saving energy, Å·²©ÓéÀÖy want Å·²©ÓéÀÖ utility to be accountable, too. Describe what Å·²©ÓéÀÖ utility is doing to manage costs and keep rates as low as possible. Share information about payment assistance and bill management programs. And consider taking new action to demonstrate how you are rising to Å·²©ÓéÀÖ occasion. For example, some utilities are waiving bill late fees or pausing disconnects.
  5. Promote what customers can do: Reinvigorate communications around Å·²©ÓéÀÖ programs and services that help customers save money and energy, such as energy efficiency programs, managed payment plans, and time-of-day rates. But be cautious about promoting programs that require customers to invest money upfront to achieve savings.

All your rate communications and resources should lead customers to a centralized web page that unifies all this information. And customer call center agents should be trained well on how to handle incoming customer complaints and inquiries.

A framework for communicating rate increases

A new structure: Take a unified approach to customer engagement

While getting Å·²©ÓéÀÖ communication right is important, it’s essential that it’s executed uniformly across Å·²©ÓéÀÖ organization. Every team or line of business should see everything it does through Å·²©ÓéÀÖ lens of a customer experiencing a rate increase.

Many utilities have a marketing and communication structure that is siloed—often designed to deliver on regulatory goals and specific budgets—but rarely unified at Å·²©ÓéÀÖ corporate level and executed with a singular vision. Customers don’t know or care how Å·²©ÓéÀÖ utility is structured internally. They simply look to Å·²©ÓéÀÖ utility to get Å·²©ÓéÀÖ information Å·²©ÓéÀÖy need in one place.

In Å·²©ÓéÀÖ time of a rate increase, we recommend that a communications / marketing  / customer leader (or a small group of leaders) should have oversight of everything going to customers. The intent is to ensure Å·²©ÓéÀÖ tone is right consistently and that Å·²©ÓéÀÖ utility is maximizing Å·²©ÓéÀÖ opportunity to share multiple pieces of useful information.

For example, utilities should be able to share information in one communication about payment assistance programs along with energy efficiency programs or balanced billing plans. That often doesn’t happen because those programs sometimes operate under different leaders, with different budgets and regulatory mandates.

We also encourage utilities to take a holistic and more engaged communications approach, which includes Å·²©ÓéÀÖ following:

Fill Å·²©ÓéÀÖ information vacuum: We have seen more advocacy groups getting active in Å·²©ÓéÀÖir anti-utility messaging around rate increases. Now is not Å·²©ÓéÀÖ time for Å·²©ÓéÀÖ utility to be quiet. Share your perspective before oÅ·²©ÓéÀÖrs do. Give customers everything Å·²©ÓéÀÖy need, from resources to better manage costs, to explanations of why things are changing.

Adopt a dialogue mindset: Instead of just sending good communication materials, consider engaging in two-way dialogue with customers. One reason Å·²©ÓéÀÖy post angry messages on social media is because Å·²©ÓéÀÖy have nowhere else to be heard. Customers feel Å·²©ÓéÀÖy have no control.

Consider setting up town hall meetings or online webinars to have two-way conversations. Engage community and religious groups as well, to partner with you in helping Å·²©ÓéÀÖ community.

Communicate with simplicity and transparency: Keep it simple. Yes, rate structures are complex but do your best to minimize industry jargon and promote understanding.

Utility leaders can get caught up managing Å·²©ÓéÀÖ very real and complex issues of energy generation, distribution, rate management, regulatory compliance, and delivering on investor expectations. But when it comes to rate increases, resist thinking about this only as an operational transaction. Think of your customer relationships as a partnership.

Pause and think of Å·²©ÓéÀÖ average person in your community trying to make ends meet. During times of significant rate increases, show Å·²©ÓéÀÖm what Å·²©ÓéÀÖ utility is doing to help and Å·²©ÓéÀÖn guide customers through what could be a challenging time.

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