Technology helps utilities serve their most vulnerable customers

According to the U.S. Energy Information Administration, 34 million U.S. households struggle to pay their energy bills. As advocates, regulators, and utilities adopt more ways to mitigate costs and support consumers during these challenging times, one resource remains underutilized: digital tools.

Every industry is embracing technology across their operations, and the utility sector is no exception. Digital tools enable utility customers to make day-to-day choices that can improve energy affordability for them—helping them choose the best rate plan, coaching them on how and when to optimize their usage, and promoting the benefits of targeted programs and services. Some programs offer financial assistance, and this is where digital tools can make an outsized impact on affordability: by identifying and enrolling more of the utility’s most vulnerable customers.

While financial assistance is available, only about 1 in 6 eligible households end up receiving aid. After interviewing utility executives as well as low- and moderate-income utility customers around the U.S., Oracle Utilities researchers found that lack of awareness came up repeatedly as one of the main issues that keeps these households from receiving assistance.

How are people finding help today?

For decades, low-income customers have learned about assistance programs by attending events hosted by community action agencies or utilities to apply for assistance. These in-person events are often critical for elderly customers and others who need help filling out paperwork. While face-to-face assistance is still considered best practice, some low-income customers often cannot attend in person. Many find transportation challenging, and many also juggle multiple jobs, have responsibility for child or elder care, experience mobility challenges, or contend with other disabilities that make in-person events difficult.

One research participant shared frustrations about going to her local social services agency: “There were a lot of people lined up there. We probably waited for three hours. They’re only open a few days a week.”

With challenges like these, some low-income customers prefer going online on their phones.

One research participant mentioned how she wishes she could do everything on her smartphone, like how she pays her utility bill.

While many assistance programs currently only accept phone or paper applications, digital solutions can still help minimize the friction that prevents many vulnerable people from getting assistance to afford their bills.

Mobile-first design: A key strategy to reach low-income households

The 2023 Digital Equity Survey found that 78% of low-income individuals (compared to 86% of the general population) reported having a home internet subscription, and 28% accessed it primarily through a mobile data plan.^[1] According to Pew Research, the number of low-income Americans who rely on their smartphones to go online has doubled since 2013.^[2]

Although many low-income households lack access to broadband internet, most have smartphones, and the number of people with smartphones is steadily growing. Utilities can and should use this communication channel—and a mobile-first design—to reach this audience.

Targeted communications engage harder-to-reach customers at scale

Technology solutions can dramatically increase awareness of energy assistance programs for people who need help paying their bills. Oracle designed an email campaign for utility customers identified as likely low-and-moderate income at moments that matter, particularly ahead of seasonal programs opening, like the Low Income Home Energy Assistance Program (LIHEAP). This email campaign draws the customers in by building on empathy and breaking down psychological barriers to getting help. The emails drive customers to the Oracle-designed online one-stop shop that surveys customers to determine their program eligibility and also recommends the most beneficial programs for them.

In 2024, American Electric Power (AEP) worked with Oracle to reach their likely low-and-moderate income customers—sending 3.5 million emails across the campaign to reach 1 million unique customers.

AEP used a variety of household-level data in conjunction with higher-level census tract data to identify likely low-income customers across 10 states. Of these recipients, 93,000 customers started the eligibility survey—and 74% completed the survey, even with sensitive questions about household income. More than 38,000 people went on to apply to at least one recommended energy assistance program!

This is about a 3.8% conversion rate—involving clicking on an email, starting and completing the survey, viewing the list of eligible programs on a separate web page, and then finally clicking on “Apply.” As a reference point, 1.23% is the average clickthrough rate for utility emails for residential customers.^[3]

Utilities can also reach new audiences with digital communications, including customers who are newer to financial hardship and are often unaware of available assistance programs. Even customers who are aware of assistance options incorrectly assume that they aren’t eligible because they are renters or because they have a job.

Some utilities are already using digital channels to proactively reach out to customers who may be struggling, but they tend to send general emails to raise awareness among as many people as possible, with broad messaging that may not resonate with certain audiences.

Improving customer targeting using U.S. Census data or other aggregated measures also has its limitations. This approach can often miss many energy-burdened customers hidden in higher-income census tracts, and Oracle’s solution can help find low-income customers by using more granular household-level data. For example, 37% of all AEP customers who applied for energy assistance through Oracle’s affordability solution came from census tracts that are not considered low income, high energy burdened, or disadvantaged.

Customer research shows the power of empathetic and clear communication

Oracle conducted interviews with U.S. utility customers who are having trouble paying their electricity and gas bills. Many research participants stated that they would view their utility more positively if they received such communications, and after receiving an emailed survey link to assess their eligibility for financial assistance, one participant said, “It would have felt like a lighthouse in the dark night of the ocean. I would have felt really grateful for this.”

Oracle found that thoughtfully designed user experiences and algorithms that simplify the program selection can establish trust, reduce customer stress levels, and save customers’ time. User-tested copy for all communications is critical—and the tone must be empathetic, yet clear. Many research participants commented how the emails made them feel like their utility cared about them.

“It makes me feel like they actually care what your situation is—if you’re sitting there freezing, or you have a medical condition, or little children in the home. It makes you feel more human.”

Digital engagement: Energy affordability for everyone

Not everyone is eligible for financial assistance, but, as energy costs rise, more people struggle to afford their energy bills. While in-person outreach must continue, technology-enabled communication and engagement play a critical role in impactful customer outreach at scale. Digital tools and digital engagement form the foundation for utilities to promote energy affordability for all their customers.