Where there is a crisis, there is an increased demand for sensible communication. This was especially true in the last couple of years of crisis in the energy industry. In 2022, when energy prices skyrocketed, customers canceled contracts en masse, government aid was needed and tensions were running high.
A perfect example of bad communications of this era is the negative example of Wien Energie, when in 2023 price adjustments quickly turned into a communications nightmare. What started as a pragmatic business decision spiraled into a very public scandal within weeks, complete with calls for resignations, investigative committees, and a €1.4 billion bailout from the state. Even if the reasons behind the price increases were objectively justified due to the turmoil in the energy markets, the public was left with a sour taste in its mouth and the brand Wien Energie remains badly damagedeven now.
But what should they have done differently? Wien Energie simply failed to communicate transparently and confidently from the start, so the loss of trust was virtually guaranteed, as this triggered a vicious cycle of cancellations, customer attrition, and further pressure on the company.
So how can you master communications in a volatile energy industry?
For energy suppliers with battle-ready residential customers, rapid and strategic crisis management are a must-have. When a crisis strikes, you need to be prepared. With our four key recommendations you will be able steer your ship through difficult waters:
1. Be ready
When an emergency does erupt, speed and coordination is what matters. A slow or misaligned response will rapidly be drowned out by external voices and speculation. By being the authoritative first mover, you maintain greater control over how the situation is framed.
So don’t wait until it’s too late to develop a crisis response plan. Map out detailed scenarios, protocols and prepare rough statements well before a crisis hits. Organize simulations to pressure-test your plan.
This proactive readiness enables your team to respond swiftly and consistently when a real situation arises. You’ll know exactly what to do, who is responsible for each channel, and how to adapt your messaging as the situation evolves. Anticipate potential investigations and information requests in advance as well.
Continuously monitor industry activities and rumblings on social media to identify developing issues early. Establish communication channels with key stakeholders like regulators and consumer groups to stay ahead of the narrative.
Example:
For E.ON, the transition to renewable energy sources could potentially disrupt operations, financial performance, and stakeholder relations, making it a strategic crisis in its own right. Thus, their communication strategy was not just about routine updates but ensuring that all stakeholders were continuously engaged and informedduring a period of significant change that could potentially lead to operational and financial instabilities.
Ahead of market changes driven by the energy transition, the company restructured its business to focus on renewables ahead of market changes, using channels like official press releases, annual reports, or specific articles analyzing their strategic moves during this period. This effort included a direct line with stakeholders about the impacts of these changes and the benefits of a renewable focus, such as increased sustainability and long-term economic stability.
2. Living transparency
Perhaps the single most important element of all is radically honest and transparent communications – even if the truth is uncomfortable. In a hyper-connected world, any attempts at obfuscation or spinning will quickly unravel and severely compound the crisis.
Customers inherently understand that energy is a volatile, complex market influenced by many factors beyond a provider’s control. If you forthrightly explain the drivers behind price increases, shortages or other disruptions, they are much more likely to be empathetic and patient.
For example, when the COVID-19 pandemic triggered a multi-year supercycle of skyrocketing energy costs, many companies that transparently discussed global supply and demand dynamics fared better than those who tried to downplay or sidestep the issue.
Trusted relationships with customers hinge on authenticity and accountability. By being upfront about difficulties from the start, sharing your reasoning process, and taking ownership over mistakes, you build enormous reserves of goodwill to draw upon in tough times.
Of course, transparency must be coupled with clear action plans to address shortcomings and provide customer relief where possible. Combining the bad news with a demonstrated commitment to improvement and solutions creates a powerful accountability narrative.
Example:
The European Commission’s response to the recent energy crisis, particularly through its EU Gas Demand Reduction Plan and the EU Solidarity Regulation. This plan was a comprehensive effort aimed at reducing gas demand by 15% among Member States. It focused on switching from gas to alternative fuels, incentivizing consumption reduction, and enhancing heating and cooling efficiency. The plan also included a mechanism to declare a state of EU alert, which would trigger compulsory gas consumption reductions across the Member States.
3. The path of empathy
Amid a factual, data-driven crisis response, put yourself into the shoes of your stakeholders. Empathize with the very real impacts that price shocks and energy insecurity can have on households. Avoid corporate-speak and use relatable, conversational language.
Having leadership personalities take center stage can also make your communications feel more authentic, personal and less institutional. Their visible presence shows customers that the company’s principles and integrity are on the line.
When appropriate, reinforce your local community connections as well. As a regional or municipal provider, you have a vested interest in supporting the economic resilience and well-being of your service area over the long term.
This human side becomes even more important during extended crises that require ongoing communications over weeks or months. Customers will grow numb to regurgitated facts and legalese. Refreshing empathetic messaging prevents fatigue.
Example:
In the aftermath of Hurricane Sandy, Consolidated Edison (ConEd) of New York provided a notable example of empathetic crisis management. The company’s CEO personally visited damaged areas and communicated directly with affected residents and businesses, explaining the recovery efforts and timeline. This approach helped mitigate customer frustration during the prolonged power outages and demonstrated a commitment to community and customer care during a difficult time.
4. A catalyst called crisis
While crisis communications aim to protect reputation and retain customers in the immediate term, they can actually create long-term business opportunities too.
By responding comprehensively and with accountability to a very public disruption, you reinforce perceptions of your brand as trustworthy, principled and forward-looking. Handled properly, a crisis becomes a catalyst to solidify customer loyalty and confidence.
Energy companies could leverage a transparent response as a springboard to promote new renewable offerings, sustainability programs or technologies that enhance grid reliability. The disruption exposed vulnerabilities that your solutions now address head-on.
Example:
Following the Fukushima nuclear disaster in 2011, Tokyo Electric Power Company (TEPCO) faced immense scrutiny and criticism over its handling of the crisis and lack of transparency. The disaster spurred a major overhaul in Japan’s energy policy and TEPCO’s operational approaches, leading to significant investments in renewable energy and safety upgrades at other facilities. This crisis ended up being a catalyst for TEPCO and the industry at large to prioritize sustainable and safer energy production methods
Let us close with this lesson learned from our examples: Customers simply gravitate toward providers who have been relentlessly honest brokers during difficult periods. In an industry like energy that is only growing in complexity, this credibility proves invaluable for maintaining pole position against competitors.
The road through any crisis or negative event is undoubtedly bumpy.
But by combining proactive planning, radical transparency, understanding and a solutions-oriented vision, energy companies can overcome these challenges while strengthening their brand reputations and customer relationships over the long term.
