Utility Week

Interview 10 | 13TH - 19TH JULY 2018 | UTILITY WEEK on that really at the moment. What I really want to say is, we're not relying on that. "We have an offering of SME tariffs that are simple to understand. We've got great person- alised tariffs for large users. We've got great value-added services. We're in it for the long haul and we're focused on service. I think that's a pretty good combination to acquire our own base and we are seeing that success." For Stanbrook, consolidation of the market will not only come from mergers and acquisitions, but also from multi-utility offerings. He also reckons "there's loads of opportunity for learning from the energy sector" – both good and not- so-good practice. "When you look at the reports in the national media, I think sometimes Ofgem gets a bit caught out. Ofwat is trying very hard not to, and to be more proactive, which I admire." PWS plans to improve on its success to "grow even more" through tenders and dual service. "We need to maintain our high levels of service, learn from when we don't get it right and react to anything the regulator is looking to implement – but get very much embedded in that process, because there's a process of maturing of the market that needs to be done." Stanbrook explains that some of the instances where the company "hasn't got it right" revolve around the "data in the market", although he is quick to point out "it's the same for everybody". "The data is not the clean- est, it's a well-known fact, isn't it? "But it's how you react to that and that's the key for us. So, if something happens, it's a case of 'where it has gone wrong.' Look at the root cause and fix it. "That way you take a complaint and see it as an opportunity to straighten what isn't necessarily right in what we do. Then next time around it isn't a complaint, it's something that's gone particularly well." Stanbrook suggests a "bulk project is probably needed" to resolve the market's data problem. "It's something that will need to be addressed. Wholesalers, retailers and the regulators are coming to a position where we are tidying it up as customers switch. Switching is happening, and it will grow and increase in speed." There may be some simplifying of Pennon Water Ser- vices' brands in the future too. Formed as a joint venture between Pennon and South Staffordshire, PWS consists of four in-area retailers: Bournemouth Water Business, South West Water Business, Cambridge Water Business and South Staffs Water Business. It also owns Source for Business, which operates as its national retailer and Aquacare, its value-added services arm. The aim is for Source for Business to act as the main national retailer, with the other in-area brands incorpo- rated into it. "In time they will be the national retailer and we're communicating that with our customers at the moment. We reach out to our SMEs regularly through marketing and communication and when we're going to different customers, it's Source for Business we use. "In our literature we are indicating we are moving – there's still an element of confusion with the different brands – but we are moving towards that place. "Customers are certainly recognising the Source for Business brand and I'm pleased to think our competitors are recognising it as well. We're growing that brand and our brand strength." Unable to provide a timeframe for when the transfor- mation will be complete, he says the process is "under constant review". "When we feel comfortable the Source for Business brand is strong enough, we can move into it." What are some of the main challenges facing the business? "I've got to say margin, haven't I?" he jokes. "But that then provides the opportunity of innovation. If you didn't have such lean margins, you wouldn't really think hard about improving what you do. Although that's a double- edged sword. The regulator needs to design something that's light but firm and not go down the old route. It needs to use the data that's already there in the market, as it promised to do." He stresses he's not "seeing a problem with the regulation" and suggests it needs to be "encouraged". However, he warns that regulation should ensure new entrants "are acting in the best interest of customers and their plans are long term". Stanbrook believes the non-domestic water retail market could help to serve as an argument against calls for the renationalisation of the water sector. "Competition came in because people wanted to change something and improve the service to the cus- tomer. We're in that place and in terms of renationali- sation, if we make this work as a whole sector, that's a good argument to say competition does what it needs to do. We are looking to make this work for everybody." Stanbrook would like to see the household market open to competition, but says the industry needs to get through the nationalisation debate first. "Our place is to help the industry win that debate by creating a really good, effective market. I would love households to be in competition. I'd love it. We just need to help the market work well." He adds: "I've been in the industry a long time and I am very proud of the industry and the high-quality prod- uct that comes out at the end of the pipes. Sometimes I think that is taken for granted. All I can control and con- tribute to is PWS doing things very well and ethically and influencing a market that can also influence the debate." Stanbrook certainly knows a thing or two about water. "Having done a masters in water, I joined the sector as a leakage control technician. I did that because I quickly learnt on a placement at Bournemouth Water that you are either an engineer or an accountant – or you come through grass roots to get through a business." He oversaw the implementation of the joint venture and the establishment of PWS and now has overall responsibility for the non-household business. Although he is top of the tree, he's never "really wor- ried too much" about the job title, as he clarifies when asked why he is a director rather than a managing direc- tor or some other high-standing job title. "Director is what I am. I'm leader of the business. I could have been managing director, but there's a clear statement about who leads the business for PWS. I'm leading it and I'm happy with that," he says. With a team of 140, Stanbrook is a firm believer in the importance of the alignment of his people. "We're in this to win and grow." He says the plan to move the business under a sin- gle national brand will not result in downsizing. "We're pretty lean on resourcing, but if you get your team aligned and they are focused on your values, they know how they contribute to the success of the business. They are more effective and actually smile and enjoy themselves." "I would love households to be in competition. I'd love it. We just need to help the market work well" Innovation and meeting customer service needs are themes that will feature strongly at this year's Utility Week Congress on 9 and 10 October. For more details go to utilityweek.net / Congress 2018

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