Utility Week

28 | 28TH SEPTEMBER - 4TH OCTOBER 2018 | UTILITY WEEK Customers Analysis P rices and accusations of profiteering have been the focus of negative media coverage of the utilities industry for a number of years, and this has had an inevita- ble impact on how much trust the public are willing to place in their respective suppliers. In recognition of this conundrum, Utility Week launched an annual series of surveys, in association with Harris Interactive, of a nationally representative audience of util- ity bill payers to gauge awareness of utility suppliers, as well as seek their feedback on transparency and fairness of pricing, govern- ment intervention and trust. This is the third such survey, and the results tell of consumers who are still unsure of the industry and its intentions, despite utilities' best efforts to persuade them oth- erwise. Trust in utilities continues to decline and the number of those feeling they are being overcharged has grown. The better news for the sector is that support for rena- tionalisation is unchanged. The survey results provide ample food for thought, and point to avenues for utility companies to explore to help build relation- ships and bolster trust. The supplier balance Over two-thirds (62 per cent) of respondents say their current energy supplier is one of the large, big six energy companies. Twenty per cent say they are with a medium-sized sup- plier, 13 per cent with a small company, and Mistrust proves hard to shift Trust in utilities continues to decline, finds the latest Harris Interactive consumer research for Utility Week. But as Alice Cooke reports, this is not fuelling support for renationalisation. Support for nationalisation not increasing When questioned on the issue of the renationalisation of energy companies, more than 36 per cent think it's a good idea, with one saying. "At present the energy suppliers are too expensive and to have a publicly owned energy supplier can only mean a better deal for the consumer". But 21 per cent do not agree, and 43 per cent remain unsure. One says: "I think it should be in the public domain and be competitive. If Labour got their way there would be one company and no price competition." This state of play has remained all but static since the last survey in 2017, which again flies against some media coverage suggesting the public are behind renationalisation. Thirty-seven per cent of those surveyed would support Labour's suggested renationalisation of the water industry, while 23 per cent would not. Again, this figure is largely unchanged since the last survey. 5 per cent with a local or municipal energy supplier. Interestingly, these figures are largely unchanged over the past three years, despite many a headline during that time telling the tale of a dramatic exodus of customers flee- ing from the so-called fat cat ways of the big six. Billing and clarity It has long been identified within the indus- try that there are issues relating to whether consumers are aware or able to understand what their tariff includes and where their money goes. There is a perception that costs are being hidden or masked, and this is something utilities are trying hard to over- turn. Woven into clarity of billing is the key issue of transparency, without which sup- pliers cannot hope to gain or maintain their customers' trust. Energy There has been a marginal increase in levels of understanding since last year's survey, of 2 per cent. In 2017, 31 per cent found their bill quite easy to understand and 24 per cent found it very easy. This year's results show 33 per cent find their bill quite easy to under- stand and 24 per cent find it very easy. Noticeably, those in the 18-24 age group are far more likely say they don't know if they understand their energy bill or not, or say they struggle to understand it, compared with all the other age groups surveyed. This presents an obvious opportunity for utilities to target that demographic in a dif- ferent way in order to improve these figures. Over half of respondents (58 per cent) are aware that their bills subsidise renewable energy and government energy efficiency schemes, 63 per cent know their bills fund the energy networks, and 53 per cent know their bills pay for the smart meter rollout. Water Over the three years this survey has been in operation, understanding of water bills has steadily decreased. This has meant that for the first time, energy and water bills are both on a near equal standing in this respect. Thirty-one per cent say they find their bill easy to understand, and 26 per cent find it very easy to understand. Around seven in ten respondents agreed that their water bills should be clearer about the different costs that make up their charge and should be more helpful in terms of ways in which they personally could save money. Trust When it comes to trust, it's not the pretti- est of pictures. Trust in utility suppliers has continued to decrease this year, with water and wastewater providers only slightly ahead of their energy counterparts. Trust in energy suppliers saw the biggest fall this time around. Respondents generally mistrust companies because they feel they are just out to make a profit. As to what can be done to improve this state of play, just under half of respond- ents say they would have more trust in their energy suppliers if they made less profit, and around a third would trust their energy supplier more if their bill was easier to understand. Thirty-one per cent say they would have more faith if they were able to see how much energy they're using day to day, which is good news for the smart meter rollout cur- rently under way, because it will enable con- sumers to do exactly that.

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