Utility Week

UTILITY WEEK | 11TH - 17TH JANUARY 2019 | 29 Customers Market view U tility firms are accustomed to plan- ning for winter and for spikes in cus- tomer complaints if harsh weather causes interruptions to power supply, burst pipes or flooding. But with our weather pat- terns becoming more extreme, getting it right has become more important than ever. Take last year's Beast from the East, which hit the UK in February and saw tem- peratures plummet, with heavy winds and snowfall causing widespread disruption to services. While predictions around 2019's equivalent have already started to surface, utilities must not be complacent – in fact, the winter season may have only just begun. Winter whiteouts and blizzards may pre- sent a challenge for any utility company – but those firms that plan ahead effectively and communicate well with customers will fare better than their counterparts. In that sense, extreme weather presents an opportunity for companies to show they really take a customer-centric approach. Those that handle the challenges well will enhance their reputations and at the same time build customer loyalty. Those that don't could suffer from a flood of complaints, defecting customers and, potentially, perfor- mance penalties from regulators. So, what are the building blocks for suc- cess in supporting customers through the winter period? Planning and resources It starts with planning. It is crucial to look back at past data from previous winters and other extreme events to analyse the infor- mation and see what can be learned. How did your firm cope last time? How many customer contacts were received, by which channels, and what were your response times? What was the impact on customer satisfaction – what feedback did you receive, what volume of complaints, and were there any common sticking points? Making use of management information, both operational and customer-based, is essential. This leads to considerations around resourcing. Resource planning can some- times feel more like an art than a science, but it is only by analysing the data from past experience that you can really make sensible decisions. This needs to include contingen- cies around the effects of extreme weather on your own staff. What if many of your cus- tomer contact staff can't get into the office themselves? What back-up plans do you have? How many staff could work remotely? You may want to consider taking action to improve multi-skilling – training staff to take up multiple roles as a back up should the worst occur. It may be necessary to recruit additional or temporary resources. Ultimately, companies should create a playbook of what-if scenarios that they can model and pre-empt as part of an action plan. It's much easier to do this proactively in advance than in the heat of battle. The dif- ficult part of this will be agreeing the priority order with all key stakeholders. Communication is key Forward planning is one thing, but when an event actually hits (or is about to hit) communication with customers becomes paramount. Companies need proactive com- munication to give warning and raise aware- ness that an event may be coming, and fast and responsive communications across channels throughout any incident (phone, online, social media). This communication, backed up by suf- ficient engineers in the field, lets customers know you are doing everything you can to help them and return services to normal. Building trust has been a major focus for utilities. But if companies are not "there" for customers when extreme circumstances hit, that trust can evaporate instantly. Strong and proactive communication can help to reduce complaint levels. For exam- ple, in the water industry, the Consumer Council for Water found that during the freeze-thaw earlier this year companies that used all their communication channels and showed a presence on the ground received lower levels of complaints. Such communication should be an exten- sion of what already happens in normal times – ongoing engagement forms the bed- rock of a strong relationship. Vulnerable customers Another important aspect of dealing with extreme weather is supporting vulnerable customers. Companies' engagement with vulnerable customers has become an area of particular scrutiny for Ofgem and Ofwat. The elderly, those with disabilities or poor health, and those who may already be heav- ily rationing their energy usage to keep costs down – all can be severely impacted during extreme cold or interruptions to power. It must be a particular priority to ensure that vulnerable customers are supported through periods of extreme weather. To do this, utility companies need staff who are trained to understand the signs of vulner- ability and are given the flexibility and authority to offer flexible solutions where appropriate. Embedding the culture to deliver successful outcomes Extreme weather during winter can test any service provider. But if managed successfully, it can also be a catalyst in building customer engagement and achieving good customer outcomes. Dealing with such events should not be a bolt-on but rather should be an extension of a culture already there. Success comes from careful planning and prediction based on previous experience and the analysis of key management informa- tion, together with effective resource plan- ning and operational resilience. It also relies on embedding a customer-centric culture throughout the organisation so that teams are in a position to pull out all the stops when emergencies arise. Alex Prentice, sector lead, Huntswood Weathering the storm when winter strikes Extreme weather tests the mettle of water companies, but it also presents them with an opportunity to demonstrate their worth to customers, says Alex Prentice.

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