Utility Week

6 | 8TH - 14TH FEBRUARY 2019 | UTILITY WEEK A UtilityWeek c ampaign Analysis N ine water firms splash out £58 mil- lion on fat cat bosses"; "big six energy companies routinely over- charging customers"; "move to cap 'rip-off ' energy bills"; "energy networks' £7.5 billion windfall 'should be returned to consumers'" – these are just some of the national head- lines fuelling the fire of anti-utility hysteria. Energy retail companies have long been slated and vilified by politicians and the public for keeping disengaged "sticky" customers on high tariffs. And a total of 12 smaller suppliers going out of business in as many months has not only served to further damage public opinion of the energy sector, but has caused them to question the regula- tor's ability to keep the industry in check. The energy networks – traditionally the "silent" energy providers – have also found themselves in the spotlight recently, facing questions over their profits. There is now even talk of renationalisation of the sector (see Utility Week, 1 February). Water companies, too, have found them- selves in the unfamiliar territory of public scrutiny, driven largely by a dire warning from environment secretary Michael Gove early last year that "public concern about the way the water industry operates is grow- ing." His onslaught resulted in several water companies – including Anglian, Yorkshire, Southern, Thames and Affinity – closing down their Cayman Island subsidiaries in an effort to improve transparency and rebuild trust with their customers. Not because the subsidiaries were doing anything wrong, but simply because they looked bad to the public. Meanwhile, companies in sectors such as telecoms seem to be able to get away with charging much higher prices without receiv- ing the same level of PR flak. Despite the negative public perception, utility compa- nies are also doing a great deal of good, so What can utilities do to change their public image? Often painted as villains by the public, utilities get a bad press. As part of our New Deal for Utilities campaign, Lois Vallely asks what they can do. JOIN THE DEBATE Follow our campaign online at: www. utilityweek.co.uk on our Twitter @Utility Week and on LinkedIn, #NewDealForUtilities. To share your thoughts or for more details, contact our acting editor: suzanneheneghan@fav-house.com P ublic image sounds, to most people, like something superficial that can be corrected with a good campaign or by supporting a good cause. But public image is, in fact, a complex construct. It is not a painting that can be commis- sioned from a skilled painter; it is not enough to paint the image – the image must be earned. Public image is sketched in the minds of the public in seconds, with the sketch affected by everything people know of the brand. In a split second, people judge a brand by everything they know about it – from their own personal experience, from what other people have to say about the brand, and from coverage of the brand. The best way of creating a positive public image is through a brand that communicates effectively and builds last- ing relationships with the public. The challenge of building a positive public image is twofold. One is finding the essence of the brand you are or want to be. The other is to get everyone inside the organisation in line with what the brand is and how it behaves. If outsid- ers don't have the same experience with the brand at all touchpoints, then the quick sketch that forms the public image becomes confusing and negative. A posi- tive image that is reflected to the outside must be built brick by brick from the inside of the utility, and the cornerstone is put in place by top management who need to lead by example. In the long run there aren't any quick wins: it takes time to shape a brand and then to implement it. But once a positive public image has been set, retaining it is a task that lasts as long as the brand lives. Brands need to stay relevant in peo- ple's minds. They need to be monitored, fed and nurtured to be able to adapt to changing expectations and trends. Image must be earned Brand Fridrik Larsen Chief executive, Larsen Energy Branding "

• Cover