Utility Week

UTILITY WEEK | 8TH - 14TH FEBRUARY 2019 | 9 Next week: Our New Deal for Utilities campaign looks at how utilities an share rewards with the public. "One of the strengths of the price control system is its ability to ensure the public have access to information on how network com- panies are performing on their behalf. It's a level of transparency you simply don't see in other areas of cor- porate reporting. Our members are wholly committed to improv- ing that transparency and have been working closely with Ofgem to find new ways to do so. They're hoping to see the outcomes of that work in the forth- coming RIIO annual reports. They have also called for a review of reporting requirements as part of the RIIO-2 price control process." Pete Kocen, senior press and public affairs manager, Energy Networks Association on explaining what they are doing and how much societal value they add if they are to improve their public image. "Communica- tion should come in the form of firm com- mitment at strategic level, and be practised through the organisation," he says. "Lack of meeting such commitments damages reputa- tion and trust in utilities." Sell your successes Water companies are doing a great deal to tackle environmental issues, but they are, in many cases, failing to fully sell their suc- cesses. It will take more than just doing good things to improve public perception. Historically, the water industry has placed a huge focus on "big numbers and big, grand ideas", says Bristol Water's chief executive Mel Karam. He believes, though, that big numbers don't always mean that much to ordinary people and local communities. "We believe that it is the little but personal things that matter to people, and we need to look at a local approach to water to capture public imagination," he says. Bristol Water recently launched an "industry-first" social contract, which puts local communities "at the heart of board decisions", and "brings the local communi- ties voice into our decision-making", says Karam. "It is unique because it has conse- quences where we need to change as society does; if we fail to deliver on our social prom- ises, then we agree with our communities the actions we will take, as well as compensat- ing customers for our failings." The energy industry, too, needs to shout more about its achievements. Paul Massara, chief executive of energy blockchain busi- ness Electron and former head of Npower, argues that the sector must talk more about what it provides for the economy, jobs and how it is playing a "crucial role" in decar- bonisation – first in generation and now in transportation. "We also can take for granted all the engineers and technicians who keep the lights on, the power stations working and the grids functioning," he says. SSEN's managing director Colin Nicol agrees. He tells Utility Week that the industry, particularly energy networks, don't commu- nicate the good things they're doing enough. "This is a high-performing industry and we need to do more to engage and inform the public about it," he says. "Network reliabil- ity is higher than ever before, costs on bills are lower and customer service is greatly improved. Importantly, we've achieved all this while progressing key innovations and investing billions in new infrastructure, ena- bling gigawatts of clean generation to sup- port decarbonisation targets." But networks must do more, he believes. "As impressive as this track record is, we must look beyond delivery and recognise that, as providers of an essential service, society expects even more from us. The pub- lic want to know that big business is playing by the same rules as everyone else: paying the taxes due, at the right time and in the right way; providing a decent living wage and investing in a skilled workforce; and using fair returns to invest responsibly in the networks of tomorrow. Demonstrating deliv- ery in the public interest has to be at the crux of what we do." Harness new technology Energy companies are evolving into some- thing more than just the providers of elec- tricity or gas. An abundance of technological advances in recent years is driving change in the way energy companies in particular interact with their customers. Speaking to Utility Week's sister title Flex recently, energy and utilities expert at PA Consulting Ted HopcroŽ said companies will need to increase their use of technology to empower customers. Electron's Massara says that although consumers and the public have recently lost faith in the retail side of the market, new technology offers a chance for compa- nies to rectify the situation. "The transition from selling kilowatts and therms to selling energy as a service and using greater data to delivery insights and tailored products is under way, with new entrants creating new offerings," he says. "With greater engage- ment from smart data, electric vehicles and new technology such as batteries, then hope- fully a new, deeper relationship with con- sumers will develop and the industry can once again be fully respected and valued for what it does behind the scenes every day." EY's Doepel agrees. He thinks energy retailers are "turning into something new", as smart meters are rolled out and the num- ber of electric vehicles grows. He suggests that the monumental change the sector is about to undergo gives energy companies an opportunity to get on the front foot. "There are some things they could be doing more of," he says. "They've got more products and services they're going to be able to deploy into the market, such as homecare, family care and elderly care products – things that offer security and peace of mind." Doepel believes this will change an energy company's role in the lives of its cus- tomers from just money collection and home management. "Broadening the conversation away from direct energy will be key for com- panies," he says.

• Cover