Utility Week

I N A S S O C I A T I O N W I T H UTILITY WEEK | 12TH - 18TH APRIL 2019 | 27 a customer-focused energy system in support of Shell's strategy to offer more and cleaner energy solu ons to customers." Consumer expecta ons The Sonnen acquisi on is a clear signal that the energy sector is transi oning, with companies eager to display their creden als as customer-focused, clean energy leaders. But is this enough to meet the o en diverse and challenging needs of customers across the UK? And is it possible for u li es to keep up with customer expecta ons while also maintaining profit margins? For Laura Sandys, chief execu ve of consultancy Challenging Ideas, the answer is a resounding yes. "U li es can most certainly [meet customer expecta ons and maintain profits] if they add value to their customers' lives and take away all the hassle," she insists. "Intermediaries and those who are building new value around energy will make great margins. Those that con nue to sell vanilla energy without any added value will become ghtly squeezed commodity companies." To break the shackles of "vanilla" services, u li es are turning to customers for insight. While there are a ra of new customer engagement panels and groups being established across the u li es sector, diversity and inclusion must be made a priority so that such panels are truly representa ve, says Ma hew Vickers, chief execu ve and chief ombudsman, Ombudsman Services. "For individual providers, it comes down to listening to your customers, understanding their ever-changing needs and demonstra ng that they have a voice that is valued and listened to. This isn't just the right thing to do, it makes good business sense as it will aid customer reten on," he says. "Consumers will shape the future of the industry, whether u li es like it or not." For u li es to innovate and transi on successfully, engaging consumers and winning their trust and confidence is crucial. The growing emphasis on customer centricity across u li es is hugely encouraging. This commitment to engaging and empowering customers as they embrace new technologies and seek more choice from u li es could well be the remedy to an unse ling period that has seen many firms ba ling market uncertainty and slipping profits. SMART OR DUMB METERS? U li es are o en cri cised for failing to engage with consumers and deal with complaints swi ly. Gillian Guy, chief execu ve of Ci zens Advice, is no stranger to the cri cisms o en levied at u li es, but she believes the sector is improving. "We've seen some posi ve steps, but there's definitely s ll room for improvement," she says. "A key challenge for suppliers will be mee ng a range of consumer needs and preferences, against a backdrop of technological change." Guy believes the promise of technological advancements, such as smart metering, will reduce the number of problems for customers and help resolve complaints more efficiently. Ideally, smart meters should help to transform the way consumers engage with u li es in their homes. Real- me informa on can put consumers in control – from ending the need for es mated bills to considering how to reduce energy or water usage. In theory, smart meters should reduce the number of billing complaints, but in prac ce the majority of issues received by Ci zens Advice concerning smart meters are about bills. For energy customers, there is hope that enrolment and adop on of exis ng SMETS1 meters into the Data Communica ons Company (DCC), and the rollout of SMETS2 meters will help improve the switching experience and ensure accurate billing for consumers. For water customers, the Consumer Council for Water (CCWater) is confident that switching to a water meter could help thousands of households reduce their bills. The water watchdog says switching to a meter could save bill payers more than £100 a year. "Switching to a meter won't suit everyone but in some cases households are delighted to discover they can make a considerable saving," says Andy White, senior policy manager at CCWater. "Water companies also offer a wide range of schemes designed to help ease the pressure on low-income customers." Nadine Buddoo is a freelance journalist For more details about U lity Live go to: h ps://www.u lityweeklive.co.uk/ CUSTOMER COMPLAINTS According to Ci zens Advice consumer trends data for England and Wales, the three most common types of energy issue between March 2018 and Feb 2019 were: • Billing errors (46 per cent). • Advice/informa on – this includes ques ons about how to switch supplier, pricing, and how to contact a par cular company (13 per cent). • Metering (11 per cent). The three most common detailed energy issues in the same period all fell under the broad billing error category: • Catch up bills (10 per cent). • Disputed bills (10 per cent). • Failure to credit/refund (8 per cent).

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