Utility Week

UTILITY WEEK | 12TH - 18TH JULY 2019 | 21 Operations & Assets Operations & Assets reduced its carbon footprint by 80 per cent over the past 10 years. The site will recycle almost all of the sewage sludge in Leeds and also supports Leeds Council's plan for the Lower Aire Valley to become a hub for green energy and industry. Leeds Central MP Hilary Benn and Leeds North MP Alex Sobel were at the opening.Benn said: "By recycling 94 per cent of the sewage sludge in Leeds to create enough electricity to power over half of the treatment works' energy needs, this scheme is helping to create a lower-carbon future in the Lower Aire Valley." If you have an asset or project you would like to see featured in this slot, please send pictures and details to: paulnewton@fav-house.com Market view Utilities make the invisible visible Jonathan Westley says utilites have the power to help reduce the number of people excluded from the financial system. I n the UK, 5.8 million people are invisible to the main- stream financial system because there is little or no information available on their financial track record. As a result, this group can find themselves excluded from mainstream finance. This group, known as "the invisibles", pays a "poverty premium". Lenders find it difficult to calculate the risk in lending to these people so decline them, or only ofer more expensive rates. The group includes young people who have not accessed credit before, older people who haven't needed credit for a long time and people who have recently moved to the UK. New and appropriate data sources are the key to broadening access to financial services for this group. Experian has made some progress in recent years. Gas, water, electricity and telecom providers have joined the community of organisations that share customer account information with one or more of the credit refer- ence agencies (CRAs), adding depth to many people's credit reports. From one in eight records five years ago, they now account for one in four records. Fourteen million consumers have at least one active account on Experian credit reports, and utilities data has been shown to reduce the "thin file" population by about 4 per cent. This is about 1 in 2 UK households, and full coverage would give us a further 4 per cent reduction. But more can be done. For example, larger energy providers share their data, but many new challenger providers do not. Their integration would make a signifi- cant dent in the invisible population. Water companies tend to only share with one CRA. By working with one more CRA, or all three, they could help ensure their cus- tomers are recognised for making payments on time. All organisations in the utilities sector can share customer data with CRAs. Doing so can help businesses to reach more of the market and minimise the risk of potential frustration for people who are turned down for credit because their file is thin. It can also help you retain customers who are aware they are strengthening their credit histories and set you apart from competitors. New data sources can help businesses make more appropriate decisions about affordability to lend respon- sibly and keep up with changes in our society. The sector has the potential to significantly reduce the invisible population, ensuring a fairer consumer experience and showing a more complete picture of their financial position. By doing this, we can help cre- ate better outcomes for millions more people. Jonathan Westley, UK&I and EMEA chief data officer, Experian

• Cover