Utility Week

UTILITY WEEK | 30TH AUGUST - 5TH SEPTEMBER 2019 | 29 Customers sector – which speakers and delegates at our conference agreed is essential to the effective delivery of support and design of inclusive, empowering services. However, according to Katie Evans, head of policy and research at the Money and Mental Health Policy Institute, there is still a lot more to do in raising the quality of util- ity company partnerships with charities and the consistency of their outputs. This was an opinion echoed in recent recommendations from the Commission for Customers in Vul- nerable Circumstances. So it was worrying to hear Centrica's director of vulnerable consumers, Steve Crabb, suggest that some suppliers are pull- ing back from their charity partnerships in response to the squeeze the energy price cap is putting on retail margins (see box, le…, facing page). It wasn't the only worry about the poten- tial for market developments to negatively impact on the experience of consumers most in need. Ofgem's Meghna Tewari acknowl- edged a burgeoning debate in the energy market about the effects of system decentral- isation and decarbonisation on social equity and the scope for these transformation driv- ers to create new forms of vulnerability. Are social tariffs sustainable? Meanwhile, representatives from the water sector worried that current approaches to funding social tariffs have become unsus- tainable and are perpetuating perceptions of "postcode lottery" support for an increasing volume of financially vulnerable households. Overall, Utility Week's Consumer Vulner- ability Conference highlighted the deeply committed attitude of most utilities to sup- porting and empowering consumers in vul- nerable circumstances. But it also exposed a niggling concern that a changing market environment (including downward pressure on margins and returns as well as transform- ing systems and business models) could neg- atively impact the ability of utilities to accept the shi… of responsibility for social care on to their shoulders. In this climate, questions about the need for a new social contract to guide utility strategies and regulatory principles – iden- tified in Utility Week's New Deal for Utilities campaign earlier this year – need urgent consideration. V ulnerability can impact anyone. As we now know, one in four adults in the UK suffer from poor men- tal health. Every two minutes in the UK someone is diagnosed with cancer and almost half of adults don't have enough savings to cover an unexpected bill of £300. So how can the utilities sector help? Throughout Utility Week's Consumer Vulner- ability Conference, organisations shared initiatives and strategies on how they have helped to create an inclusive and easy-to- access service. Notably, United Utilities shared with us its safe entry doorbell, cre- ated to reduce the risk of intruders, while other organisations spoke about their data- sharing practices and the challenges they've faced in addressing vulnerability. It was evident that the need to work col- laboratively and consistently is vital to truly protect consumers, and the best route to benchmark these practices within industry is through standardisation. As Lord Whitty observed, there's currently no Kitemark for vulnerability. However there is the Inclusive Service Verification scheme, which I did a presentation on with Kerry Potter of UK Power Networks. This looks specifically at how to identify and respond to consumer vulnerability, as noted by several panellists throughout the day. A fundamental chal- lenge in this industry is that those who are the most vulnerable are o…en the hardest to engage. Surely using a common framework to determine who and how to help will inevi- tably increase efficiency? There's still a long way to go, but the passion and commitment from the organisa- tions attending the conference was clear, and the day itself was a true demonstration of collaboration across the industry – I look forward to next year's event. "We need a common framework across the utilities sector." Comment Heather Nowak Scheme manager, BSI Brought to you in association with Conference highlights: Ofgem update: The regulator's head of consumer policy, Meghna Tewari, pro- vided insight into Ofgem's updates to its vulnerable consumer strategy, including work on an analytical frame- work to consistently assess the impact of its policies on particular vulnerable groups. Lord Whitty: Explanation of recommendations made in the recent report from the Commission for Customers in Vulnerable Circumstances. This included a strong focus on achieving consistency in the quality of service vulner- able consumers get, via set- ting clearer expectations and enforceable standards, but also improving the approach utilities take to their work with the third sector. Affordability debate: An animated panel session posed some controversial suggestions for tackling affordability. The debate raised challenges to Ofgem on the unintended conse- quences of the energy price cap and to Ofwat on the vi- ability of using social tariffs. Technology and vulnerabil- ity – insights from Octopus: The highest rated session in delegate feedback, this presentation showed how a flat management structure combined with a nimble approach to technology is allowing Octopus to provide outstanding levels of inclu- siveness in its services to all customers – including those in vulnerable circumstances. Join us for the New Deal for Utilities Debate in Westmin- ster on 25 September to hear industry leaders tackle the big question: do utilities need to forge a new social contract with consumers? Panellists include: • Lord Deben, chairman, Com- mittee on Climate Change • Jonson Cox, chairman, Ofwat • Michael Lewis, CEO, Eon UK • Phil Jones, CEO, Northern Powergrid Visit: https://utilityweek.co.uk/ new-deal-utilities-debate

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