Utility Week

28 | 6TH - 12TH SEPTEMBER 2019 | UTILITY WEEK Customers A high number of UK customers feel they lack a personal relationship with their water company, according to a recent survey into billing and satisfac- tion by Echo Managed Services, which asked 1,000 water custom- ers about their relationship and satisfaction with their supplier. The report, The Secrets of Better Billing, found only 12 per cent of customers felt "actively WATER Survey finds high customer apathy in relationships with suppliers engaged" with their supplier, while 51 per cent of customers said they felt like suppliers treated them as "just another number". A further 20 per cent of respondents said their supplier understands their needs, while 18 per cent said they do not care what the supplier does. Despite the proportion expressing apathy, the research highlights customer interest in greater transparency from water suppliers to show where and how money is spent. This was especially true of younger customers, with 75 per cent of 25- to 34-year-olds inter- ested in where customer money goes, compared with 60 per cent of over-55s. Individual customer responses included interest in This week Octopus to acquire the 300,000 customers of Co-op Energy Deal between the challenger brands could be worth as much as £60m Octopus Energy has struck a deal to manage and supply power to the more than 300,000 customers of Co-op Energy, Flow and GB Energy. The deal between the challenger brands Octopus and Co-op Energy, com- pleted for an undisclosed sum, could be worth as much as £60 million, Utility Week understands. Early reports have valued the deal at around £30 mil- lion, but industry sources suggested it could be between that and £60 mil- lion. Some of this is likely to take into account factors such as existing credit bal- ances or Renewables Obliga- tion payments. The partnership between the firms takes Octopus's customer numbers to 1.2 mil- lion, with it now in charge of about 2.1 million accounts. Under the agreement, the Co-op brand will be retained and the Midcoun- ties Co-operative will keep responsibility for customer acquisition as part of its wider utilities strategy, which now includes telecoms in addition to electricity and gas supply. Customers of GB and Flow will now become Octopus Energy customers, while all existing and new customers will be managed under Octopus's proprietary tech platform, Kraken. The strategic partnership will also see the creation of a joint venture between Octo- pus and Co-op to develop the UK's community- generated energy market. At the announcement on 29 August, Octopus Energy chief executive Greg Jackson said: "This acquisition and our ongoing partnership with Midcounties is another step on the road to improv- ing the domestic energy market for good. "Co-op is one of the most well-respected British brands and we're delighted to be working with them." Midcounties Co-operative chief executive Phil Pon- sonby said: "It is clear to us that having the best technol- ogy is absolutely critical to delivering the best service to customers while maintain- ing a sustainable business for the longer term. "Octopus have developed what we consider to be the most innovative and customer-focused tech- nology anywhere in the industry today." Ian Barker, managing partner at Bfy Consulting, told Utility Week that this is "unlikely to be the last consolidation this year". He added: "The deal looks very similar to the Marks and Spencer white label Octopus took over mid last year from SSE, with Co-op as the 'database owner' for their branded customers – who are all likely Co-op 'members' and users of wider group products and services. "Migrating away from three billing systems into the Kraken will support cost- to-serve improvements." AJ Greg Jackson will be speak- ing at this year's Utility Week Congress in Birmingham WATER John Lewis is first retailer to apply for self-supply licence John Lewis is the first retailer to apply to regulator Ofwat for a water and sewerage self-supply licence. The company is working with Waterscan to obtain the licence for its John Lewis sites as well as its Waitrose & Partners shops. Ofwat granted five new self- supply licences in the second year of the open water market. Operators in sectors such as brewing have previously obtained licences to deliver their own water and wastewater services. Neil Pendle, managing director of Waterscan, said: "We applaud John Lewis plc for tak- ing this leadership position to drive sustainable water procure- ment to the next level. "Having analysed the options for John Lewis, we are extremely confident that self-supply will influence its ability to meet its targets and give it an all- important customer voice in the water marketplace – a first for the retail sector. "We look forward to helping John Lewis set a new bench- mark when it comes to water efficiency in retailing." As a company, John Lewis has made water efficiency a major focus in its strategy to 2028, with targets aligned to the UN's Sustainable Develop- ment Goals and the UK's 2050 emissions targets. Jackson: delighted to work with a 'well-respected' brand how much money is spent on staff wages and bonuses com- pared with the amount spent on the environment; in how much is spent on leakage and water conservation; and spend on ser- vice and supply improvements. The water sector was shown to be behind other utilities in the use of digitalised billing, with 55 per cent of customers receiving paper bills.

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