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Network September 2019

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CUSTOMERS NETWORK / 32 / SEPTEMBER 2019 something. We have also provided more formal feedback on their dra plan and if SGN do not take our views on board we will make that clear in our report to Ofgem at the end of the process. TM: The groups are meeting monthly, with many bilaterals in between where we give direct feedback and challenge to National Grid. We have an extensive challenge log which National Grid has responded to openly and enthusiastically throughout the process. If we do our job properly our questions and challenges will have led to improvements not only in the way the plan is presented and well-evidenced but also how it serves all customers and consumers better. MB: We will submit an independent report to Ofgem alongside Wales & West Utilities € nal business plan when it is submitted in December 2019. During the last 12 months, we've been examining Wales & West Utilities dra plans, providing independent scrutiny of a range of issues. Working closely with the company we have developed a work plan that has al- lowed us to dive deeply into speci€ c areas of the plan, asking detailed questions on both the content of the plan and how consumers and stakeholders views have been taken into account during its preparation. TB: The group will be oˆ ering feedback on speci€ c topics within the plan and on the level of performance ambition. We expect the business to take account of this feedback as they develop and € nalise the various elements of the plan. Our feedback will be recorded, as will the resulting ac- tions from the business. At the dra phase of the business plan I expect the group to provide a report of the group's views to Ofgem and the Challenge Group, and when the business submits its € nal business plan this will be accompanied by a full report from the group. Q How important is it for custom- ers' views to be represented? MB: This price control review comes at a pivotal time in the energy industry: with both gas and electricity networks having a key role to play as the UK decarbonises. In an era where trust in large institutions is at an unprecedented low, it has never been more important for businesses like energy networks to really listen and respond to the wants and needs of the consumers they serve and the communities they operate within. TB: Ofgem has very clearly stated that ED2 plans must take account of consumers views. The supply, use and cost of energy DEALING WITH VULNERABLE CUSTOMERS Alex Prentice, sector lead for utilities at Huntswood, examines how energy compa- nies can respond to Ofgem's expectations to care for vulnerable customers. Continuing to improve understanding of vulnerability across the UK energy sector, Of- gem recently announced its draft Consumer Vulnerability Strategy 2025 – which identifi es fi ve core areas in which it wants to drive improvements for consumers in vulnerable circumstances. This includes: 1. Improving identifi cation of vulnerability and smart use of data 2. Supporting those struggling with their bills 3. Driving signifi cant improvements in cus- tomer service for vulnerable groups 4. Encouraging positive and inclusive innova- tion 5. Working with partners to tackle issues that cut across multiple sectors. Each of the fi ve themes are underpinned by the regulator's desired outcomes, which includes, under the 'Supporting those strug- gling with their bills' theme for example, wanting to see better support for consumers who are at risk of self-disconnecting, as well as a decrease in self-disconnections. Defi ning vulnerability For fi rms looking to achieve best practice in these areas, identifying which of their customers actually classify as vulnerable can be a challenge. This is because vulnerability can take many forms – for example, it could be to do with a person's age, physical or mental health, fi nancial standing (i.e. unemployment) or a life event (i.e. the period following a bereave- ment or divorce). Because so many factors are at play, it's important that energy companies remember that customers may move in and out of vulnerability at various points throughout their life, requiring different forms of support at different times. Consumers in a vulnerable situa- tion are also more likely to face bar- riers when trying to access the best market rates – some may not have a bank account or access to the internet, for example. Identifying customers at risk Early and effective identi- fi cation of vulnerability is a constant challenge for companies as customers will not always self-identify in this way. Some fi rms have developed effective partnerships and sys- tems to help identify customers at risk whereas others, particularly smaller suppliers and new entrants, have struggled. For consumers to be supported appropriately, energy compa- nies need to have the appropriate policies and procedures in place for identifying them, as well as responding to them. Some suppliers have specially trained, extra care teams to provide additional sup- port to consumers in vulnerable situations. For example, Western Power Distribution engaged with Dementia UK and MIND to provide its staff with empathy training. Vulnerability matters How organisations treat vulnerable people is viewed as a key yardstick of an organisa- tion's culture and values. It's essential that fi rms ensure their dealings with people in challenging circumstances are aligned with their own ethos. As well as meeting increas- ing regulatory expectations, having robust policies in place means that customers feel more valued and are therefore more likely to stay loyal. Culture change In order to bring about a corporate culture change, training is critical. Energy companies will need to consider how they can support their frontline staff and develop training that helps employees understand and identify vulnerability; know when and how to escalate vulnerability issues; deal with diffi cult cus- tomer emotions; deliver diffi cult decisions and outcomes to customers in vulnerable circumstances; manage their own emotions after a diffi cult call; and ensure customers are treated fairly and know what to record from interactions. In short, well-trained, knowledgeable and empathetic staff are the difference between poor and excellent outcomes for vulnerable customers. Dealing with vulnerability goes far beyond compliance and processes. In its consulta- tion paper, Ofgem specifi cally states that it wants "energy companies to have a corporate culture that focuses their efforts to identify and support con- sumers in vulnerable situations." This shows how important it is for fi rms to act now and ensure their approach to vulner- ability is thought-through and established at every level of the business. their life, requiring different forms of support at different times. Consumers in a vulnerable situa- tion are also more likely to face bar- riers when trying to access the best market rates – some may not have a bank account or access to the internet, for example. Identifying customers at risk Early and effective identi- fi cation of vulnerability is a constant challenge for companies as customers will the difference between poor and excellent outcomes for vulnerable customers. Dealing with vulnerability goes far beyond compliance and processes. In its consulta- tion paper, Ofgem specifi cally states that it wants "energy companies to have a corporate culture that focuses their efforts to identify and support con- sumers in vulnerable situations." This shows how important it is for fi rms to act now and ensure their approach to vulner- ability is thought-through and established at every level of the business.

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