Utility Week

Customers UTILITY WEEK | 29TH NOVEMBER - 5TH DECEMBER 2019 | 25 A record number of switches between small and mid-tier electricity suppliers took place in October, figures from Energy UK show. In total, 181,949 switches took place between these suppliers, representing 29 per cent of all switches last month. Meanwhile, another record number of switches took place in the same month between small ENERGY Switching figures on track to hit six million in 2019 and mid-tier to larger suppliers, with 102,138 (16 per cent) mak- ing the move. A total of 626,284 customers moved supplier, down 1.1 per cent compared to the previous October. Of these, 32 per cent were from larger to small and mid- tier suppliers, and 23 per cent between larger suppliers. So far this year more than five million customers have switched supplier, representing a 9.2 per cent increase on the same period in 2018, meaning the figures are on track to hit the six million mark in 2019. Audrey Gallacher, Energy UK's director of policy, said: "This month's figures show that consumers continue to take advantage of the increased competition. This week Severn Trent makes social purpose core Modifying company constitution reflect com mitment to the community, says chief executive. Severn Trent is to become the next water company to embed social purpose into its constitution. Chief executive Liv Garfield told Utility Week that the company's com- mitment to the community and willingness to invest in the future were a strong argument in defence of privatisation. The company recently applied to Ofwat to add a condition that embeds social purpose in its constitution. Last week (21 November), alongside its interim results, it launched its Sustainable Finance Framework, which aims to strengthen the ties between the way the business is funded and its environmental and social programmes. Garfield said the group had also been reinvesting its totex outperformance fund of £100 million in projects to strengthen services. This has included the introduction of a new network response team. The unit is set up as a quick reaction unit, with the dedicated trunk mains repair team focusing on longer-term projects. She insisted that this sort of targeted investment would be difficult to replicate if the industry was rena- tionalised. Severn Trent's results for the six months to 30 Sep- tember show underlying profit before tax and interest (PBIT) falling 4.3 per cent to £286.3 million on a turnover of £910 million (up 3.2 per cent). The fall in PBIT was largely due to property sales in the previous year. The group reported that it had hit its leakage target for the eighth time in nine years. Garfield said that over the AMP, leakage had fallen 6 per cent – supported by the introduction of 30,000 monitors across the network and the use of satellites. JW ENERGY Centrica customer losses slowing Centrica has reported a "solid" financial performance for the four months to October, with energy supply customers switch- ing away at a slower rate. In an update last week the company said British Gas had lost 107,000 customers since July, compared with 178,000 in the first half of the year. Over the course of 2018 the company lost 742,000 UK energy supply accounts. In the UK, total Centrica consumer accounts increased by 136,000, with growth in services and home solutions. Centrica said it continues to expect adjusted earnings to be weighted towards the second half of the year, adjusted operat- ing cash flow to be in the lower half of the targeted £1.8-£2 bil- lion range and year-end net debt to be within the targeted £3-£3.5 billion range. The company now expects capital investment of around £800 million, a reduction of £100 million compared with indications in the interim results, and in-year efficiency savings of around £300 million, an increase of £50 million com- pared with the target. In July, chief executive Iain Conn announced he was step- ping down from his role a¢er an "exceptionally challenging" first half of 2019. Centrica saw a statutory operating loss for the six months to 30 June of £446 million, com- pared with a £704 million profit last year. Speaking about the results, he said: "Our performance has been solid so far in the second half of the year and we remain on track to achieve our full year targets for both adjusted operat- ing cash flow and net debt." WATER People 'alienated' by bill jargon Half of UK customers (49 per cent) struggle to understand their water bill because of the jargon used, according to a survey by Aptumo. The study, called The Secrets of Better Billing, showed that 14 per cent of bill- payers thought water suppliers used confusing language and jargon and only 39 per cent thought their supplier tried to communicate in a clear, simple way. Aptumo said brand percep- tion could be damaged by this view because it leaves some customers "potentially feeling alienated" by their supplier. The survey suggested that as many as 13.5 million households strug- gle to understand bills. Elsewhere, the report showed customers were keen to see how their money was spent, with 65 per cent of bill-payers want- ing to know what the company invested in. Many said they would prefer their supplier to contact them more frequently, with a quarterly statement the popular option. Garfield: Sustainable Finance Framework launched "Over 5.3 million customers have already moved to a new supplier and switching is on track to hit the six million mark this year. "With the temperatures dropping across the country, I'd encourage consumers to get in touch with their supplier or have a look online to make sure they're on the best deal ahead of winter and the cold weather."

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