Utility Week

16 | 24TH - 30TH JANUARY 2020 | UTILITY WEEK Policy & Regulation Market view A nticipating signi cant market changes – likely to be brought about by the impact of climate change and increas- ing customer expectations – Ofwat's PR19 price determinations have been devised to support water companies across the UK as they build up operational resilience for the decade ahead. Through PR19, Ofwat is seeking to guide providers in putting in place poli- cies, processes, people, and infrastructure that will ensure better service for customers. These ambitious proposals clearly indicate to providers that the regula- tor expects improvements to be made, and that it will take customer satisfaction as a crucial gauge of success. Customer service and complaint handling Since December last year, Ofwat has been monitoring customers' satisfaction with their water companies through the C-MeX score, and has said companies that "go above and beyond" will bene t from further nancial support, while those that don't will be penal- ised and asked to return value to customers through lower prices. Of course, this puts a strong nancial incentive on investing in excellent customer service and delivering the best possible outcomes for customers. Achieving this means putting customers at the heart of operations, ensuring that they feel valued and looked aˆ er at all times. Businesses can demonstrate this customer-centric behaviour especially well in the process of handling complaints. Natu- rally, mistakes in billing, burst pipes and other day-to-day woes of water companies will never be completely eradicated, but it is in how businesses respond to these events that they will display their dedication to customer outcomes and satisfaction. As such, getting complaint handling right should be a key priority for water companies preparing for their rst C-MeX surveys in 2020. Following the release of the PR19 nal determinations, water rms need to under- take audits of their current practices, proce- dures and infra- structure to make sure they align with the regulator's expectations. They need to be asking themselves: • How long does it take customers to get a response to their query? • Can customers contact us through a variety of channels according to their preference? • Do customer service sta– have the knowl- edge and expertise to answer questions from customers? • Are they going the extra mile and o– ering proactive advice and support in the light of an issue? If, during your audit, you nd that your customer service could do with more atten- tion, investment or change, this should be made quickly and with appropriate guid- ance. Aˆ er all, all of the above factors will have a great impact on overall customer satisfaction, advocacy and retention. Huntswood's 2019 Complaints Outlook, for example, revealed that while 88 per cent of utility providers believe their customers are satis ed with their complaints handling, only 12 per cent of customers report that they are satis ed. This is a signi cant perception gap, which water companies must now seek to bridge, with advance planning for disrup- tion and surges a key consideration. At times of extraordinary disruption, customer service teams are put under the most pressure. However, Ofwat will be look- ing for businesses to evidence clear and e– ective communication skills regardless of this. As such, having contingency plans in place will be critical going forward. Busi- nesses should now explore the processes and policies that impact service continuity in the event of a problem and update them appropriately. Helping vulnerable customers Vulnerable customer regulation is an area of increasing focus for Ofwat. According to the determinations, at least 7 per cent of each water company's custom- ers will be registered for priority services by 2025, two million more than the current gure. While this is a good step towards helping those in the most challenging circumstances, it is important to note that this isn't the beginning and end of de ning and recording which customers are vulner- able. To get ahead of the issue, rms should now be looking at where any signi cant change is required. Following this, they should be able to better understand whether additional sta– or training are required, both of which would allow rms to better identify and support vulnerable customers. It's hugely important sta– feel empow- ered to have what may be diž cult conver- sations with customers. Specialist training should help to ensure all communications are approached with the right level of care and sensitivity. Providing clear advice and support rst time round will also help reduce the likeli- hood for complaints in future, while having extra day-to-day support will allow special- ist teams to focus on delivering enhanced services to vulnerable customers. The opportunity Ofwat has sent a clear message to water companies in PR19: there will be a shiˆ away from the status quo. Though change is always trying, this is an unprecedented opportunity to unlock invest- ment in the sector and become truly resilient for the decade ahead. Ensuring the highest standard of customer service and complaint handling will be an essential part of this. Providing clear and proactive customer communication should be a key priority for rms moving into 2020, helping to not only reduce overall complaint volumes, but also increasing customer satisfaction with the water sector in the long run. Alex Prentice, sector lead for utilities, Huntswood Complaints handling under the spotlight Ofwat's PR19 determinations make customer service essential to operational resilience, says Alex Prentice. "It's important staff feel empowered to have what may be diffi cult conversations with customers."

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