Utility Week

24 | JULY 2022 | UTILITY WEEK Customers Download report Unlocking proactive customer service A new Utility Week report, produced in association with Ordnance Survey, examines how data on households is being used to anticipate and meet customer expectations first time. T he shi towards greater customer- centricity within the utilities industry is primarily being driven by three things: the move towards net zero; a push from regu- lators; and the customer-first approach of other industries. For each of the various sectors these driv- ers are pushing customer service in different directions, but all approaches will be heavily reliant on data about households in order to anticipate and meet customer expectations first time. That was the headline conclusion of research conducted for a new report by Util- ity Week and Ordnance Survey, Demand Today – Create Better Experiences Tomorrow. Energy suppliers have still to finish the smart meter rollout and must then prepare themselves to provide advice and also install low-carbon technologies such as heat pumps and electric vehicles (EVs). Meanwhile, distribution network opera- tors (DNOs) will be pushed into the limelight by the transition to net zero as they attempt to ensure they are not the barrier to the adoption of EVs and heat pumps. Doing so will require more information about homes and buildings, as well as many more in-person visits to local areas to com- plete upgrading work. In the water industry, there is a clear push from regulator Ofwat towards companies adopting a more cus- tomer-centric approach. This approach is manifesting itself in more information to customers through digi- tal channels such as mapping tools on their websites to highlight issues on the network and service updates. Equally, the sector is increasingly reli- ant on customers informing suppliers about issues on the network as fewer home visits are made, leading companies to focus on improving digital communication channels. Why utility companies are becoming more customer centric The move towards greater customer- centricity in the utilities sector is due to a variety of factors, but one of the main drivers is the shi towards net zero. Energy suppliers are rapidly looking to reposition themselves as companies that sell energy as a service in a market where customers look to adopt new low-carbon technologies such as EVs, heat pumps and in-home batteries. "We have the relationship with the cus- tomer and we need to help them move to net zero," says Eon UK chief executive Michael Lewis. Suppliers are expecting a sharp rise in the number of customer interactions they have to make in the future. Most interactions will be giving tailored advice to individual customers based on both personalised con- sumption data from smart meters and gen- eral consumption data trends. The transition to net zero will see up to one-in-three households in the UK needing the power supply to their homes upgraded to allow the connection of EVs or heat pumps within the home. DNOs must process a huge number of connection requests and make far more vis- its to customer properties than they have made traditionally to upgrade supplies. Pressure from consumers over what they expect from customer service is also being felt right across the industry as a result of leading performances in other industries. It is now possible to order everything to the door, track that service and talk directly to the delivery driver, so inevitably custom- ers will expect the same from the utilities industry. Andrew McMillan, former head of cus- tomer service at retailer John Lewis, says the customer experience for both energy and water customers is not meeting up to expectations.

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