Utility Week

UTILITY WEEK | AUGUST 2022 | 27 Water customers are looking to their water com- pany to focus on the issue. Customer engagement Although smart metering is being heavily advocated by Waterwise and others, Andrew Schein, senior adviser at the Behavioural Insights Team (BIT) believes that while the bene• ts of metering generally are clear, the bene• ts of smart metering may not be worth the additional cost. He points to the clear evidence of between a 10-20% reduction in water use that is achieved through the installation of a water meter but says water companies that expect to see a similar reduction by upgrad- ing those meters to smart meters are likely to be disappointed. Schein says that Automatic Meter Read- ings (AMR) have a lot of functionality which is still untapped by water companies. Added to this, experience from smart metering in the energy sector shows that customers can- not be expected to act on the data and make the savings themselves, they need to be engaged on the topic by their supplier. While it can be di… cult to break through to customers, water companies will need to • nd a way and quickly as in its forward pro- gramme for 2022-23 Ofwat called on the sec- tor to do more on water e… ciency. It said companies must show they are making "material progress" on how consum- ers are being encouraged to use less water and that it wants to see "a sharp focus on demand-side solutions" this year. Making changes to customers' homes by supplying water-saving devices either free or subsidised is likely to result in more per- manent changes. Severn Trent has embraced this method of encouraging e… ciencies. It directs customers towards the GetWaterFit platform and then signposts them towards free water saving devices. Similarly, the £3.8 million Ofwat Innova- tion Fund project Fair Water, led by North- umbrian Water, is looking to design products that enable behaviour change while o• ering the same level of quality to consumers. "If you just tell somebody to behave dif- ferently they probably won't, but at the same time if you give someone a new prod- uct they'll probably use it in the same way that they use the old product – so the two have got to go together," says Northum- brian's research and development manager, Chris˜Jones. "The products will enable behavioural change and behavioural change will enable people to get the best out of those products." Lucinda Dann, features editor in association with Opinion Jason McKinley Client partner – multi-industry, Capita W ater companies have had a statutory duty to promote water e… ciency among their cus- tomers since the 1990s. The degree to which this has been successful seems to vary greatly across companies, so it's quite possible campaigns would be more e• ective if there was cross-sector collaboration and publicity, actively supported by regulators and govern- ment. Some water companies are still conducting tests and pilots on how to engage consumers, and seem to have been doing so for the past 10 to 15 years, but now is the time to get on and solve the problem. Currently, their interactions with consumers are largely transactional in nature as they try and encourage behavioural change. However, if they focused on helping the public have a better understanding of the value of water, through a cross-industry campaign • rst, then these transactional conversations are likely to prove more e• ective. The need for such a campaign could be addressed in the next price control. There are also many examples from other sectors such as • nancial services, telecommunications and retail where customers are being engaged digitally with help and advice that the water sector can learn from, to further help improve its conversations. Another area where water companies could do more is engaging the younger generation – a key audience in the move towards net zero and tackling climate change. Once informed, the industry could use this force of good to help push forward the e… ciency agenda, challenging how water is used in the home and how the industry is dealing with wastage. Water companies could also be taking advantage of the cost-of-living crisis to deliver water-saving guidance through bodies such as Citizens Advice to an audience that will only be too keen to learn more about how to save money on their bills by • xing leaky loos and using water saving devices such as shower timers. There is far more that could be done through social media, but for messaging to land, water companies need to be open and honest that they are not yet doing enough to tackle leakage – something the industry has admitted. Only once they can demonstrate their own actions can water companies look to community-based organisations and customers for genuine commitment and actions to also save water. Such a commitment from all parties is essential if we are to have enough water in the future in a way that is more sustainable to the environment and results in more a• ordable bills for consumers. "Water fi rms need to engage better with customers" In association with I N S I G H T R E P O R T Water efficiency: Saving water, money and the environment In this report What is the current state of play and goals for water efficiency? Are water companies doing enough to encourage water efficiency? How are water companies engaging with customers? C O M M E N T Jason McKinley, client partner - multi-industry, Capita Download the report Download the report Water E ciency: Saving Water, Money and the Environment free at: https://utilityweek.co.uk/water- e ciency-saving-water-money- and-the-environment/ "One of the consultations is on water demand reduction, so that's a brilliant signal that government is taking it seriously." NATHAN RICHARDSON, HEAD OF POLICY AND STRATEGY, WATERWISE

• Cover