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UTILITY WEEK | 4Th - 10Th JULY 2014 | 27 Customers This week Government ducking liability for bill rises Committee says customers will end up paying for two-thirds of cost of replacing infrastructure No-one in government is taking responsibility for the impact that investment in vital infra- structure is having on consumer bills, according to a report from the Public Accounts Committee (PAC). The PAC said two-thirds of the £375 billion of investment needed to replace the country's ageing infrastructure, including in the energy and water sectors, will end up on consumer bills. The committee added that the complexity and the "changing nature" of government policy was slowing down investment, "particularly in the energy sector", and needed to be acted upon to create certainty "or the consequences for consumer bills will be worsened". Margaret Hodge, chair of the PAC, said the increase in bills to fund infrastructure is going to have a "tough impact on the consumer". She added: "No-one in government is taking respon- sibility for assessing the overall impact of this invest- ment on consumer bills and whether consumers will be able to afford to pay." The PAC's report called on HM Treasury to publish an assessment of the long-term affordability of bills, and for regulators to improve their protection of consumers' interests "by paying closer attention to the financial structures of regulated companies". Angela Knight, chief executive of trade associa- tion Energy UK, said: "We believe that an independent assessment of the costs needs to be properly under- taken… so the consumer is properly informed." MB EnErgY Good Energy to offer tariff for Cornwall Good Energy is planning to intro- duce a Cornwall-wide energy tariff, offering customers in the county discounted energy bills. The renewable energy company is hoping to introduce the county-wide local tariff as recognition of Cornwall currently hosting one renewable gen- eration asset, with three more under construction. Good Energy founder and chief executive Juliet Davenport said: "We think Cornish renew- able energy generation should directly benefit Cornish people." The supplier added that it was also set to introduce a local tariff for customers living within 5km of the proposed Big Field windfarm in north Cornwall. The special tariff will offer customers living close to the 11-turbine, 25MW development at least a 20 per cent discount on Good Energy's standard prices. EnErgY Rise in complaints to the ombudsman Ombudsman Services, the alternative dispute resolution provider for the energy sector, saw a 132 per cent increase in complaints to 26,760 in 2013/14, it said in its annual report. Only 5 per cent of customers who have the option to take a complaint to the ombudsman do so, it said. This is largely because of a lack of awareness and under- standing of the service, which the ombudsman is tackling through a public relations programme. It predicts a significant rise in complaints in the year ahead. In 2013/14, 76 per cent of complaints investigated resulted in the energy company in ques- tion having to make a financial award. The most common award for energy supply and network complaints was £100. In some circumstances the ombudsman can award up to £10,000. EnvIronmEnT Ofgem to get tough on 'green' tariffs Ofgem is planning to introduce tough guidelines for so-called green tariffs to ensure customers are informed of their benefits. The regulator has proposed three key principles that green tariffs should follow aer it found "an increasing number of tariffs that make environmental claims are uncertified". Under the proposals, suppli- ers must clearly state if a green tariff does not offer any environ- mental benefit other than those already paid for via levies or taxa- tion, and must publish an annual report on how the tariff is provid- ing environmental benefits. The third principle will be for the suppliers to verify where the electricity comes from. Increase in bills will be 'tough on the consumer' I am the customer Steven Thurlow "The contact centre can be an invaluable tool" Our research among members of the UK Contact Centre Associa- tion suggests many UK compa- nies are overlooking the potential for customer service improve- ments that could drive revenue. The survey reveals that well below half (41.5 per cent) take a keen interest in revenue loss resulting from poor customer service. According to the data, one in ten management teams pays no attention to the financial implications of a poor customer service experience. the same thing and investments in people, processes and the technology platforms that can aid them should be considered. The commercial value of an effective call centre, balanced against mitigating and eliminat- ing the potential damages of poor customer service, should not be overlooked. The contact centre can be an invaluable tool, not simply an unavoidable cost. Steven Thurlow, head of worldwide product strategy, KANA Soware Improving quality and reduc- ing the "cost to serve" are seen as primary challenges in today's organisations. The research also highlights what call centre agents perceive as key barriers to providing a better service: outdated systems, lack of invest- ment, agent skills gaps and a lack of support at a senior level. The contact centre is oen seen only as an operational expense. Oen, senior manage- ment will review aspects such as speed of handling times and reso- lution times, but this is unlikely to drive investment and instead maintains a focus on efficiency. But fast service and good cus- tomer experiences are not always