Water & Wastewater Treatment Magazine
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8 | JANUARY 2017 | WWT | www.wwtonline.co.uk G reater competition in the water industry will stimulate innovation but may also lead water companies to be more guarded about sharing useful information and collaborating, delegates at the WWT's Water Industry Technology Innovation conference heard. Amanda Reynolds, Customer Service Director at Affinity Water, told the conference in Birmingham that non- household competition from April 2017 and the advent of household competition which is expected to follow would sharpen the focus on customer needs. "If markets go competitive for households, customers will be voting with their feet if customer service is not there," said Reynolds. "When we think about innovation it has to be linked to the customer and their needs. If we are creating the latest clever app, it has to be something that people will actually use, that makes people's lives easier." Adam Cooper, Director of the new retail market at Ofwat, said that feedback from customers would have a telling effect in an open market. "Once you give people choice, you give them the right to complain. When there is competition I would expect complaints to increase. So it won't be the case that the industry wants to offer innovation for its customers – it will be the customers who will demand it." But giving a contrarian view, Piers Clark, chairman of Isle Utilities, raised the prospect that customers would be only interested in price and it would therefore lead to a 'race to the bottom' with suppliers offering a basic service only. "What if the customers say – just give me plain vanilla, give me the water nice and cheap?" asked Clark. "We're then in a race to the bottom, and will that really drive innovation?" He added that competition could also encourage water companies to think individually and separately, rather than picking up on ideas that could raise collective standards in the industry. Later, Eddie Wrigley, Innovation facilitator at Northumbrian Water, said that some of the most disruptive innovation might come from large companies outside the water industry bringing forward multi-utility offerings. "If household competition does come in it is going to be a massive driver of innovation, because it is about added value offerings," said Wrigley. "What will those added value offerings be? I don't know, but if I knew I wouldn't tell you," he joked. THE SPEAKERS "If markets go competitive for households, customers will be voting with their feet if customer service is not there." Amanda Reynolds Customer Service Director, Affinity Water "What if the customers say – just give me plain vanilla, give me the water nice and cheap? We're then in a race to the bottom." Piers Clark Chairman, Isle Utilities "Once you give people choice, you give them the right to complain. I would expect complaints to increase." Adam Cooper Director New Retail Market, Ofwat James Brockett reports from Birmingham To take away 1. Retail competition is likely to shapen the focus of innovation on pleasing the customer, which will benefit the industry but also means water companies are less likely to collaborate and share useful information 2. Water companies must not over-specify in their procurement processes if they want to promote innovative solutions; asking for a specific solution rules out creative alternatives 3. Having an innovation 'playground' or 'shop window' for testing out innovations at little cost can pay dividends in the long run 4. The technology for many potential useful innovations already exists but is viewed as merely a toy for the interested few; bringing this into the mainstream is the key to success 5. Energy storage technology presents massive opportunities for the energy-intensive water industry, as its sources of renewable energy are harnessed "If household competition does come in, it is going to be a massive driver of innovation, because it is about added value offerings." Eddie Wrigley Innovation Facilitator Northumbrian Water Events Raised customer expectations 'will promote innovation' Wastewater 2017, 31st January, Birmingham. NEXT EVENT