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24 | 26TH MAY - 1ST JUNE 2015 | UTILITY WEEK Sponsored report Insight W hile politicians seek to capitalise on the public's broken trust with energy suppliers, the industry itself faces the much harder challenge of rebuild- ing the relationship. But with little prospect of lower bills, can companies ever win back the hearts and minds of customers? There are several routes to rebuilding trust. There's the old-fashioned approach of good customer service and communication, which is already showing benefits for some suppliers. Then there are the remedies set out by the Competition and Markets Author- ity (CMA) which, though dismissed by poli- ticians, were designed to restore customer faith. Finally, there's the arrival of new tech- nologies such as smart meters, which have the potential to transform the way customers view energy and interact with suppliers. First up, customer service. Institute of Customer Service (ICS) chief executive Jo Causon tells Utility Week that customer ser- vice and "getting the basics right" are the most important elements in regaining cus- tomer trust. who have taken on board these lessons from other sectors and have tried to adapt accord- ingly (see Case Studies, below). Eon's reset programme saw the company overhaul its customer service regime and empower its frontline staff to "do the right thing". British Gas, meanwhile, has just intro- duced a loyalty scheme whereby it is offer- ing its customers – new and old – rewards, which include a Hive smart thermostat. So much for the industry's own ini- tiatives. Energy suppliers have also been handed a to-so list by the CMA following its two-year investigation into the sector. Ofgem is now engaged in programmes to trial and implement a number of these rem- edies, some of which have already benefitted customers, including a price cap for custom- ers on prepayment meters and the removal of a number of barriers to switching. Away from the regulator's actions, the development and deployment of new tech- nology is perhaps the most promising route to rebuilding trust. Smart meters could change the public's perception of energy, its value, and their own role in managing their consumption and keeping costs down. Eon has already begun offering additional services to its smart meter customers, such as a smart phone app. It is being offered to some customers instead of a physical in- home smart energy display when they have a smart meter installed. Chris Lovatt, director of residential operations at Eon, said: "Through innova- tive solutions like Eon See, we're making it even easier for our customers to benefit from complete clarity about their energy habits by providing detailed, personalised insights through a convenient and easy-to-use app." The ICS's Causon states that data from smart meters is a valuable asset for suppli- ers, and their use of it is one way in which trust can be earned. "The future of energy is not about the plug in the wall, but about all of the addi- tional things that come from it." She gives the example of an additional service where if the normal behaviour pattern of an elderly Regaining the initiative Price is just one factor in the customer experience. A bigger one is customer service, and here the energy industry's hopes rest on the new age heralded by the smart meter rollout. CA SE STUDIES REBUILDING TRUST Eon UK's Reset Review Eon UK's Reset Review was launched in January 2012 as a response to poor customer service ratings and a strained relationship with consumers. The overhaul saw the company stop doorstep selling, supporting those who need help the most, including older people or those who struggle to pay their bills, empowering frontline staff to "do the right thing" to help consumers. This has seen net promoter scores increase by 11 points from the 2012 low of -25, as well as the re- tailer climb customer satisfaction rankings to be rated the third highest in the sector and the best of the major suppliers by Uswitch. British Gas' loyalty scheme This was announced in February and only went live in April, so the impact of the programme is yet to be felt. The £100 million reward programme, British Gas Rewards, allows customers to select the benefits they want, from a se- lection ranging from discounted energy through to home and entertainment offers. The deals are open to all British Gas energy and services customers. Centrica Con- sumer chief executive Mark Hodges said: "In the competitive services and energy markets where con- sumers have many choices, we know we have to work hard to win new business and keep loyal customer happy." "Price is not the most important thing." JO CAUSON, CHIEF EXECU- TIVE, INSTITUTE OF CUSTOMER SERVICE Suppliers must "sell the benefits of smart meters". PETER HAIGH, CHIEF EXECU- TIVE OF BRISTOL ENERGY "We do get a bit fixated as a nation about the importance of price. All my evidence shows price is not the most important thing from a customer point of view. It's not all about price," says Causon. "It's actually about the service experience and what I would be encouraging organisations and regulators to continue to think about is that, and not just price." Eon and British Gas are among those