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UTILITY Week 15th September 2017

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Customers UTILITY WEEK | 15TH - 21ST SEPTEMBER 2017 | 27 This week 'Don't change rules on communications' First Utility urges Ofgem not to 'soften' rules regulating suppliers' customer communications Independent energy supplier First Utility has slammed Ofgem's proposals to change the rules governing the way suppliers communicate with customers. In response to an open let- ter from Ofgem setting out its intentions, First Utility issued a statement saying the regulator was wrong to "soen" key regulations. First Utility chief executive Ed Kamm said: "The rea- son why eight million UK households have been on the most expensive energy tariffs for more than three years is in part because of a lack of transparency and engage- ment from the big six. "We are concerned that removing certain licence requirements could make the level of engagement even worse as big suppliers exploit the relaxation of the rules." Ofgem wants to remove prescriptive customer com- munications rules where possible, reflecting the move to more principles-based regulation. In its letter, Ofgem said it wanted to "promote innovation and competition and put responsibility firmly on suppliers to deliver posi- tive consumer outcomes". In part, the reform of communications rules is linked to the rise of smart energy technologies such as smart meters and demand-side pricing models, which should enable customers to take greater control of their energy use and to engage more closely with the market. Kamm said it was important current regulations were not "sacrificed" for this laudable ambition. JG ENERGY New supplier says SVTs are 'abhorrent' A new entrant energy sup- plier launching this week has branded the practice of putting customers on standard variable tariffs (SVTs) as "abhorrent". Outfox the Market launches with a business model estab- lished in Denmark under which customers buy electricity directly at wholesale prices in return for a membership fee and standing charge. Head of operations Brad Goodfellow told Utility Week cus- tomers were mainly concerned with fairness, and the practice of defaulting customers on to an expensive SVT when their fixed deals ended was "abhorrent" and should be banned. "Electricity and gas are fundamentals of life, in the same way oxygen is. To have such a wide variation in prices is unfair," he said. Goodfellow added: "The Dan- ish model gives the customer the option of buying at whole- sale energy prices and to judge whether they think the member- ship fee is appropriate." ENERGY Utilita announces price freeze Independent energy supplier Utilita has announced that it is freezing prices until at least April 2018. The supplier, which has 555,000 customers, also confirmed that it is cutting some of its rates. The company said an aver- age dual fuel customer would save 1.8 per cent, meaning they would pay £184.28 per year less than customers on standard variable tariff from a big six supplier. The announcement comes at a time when energy suppli- ers are increasingly under the spotlight over price increases, particularly following recent announcements by British Gas and Power NI. ENERGY Engie launches tracker tariff French energy giant Engie has launched a tracker tariff for UK households, which it claims will provide fairness and transparency. Under the tracker price plan, Engie will update its prices every month, passing on any savings to the customer when the market falls and raising prices when the market rises. The company said the tariff would protect customers from price spikes by capping the amount charged for the cost of energy, based on the variable unit rate. In addition, there are no exit fees and a discount is available to dual fuel customers. Many people still on bad tariff deals I am the customer Jo Causon "Bundling is the future – with the right partners" Ten years ago many commenta- tors were quick to herald what was described at the time as a "customer experience revolu- tion". They were referring to the advent of bundled services in the telecoms sector. That same approach is now prevalent in utilities, with companies teaming up to offer packages that include water, electricity and any variety of data or communications pack- ages. Some question whether a blend of this nature will work; and convenience; and our research indicates that they really do want integrated ser- vices; as long as it works across the whole service chain. What is absolutely critical is the quality of customer experience design. In fact in my mind we have only just begun on the path of bundled services which will connect many different sectors and services to create seamless customer experiences. Jo Causon, chief executive, the Institute of Customer Service their fears are based on whether it will be easy for organisations to find the right business part- ners, against which reputations can stand or fall. In other words, the choice of partner clearly has a direct impact on business performance, reputation and the overarching service delivery. There are also concerns about creating faceless corporations who fail to really understand the customer's needs as they become too slow to respond proactively. But in my view, bundled services in the utilities sector is worth pursuing. Customer expectations have heightened, especially around speed, ease

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