Utility Week

20 | 1ST - 7TH DECEMBER 2017 | UTILITY WEEK Customers This week 823,000 customers left British Gas in Q3 Centrica shares plunge to their lowest level in 14 years following the third-quarter trading update British Gas lost 823,000 domestic accounts – nearly 6 per cent of its household customer base – over just three months, accord- ing to its latest trading update. Parent company Centrica said 150,000 customers le as a result of the supplier's decision to hike prices by 12.5 per cent from Sep- tember. A further 650,000 of the lost accounts related to "collective switch, white-label, fixed price and prepayment tariffs". Chief executive Iain Conn said: "Although some aspects of our delivery in the second half of 2017 have been disappointing, I remain encouraged by our pro- gress in implementing our strategy. The balance sheet has been materially strengthened, and we continue to focus on improving our underlying performance." Despite the exodus, adjusted operating profits for the UK Home business over the full financial year are expected to be "broadly in line" with last year's result of £810 million, due to efficiency savings. As part of the third-quarter update, Centrica also announced group profits would be lower than market expectations. Full-year adjusted earnings per share would be 12.5p compared with analyst estimates of around 15.5p, with the poor performance attributed in part to warmer than expected weather in October and November. On 23 November, shares in Centrica plummeted to their lowest level in 14 years. But the group claimed it is still on track to meet 2017 profit targets, having reduced costs by £384 million in 2016 and with a further £300 million of savings expected this year. AC WATER First Business Water granted a licence First Business Water has been granted a water supply and sewerage licence by Ofwat to operate in the non-domestic water retail market in England. Managing director Nish Dattani said: "First Business Water has been set up to provide businesses with a clear and competitive pricing strategy for their water and wastewater supply. This is complemented by our customer-centric approach in putting customers first and placing them at the heart of the business." He described the move as the first step in the com- pany's journey to becoming the "UK's leading water retailer". ENERGY Clark pressed on data-sharing rules Business and energy secretary Greg Clark has been pressed to reveal the government's plans for data-sharing arrangements for vulnerable customers. The chair of the Business, Energy and Industrial Strategy (BEIS) select committee, Rachel Reeves, has written to Clark to demand an answer to whether the government will heed calls by Ofgem to remove legal barri- ers to the identification of vul- nerable customers by suppliers. "Ofgem and energy suppliers were very clear to us in evidence that a major obstacle to helping to protect vulnerable energy customers is the difficulty in identifying these customers due to insufficient data-sharing," said Reeves. "Ofgem has recommended a solution to this problem but the government has yet to act. When many low-income and vulner- able customers are missing out on current support such as the Warm Home Discount, the gov- ernment needs to urgently spell out what it is doing to ensure vulnerable customers get the protection they deserve." ELECTRICITY Hackney to pilot trading platform The UK's first energy trading community platform is to be tested on Hackney's Banister House estate in a bid to lower energy costs for local residents. The platform has been cre- ated by the artificial intelligence start-up Verv in collaboration with Repowering London, using a blockchain-based system. It will support the work of Banister House Solar, which was set up in 2015 to install photovol- taic panels on 17 of the blocks of flats on the estate. A smart home hub will be installed into 40 participating flats early next year, which will allow solar energy to be traded between residents. Conn: remains encouraged by progress I am the customer Jo Osborn "We must take the time to listen to our customers" According to a report by Accen- ture, the average household spends about nine minutes a year thinking about their utili- ties – that's not long to make an impression, good or bad. If part of those nine minutes is spent contacting their water com- pany because they are frustrated, when this is handled well we can use that contact to turn an angry customer into an advocate. It's human nature to want to be listened to and have conver- sations. We must take the time to measuring customer contacts and putting their satisfaction at the heart of what we do. Our calls are helping us learn what our customers regard as excellent service, where they think we can improve and how we can work together to secure water services for the future. Jo Osborn, head of communi- cations, South East Water Jo will speak at the Utility Week Water Customer Conference on 17 January in Birmingham: http://bit.ly/2w6MW0a listen to our customers, but then go further, give them feedback and talk about what we do. At South East Water, we are conscious that the customers who take the time to contact us are a tiny proportion, so we've taken an approach that makes sure we are hearing from the silent majority too. Every month, we randomly call approximately 130 customers asking them how satisfied they are with the ser- vice we provide, from the taste and appearance of their water, to our leakage levels and frequency of supply interruptions. Ofwat's SIM replacement is developing a similar approach – taking the industry beyond

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