Utility Week

Customers UTILITY WEEK | 15TH - 21ST DECEMBER 2017 | 25 This week CMA launches probe into heat networks Authority fears heat sector 'may not be working as well as it could be' for half a million homes The Competition and Markets Authority (CMA) has launched a study into domestic heat networks in response to cost and service concerns. The CMA said many custom- ers may be unable to switch supplier easily or they may be locked into long contracts – some for up to 25 years. "We have concerns that this sector may not be work- ing as well as it could be for the half a million homes heated by these systems now and the millions that may be connected in the future," said Andrea Coscelli, chief executive of the CMA. Between now and 2030, the number of customers using heat networks is expected to grow significantly to about one in five of all households. However, the sector is not currently subject to the same regulation as other forms of energy supply, such as mains gas and electricity. The CMA says the study is scheduled to be completed in 12 months. It will examine three broad themes: • Whether customers are aware of the costs of heat net- works both before and aer moving into a property. • Whether heat networks are natural monopolies and the impact of differing incentives for builders, opera- tors and customers of heat networks. • The prices, service quality and reliability of heat networks. The CMA said it would seek evidence from a range of stakeholders. AC ENERGY Utilita pays £3.6m back to customers Utilita has paid £3.61 million back to smart meter customers aer it failed to correctly imple- ment price cuts. Technical problems prevented the supplier from meeting the level of the cap in April for pre- payment customers on multi-tier first generation smart meters (SMETS1) and non SMETS Smart (NSS) smart meter tariffs. About 348,000 customers were affected and were cumulatively over- charged £3.54 million. Utilita became aware of the failure with SMETS1 meters in April, and the failures with NSS meters in May. In both cases, Ofgem said the supplier promptly raised the issue. As a result of these actions and Utilita's "quick action in coming forward to report the issue", Ofgem has decided to close the compliance case with- out taking further action WATER Yu Water joins the retail water market Yu Water has become the latest entrant to the retail water mar- ket aer being granted a licence by regulator Ofwat. It is a subsidiary of Yu Group, which also operates business energy supplier Yu Energy. It intends to enter the non- household water market in water supply only, building on its experience in the energy market for customer service and billing. There are now 24 retailers operating in the market. These include retail arms of incumbent companies, independent compa- nies from Scotland, and entirely new entrants. ELECTRICITY Switcher numbers top five million More than five million customers have switched electricity supplier this year, according to the latest statistics from Energy UK. The figures show more than 475,000 customers switched provider during November, and nearly a quarter of those (24 per cent) switched to a small or mid- tier supplier. According to the trade body, the number of people who have switched supplier in 2017 currently stands at 5,121,770, which beats the number who switched during the whole of 2016 (4,910,412). "Over five million customers have now taken action to lower their bills, topping last year's figure and showing how more and more people are realising how quick and easy it is to save money," said Energy UK chief executive Lawrence Slade. Households may be unable to switch I am the customer Simon Parsons "Engaging customers is now at the centre of our planning" Our customers rely on us to pro- vide vital services, and they trust us that the service is there. Four out of every five customers trust us. And, according to a recent Which? survey, water and waste- water is the sector that is most trusted by Scottish households. But what about the future? Scottish Water, like many companies, is looking at its long- term strategy as we approach the next price review. We are asking ourselves, stakeholders and customers about our direc- tion of travel and how we adapt expectations are changing, and there are new challenges. We must continue to listen to our customers and communities as their views and priorities change. We want to continue to deliver a great service so every customer, not just four out of five, has every chance to trust us. Simon Parsons, director of strategic customer service planning, Scottish Water Simon will speak at the Utility Week Water Customer Conference on 17 January in Birmingham: http://bit.ly/2w6MW0a to the challenges of climate change, cybersecurity and population growth. The Scottish government, the regulators and ourselves have recognised that the customer voice can be strengthened when we are mak- ing decisions about our service. Engaging customers on their needs, views and aspirations is now at the centre of our future planning and we work with the customer forum to give custom- ers and communities a stronger voice in the setting of process and priorities. We are looking at ways to gain a greater insight into what customers want and our research is telling us that customers want a reliable, resil- ient and affordable service. It doesn't stop here. Customer

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