Utility Week

24 | 2ND - 8TH MARCH 2018 | UTILITY WEEK Policy & Regulation Market view T he results of Ofwat's upcoming price review, PR19, will put the water sector under the microscope at a time when it is already the subject of intense scrutiny. The industry has become a political light- ning rod, with criticism of everything from the prices water companies charge to the transparency of their tax arrangements and even their fundamental ownership model. With PR19 set to land amid this increas- ingly febrile atmosphere, it is more important than ever that water companies' customer service functions stand up to the highest levels of scrutiny. Ofwat clearly believes that historically the industry has punched below its weight when it comes to customer engagement, and wants water companies to look outside the sector for inspiration. When John Russell, Ofwat's senior direc- tor of strategy and planning, addressed Utility Week Live last year, he spoke of his determination to see water companies competing with some of the country's best- known brands to achieve the highest levels of customer service. He expressed disappointment that no water companies had made the top 50 in the Institute of Customer Service's annual UK Customer Satisfaction Index, saying: "We know customers don't compare the service they receive from their water company with the services provided by other water com- panies. They compare them with companies like Amazon and John Lewis. "We believe water companies can be up there competing with these types of compa- nies on customer engagement and service." That is not an unrealistic ambition. And the fact that Ofwat has consulted on stronger outcome delivery incentives to better align incentives with a greater emphasis on service delivery should further prompt water com- panies to focus on the importance of back office efficiency and delivering exceptional customer experience when they submit their dra business plans to Ofwat in September. Delivering exceptional service We know that one of the biggest customer experience challenges facing water utilities today is turnaround of enquiries and com- plaints. To meet this demand, the ability to consistently deliver exceptional, accurate frontline service using a customer's preferred contact channel is now essential. The pace of technological advance means customers expect a fast, personalised response – par- ticularly millennials, who will oen turn to Twitter before picking up the phone. However, in an increasingly digital world, it is easy to put too much focus on modern, disruptive contact channels, such as social media, and utilities cannot afford to forget the back office as part of their first-time reso- lution response. Paper and email are still extremely popu- lar with consumers and remain one of the most essential delivery methods for customer experience at a water utility's disposal. But water companies can sometimes take up to a week to process and reply to paper and email correspondence, putting their customer sat- isfaction scores at risk. Speed of response is critical when upholding customer relationships. But increasing satisfaction scores is not just about speed. It is about getting it right first time. If you are outsourcing this function, a good partner should be an extension of your business and an ambassador for your brand, solving problems, dealing with queries, turn- ing complaints into loyal customers and gen- erally exceeding expectations at every turn. The right approach in the back office ena- bles the streamlining of customer engage- ment, increased satisfaction scores, reduced financial pressures, and ultimately, lowering the cost to serve. Customers and Ofwat are demanding great service that is comparable with the brands they trust on the high street or online. The only way water companies will achieve all this, is to find new and better ways of delivering those services. As PR19 looms ever closer, the expecta- tions placed on water companies, and the implications of failing to meet those expecta- tions, have never been higher. Craig Naylor-Smith, managing director, Parseq Finance & Administration division Service under scrutiny Water companies must respond quickly to customers, using whichever contact medium the customer chooses, says Craig Naylor-Smith. ENERGY Ofgem to prevent suppliers 'gaming' energy price cap Ofgem will be handed a mandate to prevent suppliers "gaming" the cap on energy bills, Claire Perry has revealed. Giving evidence to the House of Lords economic affairs committee last week, the energy and climate change minister identified gaming as one of the key risks surrounding the introduction of the cap on standard vari- able and other default tariffs. "Ofgem's mandate will be to design report mechanisms to make gaming behaviour very apparent and avoid clustering round price points," she said. Perry also told the commit- tee that the government's aim to introduce a price cap next winter meant "pre- and not post-Christmas". ELECTRICITY Swansea Bay plant talks 'taking place' The government is assessing the scale of the Welsh govern- ment's offer to help bankroll the Swansea Bay tidal lagoon plant before making a deci- sion on the project, Claire Perry has revealed. While being cross- examined by the House of Commons environmental audit committee last week, the energy and climate change minister was pressed on the timing of the decision on the £1.3 billion tidal power project in south Wales. Referring to a recent Welsh government announcement that it would contribute to the scheme, she said: "Conver- sations are taking place to establish whether the Welsh government offer of financing can be quantified. There are a series of extremely important discussions happening." Briefs

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