Utility Week

UTILITY WEEK | 8TH - 14TH JUNE 2018 | 25 Customers Produced in association with: sibility for customer experience and strategic development. The council meets on a regular basis to discuss ongoing and rising issues relating to trust in both companies as individual enti- ties and in the sector as a whole. In addition, council members provide guidance for Util- ity Week on key trust challenges that merit further exploration in bespoke research and investigative articles. It was at the request of council members that Utility Week and WNS instigated the research behind this exclusive report, which explores the relationship between pricing and trust in utilities. There is no doubt that this relationship is currently strained, and the source of consid- erable negative sentiment both within and around the utilities sector. While many other factors in a customer's experience may affect the extent to which they are willing to say they trust a company, the price they pay for products and services is always a core influence. And in the utilities sector in particular, price has risen to domi- nate debate over the extent to which custom- ers trust their utility providers. It is mistrust of the way in which energy prices are set that has led to the introduction of price regulation for energy retailers. Con- versely, controversy over the returns being made by regulated utilities is now generating mistrust around the perceived value of water and energy network services and eroding customers' willingness to pay for these. This research sought to explore in detail the dynamics behind pricing and trust in the utilities sector. It set out to identify which dynamics are considered most influential by industry leaders and experts and to high- light key areas of consensus or dissent about the market arrangements or company prac- tices that might be hindering greater trust in the way prices are set or the value con- sumers believe they receive when they pay their bills. The methodology for the research was based on a qualitative approach, involving engagement with 18 individuals with deep knowledge of customer trust and industry pricing issues. Twelve of these were senior leaders at water, energy network and energy retail organisations with direct responsibility for customer experience or strategy. A further six were representatives of con- sumer interest bodies. Input from these indi- viduals was gathered via a mix of individual interviews and a dedicated working group. Contributions from all research participants have been anonymised in this report to encourage open and honest sentiments to be expressed. Regulator view: Ofwat "With the starting gun on PR19 now fired, we are about to undertake one of our most vital functions as a regulator: setting limits on the price that customers will pay for their water in the first half of the next decade. As we do so, PR19 gives us an opportunity to support a fundamental objective, to reinforce trust and confidence in water among customers and wider society. The four themes of PR19 – resilience, affordability, customer service and innovation – are intended to focus the attention of water companies on the things that matter most to customers. Getting these four things right will go a long way to securing that trust and confidence. It is said that our true nature is shown in how we treat those most in need, and it is with that sentiment in mind that we are, for the first time, putting the issue of customer vulnerability in the spotlight of a price review process. For all customers, but for vulnerable customers in particular, we expect water companies to push the boat out as never before. This means having in place robust systems and processes to ensure they can identify those in vulnerable circumstances, understand their needs and make extra support available in a straightforward, accessible and customer focused way. Ofwat will evaluate how each company serves, supports and protects customers in vulnerable circumstances. We will be highlighting those who go the extra mile, and calling out those letting customers down. We will shine a light on the true nature of water companies and, if they get it right, then customer trust can follow." David Black, senior director Water 2020, Ofwat

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