Consumer Issues Workshop CCWater London & South East Committee 28 Sep 2016 Consumer Issues Workshop Sir Tony Redmond Chair CCWater London & South East Committee 28 September 2016

Non - household competition in England 28 Sep 2016 Business customers will need our support not only to answer their queries but to fix problems when things go wrong. They will also need an advocate when big issues need changing. We want to understand your views on what support we should provide non-household customers.

Challenges of competition 28 Sep 2016 Challenges of competition Limited push factors Customer satisfaction: Most are relatively satisfied with service Water is a relatively low cost and lower priority than energy Limited pull factors Retail margin: Limited price discounts, service incentives, innovation? Awareness Lower as organisations get smaller Ability to differentiate retailer service offerings?

CCWater Research On the shelf Almost done 28 Sep 2016 On the shelf Uncharted Waters, Jun ‘14 Testing the Waters, Jul ‘14 Exit Strategies, Nov ‘14 Lessons Learned, Dec ‘14 Uncharted Waters: Phase 2, Jan ’16 Floating the idea: Household views May ’16 Open for Business: Learning from Scottish Experience, August ‘16 Almost done Testing the Waters, October ‘16

Customers worry about… 28 Sep 2016 Contracts that automatically roll-over and/or tie in customers Mis-selling, cold calling, hard sell and limited cool-off period Lessons Learned, Dec 2014 Open for Business, Aug 2016 Customer detriment to those forced to switch due to retail exit Awareness of market, retailers, renegotiation as an option Complaints resolved promptly

Issues to Consider: 28 Sep 2016 How should we best support non-household customers? How will customers work out which retailer is for them? How can they judge its pedigree? How can all stakeholders increase awareness? What do customers need in terms of Price and service quality? New or improved services that are attractive? Customer protection and/or regulation How far should wholesalers retain a NHH customer service function?

well-being, finances or health”. CCWater’s Definition of Vulnerability 28 Sep 2016 “Vulnerability occurs when a consumer may not have reasonable opportunity to access and receive an inclusive, safe service from a company, resulting in a permanent or temporary detrimental impact on their well-being, finances or health”.

How are water companies doing? 28 Sep 2016 How are water companies doing? The water sector is making some good progress in addressing financial vulnerability as part of their affordability work. But there is more to do: companies need to increase their focus on the assistance companies are offering customers so that customers have easy and convenient access to their water and sewerage services whatever their personal or situational circumstances.

Highlight poor performing companies 28 Sep 2016 CCWater’s Role Monitor companies’ actions in meeting Ofwat’s guidance regarding special assistance Highlight poor performing companies Share good practice Ensure companies consider inclusivity in the design and delivery of their services, information and policies

28 Sep 2016 Issues to Consider What would customers expect their companies to be doing to achieve inclusivity in the design and delivery of their: Services; Information; and Policies? How can we understand further the impact on different customer types? How can CCWater help?

Consumers and Using Water Wisely 28 Sep 2016 Consumers and Using Water Wisely

Who is using water wisely? 28 Sep 2016 Who is using water wisely? Using Water Wisely Research – Key Findings How many? Motivation? Who? Info sources? 66% of adults Up from 53% in 2015 decided to use less To save Money was the main motivation The least deprived most likely to use less water to save on bills Water Company websites 52%, up from 34% in 2015

Using Water Wisely Research – Key Findings 28 Sep 2016 Using Water Wisely Research – Key Findings Water use is habitual, with similar patterns of activity, regardless of levels of consumption. Change? Change?

Who is less likely to use water wisely? 28 Sep 2016 Who is less likely to use water wisely? How many? Who? Groups Less likely to save Water 43% unmetered households 41% Living with Parents 34% of respondents had NOT made a conscious decision to use less water over the last three years 39% of 18-24 yr olds 40% Non-Bill Payers

Awareness of using water wisely 28 Sep 2016 Awareness of using water wisely Awareness? 21% - one in five adults had seen/heard something about pressures or impacts on water resources in the UK (down from 31% in 2015).

28 Sep 2016 Issues to Consider What action can be taken to encourage all consumers to use water wisely? Should the why we are water stressed be talked about more? 2. What do you see as CCWater’s role in encouraging and supporting all consumers to use water more wisely? 3. What are the opportunities for us to work together to support all consumers to use water wisely?