Perception relies on trust, which although multi-faceted, depends upon governance, ownership and a demonstration of how companies are delivering on a wider purpose beyond the pursuit of profit. This topic has recently gained momentum in the UK and internationally. UK regulators across the utilities sector are asking privately-owned companies to demonstrate social value and legitimacy, and ensure that the services they deliver reflect what consumers want and are willing to pay for.
Consumer engagement has played a vital role in price reviews in the past decade. More recently, as part of the 2019 Price Review in the water sector and the RIIO-2 price control reviews in the energy sector, regulators have put even more emphasis on how companies interact with their consumers. For instance, Ofwat has introduced the concept of ‘social contracts’ while Ofgem has created the Consumer Challenge Groups and will hold Public Hearings as part of RIIO-2. Similar types of challenge groups have also been used in the transport sector too. Increasing the legitimacy of utility companies in the eyes of consumers requires more than demonstrating consumer value; it also encompasses consumers’ willingness to pay. Reflecting direct feedback and participation from consumer champions in the price review process is an important part pillar to build consumer trust.
Whether you are:
- a private company looking to quantify the social impacts of your portfolio of activities;
- a regulator trying to encourage companies to deliver social value; or
- seeking support to design and evaluate regulatory systems that involve a consumer voice,
Contact CEPA to learn more about how we can provide the analysis and techniques to help bring that consumer voice and legitimacy to your activities and regulatory proceedings.
Examples of our work in this space include:
- Supporting the UK water companies, through the industry research body UK Water Industry Research, with the development of a measure of water poverty.
- Reviewing Sydney Water’s current customer engagement processes.
- Supporting the Northern Ireland Utility Regulator (UR) to develop its first Residential Consumer Insight Tracker (CIT) which explored a range of issues with residential consumers including preferences, behaviours and attitudes to inform the UR’s consumer protection and engagement strategy.
- Supporting National Grid, on a secondment basis, to develop methodologies for valuing the benefits to consumers of their activities. This work fed into the system operator’s new regulatory framework developed by Ofgem.
- Supporting the Ireland’s Commission for Aviation Regulation (CAR) to review consumer engagement techniques used by other regulators, and to recommend options for effective passenger engagement within the context of the 2019 charge determination for Dublin Airport.
Consumer value News & insights
CEPA recognised as one of the UK’s leading management consultants
Following another year of providing high-quality advice to our clients across our core sectors, we are grateful for the positive feedback from the market, which has led to CEPA’s inclusion in the Financial Times’ independent ratings report.
European energy regulators report on Innovative Business Models and Consumer Protection
The Council of European Energy Regulators (CEER) has published a report, for which we undertook the identification and analysis of the business models and supporting case studies.
Final evaluation of New Reg trial in Australia released
The Australian Energy Regulator has published our independent evaluation of a trial, to deliver better outcomes for consumers through network consumer engagement and regulatory innovation.
Independent review of water affordability
CCW, a body that represents water consumers in England and Wales, has published its review of the affordability support for financially vulnerable water customers.
Evaluation of ‘Innovation Link’ Ofgem’s innovation support programme
The Innovation Link is Ofgem’s main support programme for innovators looking to launching novel propositions. It offers regulatory guidance as well as trials and derogations, contributing to an enabling and adaptive regulatory environment to benefit consumers and support the UK’s transition to net zero.
How best to measure water poverty
Water UK publish the Measuring Water Poverty using a bills to income metric report that we prepared for them.
CEPA provides analysis for the New Appointments & Variations Regime in the water industry
Ofwat, the economic regulator of the water sector in England & Wales, has commissioned CEPA to analyse bulk charges for the New Appointments and Variations (NAVs) Regime.
CEPA helps to define water poverty, understand future pressures & appraise UK water companies’ efforts
CEPA supports UK Water Industry Research with their work designed to help decision makers and water companies in making water and sewerage bills affordable and their ambition to achieve 'zero customers in water poverty by 2030'.
Water poverty drivers & metrics in the UK
UK Water Industry Research (UKWIR) will host the launch of a new report, which is designed to support decision makers and water companies in the UK.