Utility Week UK: “It is essential to rebuild customer trust”
The following article, written by GreenWave Reality CEO, Greg Memo, appeared in the February 2011 edition of Utility Week UK.
How can utilities repair damaged relationships with customers? asks Greg Memo.
Utilities have a tumultuous relationship with their customers, with periods of calm punctuated by misselling scandals and accusations of price fixing. “Technologies such as smart meters and home energy management systems are often positioned as the overarching solution to these problems, yet consumers are unsure about allowing utilities access to their energy consumption patterns through these technologies.”
So, if the technology alone is not enough, what else needs to be done to repair the relationship between utilities and consumers? Through our conversations with utilities and consumers on a global scale, we believe there are three key areas where progress needs to be made: trust, teaching and transparency.”
Building a solid relationship needs trust. “One of the key areas of breakdown we have seen over recent years is trust, with people often left feeling short-changed and overcharged by their energy supplier. “As technologies such as smart meters and home energy management systems bring utilities further into the home, it is vital that companies work to restore customer trust.”
To begin this process, utilities need to enter into a clear and detailed dialogue with the consumer that from the start sets out guidelines for the working relationship and also demonstrates the security of the networks used to ensure that the information collected will not compromise privacy. “It is a small gesture in the grand scheme of things, but it is this level of openness and honesty that will set things off on the right path. “Reassurance is crucial – people need to know that their usage data will be kept safe, secure and only used in accordance with the privacy agreement they sign up to.”
An increased level of trust will also arise from better education.”While new technologies give consumers more insight into their levels of energy usage, little is done to educate them on how to translate this information into action.”
Gaining information is also a problem for utilities.”In times of high demand and with an already stressed power grid, utilities need to be better educated about how consumers are using energy in the home and how this can translate into reducing demand at peak times.
There is a great opportunity here.” Utilities need to provide training and education to consumers through leaflets and information sites, or via an extension of the system such as an interactive home energy management platform that coaches consumers on their energy usage and provides tips to help them reduce consumption. “Consumers will learn what the data collected actually means, what to do with it and how to implement the necessary changes.”
By correctly analysing the data collected from these systems, utilities will gain a deeper understanding of appliance-specific usage patterns and eventually use this information to monitor appliances in the home for faults and errors. “For example, by understanding how much energy a boiler usually consumes, utilities will be able to flag to their customer if the boiler starts to demand more or less energy and needs maintenance.”
But before any of this can happen, consumers first need to trust utilities so they give them access to this level of data.”
Transparency is key. “The media often portrays energy suppliers as the bad guys, so utilities need to counteract this perception by being open and transparent.”Due to rising global oil prices, many energy analysts predict a continuing rise in energy prices, but the way forward should not be to hide this behind jargon and sales talk.”
Utilities need to be clear about what they are doing to protect consumers from rising prices by developing techniques such as peak/non-peak pricing tools and by getting consumers involved in understanding and managing their consumption around these times. “By initiating an open, two-way dialogue, utilities will have taken the first few steps towards building a dynamic, energy-efficient partnership.”
Greg Memo is chief executive of GreenWave Reality.
Source: Utility Week
