The inaugural dinner of the WNS Trust Council saw senior directors and chief executives meet to address a perennial problem for utility companies: how to regain the trust of customers.

Trust in the utilities sector is at a low ebb. Energy retailers were attacked throughout the general election campaign for overcharging and unfairly treating customers. Water companies and energy networks fare little better, often being viewed with suspicion by those they serve.

There are no easy answers or quick wins that will undo years of poor customer service and opaque pricing, which have led to public distrust and apathy. However, the Trust Council may be able to help.

Set up by Utility Week, in association with WNS Global Services, it provides a forum for chief executives and senior directors with responsibility for customer service and corporate strategy to meet up regularly to share ideas and experience, and work towards potential solutions.

An inaugural dinner took place last month in London to set the scene for the council and agree its ambitions. The first issue was identifying what has gone wrong. Why are trust levels so low?

The common denominator in all the comments was that because energy and water are essential services affecting everyone’s lives, there will always be a tension between free market forces and fairness.

Furthermore, it was acknowledged that one bad story can go a long way, quickly creating the impression that companies are “all the same”.

And there are plenty of negative stories. There is little doubt that the media jumps on bad news stories more quickly than positive ones. However, the consensus view was “there is no smoke without fire”, and while more can be done to promote positive news, only improved customer experience will deprive the naysayers of ammunition.

In part,  poor customer experience stems from the complexity of the industry, said council members. “We’ve taken an industry that’s very simple and created something that’s very complex and very difficult,” was one statement that resonated.

Pour volatile price rises on top of this complexity and inconsistent customer service and you get a “toxic” combination for trust, council members agreed. This is even more apparent when utilities are compared with other sectors, something the council said should happen more.

The representatives from the energy companies – big and small – took some of the blame for this situation, but they said Ofgem also had to carry the can, especially because of the prescriptive nature of regulation and terms and conditions that currently exist.

Customers were largely unaware of the difficulty posed by regulation, and for the most part don’t care. Attendees agreed that it should be easier to do the right thing by customers without having to navigate lengthy mandated processes.

One solution would be to work towards the idea of there being “no wrong door” for customers when they contact their utilities. This would require the collaboration of all the energy companies – including networks – to create a system whereby a single call, to any industry player, would lead to a customer problem being resolved.

 However, the council also recognised that such collaboration, particularly among the big suppliers, could lead to accusations of anti-competitive behaviour.

Rebuilding trust with consumers will not happen overnight, but the council believes it can be done. Collaboration, not only from within the sector, but pan-utility and with other sectors and regulators, is essential.

All stakeholders in the industry’s reputation have a responsibility to break down the built-up complexities that bamboozle customers and destroy trust. They could return an industry that, at its core, is simple, transparent, and worthy of consumer confidence.

The Utility Week-WNS Trust Council

Chronically  low levels of trust in utilities is a dominant industry issue.

In energy, the CMA’s market-wide investigation, and proposed remedies, have failed to restore faith in the ability of a competitive market to deliver essential services in a fair and transparent way. Meanwhile, water companies are coming under increasing public scrutiny and being pushed to deliver better customer value.

This central industry challenge has inspired Utility Week, in association with WNS Global Services, to launch the Customer Trust Council.

The council will work with utilities to ask what has gone so badly wrong – and to find ways to move the sector forward.

Views from the table:

Ian Belfield, senior vice president – utilities, WNS

“There is a lot of complexity in the whole switching environment. Lots of people struggle to understand which is the cheapest tariff for them. Simplicity is the key to encourage more customers to engage with the switching process.”

Jane Taylor, head of customer service, Anglian Water

“Trust is not just about pricing – look at the supermarkets where it is based on price and service.”

Paul Spence, director of corporate strategy, EDF Energy

“Energy suppliers compete fiercely. There is always a risk industry-wide action is misinterpreted. We can each innovate to serve customers better and build trust. Working together is more complex.”

Matt Rudling, director – customer services, UK Power Networks

“Whatever the service, the transition for customers to get the information they need should be seamless and invisible. Collaboration to ensure customers are not passed around and get what they need would build trust.”

Victoria MacGregor, director of energy, Citizens Advice

“The customer does not care who they speak to. They have a problem and want it fixed. The sector should work on the principle that there is no wrong door to get things solved.”

Andy Eadle, head of customer services, First Utility

“Problems can take longer to fix in energy than many industries because of the back-end complexity. But customers don’t understand that – nor should they.”

Discussion points

1.    Regulator input
Utilities want to work with the regulators, rather than battle against them. Communication is key.

2.    Get politicians on side
Setting out a vision to improve trust and customer service should deflect attacks from MPs.

3.    Clarity is key
Remove the jargon on bills.

4.    Engage and educate consumers
The more informed customers are, the greater their understanding of the sector, and what it is doing for them. Achieving this will help to remove some of the myths that have been built up.

5.    ‘No wrong door’
Calls should pass seamlessly to the right department or company, without the need for multiple calls or explanations from customers.