Filling the void of occupancy data

Data consultancy firm Sagacity has urged water companies to tighten the gaps in their data to avoid regulatory penalties, manage leakage and consumption. Chief executive and founder Anita Dougall speaks to Utility Week about how the company can reduce the amount of time companies spend knocking on doors.

Government statistics show there are around 648,000 vacant properties in the UK but Sagacity says the water industry is registering a significantly higher number.

What is a void property and why do they cause problems?

Void properties are those that a company has incomplete data on the occupants. This could be because people moved in or out and didn’t update the supplier, but also where the property may have changed without the supplier being informed. There are around 3,000 postcodes changed or updated each month for new builds, conversions, demolitions.

They are a major problem for utility companies that is driven by the nature of the industry. Customers move into properties and are using the water or energy supply without having to inform the supplier or provide occupancy details. This means companies don’t always know who is using their service.

Water companies have millions of customers, so establishing who is occupying a void site and not being billed presents a huge data challenge. Going a step further to identify which customers are eligible for support and need to be moved onto a different tariff is even more complex. Most water companies do not have the data maturity to handle this, which is understandable, as data is not their core business.

What happens if a company doesn’t stay on top of occupancy details?

Water companies have targets of between two and five per cent permitted to be void, so occupancy data needs to be actively managed. Utilities are subject to regulatory fines that run into hundreds of millions of pounds if the permitted voids are exceeded. Companies are getting better at using data. The customer experience can be severely impacted if bills are delayed, which can lead to affordability issues if householders receive a backlogged bill. Due to coronavirus it’s especially important for companies to be aware of vulnerability and affordability issues – especially if these could affect credit ratings. PR19 put more of a focus on direct customer feedback than ever before so improving billpayer experience is essential.

There are operational costs associated with having to re-bill properties or attempting to collect from empty households as well as people who are eligible for financial support not receiving it.

How can the gaps be filled?

We look at different data sets and assess it to avoid providing incorrect or outdated information. We pass that information to companies after we’ve removed false positives or anything that could cause complaints. That might be from people who say they never provided information and are unhappy about it being used by the water company. All water companies are allowed to use data because of the nature of the industry so there shouldn’t be data protection issues.

What are the biggest challenges to filling the voids?

Flats. They throw up a lot of issues to know who lives in different properties; identifying the bill payer or responsible person if there are multiple occupants or in short-term lets; also property conversions that result in different number of people living on a site.

How can the data be used by suppliers?

Knowing about occupancy is essential. The information allows companies to track usage and understand consumption patterns.

What do companies need to be aware of?

Utility companies need to know the occupancy but also if those people are financially or otherwise vulnerable. Assessing that really affects the customer experience. Customers are often not comfortable talking about vulnerability or financial difficulties but there is plenty we can do to identify those who need help and get them on the right payment plan or tariff.

Companies offer a range of tariffs but these often rely on the customer contacting the company. It’s extra important with coronavirus and furlough schemes to be mindful of emerging vulnerability.