Utility Week in partnership with Tata Consultancy Services surveyed incumbent water companies on the retail competition proposals contained in the Water Bill; their intentions in the competitive market; and what they are doing now to prepare.
Taken as a whole, firms said retaining existing customers was the number one priority,
followed by building/reinforcing their local brand – a defensive stance, focused on protecting current market share first and foremost.
Companies also said they are planning to differentiate themselves in the competitive market through service rather than price propositions. There was near universal agreement from the industry that it would offer tailored billing and payment arrangements; water auditing and efficiency advice services; and dedicated account management as value-added services for business customers.
Respondents showed considerable confidence in the ability of their existing systems and processes to at least partially cope with the demands of the new competitive market: only 12 per cent said their billing system would have to be entirely replaced , while 15 per cent said their CRM solution definitely couldn’t handle the enhanced customer service functions competition will demand.
That said, the industry expected retail competition to swell the demand for staff in a wide variety of areas, including sales and marketing, leakage/efficiency services, key account management, meter services, billing/payment handling, customer service and research and development. There was a clear bias towards employing these additional staff directly rather than contracting the extra workload out.
While there was evidence of acceptance across the board that retail competition is an approaching reality, Tata Consultancy Services identified the industry was divided in terms of response. There are market leaders who will aggressively acquire customers; those who will selectively acquire customers; those who will focus on retaining the customers they already have; and those who will do nothing and see how the market develops.
In terms of the policy framework, only a fifth felt this was robust, although there was more confidence the market would open on time in April 2017. Respondents were in broad agreement that big businesses would be active switchers; only a quarter said the same would be true of SMEs.
Few had faith households would benefit from retail market opening for businesses. However, three-quarters agreed companies should have the option to withdraw from the retail market altogether to focus on their wholesale businesses.
To learn more about TCS’ solutions for the water industry and access a form to download the full report, visit:
http://info.tcs.com/Water.html