Running a retail business starts and ends with the customer. Every customer is important and it’s our job to give them the energy they need and the services they want. But to do that you have to listen to them; and in the first half of this year that’s what we’ve been doing.
Listening on prices
Our last financial year ended with us breaking new ground with the longest ever freeze on standard household energy prices. This was in response to a clear message from our customers, who told us they were worried about future price rises. We listened and took action.
We have seen wholesale prices come down in recent months, but this is a volatile global market and these make up just 46% of the bill with other costs also having an increasing impact. Take the ‘green levies’: these are around £100 and will be nearer £200 by 2020. If we can lower prices we will, but we need to work with the politicians to move some of these rising costs off the bill so that the good things they are used for can be funded in a way which is fair to all customers and is not regressive.
Customers agree with us on this and a recent poll we commissioned from YouGov found that two in five aren’t even aware they’re paying for these schemes, so we’ll keep campaigning on this issue.
The same poll also found that over 60% of customers think it’s unfair that they pay a different price for their energy depending on where they live. Earlier this year we set our our desire to change this and energy customers in the North of Scotland and in Wales voiced their concerns alongside us. That’s why we recently wrote to the Secretary of State Ed Davey calling for the government to consider introducing a new national pricing system. This would level out regional network costs so that suppliers can charge the same prices for all customers, no matter where they live.
I was therefore very encouraged to hear Ofgem Chief Executive Dermot Nolan and Energy Minister Matt Hancock agree during a recent Select Committee hearing that there was a case for national pricing and that it should be seriously considered. We’ll keep listening to customers and pushing for this and other reforms that are in their interests.
But it’s not just about headline-grabbing initiatives. At SSE we take responsibility for driving down costs for our customers where we can and giving them the best possible experience. We’re not resting on our laurels simply because we regularly come out top for customer service and complaint handling. We’re carrying out a comprehensive review of our own processes to continue to invest in award-winning customer service and eradicate the root cause of complaints or frustration. This is a win-win – customers will enjoy a better experience and it will reduce our costs.
Giving unique rewards
As well as doing the basics, we want to add value for our customers in new and innovative ways. So in the first six months of the year, we've really stepped up our efforts to give our loyal customers more through SSE Rewards. Through our sponsorship of the Glasgow 2014 Commonwealth Games, we were able to offer customers unique, money-can't buy experiences at the Games, as well as exclusive access to pre-sale tickets at the SSE Hydro in Glasgow and the SSE Arena, Wembley.
In the face of strong competition we think this gives customers a compelling reason to join and stay with SSE.
Engaging customers
We want to engage positively with our customers on many levels. We want to work with them on insulating their home, getting the most out of a smart meter and with energy-saving behaviour. This requires a new relationship with customers.
That’s where our new advertising campaign comes in. It encourages customers to look at energy through fresh eyes because, as the voiceover says, it's easy to forget that energy is pretty wonderful stuff. It enables our customers to do the things they are passionate about and it's one of the ways in which we are proud to make a difference to people's lives. We’ve had some great feedback from customers and employees alike and I think a million plus YouTube views speak for themselves.
With winter coming, I’m proud of the work we are doing in keeping costs down to keep prices frozen, to give customers what they want, and to engage them in new ways. But I’m even more proud of the thousands of SSE people who work hard every day to maintain our sector-leading customer service.