These are times of great change in the water industry and the word that will dominate the next twelve months is “competition” as the industry comes to terms with one of the biggest revolutions it has ever seen.
Behind the change are new rules which come into force in April and allow, for the first time, business customers of all sizes in England to choose their water service providers in areas including billing and customer services, although not the water supply itself.
The regulator Ofwat’s decision to open up the industry has led to the creation of a series of joint ventures to embrace the new way of working, one of which has been Water Plus.
Created a year ago, Water Plus was formed when Severn Trent Water and United Utilities secured permission from the Competition and Markets Authority to create a new company completely from scratch for the new water market.
At the company’s helm is Chief Executive Sue-Amies King, who regards her latest job as the “most exciting thing” she has done in a career that has seen her work across the utilities sectors in a series of senior roles, often tackling the challenges posed by increased competition.
“The thinking was that, in order to take advantage of the opportunities presented by competition we had to create something that had enough scale to enable us to compete on a national basis.
“We have recruited 350 people from the local area and transferred a further 70 from the two companies, which means that we have retained all that experience of the water industry but also brought in new people who have introduced fresh ways of thinking.
“I see competition as a real opportunity to offer something different for customers. We’ve created a very unique business, built around business customers. Our people have come from a range of sectors including retail and service sectors, which has allowed them to bring fresh new thinking to the way we service customers.”
Sue secured the chief executive’s job after a career which had already seen her work in roles which involved the opening up of the electricity and gas markets in the UK.
She joined United Utilities in June 2012 as Business Retail Director from Aviva Group plc, the UK’s largest insurer, where she was a Marketing Director in the Aviva UK Region. At Aviva, her work on customer strategy won several awards in the Financial Services Awards 2012/13.
Sue had, however, started her career in the Energy Sector where, as Head of Retail at Yorkshire Electricity, she led the company’s entry into the competitive electricity and gas markets.
She is now enjoying bringing those experiences to her role at Water Plus.
Sue said: “One of the benefits to customers is that we can compete nationally for our customers, providing them with a single supplier and a single bill, which reduces administration for them
“Competition gives the customer choice and with choice comes increased expectations. To succeed, we have to offer the very best customer experience.
“The bar has been raised and we have to respond to that, which means that we have to be agile, great at service and innovative in our approach to stay ahead of the game.
“To that end, we have designed the business with the customer in mind right from the start, which is why we have invested in Cloud-based technology which means that we can respond very quickly to changes in the market.”
Sue also stresses the company’s broad offer, as reflected in its name. Water Plus, which is based in Stoke-on-Trent, Staffordshire, provides a variety of services including billing, meter reading, account management and water efficiency advice for businesses of all sizes across the UK.
The chief executive said: “The thinking behind the name Water Plus was that we wanted to make the point that we are not just about water, that we can offer a flexible and complete service for our customers.
“It is early days, but I think that what we have achieved in just twelve months is impressive. We have created a business from scratch, blended new people with those who came from the water companies and set up new systems.
“Of course, the proof of the pudding will be when competition actually starts happening. At the moment, we have 400,000 customers who transferred from the water companies, but the test will be what happens over the next twelve months, when many more people start switching.
“I think it is too early at the moment to assess what impact competition will have.
“Water companies have built a strong sense of trust with customers, perhaps more than with the other utilities, and our responsibility is to respect that. We have to get this right. We have to provide a good service and be transparent.
”In terms of the future, I think it is too early to say if competition will be extended to take in residential water supplies. I think that everyone will watch to see how this change goes before any decisions like that are taken. It really is still early days.”
One thing is certain; the next twelve months will be among the most remarkable ever experienced for those working in the water sector.
Sue said: “Personally, it’s nice that, having worked in the electricity and gas sectors earlier in my career, I am now employed in the water sector. There is a sense that I have completed the trinity of the three main utilities.”
