What does strengthening the consumer voice mean, and do you know the best way to do this? Are you reaching the end user?
RIIO-T1 and RIIO-GD1 price controls are due to end in March 2021 with RIIO-ED1 ending in March 2023. Ofgem recently launched the framework review for RIIO-2 which marks the beginning of the consultation process for setting price controls for the network companies running the gas and electricity transmission and distribution networks in the UK.
The publication of the open letter by Ofgem sets out the context for the development of the new price controls and seeks views from stakeholders on:
- the overarching objectives for RIIO-2
- the key principles that should be considered
- Ofgems approach to stakeholder engagement including timetables
The central principle to the framework review is ‘Giving consumers a stronger voice in setting outputs, shaping and assessing business plans.’ In this article we will explore what strengthening the consumer voice really means and how this can be achieved throughout the business planning process.
Consumer panel vs. constructive engagement – what is the end result?
With clear direction from Ofgem that consumer engagement needs to be core to RIIO-2, organisations now need to scope out the methods, tools and solutions to engage with customers and stakeholders.
The water sector adapted through business planning periods PR14 and PR19 to ensure they captured customer and stakeholder views through the use of customer forums. The aviation sector is well known for creating engagement channels through constructive engagement. Both are well established routes and there is shared learning that can be applied.
Customer forums and constructive engagement frameworks reach segments of customer representatives and stakeholders, but neither approach captures the views of the end user. This is where you need to work with an independent expert.
Explain has worked within the utilities sector for two decades, working in contracted partnerships with several of the UK’s biggest and most respected suppliers and distributors. These relationships have allowed Explain to develop an in-depth understanding of the importance of customer and stakeholder engagement, ensuring we engage with the end user to deliver insights that support and are aligned to business planning.
- Independent: You can be confident that our advice will be impartial, open and focused on delivering robust insight to support business planning throughout RIIO 2
- Bespoke solutions: Offering a range of research methodologies from the traditional to the innovative, always focussing on the best approach to deliver robust insights ensuring we engage with the end user
- Research that unlocks insight: Delivering a range of research solutions through a mix of methodologies to deliver insights including: business planning strategic reviews, stakeholder research, customer research, vulnerable customer research, brand awareness and perceptions and public consultation.
Our team at Explain Market Research are experts at putting in place research programmes identify and support business planning priorities within the utilities sector.
Contact us today to find out how we could support you and get in touch with our team to understand more about the solutions we can provide.