Britain's utilities sector faces a significant amount of opposition. Brittany Golob investigates the impact this has on reputation and trust

Amidst a backdrop of a grumbling public, an arguing political populace and a groaning corporate and public infrastructure, the challenge and potential solution to utility companies' reputation woes may be to get the message heard.

A variety of groups hold interests in energy,thus, organisations in the sector must consistently communicate on multiple fronts. The primary challenge they face is in achieving cut-through of a message. Reputation derives from the connection between the brand and the trust, or lack thereof, that consumers have in energy providers.

Energy consumption is, evidently, an emotional issue as energy costs make up about 10% of the monthly domestic budget. As opposed to solutions favoured by retail or FMCG brands – such as advertising-driven marketing campaigns or price drops – scepticism and poor reputation forces utilities companies to respond with innovative communications strategies. Some reevaluate the ways in which consumers are billed – often the lone comms touchpoint with customers. Others communicate about sustainability and cost or about safety and policy.

What it boils down to, though, is trust; trust in the brand, trust in the promises that energy providers make and trust in the commitment of energy providers to CSR, customer service and safety. Chris Pratt, director of the Energy + Industrials group at H+K Strategies, says, “The major communications challenge for the large energy providers is one of trust. The big energy firms and their balance sheets are critical to making this investment to ensure the lights stay on, but this investment comes at a cost.” 

In the case of npower and British Gas, two of the Big Six providers, building trust required a branding solution.

npower enlisted brand strategist Lippincott to revamp its billing services. Lippincott found that consumers distrust of energy providers stems from cost, which is addressed most effectively through billing strategy. “Most do a pretty bad job of that regular interaction point with the customers,” George Bigden, senior associate at Lippincott, says. “If you get it right and help them with their bill, that's going to lead to trust." Lippincott revamped npower's billing strategy and, as Bigden says, fought for every bit of white space on the revamped bill. The result was a signposted navigable and transparent piece of branded communication that addresses some of the trust and reputation issues npower has been facing.

Similarly, British Gas pursued a brand- based solution. Working with Rufus Leonard, the energy provider sought a digital solution. British Gas found that the most coveted and most underrepresented audience was young professionals living in shared accommodation. This group, a digital savvy bunch to begin with, expressed frustration at their inability to track energy use and spending. Rufus Leonard designed a branded app, called ME, or Mobile Energy, that addressed those issues. Rena Varsani, head of copy at Rufus Leonard says, “Features like that show that we understand people’s situations and the challenges that they face. We take that little bit of pain away from them and make things easier.”

Varsani says British Gas hopes to change its reputation by better communicating its existing focus on stakeholder engagement, thus building a more substantial relationship.

“If is fair to say that across the industry as a whole, there is a wider interest in making sure that the message gets out to the right stakeholders,” Lesley McLeod, director of communications and public affairs at Energy UK, the industry’s leading trade body, says. The difficulty that arises in getting the message through to these stakeholders – be they customers, local authorities or other organisations – contributes to reputation. The wholesale cost of gas on the world market has increased and the raw materials and building blocks that allow electricity, gas and water to reach the consumer’s home is extraordinarily expensive. Often, however, that message fails to reach consumers’ ears. McLeod, however, says companies are “very aware of the need to communicate effectively.”

Energy providers do a number of things to achieve cut-through. Education is a popular option, as are safety and engagement and CSR.

Groundwork, a charity that has worked in theenergy sector for 30 years, partners with United Utilities, the water provider for the northwest, on local engagement projects through the United Futures programme. Graham Duxbury, development director at Groundwork, says local environmental or community improvement projects help United Utilities mitigate the disruption an infrastructure project can have on a community and help improve the company’s reputation within that locale. The projects – ranging from building playgrounds to instituting city-wide programmes like the Preston Guild Wheel – leave a lasting legacy in the community.

Water companies operate under different legislation than their energy or gas compatriots in that only one water provider is permitted to supply a certain area. Thus, companies cannot cut service to those who do not pay their bills, unlike electricity or gas providers. Engaging customers in understanding the work the water provider is doing is essential to building a relationship that ensures customers will not shirk their bills.

Duxbury says United Utilities’ infrastructure proejcts leave an invisible, underground legacy.

Ensuring the community receives the message that United Utilities is doing essential infrastructure work relies on visible legacy projects carried out by United Futures. “This delivers a qualitatively different degree of stakeholder engagement,” Duxbury says. “It’s always about trying to get businesses closer to their customers and this is a sure-fire way of getting as close to your customers as you possibly can.”

Internally, communications must better respond to the requirements of stakeholders as well as consumers. Corporate reporting can be on the forefront of change. SSE, for one, commissioned professional photography from an energy-sector- specialist photojournalist. It then ran a gravity- defying shot of a technician atop a wind turbine in full-bleed across the cover of its annual report, the first time it had used photography in such a way.

Stakeholders are often government agencies that play a role in the industry. This ranges from local authorities to Parliament alongside Ofgem and Ofwat, the industry’s regulators or bodies like the Health and Safety Executive who have an interest in the appropriate use of energy.

Communications with these groups suffers from the same challenge: messaging cut-through.

For Gas Safe, the charity that registers the UK’s gas-certified engineers, engaging stakeholders relies on both education and innovation. Acting on a contractual obligation with the Health and Safety Executive, Gas Safe sought to educate consumers about gas safety. Gas Safe ran a pilot programme in the northwest, with The Team, engaging people on gas safety in their homes. Kevin Mackenzie, director of The Team, says the project built trust and understanding by educating and “trying to take something which is relatively low engagement and make it emotionally engaging.”

The Silent Killer campaign aimed to effect behavioural change, Nick Terry, communications director at Gas Safe, says, “We’re talking about jolting people out of their comfort zone and getting them to do something and thats not an easy task.” Gas Safe also engaged with local stakeholders, like the Merseyside Fire and Rescue Service, in order to turn trusted local brands and individuals into advocates for gas safety. Mackenzie says the Silent Killer campaign will be a means through which to communicate and educate about gas safety in future. “It’s not just about the customer you have today, it’s about the customer you get tomorrow.”

Groundwork similarly educates and engages people on a long-term basis about water conservation and environmental issues. Duxbury says, “There are two things going on. One is that energy is a bigger percentage of your outgoing than it ever was before. Then, it is a deregulated market so there is quite intense competition and, over the years, people have become slightly hacked off by aggressive sales techniques. Energy providers don’t have any natural allies or champions, either. They only have other competitors. So it must be quite a difficult environment to operate in and to try and get cut-through for their message.”

As the industry becomes more regulated and prices increase, companies will feel the strain of a poor reputation even more than at present. The marketing and sales approach has failed. Initiatives like flatshare-friendly apps, local legacy programmes and awareness and education strategies can change the perception of the energy provider in question. Mackenzie adds, “The future is in how they can demonstrate value. The energy supplier that can demonstrate that they value me and my pound in my pocket.” The challenge remains, however, in communicating that value.