In April 2017, the UK's water retail market opened for business - the single biggest change to the water sector since privatisation.
This development allowed businesses, charities and public sector organisations to shop around for the best deal. However, like any industry, this change hasn’t been without its sticking points; here, Patrick Randall, head of product at Everflow Tech, discusses how retailers can harness technology to their advantage. Our CEO, Josh Gill, set up independent retailer Everflow Water in 2015. Everflow Tech is his response to the difficulties it faced. Quotations could take up to a week to produce, billing software had to be manually updated and brokers were unable to manage the complete customer journey in one place – all of which took time, cost money and allowed for human error. The more complexity that was involved in billing or quoting, the more contact end customers needed to have with their retailers, pushing up the cost to serve for every SPID. This meant retailers – ourselves included – found themselves in a situation where profits were simply eaten up by service costs. We also note that it can traditionally be hard for retailers to stay on top of balancing what they are charging their customers with what they are being charged by the market. It was these issues that Josh and his (at the time) small team wanted to ameliorate, creating their own technology in the absence of anything else. This technology evolved into our award-winning retail sales, billing and customer management platform for the water retail market, and Everflow Tech was launched as a standalone venture in 2018, selling the software externally for other water retailers and their customers to benefit from. What retailers want As a relatively new entrant to the world of utilities competition, the water market could be seen to be lagging behind, particularly when it comes to innovation. In fact, as recently as 2019, Ofwat said it expected the industry to be making technological advances and to be working with a culture of innovation. And with cost-savings for consumers traditionally lower than for other utilities, retailers need to be offering something more. What’s more, consumers have had a taste of the power of technology, and they’ve come to expect nothing less from retailers across the board. Another key issue is rising levels of arrears, which are likely to increase bad debt beyond margins that retailers originally allowed for when the market was created. In such a low-margin industry, there is a limit to the amount of debt retailers can take on, especially as recovering costs can be a very slow process. Ofwat has signalled that this issue could be addressed as early as this year, with a mechanism for recovering bad debt to be established during 2021/22. The market needs simple solutions to better serve the end user, and we were perfectly placed to develop those solutions. Our software is designed for the water retail market, by the water retail market. As well as simple billing, clear-to-understand workflows, and a revenue assurance system to allow retailers to quickly compare market charges, Everflow has also introduced a complete debt solution, allowing missed payment dates to drive late payment charges and escalations automatically. Retailers are able to design and put out their own bill and quotes, tailoring customer journey and experience – whatever the circumstances. What does the future hold? Automation is key to any industry; we’re heading into an age of driverless cars and smart homes, and we need to catch up. The Internet of Things – a network of physical objects connected to each other – means human error (and effort) can effectively be removed from many everyday tasks, which goes for meter readings too. However the water market is still not leveraging previously emerged technology in the form of smart meters to provide accurate billing. Consumers are also becoming more empowered, both to ask for information and change their preferences if they don’t like what they learn. Retailers need to be armed with this information now – and, at Everflow Tech, we’re putting that information at their fingertips. Our strong bond with Everflow Water, along with other key customers, means we have a direct interest in making sure our systems serve the water market in the best way they can. For us, the goal is to make sure retailers on our platform can grow as much as possible, leaving behind laborious daily processes to focus on strategic growth and, most importantly, helping their customers.
