The British Gas ‘We’re Listening’ Feedback Report 2012

ContentsIntroduction Page 3The British Gas Customer Board Page 4The British Gas ‘We’re Listening’ Feedback 2012 Page 62

IntroductionThe British Gas Customer Board is made of a group of nine customers, all passionate about the rights offellow consumers. Chaired by Ann Robinson, Head of Consumer Policies at Uswitch.com, they give a realvoice to the direction of British Gas. Through regular meetings with sponsor Ian Peters, Managing DirectorResidential Energy, they provide the business with real insight into the customers’ thoughts and will continueto hold British Gas accountable to the five recommendations made by the Customer Panel in 2010:1. Revolutionise customer service2. Simplify the bill3. Make pricing easier to follow4. Be open and proud – let customerssee the real British Gas5. Lead Britain to a low carbon futureDuring 2012 the group have continued to push for change and improvement under the fiverecommendations made from the 2010 ‘We’re Listening’ Customer Panel. So far this year, they’ve covereda wealth of topics including:• Ofgem Retail Market Review• Pay As You Go Energy• Home insurance• Smart metering• Trust within the industry• Simplifying the tariff portfolio• The future of energy – Shale Gas• The Green Deal• Community engagement strategy• The revised bill and annual statement design• Scottish Gas – Investing in employees,homes & communities3

The British Gas Customer BoardPeter Archibald(Windsor)‘Two things I value in particularare our mandate to monitor thecompany’s progress in meetingthe challenges we set in our2010 Customer Charter and ourfreedom to question British Gasand Centrica on all matters’.Charlie Casey(London)‘It is powerful to see what goeson behind the scenes and it isapparent that there is a desireto help customers. If we canhelp support improvementsfor the wider customer basethere will be a real sense ofsatisfaction’.Jennifer Grant(Surrey)‘I am often asked if I think mytime as a member of theCustomer Board is well spent.My answer is always that I wouldnot be doing it unless I couldsee positive changes takingplace to which we, theCustomer Board, havecontributed’.Alison Smith(Oxfordshire)‘What has impressed me mostabout Centrica and British Gas,during my time on the CustomerPanel and Board, has beenthe companies’ and staff’scommitment to ‘Looking afterour world’. It’s not just rhetoric,and it’s hugely satisfying to playa part in this’.Frank Barnett(Sutton)‘I’ve been taken back by theonsite visits to different areasand sites within the business andparticularly how British Gas’people tackle the ongoing issueswithin the industry. It’s clear tosee they truly value our opinionsas customers, which makes theexperience worthwhile’.Victor Effiom(London)‘All utilities face the challengeof keeping energy affordableand educating us the consumer,to use less of it. We are hereto scrutinise, listen and providecontext to help that improvementfor all customers. It says a greatdeal that British Gas values whatwe say, when we say it’.Des Morgan(Swindon)‘The Customer Board hasplayed an important roleinfluencing the decision makingprocess in British Gas and formy part, I am committed toraising levels of customer careand employee satisfactionbeyond the high standardsalready being achieved’.Patricia Kidds(Exeter)‘From the progress of our initialFeedback Report we are nowseeing some results of our hardwork actually available to thepublic. One example is the newbill which looks much better andis easier to read’.Sally Tattersall(Hampshire)‘I had high expectations ofBritish Gas’s reaction to theCustomer Panel charter and amglad to say that the Companyhas worked hard to address thevarious demands! I very muchenjoying keeping British Gas ontheir toes’.4

Customer Board ChairAnn RobinsonCustomer Board SponsorHead of Consumer Policy at uSwitch.comChair of Ascertiva and British Gas Customer Board ChairAnn accepted the role of British Gas Customer Panel Facilitator in 2010 and soon became theCustomer Panel’s Chair throughout 2010. Ann was initially sceptical of the programme. However,as Head of Consumer Policy at uSwitch.com, she accepted the role as she feels passionately thatthe energy industry should always hold the public’s best interest at heart and most importantly itshould strive to save customers money. Ann subsequently took on the role of Customer BoardChair in 2011 to continue to work with the group to progress and implement therecommendations set out in 2010. Ann feels the ‘Customer Board is a worthwhile body thatproduces a good insight into consumer perspectives which enables British Gas to develop theirpropositions with greater focus on the needs of consumers’.Ian PetersManaging Director, Energy British GasIan took his place as Customer Board Sponsor in 2011 after seeing the positive benefit theCustomer Panel had made to the business the previous year. Following the success of theCustomer Panel Ian set out to make sure British Gas continues to hold the customer at the heartof the company. ‘British Gas and customers are already seeing the benefit of having the ongoingopinions, insight and challenges of the Customer Board. This has been especially so with theredesign of the bill and our tariffs’.Feedback From The BusinessJane SaintCustomer Communications Change ManagerJane Saint has worked closely with both the Customer Panel and the Customer Board since 2010to progress the redesign of the British Gas bill with true customer insight. ‘Change in the energyindustry is both exciting and challenging, but at the same time we do need to remember whoit is we’re actually serving. For this reason, personally, I’ve found the Customer Board’s inputinvaluable both when responding to Government requests for bill messaging in 2011 and duringthe development of the new bill design this year’.Christine TateHead of Corporate ResponsibilityThe Customer Board members have provided valuable input into our Fuel Poverty Strategy;striving to extend our reach to help the most vulnerable of our customers and hard pressedmembers of the general public, through our British Gas Energy Trust Scheme, Debt AdviceCentres and other innovative Initiatives. They have also taken a keen interest in our CommunityEngagement and I look forward to sharing with them how we have taken their feedback onboard in our plans to help boost local Neighbourhoods.5

2. Simplify the bill• In April 2012 British Gas launched the new tariff comparison table on to Annual Statements.This proactively encourages customers to think about the tariff they’re on and shows them how theymight save money by switching to a new tariff• Following extensive customer research, this summer sees the launch of a newly designed bill. The focushas been shifted from a demand for money to a means of saving the customer money. Some changesinclude:• There has been a reduction in clutter and all jargon has been removed making it clear and simple forcustomers to understand• The front page gives a simple snapshot of the key information customers want to see• Energy saving information including things such as an explanation of what a kilowatt hour actually meansin day to day living terms• The introduction of a ‘Can I save some money?’ section where customers can see a range of relevantsuggestions and offers to help them save energy and money3. Make pricing easier to follow• British Gas has introduced a single unit rate for consumption alongside a fixed standing charge, broughttogether in a new ‘clear and simple’ tariff. This new approach removes the complex Tier 1 and Tier 2pricing system, making it simpler for customers to understand exactly what they are paying for, and whichcosts they can control. The new tariff structure also makes it easier for customers to compare British Gastariffs with those of other suppliers• The discount structure on the new ‘clear and simple’ product has been improved so customers now benefitfrom a larger and simpler Direct Debit discount. For example there is now a percentage discount off thewhole bill rather than the previous p/kWh discount off Tier 2. Customers can now also benefit from a £15Dual Fuel discount no matter how much energy is consumed• To make it easier for customers to compare tariffs British Gas has reduced their tariff portfolio down to justtwo tariff types, fixed and variable. The overall product range has also been reduced to 64. Be open and proud – let customers see the real British GasBritish Gas has changed, but not all customers are aware of what they are doing. The company needs toreconnect and be honest with customers.• April saw the Launch of ‘Free Swims for Britain’. British Gas offers both customers and non customers theopportunity to take free swims, lessons, aqua aerobics and more• British Gas continues to invest in educating the future generations on managing energy. The GenerationGreen schools programme, gives over 13,000 teachers access to free teaching resources, and 10,000schools the chance to win major sustainable technologies• British Gas has started a ‘Customer Closeness’ scheme which gives employees the opportunity to spendquality time with customers in order to improve customer service• During 2011 British Gas’s employees raised £470,280 for their charity of the year, Make-A-Wish. This madethe company the largest contributor to the charity that year• British Gas has launched ‘Get Involved’, a programme that supports employees to take two days’ paidworking time to volunteer to support their chosen organisation. The scheme also provides opportunitiesfor payroll giving and ‘matched funding’ for fundraising or volunteering activities. 3,311 employeesundertook 47,000 hours of volunteer time last year• British Gas is now the largest participant in the Duke of Edinburgh Award Scheme, with 834 employeeslearning new skills last year7

• The British Gas Energy Trust is a charity that contributes to the relief of poverty, with a particular focuson fuel poverty and helping those who are struggling to pay for their consumption of gas and electricity.British Gas is the sole funder of the Trust and to date they have donated a total of £43,600,000.The current commitment for 2011 and 2012 is £28 million5. Lead the company and customers to a low carbon and greener future• British Gas launched Remote Heating Control , a revolutionary Smart product that lets customers controltheir central heating remotely using either the internet or a mobile phone. Remote Heating Control is awireless thermostat control but unlike a traditional thermostat it also communicates wirelessly with a hubthat plugs into your home broadband router, so you can control your heating wherever you are• In April this year British Gas began rolling out the most advanced smart meters available into its customers’homes. The meters allow customers to compare their gas and electricity use by the hour, day, week andyear. They will also be able to set their own energy targets and a traffic light system will warn householdswhen they are using large amounts of electricity. So far over 400,000 have been installed in homes andbusinesses by British Gas• Thousands of households with smart meters will receive personalised energy advice helping them cut theirbills and save money. The advice, which is tailored to the individual circumstances of each household,is part of a trial being run by British Gas and will go out to up to 10,000 of its smart meter customers overthe next six months• British Gas will now use the Forest Stewardship Council (FSC) logo on all communication printed onrenewable resources• British Gas is now offering a range of EcoGen boilers – which generate their own electricity as well asheating your home and hot water• In January this year British Gas formed a partnership with Thames Water. Through the partnership they willwork together to promote energy-saving and water-saving products to Thames Water customers• Since 2008 the average British Gas customer is now using 22% less gas and 4% less electricity, as a resultof the company’s commitment to insulate its customers homes, provide free energy saving advice, andinstall efficient boilers• British Gas are one of the first organisations to sign up to an agreement with the Government to bea Green Deal provider from October 2012. Under Green Deal companies will cover the initial costs ofinstalling energy efficiency measures, such as cavity wall insulation, so consumers don’t have to pay forthem up front. Instead, payments will be taken through energy bills. As these payments will never bemore than the savings achieved by the new energy-saving measures, consumers should get the benefitof warmer, more efficient homes more affordably• British Gas has introduced an online tariff comparison tool that shows customers how much gas andelectricity they used over the year, set out in pounds and pence. The tool, which has so far been usedby over a million customers also allows customers to see:• A forecast of what they will spend if they remain on their existing tariff for another year• The cost savings available on other British Gas tariffs – including fixed and online options – based onestimated energy usage• Clear information about end dates and cancellation fees, to help ensure customers are on the right tarifffor them• British Gas has launched a new tariff and payment plan that will make running an electric vehicle cheaperand easier. The ‘Off-Peak Saver’ tariff has been designed with electric vehicle drivers in mind. By switchingto this new tariff, customers will be able to charge at a cheaper rate over a period of 20 hours• British Gas’ UK carbon intensity at the end of 2011 was below the 2012 and 2020 target. The carbonintensity dropped from to 277g CO2/kWh in 2010 to 200g CO2/kWh in 20118