Stakeholder Engagement - Your Future Energy Network

33 Pages·2013·1.98 MB·English

Scottish and Southern Energy Power Distribution: RIIO -ED1 Stakeholder Engagement Programme
MAY 2013
SSEPD Stakeholder Engagement Programme
Quality Assuring Stakeholder Engagement Process and Outputs
May 2013
1
Scottish and Southern Energy Power Distribution: RIIO -ED1 Stakeholder Engagement Programme
CONTENTS
Executive Summary.................................................................................................................................3
1. Background to this Review..............................................................................................................6
1.1 Terms of Reference...................................................................................................................6
1.2 Stakeholder Engagement Activities.......................................................................................6
1.3 Contextual and Operational Constraints...............................................................................7
2. Review of Customer and Stakeholder Activity..............................................................................8
2.1 Street and Telephone Survey..................................................................................................8
2.1.1 Survey Method......................................................................................................................8
2.1.2 Comments on SSEPD’s Interpretation of the Survey Findings and Business Response 8
2.2 SSEPD’s First Consultation.......................................................................................................11
2.2.1 SSEPD’s First Consultation...................................................................................................11
2.3 Focus Groups and One-to-One Interviews..........................................................................14
2.4 Online Survey of Customers and Stakeholders....................................................................15
2.4.1 Survey Method....................................................................................................................15
2.4.2 Customer Service Theme...................................................................................................16
2.4.3 Innovation Theme...............................................................................................................16
2.4.4 Connections Theme...........................................................................................................17
2.4.5 Consultations and Engagement Theme..........................................................................17
2.5 Second Consultation..............................................................................................................18
2.6 Parliamentary Events..............................................................................................................20
2.7 Customer and Stakeholder Events........................................................................................22
2.7.1 SSEPD’s Reflections and Business Response....................................................................22
2.8 Individual Papers on Business Response..............................................................................24
2.8.1 Connections........................................................................................................................24
2.8.2 Social Obligations...............................................................................................................24
2.8.3 Customer Service................................................................................................................25
2.8.4 Environment.........................................................................................................................25
2.8.5 Safety....................................................................................................................................26
2.8.6 Reliability...............................................................................................................................26
2.9 Stakeholder Engagement Paper..................................................................................................27
2.9.1 Identifying Stakeholders.....................................................................................................27
2.9.2 Understanding its Relationships with Stakeholders.........................................................31
2.9.4 Informing Customers and Stakeholders...........................................................................32
2.9.5 Listening and Responding to Customers.........................................................................32
2.9.6 Being Accessible to Stakeholders.....................................................................................32
2.9.7 Principles of Stakeholder Engagement............................................................................32
2.9.8 Effectiveness of SSEPD’s Stakeholder Engagement Programme.................................32
2.10 Gap Analysis of SSEPD Engagement Activity against Engagement Activity by other DNOs..........33
2
Scottish and Southern Energy Power Distribution: RIIO -ED1 Stakeholder Engagement Programme
Executive Summary
Background to the Audit
In May 2013, Scottish and Southern Energy Power Distribution (SSEPD) appointed Social
Market Research (SMR) to conduct a quality review of SSEPD’s customer and stakeholder
engagement programme during the period 1 April 2012 to 31 March 2013. This review is
based on publications and papers supplied by SSEPD with SMR reviewing customer and
stakeholder feedback and SSEPD’s reflections on, and business response to, this
feedback.
Terms of Reference
There were a number of elements to this review:
§ Review the consistency between customer and stakeholder feedback and SSEPD’s
reflections on this feedback;
§ Review the consistency between customer and stakeholder feedback and SSEPD’s
business response;
§ Review the consistency of SSEPD customer and stakeholder engagement output
papers in relation to customer and stakeholder feedback; and,
§ Review SSEPD’s approach to customer and stakeholder engagement in terms of
scope of the consultation, comprehensiveness and inclusiveness.
What We Did
SMR reviewed all SSEPD publications relating to different elements of their stakeholder
engagement programme and assessed the level of consistency between the data
collected and SSEPD’s reflections and interpretations of the data as well as the correlation
between the data and SSEPD’s business response. We have also conducted a review of
the completeness and inclusiveness of the engagement programme set against SSEPD’s
stakeholder engagement policy.
What We Found
Based on the data provided SMR concludes:
Accuracy and Interpretation
§ SSEPD publications provide an accurate and concise overview of customer and
stakeholder opinion generated through its various stakeholder engagement
activities;
3
Scottish and Southern Energy Power Distribution: RIIO -ED1 Stakeholder Engagement Programme
§ SSEPD’s interpretation of the salient points raised by customers and
stakeholders is consistent with the data collected;
§ SSEPD’s business response is consistent with the data collected and SSEPD’s
interpretation of the data. Where there are minor inconsistencies these are
not material to the overall assessment or business response.
Scope, Comprehensiveness and Inclusiveness
§ The evidence from this review shows that SSEPD has engaged with all of its
customers and stakeholders identified within its overall stakeholder engagement
strategy / policy;
§ The customer and stakeholder process has benefited from using a mix of
qualitative and quantitative methodologies, with the outcomes both quantifying
opinion as well as providing customers and stakeholders with the opportunity to
provider a richer commentary on the issues and themes raised as part of the
stakeholder engagement process. This ‘triangulation’ of methods has produced
data with different textures to help SSEPD to further understand the customer /
stakeholder perspective;
§ Based on the publications reviewed, the methods used in the engagement process
have allowed customers and stakeholders to identify and explore the issues and
themes from their perspective, with SSEPD taking time to reflect on these issues and
themes and then providing customers and stakeholders with further opportunities
to deliberate on different options within SSEPD business response. This review
confirms that this ‘explore / deliberate’ or ‘co-creation’ methodology, has been
an important dimension to the engagement process, not only in terms of the data
generated but also in terms of helping SSEPD to strengthen its credibility and
relations with its customers and stakeholders;
§ As part of the process, and in line with its stakeholder engagement strategy, SSEPD
undertook an extensive customer / stakeholder mapping exercise to ensure that all
possible customer / stakeholder segments were identified and that the voice of
different groups was heard within the process. This is evidenced by the
consultation activities conducted in both the SHEPD and SEPD areas, with
particular focus on hearing the voice of domestic customers as well as those
domestic customers in areas where there have been high levels of unplanned
interruptions (e.g. a number of focus groups in Henley-on-Thames and the
Highlands and Islands). Furthermore, the engagement publications demonstrate
that the process has also engaged with customer representative organisations as
part of a process of tackling issues associated with SSEPD’s social obligations (e.g.
fuel poverty).
§ The evidence from the review shows that SSEPD has utilised a mix of quantitative
and qualitative methods throughout the engagement process including: surveys;
focus groups; one-one depth interviews; deliberative events; and, parliamentary
4
Scottish and Southern Energy Power Distribution: RIIO -ED1 Stakeholder Engagement Programme
events. Using a range of different engagement methods has helped facilitate
access to the engagement process by different customer and stakeholder
segments. Where key individuals and organisations were unable to attend focus
groups for example, they were offered alternatives (e.g. one-to-one interviews) to
ensure that their voice was heard;
§ SSEPD undertook a comparative study of the approach to stakeholder
engagement undertaken by other DNOs. This ‘gap analysis’ study concluded that
SSEPD has been comprehensive in the range of customers and stakeholders
consulted as well as the intensity of focus given to particular segments within its
customer and stakeholder population.
Overall Observations
In undertaking this review the key focus has been assessing the consistency between
what customers and stakeholders said during the stakeholder engagement process and
SSEPD’s response to this. Having reviewed SSEPD’s outputs from the process we are
satisfied that SSEPD’s interpretation and business response is consistent with what
stakeholder and customers said.
We are also satisfied that the stakeholder process has been transparent, inclusive and
comprehensive with all customers / stakeholders identified offered a variety of
opportunities and methods to have their voice heard. Furthermore, and as another
quality indicator, the evidence from those customers and stakeholders who participated
in the various engagement activities is overwhelmingly positive.
5
Scottish and Southern Energy Power Distribution: RIIO -ED1 Stakeholder Engagement Programme
1. Background to this Review
In the period 1 April 2012 to 31 March 2013 SSEPD engaged in a stakeholder engagement
programme aimed at integrating the voice of customers and other stakeholders into its
ongoing business planning processes including RIIO-ED1 for the period 1 April 2015 – 31
March 2023. This paper presents an independent review of SSEPD’s reflections of the data
collected as well as SSEPD’s interpretation of this data and its business response.
1.1 Terms of Reference
The Terms of Reference for the quality assurance review were specified as:
§ Review the consistency between customer and stakeholder feedback and SSEPD’s
reflections on this feedback;
§ Review the consistency between customer and stakeholder feedback and SSEPD’s
business response;
§ Review the consistency of SSEPD customer and stakeholder engagement output
papers in relation to customer and stakeholder feedback; and,
§ Review SSEPD’s approach to customer and stakeholder engagement in terms of
scope of the consultation, comprehensiveness and inclusiveness.
1.2 Stakeholder Engagement Activities
During the period April 2012 to March 2013 implemented a stakeholder engagement
programme based on the following elements:
Street and Telephone Survey(June - July 2012)
SSEPD conducted a survey of the general public, office workers and employees. The
survey was conducted in the SSEPD and SEPD areas with responses from more than 1000
respondents.
SSEPD’s First ConsultationPaper (September –November 2012)
SSEPD’s first consultation sought the views of customers and wider stakeholders around its
business activities over the period to 2023 and beyond. This consultation is based on a
survey of more than 2000 stakeholders. The survey was made available on SSEPD’s
websiteas well as promoted via social media and within both local and industry press.
Focus Groupsand One-to-One Interviews (November –December 2012)
In November and December 2012 a total of 13 focus groups were conducted with SSEPD
customers and stakeholders. In addition to the focus groups, one-to-one interviews were
also conducted with representatives of 4 consumer advocacy organisations and with 5
organisations representing environmentorganisations.
6
Scottish and Southern Energy Power Distribution: RIIO -ED1 Stakeholder Engagement Programme
Online Survey of Customers and Stakeholders (December 2012 – March 2013)
SSEPD hosted an online survey inviting the views of customers and stakeholders. Fieldwork
on the survey was conducted between 1 December 2012 and 31 March 2013. A total of
106 customers and stakeholders gave their views via this online survey.
SSEPD’s Second Consultation Paper (February – March 2013)
A total of 67 customers and stakeholders were consulted, with customers and
stakeholders invited to provide a commentary on SSEP’s business response to issues and
themes identified by customers and stakeholders in previous engagement activities such
as the focus groups and one-to-one interviews.
Parliamentary Events (March 2013)
In March 2013 SSEPD held two parliamentary events to engage with MSPs and MPs on
distribution and transmission networks in their areas and to consult them about SSEPD’s
future business plans for the electricity distribution network.
Customer / Stakeholder Events (March 2013)
In March 2013 SSEPD hosted two customer and stakeholder events. These events
addressed issues identified in previous engagement elements with the outcomes
informing SSEPD day-to-day business activities as well as RIIO-ED1.
Individual Papers on Business Response (March 2013)
(Connections; Social Obligations; Customer Service; Reliability; Safety; and Environment)
SSEPD has identified six business priorities and has produced a summary response to the
customer and stakeholder feedback relating to each: customer service; social
obligations; environment; connections; innovation; and, worst served customers. These
individual papers have been reviewed as part of this overall quality assurance process.
Stakeholder Engagement Paper (March 2013)
This paper sets out an overview of all stakeholder engagement activity conducted
between June 2012 and March 2013).
1.3 Contextual and Operational Constraints
In reviewing the quality of SSEPD engagement activities in supporting day-to-day business
planning and RIIO-ED1 it should be acknowledged that other DNOs were also consulting
in this period with SSEPD faced with the real challenge of providing a variety of
engagement activities to counteract consultation fatigue among the target audience.
The challenge was therefore to ensure access to the engagement process by providing
customers and stakeholders with a range of engagement options to express their views.
Furthermore, SSEPD had additional challenges associated with the geography of the
7
Scottish and Southern Energy Power Distribution: RIIO -ED1 Stakeholder Engagement Programme
SHEPD area, particularly in ensuring that the voice of geographically remote communities
was heard.
2. Review of Customer and Stakeholder Activity
This section of the report presents a review of the different stakeholder activities
conducted by SSEPD between 1 April 2012 and 31 March 2013.
2.1 Street and Telephone Survey
This section of the report reviews the outcomes from a street and telephone survey
conducted by SSEPD. The survey was targeted at customers connected to the SSEPD
distribution networks in both regions (SEPD and SHEPD). The responses are based on a
sample of more than 1000 customers.
2.1.1 SurveyMethod
This survey provided an opportunity for SSEPD generate customer and stakeholder opinion
in a structured format with the questions included in the survey reflecting the issues that
SSEPD will be challenged with during the RIIO-ED1 period. In terms of design, the survey
also provided SSEPD with a valuable opportunity to profile SSEPD as a listening
organisation within specific geographical areas as well as in different customer segments.
On both these points the evidence from this review suggests that both objectives were
met, with SSEPD generating feedback from members of the general public (domestic
customers), employees of businesses within SSEPD’s licensed areas, SSEPD staff and
customers who had experienced faults or had recently been connected to the network
(based on data supplied by SSEPD to Ofgem).
On reflection however, and given the roll out of other consultation activities and the value
of hindsight, it is apparent that the survey process itself could be strengthened further
particularly in terms of more rigorous sampling, as well as a greater level of customer and
stakeholder segmentation at the analysis stage. Nevertheless, the survey findings did
provide SSEPD with a measure of customer sentiment, as well as being a first step on
building the engagement relationship with different customer and stakeholder segments
in both its licensed areas.
2.1.2 Comments on SSEPD’s Interpretation of the Survey Findings and Business Response
In the following paragraphs we comment on the findings from the surveys and the
business response. However, at a general level it is noted:
§ The importance and acceptability scales quoted for questions 2 and 3 in the ‘Have
Your Say’ published document (0-10) are different from those included in the
questionnaire (1-10);
§ The Net Promoter Score methodology does not fit comfortably with some of the topics
of interest such as question 4 on customer service. Using the analysis methodology
applied within the NPS relegates particular forms of communication as ‘detractors’
which makes the interpretation of the results problematic. Using the NPS, in this
instance, undervalues the different methods of communication, with the published
8
Scottish and Southern Energy Power Distribution: RIIO -ED1 Stakeholder Engagement Programme
document saying that other than speaking to a member of staff on the telephone
‘the other methods are detractors’ (i.e. email, text, online etc]. The other methods of
communication will be important to different groups of customers but unless they
achieve at least 70% on NPS they will be classified as ‘detractors’.
§ The survey results do not present an overview of any differences between different
customer groups (e.g. do the views of older people differ from other age groups or do
the views of those in the different license areas differ);
§ In reporting the NPS the thresholds of what is acceptable, important or agreeable is
arbitrary (i.e. what does a 6 or 7 actualmean on each of these scales).
We have reviewed each of the questions and listed our response below. At an overall
level we are satisfied that SSEPD’s interpretation of the survey findings and business
response is consistent with the survey findings.
Q1 Were you aware of the different roles performed by distribution network operators and energy
suppliers?
Business response consistent with survey response.
Q2 With regard to how we manage our business, how important to you is?
Q2a Safety of the public and our staff? (1 low importance and 10 highly important)
Q2b Reliability of supply? (1 low importance and 10 highly important)
Q2c Customer Service? (1 low importance and 10 highly important)
Q2d Environmental Impact? (1 low importance and 10 highly important)
Q2e Cost of electricity supply? (1 low importance and 10 highly important)
Q2f Other - please comment
Business response consistent with survey response.
Customer Service:
Q4 There are many ways in which customers can contact businesses like SEPD / SHEPD. How
acceptable are the following methods of communication to you? (All surveys)
Q4a Telephone call answered by a person (1 low acceptability and 10 highly acceptable)
Q4b Telephone call answered by recorded information (1 low acceptability and 10 highly
acceptable)
Q4c Text Message with text response (1 low acceptability and 10 highly acceptable)
Q4d Email with email response (1 low acceptability and 10 highly acceptable)
Q4e Online via our website including live web chat. (1 low acceptability and 10 highly
acceptable)
Q4f Social Media (e.g. Twitter or Facebook) with social media response (1 low acceptability
and 10 highly acceptable)
Q4g Postal with postal response. (1 low acceptability and 10 highly acceptable)
Q4h Other –please comment
Business response consistent with survey response but note comment on application of
NPS to this topic.
Quality of Supply and Reliability: (All surveys)
9
Scottish and Southern Energy Power Distribution: RIIO -ED1 Stakeholder Engagement Programme
Q5 Would you be prepared to pay more on your electricity billfor a more reliable supply?
Business response consistent with survey response.
Q6 Apart from regular progress reports, should we do more to assist customers affected by
lengthy power cuts, (where customers may be off for over 12 hours), and if so what should
we do?
Business response consistent with survey response.
Social Obligations: (All surveys)
Q7 Doyou believe we should assistcustomers who have difficulty paying to heat their homes
and, if so,what type of assistance should we provide?
Business response consistent with survey response.
Q8 How important is it that we support vulnerable customers such as the elderly or disabled?
Business response consistent with survey response.
Environment and Innovation: (All surveys)
Q11 How important is it that the UK as a wholeshould reduce its carbon emissions by making
more use of renewable sources of energy and other low carbon technologies? (1 low
importance and 10 highly important)
Business response consistent with survey response.
Q12 Doyou believe that weshould do more to improve the overall visual appearance of our
countryside by gradually replacing power lines with underground cable? (1 strongly
disagree and 10 strongly agree)
Business response consistent with survey response.
Q13 Doyou feel that weshould put more effort into reducing the overall environmental impact
of operating our electricity networks by, for example, reducing our carbon footprint?
(1 strongly disagree and 10 strongly agree)
Business response consistent with survey response.
Costs(All surveys)
Q14 When compared with some of your other living expenses (such as water/gas/telephone),
does your electricity bill provide value for money?
Business response consistent with survey response.
Q15 How willing are you to alter your pattern of electricity consumption to make more use of off-
peak periods, perhaps only using your washing machine and tumble drier overnight, if this
leads to cost savings on your electricity bill and/or environmental savings?
(1 low acceptability and 10 highlyacceptable)
10