Household customer research into retail competition

The survey will cover the 16 water companies in England and is scheduled for completion by 29 July 2016. Each of the water companies is different but they broadly fall into two categories. - Although we will be reviewing the past research on household customer views on competition, we expect the contractor to add their own knowledge and experience to this analysis. - The design of the deliberative and quantitative research will need to be developed with the Ofwat team. There may also be engagement with other organisations and their contractors in order to ensure the research reflects a wider range of views, in particular CCWater, the Institute of Customer Service and Which?. This is to help ensure that this research dovetails with others rather than having unnecessary duplication. Approach, scripts and results may need to be shared with other organisations. - The delivery of the research may be sub-contracted. We would anticipate that representatives of Ofwat and other stakeholders may be invited to observe some of the customer focus groups. - There are a number of ways of providing choice for customers and by implication household retail competition. We will need to discuss with customers in language they can engage with what types of choice they could envisage, what benefits and risks they perceive. Of particular interest will be whether the existence of choice is important to them, irrespective of whether they choose to switch between retailers if this opt...the impact on different customer groups. Therefore we anticipate that segmentation in both focus groups and surveys is likely to be required (for instance in terms of affordability and vulnerability). - The study covers England and not Wales or Scotland. There will need to be a range of geographic coverage, in particular for qualitative surveys. - Comparative data may need to be presented to customers and the contractor may need to make links to those best placed to analyse it. Examples would include comparisons of customer service between different retailers, including utilities, such as those produced by the Institute of Customer Service and evidence of customers switching behaviour and barriers to choice in utility markets that may be available from organisations such as Which? - The delivery of this research should have regard to Ofwat's principles for effective customer engagement and research that are set out, for instance in the recent Water 2020 consultation. - A supporting research approach suitable for publication with the draft report in June should be expected. Time is likely to be necessary for internal presentations within Ofwat and potentially with key stakeholders during May. - Ofwat are likely to establish a customer voice forum to allow for virtual open discussions with customer representatives. We envisage that this forum could form part of the deliberative research with stakeholders on the costs and benefits of household retail competition.