SIM Survey 2017/18 Annual Report

Prepared for: Ofwat Prepared by: BMG Research

Slide 1 Objectives

• The overall objective of the research is to provide a robust comparable measure of consumers’ experience and satisfaction with the handling and resolution of a recent water or sewerage query by their supplier.

• Combined data for 2015-16 to 2018-19 will be used to support Ofwat’s decision on financial incentives in 2019.

Slide 2 Methodology

• For each water company taking part, a target was set of 200 telephone interviews per wave with customers who have had a water or sewerage query resolved in the previous week, equating to 800 interviews per Water Company per year.

• The following targets have been set for the different aspects of service: – 100 billing interviews and 100 operation interviews for Water only companies – 67 Billing interviews, 67 Clean operation interviews and 66 Waste interviews for water and sewerage companies • A slightly different approach is required for Bristol and Wessex, who share call handling for billing, but have separate call handling for operations. – The target number of interviews for the operations elements for Bristol and Wessex is as outlined above (i.e. 100 for Bristol as a Water only company, and 134, split equally between water and waste, for Wessex as a WaSC). – For billing, Water only companies have a target of 100, and WASCs have a target of 67 interviews. Consequently 167 billing interviews are undertaken on behalf of Bristol and Wessex (100 for Bristol and 67 for Wessex), and these are included for both of the companies.

• For the purpose of comparing overall satisfaction between companies, water and sewerage company (WASCs) data is weighted to 50% Billing, 25% Clean operations and 25% Waste operations. Water only company (WOC) data is weighted 50% Billing and 50% Clean operations. As a result, direct comparisons can be made between companies with regard to billing and operational results. – Q8 Overall satisfaction with the handling of the matter is the only question where data is weighted as direct comparisons between all companies is required.

• All surveys were administered using our in-house Computer Aided Telephone Interviewing (CATI) unit. Each individual water company’s survey was undertaken by multiple interviewers to prevent any possibility of interviewer bias.

Slide 3 Number of interviews achieved per company

Total 17/18 TOTAL 14, 973* Confidence levels 806 At the 95% confidence 810 level, these sample sizes 793 provide overall levels of 1,076 accuracy for individual Dee Valley Water 570 percentages of at least: 810 805 14,973 ± 0.79%; Water 814 1,216 ± 2.81%; South East Water 809 800 ± 3.46%; South Staffs Water 803 570 ± 4.10%. 792 Of the 14,305 interviews completed, 815 less than 0.5% were challenged by water companies for removal; of these, Sutton & East Surrey Water 791 15 interviews were removed 819 Water 815 813 1,216 816

*14,973 is the total number of observations reported as a result of the sampling approach taken for Bristol and Wessex billing. The total number of interviews achieved is 14,305 with an associated confidence interval of ± 0.81%

Slide 4 Satisfaction – Q8 weighted*

Customers were significantly more satisfied with the handling of Billing enquiries than either Clean or Waste enquiries.

Those who contacted their water company online were significantly more likely to be satisfied with the handling of their matter than any other method of contact.

Satisfaction was highest in Quarter 3 of the SIM, significantly so compared to Quarter 1.

4.49 4.49 4.41 4.43 4.40 4.37 4.38 4.38 4.40 4.39 4.40

4.26 4.23 4.12

*For the purpose of comparing overall satisfaction between companies, water and sewerage company (WASCs) data is weighted to 50% Billing, 25% Clean operations and 25% Waste operations. Water only company (WOC) data is weighted 50% Billing and 50% Clean operations. As a result, direct comparisons can be made between companies with regard to billing and operational results. Slide 5 Satisfaction – Q8 weighted*

Customers who considered their matter resolved were significantly more likely to be satisfied with the way their enquiry was handled as were those who did not consider their enquiry to be a complaint.

The length of time that had elapsed between the initial contact and the data of interview had no significant impact on satisfaction.

4.67 4.55 4.40 4.40 4.38 4.41

3.48 3.07

Total (14,973) Resolved Unresolved Complaint No complaint 8-14 lapsed 15-21 lapsed More than 21 (12,031) (2,544) (2,250) (12,723) days (4,534) days (4,295) lapsed days (6,144)

*For the purpose of comparing overall satisfaction between companies, water and sewerage company (WASCs) data is weighted to 50% Billing, 25% Clean operations and 25% Waste operations. Water only company (WOC) data is weighted 50% Billing and 50% Clean operations. As a result, direct comparisons can be made between companies with regard to billing and operational results. Slide 6 Satisfaction – Q8 weighted*

Satisfaction with query handling has significantly improved across the industry since 2016/17. This increase is driven by the significant improvements in satisfaction with the handling of Waste queries.

4.47 4.49 4.40 4.37 4.39 4.30 4.24 4.26

2016/17 2017/18 2016/17 2017/18 2016/17 2017/18 2016/17 2017/18 Overall Overall Billing Billing Clean Clean Waste Waste (15,196) (14,973) (6,686) (6,640) (5,818) (5,650) (2,692) (2,683)

*For the purpose of comparing overall satisfaction between companies, water and sewerage company (WASCs) data is weighted to 50% Billing, 25% Clean operations and 25% Waste operations. Water only company (WOC) data is weighted 50% Billing and 50% Clean operations. As a result, direct comparisons can be made between companies with regard to billing and operational results. Slide 7 Satisfaction – Q8 weighted*

Anglian Water achieved the highest overall satisfaction score in 2017/18. WASCs made up four of the top five companies in 2017/18. Rank Anglian 11 4.52 Wessex 12 4.51 United Utilities 33 4.49 Northumbrian 44 4.48 Portsmouth 44 4.48 Welsh 66 4.47 Bournemouth 67 4.46 Dee Valley 68 4.45 South Staffs 99 4.44 South West 1010 4.42 Yorkshire 1110 4.42 11 Average: Bristol 12 4.38 4.40 13 South East 12 4.38 14 Severn Trent 14 4.33 15 WOC Southern 1615 4.32 Affinity 16 4.26 17 WASC Thames 1817 4.17 Sutton & East Surrey 18 4.16 *For the purpose of comparing overall satisfaction between companies, water and sewerage company (WASCs) data is weighted to 50% Billing, 25% Clean operations and 25% Waste operations. Water only company (WOC) data is weighted 50% Billing and 50% Clean operations. As a result, direct comparisons can be made between companies with regard to billing and operational results. Slide 8 Satisfaction – Q8 weighted

Company Q8 Confidence Interval Rank Significant Difference Anglian 4.52 ±0.07 1 Significantly above industry average Wessex 4.51 ±0.05 2 Significantly above industry average United Utilities 4.49 ±0.07 3 Significantly above industry average Northumbrian 4.48 ±0.07 4 Portsmouth 4.48 ±0.07 4 Welsh 4.47 ±0.07 6 Bournemouth 4.46 ±0.07 7 Dee Valley 4.45 ±0.08 8 South Staffs 4.44 ±0.07 9 South West 4.42 ±0.07 10 Yorkshire 4.42 ±0.08 10 Industry average 4.40 ±0.02 Bristol 4.38 ±0.06 12 South East 4.38 ±0.07 12 Severn Trent 4.33 ±0.08 14 Southern 4.32 ±0.08 15 Affinity 4.26 ±0.08 16 Significantly below industry average Thames 4.17 ±0.08 17 Significantly below industry average Sutton & East Surrey 4.16 ±0.09 18 Significantly below industry average *For the purpose of comparing overall satisfaction between companies, water and sewerage company (WASCs) data is weighted to 50% Billing, 25% Clean operations and 25% Waste operations. Water only company (WOC) data is weighted 50% Billing and 50% Clean operations. As a result, direct comparisons can be made between companies with regard to billing and operational results. Slide 9 Resolutions - unweighted

Overall, four in five (80%) customers considered the matter they contacted about fully resolved. Billing enquiries were significantly more likely to be resolved than Clean or Waste enquiries.

WOC customers were significantly more likely to consider the matter they contact about resolved

85% 82% 82% 80% 79% 80% 77% 78% 75%

Total WASC WOC Billing Clean Waste 8-14 15-21 More than (14,973) (8,520) (6,453) (6,640) (5,650) (2,683) lapsed lapsed 21 lapsed days days days (4,534) (4,295) (6,144)

Slide 10 Proportion of resolved contacts - by company - unweighted Portsmouth Water had the highest proportion of customers who felt their query was resolved. Thames Water had the lowest proportion of resolved contacts.

Portsmouth 84% Dee Valley 84% Anglian 84% South Staffs 83% South East 83% Welsh 82% Bournemouth 82% Average: Wessex 81% 80% South West 81% Bristol 81% Southern 80% Yorkshire 79% United Utilities 79% Affinity 79% Northumbrian 78% WOC Sutton/East Surrey 77% WASC Severn Trent 77% Thames 73%

Slide 11 Conclusions

• SIM results have improved significantly since 2016/17 overall and this is largely driven by the significant increase in the mean satisfaction score for Waste queries. Billing’s SIM score remains significantly higher than Clean or Waste. In the previous year, the SIM scores were very similar for WOCs and WASCs but this year the SIM score for WASCs is significantly higher than that of WOCs.

• Customers who contacted their water company online are significantly more likely to be satisfied with the handling of the matter than those who contacted their water company via the telephone.

• Four in five customers considered the matter they contact about to be resolved. This figure is significantly higher for Billing queries than Clean or Waste. Those who considered the matter to be resolved were significantly more likely to be satisfied than those who considered the matter to be unresolved.

Slide 12 • Market Research Society Company Partner • The provision of Market Research Services in accordance with ISO 20252:2012 • The provision of Market Research Services in accordance with ISO 9001:2008 • The International Standard for Information Security Management ISO 27001:2013 • Investors in People Standard - Certificate No. WMQC 0614 • Interviewer Quality Control Scheme (IQCS) Member Company • Registered under the Data Protection Act - Registration No. Z5081943 • A Fair Data organisation • Cyber Essentials certification

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