subject: Building Credibility And Trust In Utility Services [print this page] Consumers don't like surprisesConsumers don't like surprises. They also don't like price increases. Unless they see value, consumers simply don't understand paying more for products or services, including water.
It is a commonly held belief that because government controlled utilities don't have profit motives, there is no upward price-pressure on the services these utilities provide After all, what motive would a government unit have to increase fees? Water Rate Consultants, who are generally charged with maintaining rate structures agreeable to consumers, advise utility clients to be prepared for events that would cause major rate increases.
Water providers and other public utilities frequently confront a lack of public trust when rate increases come up for discussion. Governmentally controlled utilities in particular have to overcome this lack of trust to ensure that future customers have access to reasonably priced utility and water services.
The public perceives that much of government or public spending is wasteful. If there have been issues of real fraud, waste, and abuse in the past, then the public may have valid trust issues. Usually, though. the perception that rates and fees are being misappropriated or even just poorly spent is just that: perception.
Solving the trust problem is a challenge. However, there are several tools that managers can use to win the battle. In the end, service providers must earn the trust of its customers and in some cases, regain that trust.
There have emerged four primary tools to establish trust that have been used by Water Rate Consultants with great success. These are: Planning Communication Execution Repeat process
The public must understand that managers constantly anticipate high cost contingencies such as plant replacement, system and equipment failures and major infrastructure costs. Risk assessments can ascertain a relative likelihood of failure for a given part of a particular system and replacement plans should address these possibilities.
The 'Art of Communication' is frequently lost on many utility managers. Customer expectations must be managed by an ongoing flow of data and information with the objective of preventing consumer 'surprises.' When an old water pipe breaks and needs to be replaced, it is an expected occurrence. When a major facility fails and the utility asks consumers to bear the cost of replacement, consumers are sure to ask why the utility didn't plan more carefully.
The public must believe that the utility managers execute plans diligently and decisively. Customers who believe that those who are in charge actually know what they're doing are more likely to support the financial needs of the utility. Building confidence is key. Avoiding surprises is perhaps the best way to re-build an organization's credibility.
Continuously repeating the "Plan, Communicate and Execute" strategy is simple in concept but more difficult to perform in reality. Other concerns and priorities can derail the process, but utility managers must continually repeat the process to ensure that they have contingency plans and replacement plans in place to manage any situation. This builds consumer confidence in the provider's ability and - above all - reduces the risk of any surprise rate increases.
