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Projects: Projects for Investigator
Reference Number NIA_ENWL032
Title A Needs based segmentation of Low Income and Vulnerable Customers
Status Completed
Energy Categories Other Cross-Cutting Technologies or Research(Demographics) 100%;
Research Types Applied Research and Development 100%
Science and Technology Fields SOCIAL SCIENCES (Sociology) 100%
UKERC Cross Cutting Characterisation Sociological economical and environmental impact of energy (Consumer attitudes and behaviour) 100%
Principal Investigator Project Contact
Electricity North West Limited
Award Type Network Innovation Allowance
Funding Source Ofgem
Start Date 01 September 2022
End Date 31 March 2023
Duration ENA months
Total Grant Value £273,900
Industrial Sectors Power
Region North West
Programme Network Innovation Allowance
 
Investigators Principal Investigator Project Contact , Electricity North West Limited
Web Site https://smarter.energynetworks.org/projects/NIA_ENWL032
Objectives We propose a programme of extensive customer engagement with LIV customers:• Qualitative research to gain depth of understanding• Preparatory quantitative research with energy customers across GB• Expansion of Energy Systems Catapult (ESC) Living LabOur approach will provide DNOs with a better understanding of the needs of LIV customers that starts from their lived experience. It will also enable DNOs to develop more efficient, targeted services, resulting in:• Lower cost to serve• Higher Social Return on Investment• Readiness for future vulnerabilities and changing energy marketsBy starting from LIV customers personal point of view, we will be able to fully understand their needs and attitudes, identify the most appropriate forms of engagement and communication, and determine how best to support them in adopting net-zero activities. In addition, LIV customers recruited to this research will be invited to join ESCs Living Lab. With this expanded resource, ENOs will have the opportunity to optimise future low carbon technologies and service initiatives by validating them first with participants in the Living Lab and with the needs of LIV customers specifically in mind. The customer engagement will be conducted at a nationwide level, ensuring representation of all energy supply regions (DNOs are the focus, but GDNs will also be represented, allowing potential application of learnings to the Gas sector too):Research programmePart 1Development of a common lens or group of lenses through which DNOs and Ofgem should view the needs of LIV customers and assess the solutions developed to meet those needs. This first part of the research programme will pursue the following:• Establishment of a working group comprised of representatives from ENWL, Energy Systems Catapult (ESC) and Impact Research• Compilation of an industry-wide report that establishes the different lenses through which to view the range of LIV customers, their different needs and the existing and planned initiatives designed to meet them• Creation of a best practice guide that draws together learnings from the above report, common procedures for classifying LIV customers and their needs, a systematic way to establish realistic goals that DNOs pursue and practical, objective measures of success• Validation of these findings through a large-scale programme of primary research (Part 2)Part 2Nationally representative customer engagement with LIV customers:• Qualitative research to gain depth of understanding,o 10 online focus groups with customers in vulnerable circumstances across GBo 50 In-depth telephone interviews with customers in vulnerable circumstances, or customers that are unable to participate in online focus groups• Preparatory quantitative research with energy customers across GBo 20-minute online survey with 1,000 energy users, nationally representative across DNO regions o 25-minute telephone/face-to-face survey with 100 nationally representative customers in vulnerable circumstances, or customers that are unable to participate in online panel surveys• Expansion of Energy Systems Catapult (ESC) Living LabAlthough it will be beyond the scope of this current submission, there is likely to be a case for a subsequent, separate piece of work comprising large scale quantitative research to validate the findings.OutputsOur approach will provide DNOs with a better understanding of the needs of LIV customers that starts from their lived experience. It will also enable DNOs to develop more efficient, targeted services, resulting in:• Lower cost to serve• Higher Social Return on Investment• Readiness for future vulnerabilities and changing energy markets By providing DNOs with a better understanding of the expressed needs of LIV customers, the service and support they receive will be better targeted to meet their specific requirements and be delivered more consistently across the country. The outputs from this work will provide to DNOs a clear and comprehensive guide to the different states of vulnerability, the specific needs of customers in these vulnerable circumstances and evidence for over- and under-delivery of services to these customers.
Abstract Ofgem has set out that no one should be left behind in the pursuit of net- zero and innovation in the energy sector. However, the recent report from the RIIO-2 Challenge Group highlights the concern that the needs of low income and vulnerable (LIV) customers are not generally well understood by DNOs and not in a joined-up way.  We propose a programme of extensive customer engagement with LIV customers. By starting from LIV customers personal point of view, we will be able to fully understand their needs and attitudes, identify the most appropriate forms of engagement and communication, and determine how best to support them in adopting net-zero activities.
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Added to Database 14/10/22