Helping Severn Trent understand customers’ affordability challenges

National and global economic conditions have affected affordability for Severn Trent customers. The COVID-19 pandemic, rising inflation, and increasing energy prices have all contributed to the cost-of-living crisis. In 2021, the Consumer Council for Water estimated that 6% of households in the Severn Trent region were experiencing water poverty, yet only 2% were enrolled in support schemes. In light of this, Ofwat emphasised the importance of addressing the affordability challenge, making it a key component of the PR24 strategy. Consequently, it was deemed essential to understand and address the affordability challenges faced by Severn Trent customers, ensuring that bills remain affordable for everyone.

Approach

Qa employed a mixed-methods approach across four phases, engaging over 1,000 customers and 14 water affordability experts: the first two phases were qualitative and quantitative studies. Phase three involved ‘co-creation’ workshops, using insights from the initial phases to develop solutions addressing identified affordability challenges. Phase four, a longitudinal study, occurred six months later. Qa Research also compared these findings with the outcomes of PR19 to assess changes in customer affordability levels.

Outcome

Qa provided Severn Trent with a wide range of recommendations for designing new support schemes and enhancing existing ones for customers facing financial difficulties, based on their lived experiences. Severn Trent used our insights and recommendations to inform the affordability chapter of their PR24 Business Plan submission to Ofwat.

For more information contact:

Richard Bryan Managing Director
richard.bryan@qaresearch.co.uk
01904 632039

Photography – Joslyn Pickens on Pexels