Julia Evans - National Federation of Builders

ePolitix.com speaks to Julia Evans, chief executive of the NFB about the publication of the Utilities Survey 2008.

Question: Can you tell us a bit about the work of the NFB and how you support your members?

Julia Evans: The NFB is one of the UK's longest-established trade federations. We represent the interests of small and medium-sized businesses in the construction industry. Our members have access to specialised advice on employment, legal, tax and environmental issues at no additional cost.

They also qualify for subsidised training which is a great service and offers great value for money. The NFB represents its members' interests at a local, national and European level.

Question: The NFB has published the Utilities Survey 2008. Can you tell us a little bit about this report? What are the main objectives of this survey?

Julia Evans: This is the third time that the NFB has conducted this survey. Our members regularly report problems that they have with the utilities, and especially electricity, in gaining connections: poor customer service, long delays leading to financial losses and penalties.

The main objective was to quantify the extent of the problems being faced. Of the sites that filled out the survey, 88 per cent reported a problem with the connections service. The second objective was to find out if the connections service had improved since the NFB last conducted this survey in 2006.

Question: What are the biggest implications of poor utility services for your members?

Julia Evans: Cost. When the subcontractors used by the utility companies do not turn up on time or arrive on site not knowing what is required of them, there is a cost.

When a quotation takes months instead of weeks, there is a cost. When a site needs to be redesigned at short notice because cables that the utilities were unaware of prevent developers from laying new pipes, there is a cost.

One NFB member conservatively estimated that dealing with the utilities costs £100,000 a year in delays, and the cost of staff hired simply to micromanage the connections processes and to chase utilities. That's £100,000 per year for a small business - in this economic climate.

Bear in mind that all these costs must be borne by developers who are already operating on razor-thin margins.

Question: What are the benefits of having a single point of contacts for utilities?

Julia Evans: Accountability. One of our members recalled receiving a letter, confirming his order. The letter did not have a name, telephone number, email address or even a postal address, so if there was a problem with the order, it was up to our member to figure out how to make contact.

This is an extreme case but it illustrates the lengths people, customers, must go to reach the right person. Many of the problems reported stem from poor communication or a lack of communication. Having a single point of contact is a zero-cost way of eliminating many of these problems.

Question: Have independent connection providers improved competition in the market?

Julia Evans: That depends on what you mean by "improved competition". If you mean is there more choice, then yes. If you mean has the level of service improved, then, definitely, no. The problem, certainly with the electricity industry, is that they have affiliated companies providing a competitive service.

These companies have access to the network plans and can provide quotes more quickly and more competitively priced than independent providers who are not affiliated and are at a competitive disadvantage.

This is not the case with the gas industry which has opened its market up to greater competition and a more level playing field, resulting in a better service for the customer. That begs the question, why is the electricity industry so opposed to greater competition?

Question: Why do you think the current system of regulation has failed? How do you think policymakers can improve regulation in this area?

Julia Evans: The current system of regulation favours a more hands-off approach with voluntary service standards. Ofgem's service standards for utilities issuing quotes are measured in days, but waiting months for a quote is the norm for many of our members. Service levels that are mandatory give providers a clear target to aim for and also give customers a clear idea of what to expect.

Question: What are the main recommendations of this report for improving utility services? What improvements do you feel should be made?

Julia Evans: There needs to be greater transparency of cost. The regulator has made some headway in that some work carried out by electricity companies has a basic cost breakdown. The NFB would like to see this apply to all work. What is at issue here is that the electricity companies are passing on the cost of developing their network. Without a cost breakdown, there is no way of knowing whether their charges are reasonable or not.

Question: Do you have any final comments for ePolitix.com readers?

Julia Evans: Small and medium-sized companies make up over 90 per cent of UK businesses. Trade federations are immensely important to the economic landscape. They represent those companies that otherwise would not have a voice, providing a conduit between politicians and their members.