Consumer Scotland chief calls on regulators to connect with customers

Good regulation should be based on a genuine understanding of consumers’ experiences and behaviours, Consumer Scotland’s chief executive Sam Ghibaldan has argued. In a recent speech, he said: “People should not simply be being told ‘here are your choices’ but asked 'what do you want’ and ‘how do you want us to provide it?’.

Ghibaldan went on to unpack his conclusion.

He said protecting consumers must involve understanding consumer diversity and disparate consumer experiences.

He went on to emphasise that consumers need a voice at the table when decisions are made. While other key interest groups – government, business and shareholders – are organised and have a defined role, consumers are diverse and dispersed. However there are good examples of successful practice. He pointed to the Customer Forum which negotiated with Scottish Water during its two most recent price reviews. “Crucially, [WICS] made clear it would be minded to agree Scottish Water’s business plan if it had first been agreed by the Forum, effectively empowering consumers. That had significant success, resulting in a 25 year Strategic Plan that was demonstrably aligned with consumer aspirations.”

The whole system, cross-market context must be considered. Ghibaldan offered for considertation the following questions from a consumer perspective: “How do we achieve a whole home approach to the Net Zero transition, joining up information and support across sectors? How do affordability schemes work in different markets, and which are effective? How is debt treated, and what opportunities are there for sharing good practice and making the system more coherent for consumers?”

Innovation, he said, was important – for instance: “In the water sector in Scotland the Customer Forum has had a hugely positive impact on the last two regulatory reviews. But for the next Strategic Review it may be time to innovate. Directly engaging consumers through a long-term deliberative process could bring a new dynamic to the review. Consumer Scotland will work with the Water Industry Commission for Scotland and Scottish Water to agree how consumers should be central to the next Strategic Review.”