Water utilities have made a significant shift towards placing their customers at the heart of their operations. At its core, it means engaging with our customers to understand their preferences and incorporating this into our decisions.
Willingness to Pay studies are one of a number of techniques utilities are using to decision what investments to make and to demonstrate the customer’s input to this decision. These studies are particularly relevant for monopoly organisations where customers cannot choose their provider. While willingness to pay studies cannot answer all questions, the use of the technique has matured in recent years and water utilities should be considering them when determining their investments and pricing submissions. This document provides guidance for customer research and regulatory managers to ensure their studies are robust and the results credible to stakeholders and regulators.