CorpComms Magazine

Ask any in-house communicator what additional skill they wish they possessed, and the chances are that the majority will declare a desire for a better understanding of the law. They want that legal knowledge that allows them to push back against a rising tide of super-cautious lawyers concerned that even saying sorry during a crisis is an admission of guilt.

Fiona Stark, director of corporate affairs at the UK's second largest power company E.ON, is one of the lucky ones. She began her professional life as a lawyer, specialising in property at a private practice in Birmingham. But the deregulation of the Central Electricity Generating Board prompted a change in direction.

She joined Powergen in 1989 prior to the privatisation of the electricity company. Working on the privatisation was, as Stark puts it, 'a baptism of fire'. It was unprecedented territory in the UK, and the legal team were under immense pressure to dot the Is and cross the Ts as they transferred the legal ownership of Powergen from the government to shareholders. Powergen ultimately floated on the FTSE 100 stock index, but delisted in 2002 when it was acquired by German power and gas company E.ON, when it was also rebranded.

She was part of the legal team that worked on a series of mergers and acquisitions that have transformed the business into the second biggest player in the UK market. As Stark herself concedes, with the exception of family law, there is little she hasn't done in the legal arena from customer litigation to contract law. Shortly after E.ON acquired Powergen, Stark was appointed general counsel, running a team of 16 in-house lawyers, and company secretary. Three years ago, she was appointed director of corporate affairs and retained her position as a member of the five-man E.ON UK board.

Moving roles

So, was it another huge baptism of fire leaping from law to corporate affairs? Stark claims not. The two teams, she says, worked well together before her appointment. 'I always say that having a legal background is valuable in this role,' she says. 'Communications and legal are good bedfellows.' It comes down to understanding risk. Sometimes all that is required is a 'degree of common sense', as Stark puts it, or the ability to play out potential scenarios, which is an essential quality for a good communications person. The role of a lawyer, on the other hand, 'is to manage risk'. They need to identify and mitigate all legal pitfalls on which communication strategies might trip. 'It is good training to have. You can analyse and play scenarios out,' says Stark.

The legal team still comes under Stark's remit. 'Legal is part of corporate affairs,' she explains. 'Their role is to consider energy policy, work with the Competition Commission, plan for legal and regulatory changes and consider strategy.' The role of E.ON's corporate communications team is complementary. 'They look to manage key stakeholder relationships and to try to shape the ongoing debate on energy policy,' says Stark, who has responsibility for a 90 strong team.

Energy companies have hit the headlines recently, and not always favourably. There has been widespread outcry over rising energy prices, and the growing inevitability that the only way is up. 'What we need to do during this time is to focus on our relationship with customers,' says Stark. 'Electricity is a commodity that people have to buy from us, but we need to demonstrate that we can produce it in a responsible and cost-effective way. And we need to change our relationship with customers.'

Transparency and openness are the key to improving customer relations, says Stark. As part of the process, E.ON UK created a 28,000 'Your Say' panel to provide customers with the opportunity to share their opinions on a range of energy-related issues and help shape the company's products and services.

Your say

The 'Your Say' panel reported that bills were hard to understand, that they were unclear and poorly laid out. 'We needed to make our bills simpler so that the pricing was more transparent,' says Stark. The new bills, which were designed in consultation with the panel and consumer group Which?, have all the relevant information up front. Customers know exactly how much energy they are using and, potentially, where they can make savings.

When wholesale energy prices rose, forcing E.ON UK (and other providers) to follow suit, the company needed to explain why and also try to provide solutions. More recently, it offered two year fixed price deals for existing customers. 'We are seeing some good success stories from our initiatives,' says Stark.

E.ON UK's own research shows that its customers remain, at best, confused about and, at worst, ambivalent to measures to help them reduce energy consumption. Educating customers on schemes such as E.ON's Green Deal and smart metering programmes will, Stark believes, prove crucial to regaining trust. The company also went further with the launch of its 'Energy Fit Initiative' last October.

Since then, more than 110,000 customers have taken the survey to identify ways to save energy (and money). Free energy monitors have been distributed to residential customers, £20 million worth of cavity wall and loft insulation is being given to customers aged 70 plus or who are on qualifying benefits while others have been offered the chance to insulate for just £99.

'Customers need to know that we are here to help,' says Stark. 'We have an obligation and responsibility, for example, to help customers who cannot afford to pay.' To this effect, the corporate affairs department promoted 'Challenge 100' as part of last year's Energy Saving Week, when it worked with partners to offer 100 families a package of help to lift them out of fuel poverty within 100 days. Of the participating families, 42 were lifted out of fuel poverty through the installation of energy efficiency measures and advice on saving energy while others were less fuel poor.

'We really want to be seen as a trusted partner for our customers,' says Stark. 'We genuinely try to put ourselves in their shoes.' There was a time, she concedes, that customers' needs were not first and foremost for E.ON UK, but that has changed, particularly under her watch. 'We want to be John Lewis of the energy world [known for our customer service],' says Stark passionately. 'We want to be the Apple of the energy world, known for our innovative approach. Watch this space! We've got an exciting future planned.'

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