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Clear Bills

Studies carried out in 2014 by the Superintendency of Electricity and Fuels and the National Consumer Service, showed as a result that the people did not understand or trusted the electricity bill. This was the starting point of the work developed jointly with the Laboratory of Government, using a design thinking approach, which resulted in a new bill co-created with our citizens. This new, user-centric bill vastly improved readability and improved citizen trust in the government agency.

Innovation Summary

Innovation Overview

In Chile, the electricity service is distributed by 34 private companies and supplies over 6 million of homes. The service provided by the electricity companies is regulated and supervised by the Superintendency of Electricity and Fuels (SEC) and in parallel, on the side of the users, by the National Consumer Service (SERNAC), a public entity tasked to protect consumer rights. According to a public poll implemented by SEC through its website, and over 30 thousand face-to-face interviews carried out with the SERNAC in 2014, 51% of the population at national level, declared not to understand the content of the electricity bills. In addition, 47.5% of the sample stated that the electricity bills we ““little trustworthy”.

In light of these results, a working group was formed, including SEC, SERNAC and the Laboratory of Government with the objective of co-creating with the citizens a new design, clearer, more simple and transparent to the users. Having declared the challenge of “Elaborating clear and transparent bills for our citizens” the first step was that the Laboratory of Government made available its methodologies, from service design to social sciences used to approach users and design with them a way to improve the review and understanding of the electricity bills.

During the first stage, a series of “discovery workshops” were implemented with views to understand the problems and needs of users with the respect to the electricity bills. As a result, we were able to understand the depth of the initial challenged stated, reformulating the problem from 3 new perspectives:

(1) Difficulty to find the relevant information and does not invite people to read.

(2) Difficulty to understand the processes and charges related to the electricity service

(3) Absence of tools to encourage a more efficient use of electricity.

These three problems were the basis for the second stage, where the citizens themselves made their knowledge available to propose solutions in the “ideation workshops”. Several ideas came out of the workshops, and after being prioritized by the citizens, all of them were shaped into a variety of solutions which led to the following stage: the design and iteration of prototypes.

During this phase, we had to convey these ideas on to the prototypes which allowed the progressive construction of the new electricity bill. The co-creation activities included, apart from the citizens, a deeper review made by experts, representatives from the consumer associations and social leaders. Finally, for each of the 3 dimensions of the problem we reached a solution, approached by the following improvements: Design, Language and Comprehension. Design: The new bill groups content in a coherent way and allows a sequential reading of the information.

The contents are hierarchised, grouped and placed in a certain order in accordance to what users defined as priorities. In a first level, there is the amount to be paid, the due date and cut date. However, in a first level of information we also had to respond to another type of user: the bill distributor. This is why there is also included the Client ID Number and contact information, in order to ensure the correct delivery of the bill.

In a second level of information, the user can find all the detailed information about the charges, where we find electricity consumption levels, and the service operation. In the third level, there is the supplier’s contact information, helpdesk and means of payment. In order to reinforce the intention of the narrative of the bill and the sequential reading of the information, we passed from a plain format on to a booklet format, which makes it easier to prioritize, allowing the most relevant data to be the first appearing on the first page: the detail is inside for those users who want a better understanding and on the back, there is the supplier’s contact details, help desk and means of payment.

Language: the new bill uses an engaging language, which invites the user to review his/her consumption data. It reduces abbreviations, technicisms, uses simpler terms and interrogative language. The charges are described in common terms, proposed by the same citizens during the process. In addition, it includes a glossary to explain the more technical aspects of the charges, which are the less familiar to the people.

Comprehension: There is a chart that explains the most relevant data contained in the histogram. The chart compares two things: current month consumption compared to the previous month’s levels; and the consumption of the current month compared to the same month the year before. This comes with a graph and percentages, which simplify the information and gives a concrete data, with views to give users a tool to make decisions and take energy efficiency actions.

Following this idea to give users tools towards energy efficiency, there are also easy tips to save electricity.

Innovation Description

What Makes Your Project Innovative?

The Laboratory of Government uses an innovation methodology in public services based mainly on the “Double Diamond” design process. This methodology has four stages, from a discovery stage to the management of the knowledge raised throughout the project. Before implementing this project, each of the organizations involved in the service, acted independently and at the same time, each of the distribution companies designed their own bills, using their own language and non-standardized information. The methodology used allowed the Government of Chile to sit all of the relevant actors at the same table, coordinate them and put them to the task to develop jointly a standardized solution with a focus on the beneficiaries.

What is the current status of your innovation?

The methodology used for the development of the innovation is a model called “Double Diamond”, designed by the UK Design Council. It divides the service or product design in four stages: 1) Discovery, 2) Definition, 3) Ideation and 4) Delivery, applying a divergent and convergent thinking approach, which orients the problem-setting process as well as the solution-creation process. The initial problem stated was that the users were unable to understand the electricity bills and didn’t trust the electricity service. This was the starting point that triggered the first part of the Double Diamond, where –through divergent processes- we were able to deepen our understanding of the problem from the user’s perspective, in order to set the innovation challenge.

Innovation Development

Collaborations & Partnerships

The ecosystem of actors involved in the electricity service in Chile includes public institutions, private companies, clients and consumer associations. The Ministry of Energy, through the “Energy Agenda 2050” instructed SEC to promote greater transparency of energy information for the citizens and the actors in the sector. This instruction was the start point and the legal framework of the Project. SERNAC was the bridge between the executing team and the consumer associations. Its role was fundamental in articulating the relationship with these organizations at a national level. The beneficiaries of the service were represented by the consumer associations, who contributed with the users’ perspectives. The participation of the energy distribution companies was key to make possible the implementation of the improvements in the service. The mission of the Laboratory of Government was to make their methodologies available, which gave shape and accompanied the process.

Users, Stakeholders & Beneficiaries

The methodology contributed by the Laboratory of Government opened different participation spaces to all of the relevant actors. During the first stage, different exploration workshops were carried out in different regions along the country, where different actors of the groups named above were able to discuss the problems together and collaborate in the diagnosis. During the second stage, we held several ideation workshops where the different actors could contribute with their solution ideas. In the prototyping stage, the proposals were tested among the citizens and validated through interviews with experts. The electricity companies’ participation was specially relevant during the piloting stage, where adjustments carried out to secure the implementation was a key aspect of the Project. One of the process enablers was that the executing team was formed by representatives from all of the stakeholders, which allowed us to guard the different interests throughout the whole process.

Innovation Reflections

Results, Outcomes & Impacts

The Laboratory of Government, next to SEC and SERNAC, designed an instrument to measure the variations in the level of understanding of the new bill. Specifically, the instrument sought to measure the level of the understanding of the old bills, previous to the launching of the new bills in the districts indicated (baseline).

After two billing processes using the new bill, we measured the level of understanding and the use of the new bills (output line). The sampling on the other side was stratified-proportional in order to study the level of understanding of different socioeconomic groups found in the districts where the pilot experience was implemented. The poll found a 23.2% increase in people’s trust, reaching 70.4% of the total. Secondly, there was an improvement in comprehension, growing from an initial 49.2% to a final 71.7%. In third place, the clarity of the bill’s information rose by 25.4%, reaching 76%. Finally, transparency rose by 29.4%, reaching 76.7% of the total population. Although the study was quantitative, we also carried out focus groups, which aimed at detailing some of the inconveniences that could bring the new bills, as well as improvements which the same citizens could help to develop a better product.

Challenges and Failures

One of the main challenges was to align the diverse actors, in order to find together the solution. In this sense, the main effort was to work with the 34 companies and explain what were the benefits. Many of them were opposed to a homogenous design. The work developed was key to illustrate the value of the exercise and to hear their own clients requesting the improvements. We had to convince 34 corporate managers of several issues: that the methodology used was as robust as many others that they used to understand their clients; that a people-centred design process was legitimate when innovating in public-policy making; that a new governmental organization and formed by a young, multidisciplinary team (as the LABGOB) could lead the methodological process. Finally, the methodology used gave us the chance to work with collaboration tools that increasingly lowered the initial apprehensions and with time and consistency, each of the actors saw the unique value of the process.

Conditions for Success

There are at least three conditions necessary for the success: To have a clear leadership in order to get the involvement of all of the actors and explain the strategy of the expected results. When this doesn’t happen, or the project governance is undefined, the implementation promise disappears and the different actors collaboration tend to feel less motivated. To have a real promise of implementation. There is no use in having prototypes or pilots if they do not transform into concrete public policy services or products. There needs to be funding to implement, evaluate, replicate, etc. If not, it will result in mere activism and might probably create a good organizational climate but will have no value for the citizens. To have in place a team with clear responsibilities, adequately diverse in terms of expertise and with well-defined roles. Especially, because when tackling complex projects involving several organizations, there has to be clarity with respect to each person’s job.

Replication

In fact, several public departments in charge of different services (water, sanitary services, banking regulations, etc.) have interest in adopting the methodology used in the development of the new electricity and gas bills. This is a good example of replicability in two areas:

1. About the design of the information that citizens receive. For this Project, we tested fonts, messages, words, information architecture and content hierarchies, which in itself can guide and orient several government departments in charge of producing complex information and contents for the public.

2. In the process itself. We have used this example and study case to explain almost all of the innovation processes which we are leading. It allows us to explain very precisely how the methodology used is an innovative and rational way of using time, talents and public funds. The methodology, as a means to organize time, budgets and teams, is being use in almost all of the projects we are currently working on.

Lessons Learned

The main less is that innovation in the public sector is possible, when there is a clear governance model in a certain Project. There needs to be clear “political owner” keeping the promise of implementation alive throughout the process. If not, the methodology becomes a series of activities without a purpose and the perseverance spirit is lost. In this sense, having the commitment from the Ministry of Energy through the SEC, gave credibility to the process and this way, get buy-in from all of the actors involved. There are several aspects we could improve. First, to invest more time in illustrating the value of the methodology through success stories. The companies finally acknowledged the value of the methodology but it took more time tan necessary. It would have been positive to design a specific strategy for them, so they could quickly adopt the language, the practices and the methods.

Anything Else?

Michelle Bachelet, President of Chile: “This is good news for millions of homes. When we need to do the paperwork or fill out a complaint, the idea is that we are well-informed and completely trusting. And this is just what the new design of the electricity bills is about, which will be received by around 6 million homes.”

Luis Felipe Céspedes, Minister of Economy: “This initiative is another example of the way the Government is innovating through the State, with creative ideas that serve the citizens. With “Cuentas Claras” (Clear Bills) consumers receive the information in a simpler, detailed and transparent way. We hope that this model is replicated in other services in order to strengthen clients’ trust in terms of the market.”

Andrés Rebolledo, Minister of Energy “One of the great stepforwards in this new format is that 34 electricity companies are going to have the same format, which allows great homogeneity when it gets to understand what each home is paying for.”

Year: 2016
Level of Government: National/Federal government

Status:

  • Diffusing Lessons - using what was learnt to inform other projects and understanding how the innovation can be applied in other ways

Innovation provided by:

Date Published:

7 February 2016

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