British Gas boss Chris O’Shea has been busy.
The CEO of Centrica – the company that owns the energy giant – has been at the front of the response to harrowing stories about how it treats vulnerable customers.
An undercover investigation had revealed debt collectors used by the company forcing their way into homes to install prepayment meters.
Don't have time to read this blog? You can listen to it here:
The story was the front-page lead in The Times under the headline ‘British Gas breaks into homes of the vulnerable’.
Extraordinary undercover story from The Times about prepayment warrants that is already seeing Government response and from Centrica:
— Faisal Islam (@faisalislam) February 1, 2023
Exposed: How British Gas debt agents break into homes of vulnerablehttps://t.co/yz4ILEvmvi
It included a distressing first-hand account from a reporter who was part of a team that forced their way into a family home during January’s freezing cold snap.
And footage shared online showed a debt collector from Arvato Financial Solutions – the company used by British Gas - saying: “This is the exciting bit. I love this bit.”
Unsurprisingly, the story was quickly picked up by other media. And Mr O’Shea gave several interviews.
So, how did he fare as journalists turned up the heat? And what crisis communication lessons can we learn from his performance?
The first interview I heard was on Radio 4’s Today programme - you can listen to it here at about 1.09 for as long as the broadcaster makes it available.
Mr O’Shea started strongly. Here’s his first response:
“There’s nothing I can say that can express the horror I had when I heard and saw this. It is completely unacceptable. That language is unacceptable.
“The contractor we’ve employed – Arvato – has let us down. But I’m accountable for this. This happened when people were acting on behalf of British Gas.
“There’s nothing that can be said to excuse that. Every one of our customers deserves to be treated with respect. That’s what I’d expect of myself. That’s what I’d expect of my colleagues. That’s what I’d expect of our contractors.
“As soon as we heard this, we suspended Arvato. They are not doing any work for us right now.
“We then commissioned an independent report so we can get to the bottom of what is going on. And when we get to the bottom, we can fix it.
“Where we got it wrong, we can make it right.
“We also yesterday morning announced we have suspended any installation prepayment meters until at least the end of the winter.
“I want to establish what has gone on here.”
British Gas has suspended the force-fitting of prepayment meters, after a report said it imposed them on vulnerable customers.
— BBC Radio 4 Today (@BBCr4today) February 2, 2023
Chris O'Shea, boss of Centrica which owns British Gas, tells @MishalHusain it's 'completely unacceptable'.https://t.co/azgzgqx9fz | #R4Today pic.twitter.com/mev2bJZJRu
In his second answer, Mr O’Shea outlined how many customers have prepayment meters, the number of those installed under warrant and how the company looks to support those building up debt.
He said: “As of yesterday, they have stopped, and we won’t do this until at least the end of winter. This is an industry issue. What do you do with customers who are unable to pay?
“We have around 1.2 million customers on prepayment meters out of a total of 7.5 million customers. About 4.5 million of our customers pay by direct debit, and the remainder pay by cash or cheque.
“Of those customers on prepayment meters, we have in the past year around 20,000 customers who have had meters installed under warrant. Now that’s about the same rate you see across the industry.
“The challenge we have is that if someone falls into arrears, it is not responsible for us to not do anything.
“So, what we try to do is get in touch with them and try and help them. We’ve put together a £50m package in the past year of voluntary contributions so we can help those customers who can’t pay.
“We only ever apply for a warrant to install a prepayment meter where a customer refuses to engage.
“It usually takes us between five and six months to go through this process. It is not what I would like to do. The only other option for customers who don’t pay you or don’t engage with you is to allow them to run up unsustainable debts.
“Now, no other business would allow them to do that.”
Let’s pause there. These are good responses.
They are detailed answers that include a lot of the CARE acronym we use during our crisis communication courses to describe how an organisation should respond when it is in the firing line.
There was compassion. Mr O’Shea took responsibility and showed immediate action had already been taken by suspending the contractor.
There was no attempt to play down the significance of what happened. And there was some reassurance around how the company tries to help customers.
We’ve been discussing spokespeople trying to evade difficult questions in our recent blogs. Refreshingly, Mr O’Shea didn’t take that approach – although there was a question later about whether more of the company’s vast profits could be used to help vulnerable customers that seemed vague.
The interviews also felt authentic and human. The boss stuck to everyday language and owned what had happened.
This was a radio interview carried out on Zoom. The fact that the footage of his first two answers was subsequently played on BBC News 24 suggests others also thought Mr O’Shea had responded well.
And he struck a similar tone when he appeared on Sky News
Here he was asked by Ian King what message he has for victims of this “sharp practice”.
He said: “The only thing I can say is I am sorry. It’s not acceptable. And it is not just where we got it wrong, it is the lack of respect.
“That is the thing that upset me most. These are people. These are families. You have to treat them with respect.
“We have 7.5 million energy customers in the UK. And I’m confident we do that with the vast majority of our customers. Clearly, we got it wrong on some occasions here.
“All I can say is I am really truly sorry, and we will make it right.”
. @IanKingSky : What message have you got for the people who have been victims of this sharp practice?
— Sky News (@SkyNews) February 2, 2023
Chris O'Shea: "I'm really truly sorry and we'll make it right"https://t.co/JdUoH1LX4q
📺 Sky 501, Virgin 602, Freeview 233 and YouTube pic.twitter.com/7fCKaU8Uch
Asked how he felt when he saw the footage, he said: “Disappointed, livid, gutted. This is not who I am. It is not the standards I set myself.
“It is not the standards that I set the company. It is not who we are. It is not how we do business. There is no excuse.”
Again, apologetic. And he seems sincere and talks in a way people can relate to.
Of course, uncomfortable questions and reputation challenges remain – this isn’t a story that will quickly go away. At the top of the list is whether it is believable the boss didn’t know about any of this until The Times went undercover.
And how long a company can say, ‘this is not how we do business’, when the story in front of us suggests otherwise?
I’m also unclear how fitting a payment meter that cuts off the gas when credit is not topped up - and energy costs more - helps vulnerable customers.
Another reputation issue – not just for British Gas – is that the story also shines a greater spotlight on the cost-of-living crisis and soaring energy profits.
As The Times was reporting on prepayment meters being installed by force – and employees incentivised to fit them – Shell reported the highest profits in its 115-year history.
British Gas expects its earnings to increase eightfold this year.
But Mr O’Shea produced an excellent example of how leaders should respond to difficult questions during the initial stages of a crisis.
And, at a time when accountability seems in limited supply, he deserves some credit for facing the media and not trying to hide behind statements.
So, what makes an effective crisis spokesperson?
Here’s a quick checklist from our crisis communication training.
Connect
You need someone compelling and enigmatic when facing the full glare of the media. A spokesperson who can connect with the audience and remain calm under intense pressure. Mr O’Shea remained composed when the heat was tuned up, and his everyday language helped him connect with the audience.
Care
Your crisis spokesperson must show the audience they care. They must convey passion and communicate with humility and compassion. It helps create a bond with the audience and means it is more likely your customers remain supportive. It came across strongly in these interviews.
Expert knowledge
Your spokesperson must have expert knowledge of the organisation, the sector and what has happened. The British Gas boss had a good grasp of what had happened and the underlying issues.
Experience
A crisis media management situation is a daunting environment which requires an experienced spokesperson. The pressure is more intense than in other interview situations, and reporters are more demanding. As well as experience, it is also imperative they have had recent practical media training with journalists putting them under pressure.
Human
You need someone who can strike a conversational tone and put messages into their language. Failure to do this makes spokespeople appear robotic and scripted. And that prevents them from connecting with the audience.
Body language
What your spokesperson says is vital. But effective body language plays a key role in how they are perceived. It is crucial your spokesperson maintains eye contact with reporters and is not prone to nodding their head when a reporter is talking, as this suggests agreement with what is being said. Folded arms make spokespeople appear defensive and must be avoided. A professional appearance is also vital – appearing dishevelled does not instil confidence.
Available
It may sound obvious, but you need a spokesperson who is available and able to respond quickly to the media demand and understands. There is no value in a spokesperson who is not prepared to leave a meeting, no matter how important, to face the media. The rise of online interviews helps with availability. Mr O’Shea was able to carry out his interviews from the same place.
British Gas’ recent tagline has been that it is “tooled up” to help bring energy bills down.
Unfortunate wording, given these revelations. And it has at least been quickly dropped on social media.
But Mr O’Shea does seem to have the tools to manage the media during the early stages of a crisis.
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