Specification of requirement
Specification of requirement
Research into consumers’ experience of
water and sewerage debt
29 January 2015
For more information contact: Robert McGeachy on 0131 550 1069
or at Robert.McGeachy@cas.org.uk
Twitter @CitAdviceScot
www.cas.org.uk
Copyright: Citizens Advice Scotland
If you require this publication in an alternative format please
contact us.
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Specification of requirement
1.
Introduction
About the Citizens Advice Scotland
Citizens Advice Scotland (CAS), its 61 member bureaux, consumer helpline and
Extra Help Unit form Scotland’s largest independent advice network. CAB advice
services are delivered using over 250 service points throughout Scotland, from the
islands to city centres, and through our helplines. Together, the Citizens Advice
service in Scotland helped 300,000 people with nearly 1 million issues in 2013/14.
CAS’s twin aims are:

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To ensure that individuals do not suffer through ignorance of their rights and
responsibilities or of the services available; or through an inability to express
their needs; and
To exercise a responsible influence on the development of social policies and
services, both locally and nationally.
On 1 April 2014, the roles and responsibilities of Consumer Futures were transferred
to the Citizens Advice service, encompassing CAS and our sister organisation
Citizens Advice (England and Wales). CAS now represents the interests of citizens
and consumers in essential regulated markets including energy, post and, in
Scotland, water. Our aim within the water industry is to challenge and shape policy
to ensure it reflects the needs of consumers.
CAS uses consumer research to provide an evidence base to challenge and shape
policy to ensure it reflects the needs of consumers. CAS presents research and our
policy positions to government and to other water industry stakeholders, and
publishes publicly available research based on our research findings.
2.
Background
CAS is the consumer representative organisation for the water industry. It
represents consumer interests, and advocates for change on behalf of consumers.
Different agencies play key roles for the provision of water services to households in
Scotland, and for the charging of these services. Domestic water supplies in
Scotland are provided by Scottish Water, while local authorities are responsible for
the billing and collection of water and sewerage charges.
Research undertaken by Consumer Futures in 20121, which addressed awareness
of water service provision amongst consumers highlighted that consumers’
awareness of Scottish Water’s role in delivering water services is relatively high
whereas consumers’ awareness of the distinction between Council Tax and water
charges is much lower. The research findings also demonstrated that consumers’
awareness of Scottish Water, as the drinking water provider, was high at around
79%. However consumers’ awareness of who to contact if they experienced
“Water Outlook - Consumer outlook on water and wastewater services in Scotland”, Consumer
Futures, August 2013, http://www.consumerfutures.org.uk/reports/water-outlook
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Specification of requirement
problems with their water supply was lower at 59%. The research study found that
consumer awareness of how much, and on what basis, they pay for water is low2.
The current water and wastewater charging scheme has the following features:
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Tariffs are based on Council Tax bands and are the same across Scotland,
geography having no influence on the amount households pay for water and
sewerage services.
The number of metered households in Scotland is negligible (less than 500).
Local authorities collect water charges together with Council Tax using the
same enforcement procedures3. From the charges collected by local
authorities, a sum is paid to Scottish Water which provides Scottish Water
with a percentage to all monies collected for council taxes and water charges,
irrespective of their intended destination, as if they were a single payment4.
Single occupancy households receive a 25% discount (as they do on their
Council Tax bill).
Recipients of Council Tax Reduction receive up to a 25% reduction (the
discount for households on partial benefits is calculated on a pro-rata basis).
Households with no occupants chargeable for Council Tax (for example,
students) or void premises are exempt and pay no water charges.
Previous research suggests water bills rank as a low priority for households. This
can be because of the perceived ‘low impact’ of non-payment as water supplies
cannot be cut off, but also from a lack of awareness of one’s ongoing liability to pay
water and sewerage charges, especially if they are in receipt of Council Tax
Reduction5.
Local Authorities need to apply for a summary warrant before they can execute
diligence against debtors, in other words take enforcement action such as a bank
arrestment or arrestment of earnings to recover charges due. Debtors will have had
reminder letters from the local authority before they apply for summary warrant.
Once the summary warrant is granted by the Sheriff Officers the debt will
automatically increase by 10 per cent, and the Sheriff Officers will serve a Charge
for Payment on the debtor along with a Debt and Information package advising
debtors where they can apply for help. Although the debtor has no recourse to court
before the summary warrant is granted they will be able to use the Charge for
“A matter of principles – Research into household attitudes towards paying for water in Scotland”,
Consumer Futures, March 2014, http://www.consumerfutures.org.uk/reports/a-matter-of-principlesresearch-into-household-attitudes-towards-paying-for-water-in-scotland
3 The features of this process are set out in a number of regulations, including the Local Government
Finance Act 1992 and the Council Tax (Administration and Enforcement) (Scotland) Regulations
1992.
4 As determined by the ‘ABCD formula’, set out in The Water and Sewerage Services to Dwellings
(Collection of Unmetered Charges by Local Authority) (Scotland) Order 2014;
see also “Keeping your head above water – A study into household water debt in Scotland”,
Consumer Futures, February 2014, p.17, http://www.consumerfutures.org.uk/reports/keeping-yourhead-above-water-a-study-into-household-water-debt-in-scotland
5 “Keeping your head above water – A study into household water debt in Scotland”, Consumer
Futures, February 2014, p.8, http://www.consumerfutures.org.uk/reports/keeping-your-head-abovewater-a-study-into-household-water-debt-in-scotland
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Payment to make a repayment offer via the Sheriff Officers, apply to the court for a
Time to Pay or declare themselves bankrupt.
A Water Direct pilot scheme is currently being tested within Inverclyde and Fife local
authorities. It allows local authorities to take separate third party deductions to
cover water and sewerage debt, and an additional deduction to cover current
charges if the customer is not keeping up with payments. These deductions are in
addition to Council Tax deductions and other debt repayments, such as rent.
3.
Definition of the problem
Water and sewerage charges debt
Households in receipt of Council Tax Reduction can receive a reduction of water
and sewerage charges of up to 25%. However, water debt can be a problem for
consumers who through circumstances, low income or lack of awareness of ongoing
liability for water and sewerage payments, find themselves unable to pay6. It would
appear that some people on benefits and on low income, and in receipt of 100%
Council Tax reduction, will assume that they will also be exempt from paying water
and sewerage charges. This is not the case. Significantly, even those in receipt of a
100% reduction for Council Tax will only receive a maximum of a 25% reduction in
their water and sewerage charges. This is a key factor underpinning levels of water
and sewerage charges debt”.
Previous research by Consumer Futures indicated that up to 20% of consumers are
in water debt in Scotland7.
CAS therefore wishes to commission research to:
Better understand the circumstances and experiences which lead low income
consumers to water and sewerage debt. This will be done by exploring consumer
understanding and awareness of water charges, and their attitudes towards
payment. We also wish to better understand the impact on the consumer of water
debt.
4.
Why research is necessary
Research with consumers to understand their experiences of water debt will build
upon previous research published in 20148, which consisted of desk based research
as well as interviews with local authority officials. Understanding the causes of water
6
As demonstrated by cases we frequently see within Citizens Advice Bureaux (CABs).
This was also explored within “Keeping your head above water”, 2014
7 “Keeping your head above water – A study into household water debt in Scotland”, Consumer
Futures, February 2014, p.8, http://www.consumerfutures.org.uk/reports/keeping-your-head-abovewater-a-study-into-household-water-debt-in-scotland
8 “Keeping your head above water – A study into household water debt in Scotland”, Consumer
Futures, February 2014, p.8, http://www.consumerfutures.org.uk/reports/keeping-your-head-abovewater-a-study-into-household-water-debt-in-scotland
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Specification of requirement
and sewerage debt from a consumer perspective will provide a strong evidence
base that will support CAS’ debt policy work with industry stakeholders, including
Scottish Water, Water Industry Commission for Scotland, the Scottish Government
and local government.
In particular it will inform CAS’s position relating to issues around water and
sewerage charges billing and collection, and the extent to which households in
receipt of full Council Tax Reduction should be liable for ongoing water and
sewerage charges.
5.
Research objectives
The objectives of the research are to understand:
1. Consumers’ awareness of ongoing liability for water and sewerage charges
when in receipt of Council Tax Reduction.
2. Consumers’ understanding of water charges.
3. Consumers’ views of water charges, i.e. willingness to pay and priority given
to water charges.
4. The circumstances that lead to customers being in debt for water and
sewerage services.
5. Consumers’ views of water debt recovery practice, i.e. views on fairness and
best methods of collection.
6. Consumers’ personal experience of water debt recovery practices.
7. The impact of water debt and recovery practices on consumers.
The research will progress these objectives by considering the following issues and
areas:
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Consumers’ self-perception of money managing skills
Consumers’ awareness of water and sewerage charges
o How aware are consumers of the distinction between Council Tax and
water and sewerage charges?
o Are consumers aware of Scottish Water and its role? Is there a link
between knowledge of Scottish Water and knowledge of separate
water and sewerage charges?
o Are consumers aware of their continued liability for water charges
even if they receive Council Tax Reduction?
Do consumers know how much they pay for water and sewerage services
(and/or council tax as they may be unaware of water charges)?
o How do consumers pay for water and sewerage services? With Direct
Debit, in cash on instalments, through deductions from benefits?
Consumers’ experiences of managing money and debt
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Specification of requirement
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o Do consumers have Council Tax or water and sewerage arrears?
o What other debts do consumers have?
Why are consumers in water debt? What circumstances led them to be in
debt for water and sewerage charges?
o How does their experience of managing money compare with the selfperception of their own money managing skills?
What are consumers’ views towards debt for water and sewerage charges?
Are water and sewerage services a priority debt?
How do consumers manage multiple debts?
How do consumers repay water debt? Through a Repayment plan?, By
payment of a lump sum?, Or through direct deductions from benefit?
o (For Fife cases only9) Have consumers had any experience of
additional deductions being taken from their benefits for water and
sewerage charges and what impact has this had?
What is the consumers’ view of Council Tax / water and sewerage debt
recovery practices?
Hypothetically, what debt recovery practices should be used?
o Would the separation of council tax and water charges for debt
collection purposes be fair? Or do consumers regard it as ‘one bill’
which should only be subject to one deduction?
o How would consumers view direct deductions for water charges and
arrears, separate from deductions for council tax (as is the case with
Water Direct)?10
What impact does debt and debt recovery have on the debtor?
o What impact does water debt have?
o For those not in Water Direct pilot, what impact would separate Water
Direct deductions have?
Uses of information
The research will be published and will be used to inform policy development within
the water industry and by other public body stakeholders. It is anticipated that the
research will:
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Allow CAS to make specific recommendations to stakeholders, including
Scottish Water, the Water Industry Commission for Scotland and the Scottish
Government on what is needed to protect and support vulnerable consumers
to mitigate the impact of water debt.
9
Note the trial of Water Direct is only within Fife and Inverclyde. We are also collecting evidence on
this Water Direct pilot through Citizens Advice Bureaux in the Fife region.
10 These questions are trying to ask those who are not in Water Direct pilot if they think the principles
behind it are a good idea.
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Specification of requirement
7.
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Identify if specific water and sewerage third party deductions / debt recovery
practices have been helpful to the consumer, or could be helpful to those not
in the current Water Direct pilot areas.
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Form part of CAS’ ongoing policy development and advocacy work on water
and sewerage debt, and on general debt.
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Be used to benefit consumers, including raising consumer awareness about
water debt, including the distinction between Council Tax charges and water
and sewerage charges.
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Inform industry stakeholders about consumer opinion and experience.
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Provide baseline evidence for future research into water debt.
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Help to inform CAS’ future work plan.
Target population
Research should focus on low income consumers, both with and without
employment (in particular MRS Society Grades C2,D,E) who are more likely to face
debt issues, and be in arrears for water and sewerage charges. This should include
low income consumers who are in receipt of Council Tax Reduction.
It should also take note of respondents’ income status, council tax band, receipt of
welfare benefits, age, employment status, disability, local authority. The sample
should be broadly geographically representative.
Research participants should be the person (or one of the persons) responsible for
paying water charges in the household. In particular, for the purpose of the research
it is important that the research includes a focus on Inverclyde and Fife local
authorities, as well as at least two other local authority areas in Scotland.
8.
Anticipated approach
We anticipate that research will be qualitative. The Supplier can propose suitable
methodology, including research methods and interview lengths required to elicit
results within the budget specified, and an implementation plan to meet the research
objectives, which will be agreed with CAS. Research methodology may include
telephone, face to face interviews or focus groups, or a combination of these
methods11.
For comparison between tenders, we ask for quotes based on 30 minute telephone
interviews with 30 consumers, and also for 30 minute telephone interviews with 50
consumers.
11
We will require assurances that mobile only households will also be sampled in any telephone
interviews as many low income households do not now have landline phones. Also, we do not feel
that an internet survey approach would be adequate or appropriate, as many low income household
cannot get affordable internet access.
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Specification of requirement
CAS will be involved in developing topic guides and interview prompts in conjunction
with the Supplier.
Suppliers should provide details of the interview framework they intend to adopt,
their approach to recruitment of participants and methodology for analysing results.
It is CAS’ expectation that the supplier’s activities to progress the research will
include a strong focus on the Inverclyde and Fife local authority areas. It is also
anticipated that at least two other local authority areas will be covered by the
research.
9.
Analysis required
Interviews will be transcribed and analysed. Analysis will make reference to
consumer age, location, income, work status and council tax band.
We will use the findings from this research to build upon our previous water debt
report and to inform our recommendations regarding tackling water debt and work
with water stakeholders and local authorities.
10. Deliverables
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Draft copies of all key documents, such as the recruitment profile, topic guide
and final reports. These should be submitted in sufficient time for comments
to be incorporated and for our approval to be given before producing final
versions.
Top line findings (upon completion of the fieldwork) or an interim report
A full written report (with any specific subheadings and recommendations
agreed with CAS) in Microsoft Word setting out the findings with an executive
summary and relevant appendices (including copies of survey
questions/interview questions).
Transcripts of qualitative research.
A presentation of results at CAS offices in Edinburgh with accompanying
PowerPoint slides.
11. Nature of the Report
The research report will be used by a wide range of people within and outside of the
Citizens Advice service, not just the team involved in commissioning the work.
Along with all of our research reports, it is intended to contribute to the wider
knowledge of consumer behaviour and consumer concerns, not just to the
immediate research problem. As such, it must be capable of being used as a
secondary data source for a reasonable period of time after the research is
completed.
For these reasons it is essential that the report:
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Specification of requirement
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Uses language accessible to readers with varying experience of research and
consumer behaviour.
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Contains a comprehensive description of the research method, so that the
reader understands what was done and the robustness and/or limitations of
the data.
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Organises and, where appropriate, reduces the data so as to lead the reader
either to clear conclusions or to a discussion of the implications of the
findings.
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Avoids over-summarising or over-simplifying the findings.
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Contains clearly labelled charts, diagrams and tables (if appropriate)
summarising and illustrating the results, with a narrative description of what
the chart, diagram or table shows – do not leave it to the reader to interpret
these.
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Contains a stand-alone Executive Summary, containing a brief description of
the background, objectives, method, main findings and conclusions.
Agencies are required to follow best practice in research report writing as specified
in the Citizen Advice Research Report Guidelines.
12. Performance and quality requirements
CAS is leading this work, and will require regular meetings, including a project
initiation meeting, to be held between the supplier and ourselves to ensure progress
is on track and any difficulties are resolved promptly. Any anticipated shortfall in
quality or similar failing shall be brought to the attention of CAS immediately.
We advise suppliers to show how they adhere to the MRS Code of Conduct or
where appropriate any other professional code of conduct, or quality systems that
they have in place.
Ownership of all research outcomes, including the final report and all data produced
as a result of the research, lies with CAS.
Suppliers should not discuss study findings in public before a final report has been
cleared by CAS, without prior, written agreement from CAS. Following publication,
suppliers should not discuss the study in public without prior, written agreement from
CAS. Suppliers must also obtain CAS’s prior, written approval to use data or
findings from this study for any proposed presentation or publication.
The supplier should consider the wide range of equalities issues, including public
duties, and ensure that these are all given due consideration at all stages of the
research process.
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Specification of requirement
13. Evaluation criteria
CAS will make its selection on the basis of that proposal which represents the best
value for money. The following criteria will apply:
Evaluation criterion
Description
Weighting
Technical experience
Evidence
of
providing 10%
similar services to other
organisations and particular
skills/experience relevant to
the problem
Also
includes
your
performance on previous
projects
for
Consumer
Futures and its predecessor
bodies and for CAS
Methodology / Approach
Details and suitability of 20%
suggested
approach,
sampling strategy and data
collection method
Plans for dealing with any
risks and contingencies
Understanding
business needs
our Indication
of
a
clear 10%
understanding
of
the
problem and the research
objectives
Staffing / Resources
Details of any proposed 10%
staff or sub-contractors to
be used for the provision of
the services
Implementation plan
Details
of
your 10%
implementation
plan
to
meet the timescales
Quality
Details of how you ensure 10%
that a high quality service is
maintained throughout the
contract period
10
Specification of requirement
Price
A full breakdown of all costs 30%
should be given
Total
100%
Tenders are evaluated by scoring against each of the above criteria using a 0-10
scale, where 0=Clearly fails to meet the requirement and 10=Excellent standard with
no reservation at all about acceptability. The supplier with the highest overall score
will be awarded the contract.
Please note that on completion of all contracts, suppliers are evaluated against
these same criteria based on their performance. This post-project feedback will be
considered in future tendering processes.
13. Form of proposal
All clarification questions must be made in writing and sent by email to
Robert.McGeachy@cas.org.uk no later than 5pm on 5 February 2015. A response
to all clarification questions shall be issued to suppliers by 11 February 2015.
Tenders must be sent to the project lead Robert McGeachy by 5pm on 13 February
2015.
Bidders should complete tenders in the format indicated below. All questions must
be answered in full.
Company overview and previous experience
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Please provide a brief overview of your organisation. This must include a brief
history and include detail of your capability and capacity.
Please provide detail of your understanding of the requirement and evidence
your skills and experience for carrying out the services.
Please provide brief details of two case studies that evidence your ability to
deliver the services required. This must include details of the remit of the
research project from which the case studies are taken, how you delivered
the project, and the objectives that were achieved.
Please provide the names, addresses, and contact details of two referees
that could be contacted to provide a reference of your ability to deliver the
services.
Please declare if there is a conflict of interest in carrying out this work.
Key personnel
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•
Please provide a copy of your organisation chart.
Please provide details of the personnel who shall be responsible for the
delivery of the services. This must include a CV for these individuals that
highlight their relevant skills and experience.
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Specification of requirement
Methodology and delivery of the services
•
•
Please provide a detailed methodology of how you propose to deliver the
services and objectives detailed in this document. This methodology must
describe the project from end-to-end; from finalising the conception to
delivery of the final report.
Please provide a detailed project plan for the delivery of the proposed
methodology. This must clearly define who shall carry out the tasks in the
plan and the number of days for completion.
Commercial offer
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•
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Prices shall be quoted in pounds sterling unless otherwise stated and
presented separately from the rest of the tender in the downloadable pricing
schedule. Prices should be quoted as inclusive of VAT, and VAT should be
shown separately as a strictly net extra charge. Please detail any other costs
associated with the provision of the services under this agreement. Any costs
not detailed will be deemed to have been waived.
Attached as part of the tender documents are the Citizens Advice Scotland
Terms & Conditions of contract. Please confirm your acceptance to the terms.
Bidders should note that failure to accept the Citizens Advice Scotland Terms
& Conditions of contract will result in their elimination from the tender process
following initial evaluation.
The Pricing Schedule attached below should also be completed, and returned
with the tender document.
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Specification of requirement
14. Procurement timetable
CAS will be working towards the following procurement timetable:
Activity
Date
Issue Invitation to *Tender/Quote
29 January 2015
Closing date for clarification questions
5 February 2015
Date for
questions
responses
to
clarification 11 February 2015
Tenders/quotes received
13 February 2015
Evaluation of tenders/quotes
16 February 2015
Contract awarded
17 February 2015
Contract commences
18 February 2015
Top Line Document
16 March 2015
Draft report due
23 March 2015
Final report due
13 April 2015
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Specification of requirement
GLOSSARY OF TERMS AND ABBREVIATIONS
Term
Description
Draft Report
The ‘draft report’ should not be a rough version of the
report, but the full report (proof-read, spell-checked and
sense-checked) for review by the client project team.
Final Report
The final report is intended to have resolved all queries and
comments.
Sources

“A matter of principles – Research into household attitudes towards paying
for water in Scotland”, Consumer Futures, March 2014,
http://www.consumerfutures.org.uk/reports/a-matter-of-principles-researchinto-household-attitudes-towards-paying-for-water-in-scotland

“Keeping your head above water – A study into household water debt in
Scotland”, Consumer Futures, February 2014,
http://www.consumerfutures.org.uk/reports/keeping-your-head-above-watera-study-into-household-water-debt-in-scotland

“Water Outlook - Consumer outlook on water and wastewater services in
Scotland”, Consumer Futures, August 2013,
http://www.consumerfutures.org.uk/reports/water-outlook
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Specification of requirement
PRICING SCHEDULE
Research into consumers’ experience of
water and sewerage debt
Pricing schedule Service
price quotation Table 1:
Key personnel
Role Title
Role Level
Other
No. of
Descriptions
Days
(T&S etc.)
Required
Daily Rate
£
Total Price
£
VAT
Totals
Table 2: Other costs (If Applicable)
Other Descriptions
Item
Quantity
Item Price
£
Total Price
£
VAT
Totals
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Specification of requirement
Total Price – Table 1 and 2
Total Price
£
Table 1
Table 2
Total VAT
Total incl. VAT
Total Price
All service price quotes must be in GBP. VAT, where applicable, should be
shown separately as a strictly net extra charge. The price quoted must be fully
inclusive of everything indicated by the Invitation to Tender documents such
as supply, delivery, expenses and where applicable, support.
Dated this ……….. day of …….....................
Signature:
2015
Full
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