Aveneu Park, Starling, Australia

The increased efficiency needs of the consumer

The increased efficiency needs of the consumer together with disruptive technologies, are incentivizing companies to transform their business model. The new approach is customer-centric, in order to meet the increasing expectations of the energy consumers. The interests of the stakeholder around the industry will be prioritize following the order of customer, utilities, policy makers, third party competitive providers. (CLEAResult 2017). So according to Gustavo Nieponice (2017) the customer centric approach is the leading business model  for the evolution of the utility industry. The change shifts treating power as a commodity to have a differentiated service centered on the need of the customer. A study conducted by PWC (2014) analyzes value drivers in the future of utility market recognizing how in the future customers will want to manage their energy more effectively than today. As well the riding importance of the customer centricity around the utility industry wll transform the business and operating models of the companies from “energy provider” to “energy enabler”. As discussed before, IoT will enrich the grid as part of DERs. another advantage of the companies provider. A study conducted by PWC in 2017, called “Flipping the switch”,  introduces the concept of “”retalization””. This basically consists in “” the development of more direct consumer-to-utility relationships, along the lines of consumer banking or online shopping” (pwc 2017). With the increasing number of new technologies which are gonna take part in the power grid, retalization will allow to offer services like: energy-efficiency audits, home management solutions, mobile payment. Furthermore, a research conducted by the energy consulting service CLEAResult (2017), argues the importance of providing further services then just supply energy. From the perspective of the utility industries, providing additional services such as free energy audits, incurs in smarter customer decisions. Overall this increases the benefit of the industry. Moreover, beginning an “energy solution advisor”, creates loyalty and increase the engagement between energy consumer and utility firms. It is important to implement communication programs. In this way utilities will transform passive consumer into active participant in the business operation. Integrating the place to the market of those new technologies through retalization process, will ease the consumption and acceptance from the energy consumer: battery storage, microgrids, analytical software etc.  The transformation that affects power and utility landscape implies new business models that grow organically with new market based technology (pwc 2017).

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