Why Utility Companies Should Embrace Smart Tech
Wed, April 21, 2021

Why Utility Companies Should Embrace Smart Tech

Utility providers are introducing innovative tech to their business models to drive change, encouraging consumers to become engaged in optimizing their energy usage / Credits: zhudifeng via 123RF

 

The energy market is undergoing major changes with the increasing adoption of modern technologies. Thus, regulators are forced to utilize these since customers are increasingly demanding real-time consumption updates and forecasts. Failure to do this has negative repercussions. A study conducted by PwC and Lucid showed that the current lack of transparency around energy usage and costs is a major factor in frequent customer churn within the industry.

The study also revealed that 59% of the respondents prefer staying with utility providers that offer a platform detailing exactly how household energy is being consumed. About 28% have switched energy suppliers within the past year, while 41% are “likely” to do so within the next 12 months. This shows that providers are struggling to keep customers in supporting their services. 

According to NS Energy, an online magazine that has multi-faceted, award-winning and hugely respected figurehead brands, many energy companies are introducing innovative tech to their business models to drive change. This aims to encourage consumers to become engaged in optimizing their energy usage. The findings of the study showed that while 6 in 10 people are familiar with smart energy apps, half still do not have access to them from their energy provider. Thus, they see this as an opportunity to engage with consumers further and educate them on the benefits of such technology.

One of these smart technologies is the smart meter. These devices give households an indication of how they can better manage energy usage. However, introducing smart meters has been rough. Many companies are trying to demonstrate how it can deliver greater levels of financial comfort through budgeting and forecasting of their bills. One thing that CIOs and CTOs can do is find new solutions and adopt new smart tech to align their businesses with changing customer expectations.

Companies should also let their customers feel that they are in control through features such as real-time consumption updates and forecasts, energy budget tracking, and usage by activity.