Companies able to understand and respond to the rapidly evolving market will be in the best position to win
The energy and utilities sector is sitting on the precipice of a technological revolution that will see consumers increasingly engaged in their day-day energy needs, which alongside broader disruption, spells profound change for the industry, a new report finds.
According to the Digital Vision for Energy and Utilities opinion paper, released by digital transformation specialist Atos, utility providers are facing a “race to transform” to meet the merging challenges.
It predicts those companies able to understand and respond to the rapidly evolving market will be in the best position to win.
A combination of factors including the drive to make it easier to switch energy providers, increased local energy generation and the proliferation of intelligent home devices are disrupting the utilities market, providing new opportunities in the process and creating a nation of professional consumers or ‘prosumers’.
“The convergence of new technologies, regulatory intervention and new entrants will make it easier for consumers to swap and save: in 2017, around nine million consumers changed their energy supplier; we’re looking at a layer of choice and simplicity which could soon see that number double,” said Neil Snelling, business development manager, Atos.
Atos predicts that, in the near future, UK householders will be able track the best utility tariffs in real time, switching energy providers within a day, and possibly within a few seconds, with data analytics able to predict consumption and deliver more responsive services, to some extent offsetting rising bills.
"Through digitally enabled transformation, we will see a move from utilities as commodities to high-value service providers at the heart of people’s homes and lives"
As a result, companies able to totally transform and deliver the right products and services to support and serve this evolving market will be rewarded with consumer loyalty and growth.
“We are seeing unprecedented disruption in the UK utilities industry. The water market is opening up, renewable energies are entering the mainstream, and gaps in the retail electricity and gas markets are being filled by innovative niche players,” added Adrian Gregory, CEO, Atos UK & Ireland.
“At the same time, regulatory frameworks are evolving. This industry has always been quick to see the potential of new technology and today’s forward-thinking utilities companies can again steal a march. Through digitally enabled transformation, we will see a move from utilities as commodities to high-value service providers at the heart of people’s homes and lives."
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