Smart metering - the biggest challenge since privatisation
Smart metering has been a ‘hot topic’ for many years within the industry. However, without a clear strategy and leadership the industry has been slow to move. With the government’s consultation period coming to an end on August 3rd, will we start to see the beginnings of a revolution for the industry?
Smart metering is the biggest challenge the industry faces since privatisation and deregulation. For consumers a new era in pricing and customer service innovation. For the providers dealing with new technologies which will create faster paced business environments. The high initial set up costs will no doubt be offset with greater insight into their customer base a huge saving in servicing customers. Interestingly, the biggest challenge will probably be for the regulator as it will create a new landscape requiring new rules for regulation and, potentially, a reshaping of the industry as a whole.
As a final thought, I am confident smart metering represents a huge opportunity for interim managers. From delivering the associated capital investment required to reshaping energy retail strategy, interim managers have a leading role to play.
Duncan Hoggett is Head of the Utilities Practice at Interim Partners.
June 11th, 2009 at 10:40 am
I certainly think that smart metering will present energy companies with opportunities that are simply not possible now. The insight into customers consumption habits will be immense. Just look at the value that Tesco get out of Clubcard data as an example.
At a time when carbon footprint and environmental concerns are finally gaining priority, the data will help to identify trends and design products. It will also enable more information to be provided back to customers as an added value service to enable them to improve their energy efficiency.
Let’s also not forget the practical improvements that may also be made possible. One would think that improving the whole system of metering data will make switching suppliers a less error-prone process. And without the need for human intervention the process should also become more efficient.
But I also agree that interim managers have a role to play, in that systems and processes will need to be developed to make best use of the data, and brains will need to be engaged to develop strategies using the aggregated information. The most successful energy companies will be the ones that develop the fastest, most accurate and most useful ways of getting from data to information to decisions.