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Earlier this month a leading business consultancy published a report calling on energy suppliers to urgently consider the new skills they will require to remain competitive in the market after smart meters are rolled-out.

The ‘Rise of the Smart Customers’ report, was published on 4 October. It warned that, if the Government’s desire for smart meters to be installed in all households and small businesses by 2019 is to be fulfilled, energy companies need to “reinvent their relationships with customers”.

Making friends

The research found that, in the majority of the 13 countries surveyed, consumers’ relationships with the largest energy providers were “cold and distant at best, and at worst hostile”.

It also claimed the overall perception of retailer providers tends to be neutral to negative, even if the energy company is seen as “keeping its side of the bargain” by offering a reliable power supply and responding to problems in a timely manner.

The consultant suggested that consumer perceptions of energy suppliers will mean they will probably not consider using their smart meter services. Instead they would just stick to using them as their energy supplier. As such it claimed that, in order to sell a wider range of smart services, energy suppliers will need to partner with a “more credible” brand.

The research also revealed that, although UK consumers had a positive view on smart technologies and managing energy, data privacy and security were an issue of concern for consumers. It also showed they would rather not pay for energy management technologies.

Influencing people

The report suggested companies outside the energy sector, such as mobile phone operators and leading consumer technology companies, are waiting to seize the opportunity to install and operate smart meters. If energy companies want a chance in competing in this market, they are advised to roll-out innovative services that enable customers to manage energy consumption effectively.

A partner in the consultancy said the research demonstrated the lack of trust the public has in large energy companies. He added that companies in the technology and telecoms industry have built a strong rapport with customers and so would stand a better chance of getting custom in the smart meter market.

But energy companies have not lost the battle yet; there are still opportunities for utilities to maximise opportunities from the explosion in smart technologies. “They just need to focus on developing a two-way relationship with their customers”, he commented.

It was concluded that: “Smart technology puts unprecedented power in the hands of consumers to manage and control their energy use. In time, this will fundamentally shift the balance of utility-customer relations”.

They also urged energy companies considering entering the British retail market to be fully prepared as “any market where you offer a nearly fixed price product at retail, backed up by highly volatile wholesale market price, presents risks that are not for the faint hearted or poorly prepared”.

Source : The Informer