We’re entering an era of massive change in utility retailing.
Fundamental shifts in how utilities are producing and selling electricity, gas and water are taking place, with distinctive differences in each sector. Customers are becoming electric energy producers (or prosumers) with the growing use of distributed generation systems like micro-turbines and solar panels. Across the industry, digitalization is at the top of the agenda. With the wide-scale deployment of smart meters, sensor devices and robotics, the key business issue is extracting value from the resulting deluge of data, and using it to create new offerings and services to the end customer.
At CGI, we believe that there are eight significant ways in which the landscape will begin to change by 2021:
- The traditional model for energy retailers will be obsolete.
- Customers will become “energy experts”.
- “Living off the grid” will be mainstream.
- Retailers will rely on new, digital services to bolster revenue and reduce customer churn.
- Utility retailers will drive new partnerships with multiple industries.
- Customers will evangelize their utility.
- Retailers will be actively forecasting supply and demand using new digital tools and systems.
- Privacy and security will be a growing issue for energy customers.
This vision paper is part of a series of executive insight papers called CGI Vision 2021 in which we delve into the impact of digital transformation on future business models within different industries.