ESG, a leading global energy software provider, and Utility Dive’s studioID, a premier industry research company, recently completed a market survey of 150 energy providers across the U.S. and U.K. This survey revealed insights into how energy retailers and suppliers are using advanced data and technology to make more informed decisions about their operations and drive towards more profitability and growth.
The survey revealed key themes among the 150 senior energy executives surveyed worldwide:
1. Today’s challenges, tomorrow’s optimism. Energy providers described in detail the many marketplace challenges they are contending with, including today’s ultra-competitive business climate, rising costs, rigorous regulations and a push towards carbon neutrality. Yet survey respondents remain resilient, even optimistic, despite the range of challenges they face. Energy providers are actively rolling out energy efficiency, demand response and innovative tariff programs in response to customer demand for affordable and sustainable energy.
2. The power of data and analytics. The majority of respondents, primarily retail energy providers, energy suppliers, and deregulated utilities, are actively seeking advanced technologies to improve their analytics. Over 70% of respondents plan to implement AI / machine learning solutions to support analytics in the next 12-24 months.
Why are they seeking these capabilities? Overwhelming majorities — 82% of U.S. respondents and 69% of U.K. respondents — said analytics-based decision-making in a timely fashion is a primary benefit of new data management capabilities. Other primary benefits cited by large majorities include protecting against rising costs (70% of U.S. respondents) and customer retention (76% of U.K. respondents).
These forward-looking energy companies, informally termed as the next generation of 'Energy Providers 2.0', are strategically leveraging their core capabilities and partnering with market leaders to meet customer expectations. Instead of getting mired in execution details, they are partnering with technology solution leaders to innovate and overcome market challenges.
100% of survey respondents affirmed that their organizations will increase technology spending in the next 12 to 36 months, and nearly 1 in 3 say they expect to see “a large increase” in their organizational budget dedicated to digital transformation and tech spending. The survey underscores the importance of setting clear, strategic vision for organizations in the energy sector. Matt Hirst, CEO of ESG, emphasizes the need for energy providers to have a well-defined vision and set of objectives and then investing in vital technology to boost their strategic imperative. “Data and technology isn’t an end in itself,” says Hirst. “What it empowers you to do for your customers and your business is what matters.”
ESG and Utility Dive's study provides a framework for energy providers to adapt to changing market conditions and customer expectations. It highlights the increasing significance of adopting customer-centric, data-driven technology to future-proof their operations.
You can download the full report here
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