P R E S E N T S
14 WET NEWS MAY 2019 | wwtonline.co.uk
BUSINESS MODEL
TRANSITION
How will the uptake of EVs and the prolifera on of home services
impact on u li es and what other new services are in the pipeline as
energy and water fi rms look to diversify and capitalise on the changing
landscape? In our fourth report in the build-up to U lity Week Live on
May 21-22, Nadine Buddoo looks at the changing business model
ith compe on increasing and
the market share of the Big Six
slipping, energy fi rms are being
forced to respond to an increasingly
challenging market. The emergence of new
technologies, evolving customer demand and
the need to drive fi nancial performance has
wide-ranging implica ons for energy and
water companies alike. U li es are increasingly
compelled to examine their business models
and determine how they will prepare for future
challenges amid present uncertain es.
In a recent survey conducted by Insight
Advantage for U lity Week Live (UWL),
compe ve pressures and changing consumers
habits are likely to have the biggest impact on the
transi on of u li es. Rated on a scale of 1 to 10,
respondents believe compe ve pressures will
increase from 6.4 currently to 7.0 in fi ve years.
Similarly, the evolving role of the consumer will
shi from 6.1 currently to 7.4 by 2024. Other
major areas likely to impact u li es include
changing policy and regula on (6.1 to 7.2),
sustainability considera ons (5.7 to 7.1) and Big
Data (5.6 to 7.1).
And it is clear that most businesses an cipate
the eff ect of these trends to intensify over the
For water companies, the
background threat of
re-na onalisa on, aligned
with what looks to be a tough
price control, is causing
companies to review their
business fundamentals II
