Network May 2019

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NETWORK / 8 / DECEMBER 2017 / JANUARY 2018 P R E S E N T S NETWORK / 42 / MAY 2019 Week Live (UWL), compe ve pressures and changing consumer habits are likely to have the biggest impact on the transi on of u li es. Rated on a scale of one 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 next fi ve years. On average, the impact of industry trends is expected to be 23 per cent higher by 2024, according to the survey. Both energy and water companies are grappling with environmental, security and aff ordability requirements at a me when the poli cal landscape remains uncertain and the long- term impact on business is unclear. In the energy sector, the UK's controversial nuclear power strategy is fraught with obstacles. Following a series of blows to the government's commitment to a new genera on of reactors, 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 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? For our fourth report in the build up to U lity Week Live, Nadine Buddoo looks at the changing business model.

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