Utility Week

4. COMMUNITY ENERGY MODELS Community energy ini a ves are on the rise across Europe. In the UK alone at least 5,000 community groups explored the opportunity between 2009 and 2015. These communi es – coali ons of consumer groups, businesses, local governments or simply groups of neighbours – are mobilising around the genera on and distribu on of their own energy. Energy networks understandably considered this to be most disrup ve to their business in the next five years of all the sectors surveyed, vo ng it 6.0 out of a possible 10. U li es observing the disrup on in other industries know regulators will struggle to protect the status quo. Moreover, there could be net benefits to "ge ng in front" of this new model, both business and technical. There is a definite shi in customer mindset when it comes to the consump on of community energy. A focus on energy affordability, combined with technological advancements and growing exper se, means energy supply is no longer the preserve of the tradi onal players. U li es would do well to consider ways they can shape and profit from the new opportuni es available. 5. FALLING TRUST It's a sad indictment of the current reputa on of u li es that falling trust was rated an average 6.2 out of a possible 10 across the sectors, in terms of the level of disrup on it is expected to cause the industry in the next five years. The trust issues facing energy retail are well documented, and have now been joined by legi macy issues in water companies and energy networks, thanks to high-profile rows about profits and transparency in those sectors. The sectors' ongoing challenges around customer service don't help, and nor does the ageing infrastructure and requirement for massive new investment. Our respondents don't just acknowledge that trust is falling today – they expect it to be disrup ng their businesses for at least five years to come. Expect more poli cal interven ons, regulatory overhauls and stringent price reviews in response – and perhaps even more far-reaching structural changes to the industry. There could be net benefits to 'getting in front' of this new model EXPERT VIEW: DIGITAL EMPOWERMENT Mukundhan Sampathkumar, senior consultant, global management company WNS U li es have tradi onally focused on the opera onal areas of demand and supply, and woven customer service around these aspects. Today, incen ves and penal es are directly linked to customer sa sfac on. Processes, frameworks and tools are constantly evolving towards this goal. Marke ng and brand reach, hitherto not taken very seriously, are becoming top priori es. U li es aiming for superior perfor- mance should set their priori es around an cipa ng customers' needs, simplifying transac ons (including self-service), and extrac ng deep and intelligent insights from their customer data. The marketplace is witnessing a mul -pronged disrup on – business models, regula on, innova on, ener- gy sources, demand, grids and data. Addi onally, a more complex ecosystem is emerging where customers have can generate, store, use and trade their own electricity in a 'connected home'. The change from a product-centric to a customer-centric culture calls for newer business models built on the deep under- standing of customers. Technology will be a cri cal differen ator in this journey. WNS is sponsoring the Customer Solu ons theatre at U lity Week Live, where exclusive research into trust and pricing will be launched. The above ar cle can be read in full at www.u lityweeklive.co.uk I N A S S O C I A T I O N W I T H UTILITY WEEK | 4TH - 10TH MAY 2018 | 9 I N A S S O C I A T I O N W I T H

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