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Utilities are looking to energy services for growth as their customers push to generate their own electricity and manage their consumption, according to experts explaining recent investments in the sector.
Two major utilities announced investments in energy services this year, while a major technology player also boosted its offering with an acquisition.
Commenting on this, David Cherney said: “The moves are being driven by the increased interest in distributed technologies and declines in load growth, prompting utilities to look for new ways to increase revenue. Those investments include the acquisition of infrastructure, customers or energy services companies and grid technologies.”
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David added: “A lot of what is driving that is a renewed focus by utilities to enhance the customer experience. Rather than just sort of expanding the amount of customers that a utility has, I think utilities now are really taking a second look as we have increased choice amongst customers through distributed technologies to really enhance their experience.”
David concluded: “What is different today, is a confluence of events where utilities are taking a hard look at their business model and thinking about how they need to evolve and adapt to address changing trends in the marketplace. As we look at the next generation of utilities, they are definitely going to have a much stronger, enhanced customer experience focus.”