Customer Engagement

Utility customers expect their bills to get larger in the future, and they want utilities to provide tools and options allowing consumers to make their own energy choices. However, consumers might be more receptive to green-energy and dynamic pricing programs when economic conditions—and personal incomes—begin improving substantially.

Information is power, and through smart technologies utility customers will gain access to that information. The challenge faced by utilities is to harness consumer benefits by boosting customer acceptance and participation in programs designed to lower system expenses.

Building upon last month’s installment, more is revealed on how, after 10 years of incentive regulation, reliability has declined in Ontario.

After 10 years of incentive regulation, reliability has declined in Ontario. Regulators failed to enforce service-quality standards, and consumers are suffering as a result.

Imagine a setback thermostat programmed at the factory that the consumer couldn’t modify. Who would want this device? You could give the customer a big enough discount to get her to accept the device, but she would be happier and you could save about as much energy if the customer could decide on the temperature and time settings.

Recently an acquaintance of mine, who shall remain nameless, gave a diamond engagement ring to his girlfriend. She joyfully accepted the ring. But soon her joy turned to disgust when she learned that her lovely “diamond” actually was a cubic zirconium. Last I heard, she’d broken off the engagement and was dating her ex-fiancé’s former boss.

Many green power customers benefit from long-term fixed prices. The most effective programs recognize the value of this price hedge—and fairly exempt customers from fuel cost adders in utility rates.

Consumers await the revolutionary interface that will allow them to control their energy consumption. Besides maximizing efficiency in the home, these units will allow more

price and product competition. But disincentives to innovation are making for slow progress.

Thanks to the Internet, consumers expect 21st century companies to bring a sophisticated online presence. Utilities that leverage the interactive power of Web 2.0 will strengthen their positions in regulatory and competitive arenas.

As market forces transform the IOU business model, Apple’s iPhone provides a metaphor and possible example for the industry to follow. The iUtility will emerge as companies renegotiate the regulatory compact and reinterpret the traditional rate formula.