Are utilities ready for a smart grid?

Is your company ready?

As the possibility of a US smart grid becomes more and more likely, companies, regulators and customers are all investigating strategies on renewable energy, energy efficiency and demand response in order to adapt how they serve their consumers and utilise services.

New technology such as smart metering, energy management applications and smart appliances are changing the way utility firms will interact with their customers but the question has been raised about whether the firms are ready for such a change?

In a report from IDC Energy Insights in which 60 large US utilities had their senior management interviewed, the following findings were revealed;

• Utilities are preoccupied with the implementation of physical infrastructure and have not thought through the implications of new technology and products on customer relationships or the business process.
• Most utilities have experienced or are expecting an increase in call volume or duration with smart metering, dynamic pricing, and energy efficiency scale-up. Forward-looking companies expect automated connect/disconnect to generate calls.
• With the introduction of smart metering, the customer is expected to spend more time interacting with the utility on the Web; however, there has been little investment in customer contact aids such as live chat or training of customer service representatives to
  walk customers through the Web experience.

Utility recommendations

As a result, IDC made the following recommendations to utility companies in a bid to make improvements as efficiently as possible;

• Develop a strategy for service planning, development, and delivery, and look to other service industries, such as telecommunications, that have already adopted new technologies and service delivery methods.
• Expand customer engagement strategies. Customers will engage using multiple communication channels, including smart phones.
• Develop a customer experience management practice that is part of a strategic marketing plan. Use analytics to develop new customer segmentation based on geo-coding, lifestyle, and consumption patterns. Match the multiple touch points and technologies with new customer segmentation and customers' preferred communication channels.
• Deploy pilots to assess blended communications to serve customers. Focus on the customer experience using tools provided via the Web portal and determine what other live interaction will be needed to complete the experience.
• Consider partnering with experienced service providers. Evaluate outsourcing and training options to help the utility move from customer service to customer engagement.

If a smart grid in the US is to become a reality, this report shows a lot of work is needed, not just on the problems of integrating renewables, but in ensuring utility firms are capable of handling the transition.

Relevant articles:

Could virtual power plants help grid innovation? | America's outdated power infrastructure | Why the US needs a smart grid | GE CEO: Smart grid essential for US

Timon Singh

Timon Singh is a graduate of Liverpool University where he received a degree in Social and Economic History. He has previously worked for BBC Magazines on BBC Who Do You Think You Are? Magazine, the publication for the popular genealogy show.

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