Vertex Business Services commissioned industry analyst firm Sierra Energy Group for this informative look at the impact that demand response will have on utilities and their customer relationships.
Overview
In the next 10 to 20 years, utilities will be forced to change more than at any time in their previous history. These changes will be profound, widespread and will affect not only utilities themselves, but virtually all parts of our modern electrified culture.
One of the most dramatic changes will be in the traditional relationship between utilities and their customers, especially at the residential level. Passive electricity "rate payers" are about to become very active participants in the relationship with their utility.
Coming changes include:
- Increased focus on residential electricity conservation.
- Expanded use of rate structures that charge customers different rates for usage during different times of the day, rather than charging a fixed rate regardless of when power is used.
- Many customers eventually may be not only consumers of electricity, but also providers through various, widely distributed power sources of their own.
According to Rich Huntley, energy conservation and demand response practice leader for Vertex Business Services, "Energy efficiency and demand-side management puts a lot of strain on billing infrastructure. If you think about the kind of rates they are going to have to deal with - real-time, critical-peak, 80/20 rates, extra rewards for using less electricity, etc. - these things are not included in a typical CIS for mass-market customers. There will be a lot of new relationships and a lot of the infrastructure strain will revolve around rates."