In an article for CIO Insights, Navigant explains how subscription plans benefit both utilities and customers
Consumers are accustomed to purchasing subscriptions for digital content, ride sharing, and more, why should utilities be any different? With subscription pricing models, companies are able to find the right balance between customer needs and their own through the use of data, analytics, and behavioral research.
In an article for Energy CIO Insights, Navigant’s Lon Huber, director; Aida Hakirevic, director; and Anissa Dehamna, associate director; discuss why utilities should embrace Energy Service Subscription Plans (ESSPs), and highlight what the new business model would mean for utilities in the long run.
“By converting transactions into long-term relationships, utilities have a path toward sustained revenue streams that do not require ever-increasing load growth,” said Huber.
ESSPs allow utilities to incorporate new customer-cited technologies, while all the customer sees is a predictable fixed-price subscription.
By moving over to an ESSP model, utilities would benefit by cutting operational costs. This would include reducing distribution operations and maintenance spend and simplifying meter-to-cash processes, all while improving customer ease of use and satisfaction.
ESSPs can give utilities opportunities to provide hardware, services, and data analytics to customers, by using emerging technologies. Utilities can also pair ESSP with storage. Navigant helped design a program in New Hampshire that gave customers a Tesla home energy storage unit for a fixed monthly rate, which ended up saving both the customers and utility money. By pairing ESSP with storage, utilities can transform their relationship with customers, improve customer satisfaction, and lower operating costs.