Current customer experience practices push Utilities towards irrelevance. Utilities are losing their competitiveness to market entrants that are leveraging digital technologies to deliver the experiences that customers are enjoying in other industries. New entrants are better equipped to address customer needs because they have platform thinking, whereas incumbents are stuck in a legacy mindset and are hamstrung by legacy operating models.
Current cost-of-service models result in lost revenue and cross subsidization. As the market continues to swiftly adopt DER, cost-of-service models have not evolved concurrently. This has artificially inflated DER value and the costs to maintain necessary support infrastructure are not being recovered.
Current infrastructure and capabilities are too weak to handle DER integration. 48 percent of consumers expect their energy provider to partner with other companies to offer DER-related packages that enable them to generate and store energy. Utilities don’t have the necessary systems and infrastructure to keep up with adoption, resulting in curtailment of DER.