Where’s the money? How big is the economic opportunity? These are the most frequent questions I get asked about energy consumption data, or ‘energy insights’. These are simple and important questions to ask but has been a challenge to give a confident response to. Customers enjoy better understanding, control, and reduction of their energy use. The economic value to energy retailers or other parties is less clear.
We can point to the potential value streams, using logic and results from small pilot studies. Yet, until now we haven’t had the evidence base from a range of strong case studies to support this reasoning. We were not alone. We surveyed industry contacts with a remit for energy insights in summer 2021. The findings showed that solid evidence is rare amongst European energy retailers. This is understandable as the market is still developing. Instead, energy companies use customer benefit, business metrics like customer churn, and smart meter rollout progress to influence investment decisions. The survey results highlighted the need for evidence to shape industry views and inform decision making. So that’s what we set out to uncover.