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Keep the lights on and the cost low. At their foundation, these metrics have been arguably two of the most important for any utility company since the beginning of utilities. But before we philosophize and debate what was, is, or will be the future definition of a successful Electric Service Provider, let’s break down what a Utility is really doing – An Electric Utility Company sells and delivers electrons to customers, home, business, or any other pre-determined point of interconnection.
Pretty simple, right? An Electric Utility sells and delivers electrons to its customers. Keep the rates low and the service reliable, and everybody is happy, right? Right – as long the rules of the “Utility Game” don’t change, and let’s not kid ourselves, everything changes, nothing stays the same. Enter change management.
If there is one aspect of the business that seems to be changing faster than the others, it seems to be the expectations of the customer and those with statutory and legal authority. Today, the same accounts who have been paying their monthly bill once a month at a standard socialized rate, with their only real visibility being some simplified usage data and sometimes broken-down rate components; are the same accounts but with different customers behind them. Those new customers at the same accounts are craving and receiving transparency and instant gratification from other product and delivery service providers such as Amazon. Additionally, a new question is being asked by a more widespread audience, are the electrons my Utility is providing me responsibly sourced, which opens the door for many existing and forthcoming follow up questions. What is my utility doing to honor, support and advance social responsibility?
Pretty tough question to respond to, especially considering each customer more than likely has a different definition and expectation of what Social Responsibility means, let alone in the context of the very physical and critical world of running a successful Utility. And generally, we all have our own complex stakeholder management requirements – from a governance, regulatory, and legislative perspective among others, and generally whoever barks the loudest (the customers) or swings the biggest hammer (legislators and regulators) get the attention. However, it seems the latter are driving the pace and direction of change, potentially with an unintended negative impact on customers.
Let’s not throw the baby out with the bath water. Traditional Utility focus on low rates and great reliability will always be paramount – however, we have an opportunity now to expand and or redefine success in the future in a collaborative and socially responsible manner by setting timeless objectives and ensuring all stakeholders are making decisions with eyes wide open, mitigating unwanted surprises.