Energy Management and the Role of Utilities

Utilities are in a unique position, as their customers span multi-generations, income and education segments, renters, homeowners, and individuals, in addition to families. In traditional, non-retail markets, which represent the majority of households, their relationship is long-term. They are a trusted advisor in their communities, even though many consumers only interact with their utility when moving to a new residence, paying a monthly bill or when an outage occurs.    Energy management is a key component of the connected home, and utilities are a key distribution point — 23 percent of U.S. broadband households that bought a smart home device in the past 12 months made the purchase due to an incentive, discount, or rebate from their energy provider. 

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New business models and technology provide opportunities to change the customer relationship and drive engagement and participation in utility programs that optimize energy usage and incentivize consumers to be more energy-efficient. Progress over the past few years includes new partnerships that enable utilities to integrate with different platforms to provide consumers with a more personalized/interactive experience with their utility provider. 

While most consumers value having a high-efficiency home, most also have a low bill. The Energy Information Administration (EIA) reported an average monthly energy bill of $111.67 in 2017 in the U.S., with a third of households having an average utility bill of less than $100. Parks Associates’ latest research of 10,000 Internet households shows that the average spending on electricity is $146 per month. 

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