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Looking ahead to 2017, James Forrest and Alain Bollack assess some of the main trends utilities will have to deal with over the next twelve months.
Connected homes
This year has seen an increased interest in the connected home, but 2017 is likely to see these technologies enter the mainstream market with force. We are seeing bigger brands turn their attention to the potential of this technology, making the products available more attractive, affordable and usable.
As this reliance on technology in the home develops, we will see the utilities industry preparing for the digital age as well. Some of the world’s largest technology giants will enter the utility market as they look to expand their play for the connected home and take advantage of consumer data, helping to deliver a modern, digital experience for customers.
Tariff options
Time-of-use tariffs were introduced by energy suppliers such as Centrica for the first time last year, and with great success. Made possible with the introduction of smart metering and changes to regulations, suppliers are now able to offer customers prices based solely on their time of use. With the success of the past year in mind, we could be seeing the beginning of a new trend; something to look out for in the months ahead.
Concentration of suppliers
While changes to government policy have resulted in a huge rise in the number of energy retailers in the UK, 2017 is likely to see a concentration of this number. Many smaller energy retailers entered the market at a time when the cost of energy was low. As prices rise, smaller retailers might find themselves met with bankruptcy as the realities of a saturated market present themselves.
Energy storage
Energy storage has long been too expensive and clumsy for investment on a large scale. As the technology matures and the price comes down, we are likely to see greater investment in solutions as varied as compressed air energy storage, pumped hydro power and flywheels. Though the potential is there for this technology to deliver great cost savings to utilities and consumers, the reality of large-scale investment may take longer than 12 months to fully action.
Ransomware attacks
As cyber-criminals increase in confidence and sophistication, 2017 may be the year that we see the first reported instances of utility providers falling victim to a ransomware attack. We may even see systems hacked and seized by criminals, with large sums of money demanded to avoid networks having their power shut off.
James Forrest, head of energy & utilities, Capgemini UK
Alain Bollack, vice president, smart energy, utilities, Capgemini
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