Energy suppliers warned to partner up to see off ‘Google threat’

Deutsche Telekoms has warned UK energy companies to “partner up” with other sectors to fight off new entrants such as Google from taking market share of the connected homes market.

Deutsche Telekom’s UK head of business development Jon carter warned that energy companies need to act now to make the most of the opportunities afforded by the smart meter rollout before the Data and Communications Company (DCC) network goes live in April next year. 

Carter said that once the DCC network goes live third parties such as Google will be able to gain access to energy consumption data meaning energy suppliers will lose their competitive advantage.

The telecoms provider has identified a range of business models possible through the use of an open connected homes platform, such as the one it currently operates in the German market.

The Qivicon platform, which Deutsche Telekoms calls a CAD-plus, offers German energy suppliers around a 100 partnership opportunities.

Carter said that if utilities are only looking to deploy a simple consumer access device (CAD) “you haven’t understood the opportunities the smart meter rollout will bring.”

“The basic business case for the smart meter is relatively tight around what can be exploited, it’s quite a tough business case but we believe there are a number of quite innovate models utilities could look to deploy as a way to cross-fund the cost of a ‘CAD-plus’”.

“We are working with a number of major utilities, leveraging the platform we have deployed. The fact it is open it almost allows utilities to have a picklist of a real broad range of partnerships so that they can actually create some really innovative models around warranty, assistance services, insurance, retail and beyond.”

Carter had been appointed in the UK to spearhead the company’s roll out of its white labelled connected home platform, based on Qivicon, in the UK.