Tag Archives: consumer

Challenges of a decentralised energy market

The energy industry is changing faster now than it has ever before. These changes can in many cases be traced to the focus on renewable energy sources and energy decentralisation. With pressure from lawmakers, energy companies have been changing their energy mix to increase the use of renewable or sustainable energy sources.

Renewable energy branding has changed – it is becoming less of a differentiation for an energy company to offer a high percentage of renewable energy to customers. What has also changed is what customers expect to see from their energy companies in terms of customer service and engagement. It is more important now than ever before for energy market segmentation of customers – especially with more and more consumers in the energy market becoming prosumers. This is why energy companies have a focus on renewable energy and customer relations.

The most effective ways of communicating with energy consumers can be through content marketing, storytelling, advertising or direct contact but it the most important and effective way for communications to become successful is by building a strong brand with a coherent voice as a trusted source of information. People connect to brands.

Energy decentralisation can have two meanings but both of those meanings have had an impact on the energy sector. The decentralisation of the market in general, or deregulation or liberalisation, has meant that some market territories are no longer controlled by a monopoly which produces, transmits, distributes and sells electricity to an end consumer. Markets have been changed in order to increase competition in the retail and generation areas.

This has created new challenges for energy companies. When the consumer has a choice – he is more likely to choose the brand which speaks his language and connects to him in more ways than just supplying energy to the sockets.  This is not only causing a change in the retail sector – new brands that have been established around the transmission part and the distribution parts of the power systems have become more effective in brand-building and communicating to customers and other stakeholders. They have found out that branding is not only a proven way to communicate with the public but also to help people inside the organisations to communicate with each other. Branding has proven to be a valuable tool in breaking the silo mentality within organisations.

Energy decentralisation can also refer to new technologies enabling consumers to produce their own energy. Instead of energy coming from a centralised energy plant, it is all the sudden flowing from the rooftops of homes and small-scale windmills at farms. This addition to the power mix is not only changing the way people think of energy by bringing the production closer to home but is also changing the way energy companies are approaching the market with new strategies.

Electricity brands, in retail, transmission and distribution have had to find new ways to engage with those customers who are able to get energy off-grid. These customers are not only self-sufficient with their energy usage but are also selling power to the grid. This means a whole new means of communications. The average consumer is not an expert in terms familiar to people in the energy space – there is a need for a common language for energy companies and consumers to have their engagements in.

Energy company branding is an important topic for the changing times in the energy sector. Energy utilities are aware of the fact that they are not dealing with meter points but people of flesh and blood that need a deeper, more emotional connection than before.