According to business transformation company EXL, connected home, work and digital cities will create a $731.7 billion market opportunity for utilities by 2020.In its latest whitepaper ‘Monetising Opportunities for Smart meter data’ the research firm analysis financial benefits resulting from the use of smart meters.
Through the use of smart meter data, utility companies have high probability of improving customer experience, operational cost structure and overall industry performance, states the white paper.
The research firm recommends that energy providers monetize smart meter data through:
- Improvements in customer experience achieved by better customer insights, a better understanding of consumption behaviour, reduced billing challenges and provision of real-time energy usage data to enable consumers to improve their control of consumption behaviours.
- Financial performance enhanced by growing the topline through tailored propositions, improved revenue assurance, reduced cost of operations and the innovative use of smart data for monetization.
- Enhanced governance mechanisms that support improvement in overall efficiency of the grid.
Smart meter benefits
The research firm says it is confident customer outlook will go through an evolution because of an increase in expectation of what smart meters can deliver.
To date, smart meters are being used for providing consumers with accurate and timely energy billing, for the development of Time of Use energy tariffs and in improving consumer flexibility in choosing energy providers of their choice.
The role played by data analytics in helping utility firms meet customer expectations will increase. EXL forecasts that data analytics will be key to understanding and meeting customer expectations through appropriate products and services.
Also, there will be a need for rewards and loyalty programmes that incentivize good behaviour, promote loyalty and provide an integrated consistent experience comparable across other industries.
The demand by consumers to use their energy usage data to remotely control the energy usage levels of their smart home appliances using applications will create an opportunity for utility firms to generate new revenue streams and monetize smart meter data.
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