Suppliers engaging customers in a “personalised” way and focusing on outcomes they want is much more powerful than just selling a product, according to Steve Jennings (pictured), Partner – UK Power & Utilities at PwC.
Speaking to ELN about the issue of energy retailers, he said: “I do see some features of a new model which are really important for the industry to move from where we are now to an environment where there is trust.
“I think customer proposition which tackles trust that focuses on outcomes that consumers want – rather than selling a product – that’s much more personalised and engages consumers locally I think is a much more powerful one and one that I think is sustainable.”
Mr Jennings said PwC sees the industry moving to a new stage in the evolution of retail competition.
He added: “There are some critical building blocks for that stage – managing the energy trilemma, having transparency and understanding of energy prices, tackling the trust agenda but primarily and fundamentally putting energy reduction at the heart of the debate rather than the continual debate about energy prices. And therefore, we see a future, we see a new model where energy efficiency, reducing consumption is now at the heart of the debate.”
He believes people will invest in energy generation when they have certainty which he expects the electricity market reform (EMR) will provide.
He said: “I actually think that we will start to see more investment in energy supply. We’ve seen switching levels go up significantly in recent times. One of the disappointments of the market is there have been few independent retailers and that has led to accusations of market collusion competition is healthy and I hope we see more new entrants enter energy retail which in turn I think will help the whole trust agenda.”