As we turn over our calendars to the start of another year, the energy industry has never been more competitive. Globally, our demand for energy is increasing and the energy mix is shifting away from hydrocarbons to renewables. Which, whilst admirable, has put increased strain on our existing infrastructure and processes.
Greater automation
The industry is, arguably, more reliant on technology than ever before. Thankfully technology continues to be a game changer required for the energy sector. Not least of which in providing greater automation within the industrial and commercial (I&C) sale process.
Here, advances in technology associated to pricing and data sources is allowing tenders to be created more effectively. Then they can be audited, tracked and price comparisons created at ease through using the latest in machine learning technology. Suppliers can tailor their journeys to reduce the need to rekey in data, which can lead to errors, and pass on requests to pricing teams in an instant. Further, by integrating with live pricing technology by supplier, will allow a collective focus on relationships rather than inbox management.
A greener future
Whilst there has been significant headway made, further education is still required to encourage SME businesses on to the path towards Net Zero. So far, more of the focus has been on larger I&C customers. Yet, sales should always be viewed as a service so when quoting a customer, whether large or small, it is important that they are educated as to the benefits of carbon reduction savings.
Of course, this can also open the door up to other opportunities, whether that be upselling solar arrays or heat pumps. It is a win, win that can provide more opportunities for savvy brokers who are seen to care. Whilst technology of course exists to help with carbon reduction calculation and reporting, it is key that it is integrated also into the sales “service” journeys.
The need for regulation
For regulation to be effective it is important that regulators are open to engagement from software companies that serve the industry. After all, in the majority of cases, vendors are very much led by their clients. Vendors will hopefully engage with cyber security teams at their clients regarding the regulations that need to be adhered to. However, regulatory changes are always open to a certain degree of interpretation by the supplier, and as a vendor will aim to cater solutions based upon this interpretation, mistakes can happen.
An example is the proposals made by The Department for Energy Security and Net Zero (DESNZ) on TPI regulation. There are many ways in which software could support any proposal that would form part of the regulations, allowing both suppliers and brokers to have their pain eased and help improve continuity within the market. However, this requires engagement from the start. Not just with those within the market, but the technology vendors that serve them. One of the benefits of this would be a more joined up nature to the process, so that software companies that meet the regulation standards can be named and accredited as being compliant from the off.
The future of energy pricing
Artificial Intelligence (AI) will play a key part to the future of energy pricing. Using AI to analyse and review data in real time can lead to dynamic price adjustments that support ‘Time of Use’ tariffs, plus assist with predictive supply and demand from a hedging perspective.
Even greater than that, though, AI can create a more detailed analysis, to provide a truer pricing for the customer. For a supplier, this mitigates concerns of usage being under or over the true amount, leading to a single version of the truth that creates better competition and a thriving market for brokers to serve.
