Changes in the energy industry are forcing even the biggest players to adapt how they approach things.
If you’re one of the big energy companies, you have to adapt and change to the new realities in the market, and we’re starting to see an emerging strategy of connecting even more deeply with energy customers.
The changing electricity business
I recently highlighted a disturbing trend for utilities: rising costs and falling customer demand for electricity. The dynamic has led to electricity prices rising faster than inflation, and now utilities are starting to see competition from new energy innovations from efficiency to rooftop solar to energy storage. If this continues, customers will slowly find off-grid alternatives that are more cost effective, leaving utilities with a declining business.
Edison International (NYSE:EIX) recently announced the creation of Edison Energy, which will be an energy services company for large organizations. The plan is to offer energy efficiency, renewable energy, and energy storage not just to customers in the utility’s territory, but also across the country.