Get Creative About Flexibility

Utilities can no longer afford to take a wait-and-see attitude

The evolution of the United Kingdom’s energy system into an innovation-led, decentralized market presents a fundamental challenge to the traditional low-risk, cost-focused approach long favored by established incumbent utilities.

New smart technologies, creative business models, and a gradual updating of the regulatory framework are driving this change. These same forces, however, are also creating a set of strategic complexities, risks, and opportunities for utilities, as well as ushering in a new group of agile startup competitors that are trying to harness these elements to disrupt the utilities market.

The speed and efficiency with which incumbent utilities respond to these challenges may well determine whether they continue to play a leading role in the UK energy market in the long term or cede their position to new market players. And nowhere are these changes more evident than in the area of flexibility.

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Flexibility is a core aspect of new product and service categories

Source: Oliver Wyman analysis 

About Author

Andrew Perry is a London-based engagement manager in Oliver Wyman’s Energy practice.


This article first appeared in Utility Week.

Get Creative About Flexibility