These rate increases are largely being driven by environmental, regulatory, and security requirements that have one thing in common: they have limited perceptible value to consumers. This situation risks invoking what one utility CEO aptly called “the Wrath of the Customer.” This refers to customers feeling that these rate increases are adding to their financial strain at the worst possible moment, without any clearly articulated value, creating a highly charged atmosphere where minor service issues become angry customer complaints. In response, utilities will need to work closely with regulators and policy makers to achieve constructive regulatory outcomes while building and leveraging their capabilities, offerings, tools, and resources to create new value for their customers.
The bad news for US consumers may be about to get even worse. In addition to falling home values, high gasoline prices, and persistently high unemployment, there is a growing need to increase electricity prices.
-
Insights Making The Invisible Visible Women are still passed over for the most senior leadership roles with only one in four executives female. What's preventing progress on women in leadership? -
Insights Is Money All That Matters? A nation’s human-capital policies must be agile and adaptable, yet effective enough to drive national-scale transformation. -
Insights Applying The Urgency Of Solving COVID To Climate Change As we emerge from COVID-19, let’s harness the necessary spirit of collective endeavor in our fight for a cleaner, greener and more prosperous future. -
Insights Implementation Of Sustainable Development Goals Recommendations for potential mitigation actions to achieve access to third-party data sources.