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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NEW BUSINESS MODELS FOR UTILITIES
Flexibility is a core aspect of new product and service categories
Source: Oliver Wyman analysis
Andrew Perry is a London-based engagement manager in Oliver Wyman’s Energy practice.
This article first appeared in Utility Week.