Utility Industry at a "critical tipping point"

January 29, 2014 | By Barbara Vergetis Lundin

In a survey of more than 600 utility executives and 800 consumers in 14 countries regarding the state of the utility industry, Itron has found that the industry is at a critical tipping point, According to the research, 94 percent of utility executives believe the industry needs to be transformed, and 80 percent of consumers are dissatisfied with the current amount of information they are receiving from their utility. The findings highlight the need for utilities to do more to achieve operational efficiencies and to take a more active role in educating consumers about energy and water use. Some of these results were released at DistribuTECH this week in San Antonio.

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Increasing constraints on global resources combined with accelerated technological innovation place the industry at a critical point in defining how the country will successfully manage finite resources, meet growing demand and engage consumers around the world.

The survey was intended to measure perceptions on issues critical to the operation of gas, water and electric utilities in order to understand the views of consumers and utility executives on current challenges and long-term solutions for efficient operation of the industry, including resource use, supply, efficiency and technology investment.

The findings identified alignment around the need for efficiency gains across gas, water and electric utilities. For example, consumers rank "offering energy efficiency programs" as a top unmet need from the utility industry.

Government policy is critical, but an obstacle. According to 94 percent of utility executives, current regulation and lack of clarity around regulation is a top barrier to infrastructure investment. Utility executives list dealing with new regulations -- or the possibility of new regulations -- as the number one industry challenge.

Technology is also key. More than half of utility executives said they would invest in technology if they had an increased budget, and 75 percent said that effectively managing big data is critical to modernizing infrastructure.

While many themes were similar across gas, water and electric utilities, the survey revealed some nuances. Consumers and industry executives, for example, are least concerned about the price and continued supply of natural gas and most concerned about electric utilities' long-term ability to meet demand. The major concern regarding water utilities is the impact of outdated infrastructure.

"The interconnectedness of energy and water, and the increase in demand, makes the management of both resources more critical than ever," said Michael Webber, PhD., deputy director of the Energy Institute at the University of Texas at Austin, who provided expert insight for the survey.

For more DistibuTECH coverage, click here.

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