Sunday 24 March 2013

Energy becoming a PR war with consumers left confused

The latest salvo between the Big Six energy companies and the government reported in today's Daily Telegraph entitled PM in price clash with energy firms is just the latest in a pretty unedifying and non sensical PR battle being waged by the Government.

Energy prices are rising and that is mainly down to factors such as:

  • The cost of raw energy as demand outstrips supply - we are all part of a global community who compete for a finite energy pool
  • The increased costs of our energy sources becoming 'greener' - the cost of Wind Farms, Solar Subsidies and massive Nuclear power stations are landing in one place - our energy bills - so it is pretty disingenuous for the Government to use a 'rising bills blame the utility firms' argument.
This means the impact on prices energy companies can deliver is marginal but the Government would prefer us all to think that rising prices are down to the Utility Companies rather than Government polices.

In addition it's the Gas and Electricity firms who are funding programmes for those in energy poverty, insulation programmes etc. etc. 

But the Government would like us think that it's the greedy power companies who are solely to blame.

Now I am not saying that they not have a part to play - they obviously do. But the government and the industry should be working to get a common view as to how costs can be reduced which in turn can mean lower bills.

Personally I would prefer a low cost airline solution.

Have a base price for energy delivery - add a premium for paper bills, greener energy options, peak time usage. This will mean that as technology starts to deliver new solutions for our power challenges we can be encouraged to adopt them. 

We are not far away for a position where our energy supplier will be able to manage demand in energy. An easy way of considering this is with a mobile phone charger. At the moment we plug our phone in and our phones a charged up within half an hour. No matter if its day, night, peak usage or the middle of the night. In a couple of years you will be able to plug in and your power company will be able see whether your phone is 20% or 60%. If its the former your phone will be charged until it is 40% full, and from them on it will be charged when there is spare capacity in the system. So phone charging will be suspended as kettles are turned on around the country at half time in a major football match etc.

We will see batteries fitted to many household items which will allow our energy needs to be smoothed thus reducing the need for building for the current peaks in capacity.

Having a flexible pricing strategy would allow those who adopt new ways of working to be rewarded,  thus speeding up adoption.

We need to be more radical in our thinking not bashing those who, with a bit of collaborative working, could be part of the answer.
 

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