Energy To Get The I-Tunes Treatment?
New research out this week confirms the results of our FiftyUp Club survey that a “worryingly high number” of households believe there are no alternatives to their current energy provider and that even if there was, switching is too hard.
John Rolfe from News Corp reports the lack of innovation and disregard from current electricity companies for customer needs, has created an opportunity in the market for the likes of Apple, Google and even Telstra to step up. It’s described as a revolution similar to the one that recast music and video retailing.
CEO of Energy Consumers Australia (ECA), Rosemary Sinclair said “Apple, Google, Telstra and others had identified that there is friction in the market and that they can start addressing consumers’ needs”.
The ECA was set up last year by the federal, state and territory governments to be the people’s voice on power national advocate for power consumers.
Ms Sinclair said “the music industry had a business model that wasn’t what consumers wanted but didn’t want to change. So it was changed for them. Ditto the video industry. They come in with innovation that is centred around consumers’ needs and that is the major thing they do that changes the culture of the entire industry.”
Apple Energy LLC was set up by the tech giant only last month. Google meanwhile paid $US3.2 billion ($A4.3 billion) in 2014 for the home energy management business Nest.
Ms Sinclair also cited Mojo Power and Pooled Energy for bringing new approaches to the market. Mojo recently began selling NSW consumers a monthly “EnergyPass” that gives access to wholesale electricity rates while Pooled targets pool owners with a bundled deal of maintenance, chemicals and electricity.
At a clean energy summit in Sydney this week, the head of the Australian Energy Market Commission called on the sector to stop its navel-gazing and instead focus on consumers.
AEMC chairman John Pierce said “The traditional, centralised energy supply model is being challenged by new products and services, including renewables like wind and solar — but the current debate is inward focused (and) all about the industry.”
