Customers payment habits changing in the utilities market, and what this means for business.

A debate for businesses in the global utilities industry is now whether to optimise profits, or give the customers greener solutions. 'Bain estimates that in Germany, the big four utilities will lose about a third of their annual operating profits from generation, or about 2.5 billion euros, by 2020, due to the shift in spending.' (Source: Reuters) The change in habits comes from customers looking for new ways to cut expenses, such as solar panels, one-off payments to consolidation firms, energy efficient lightbulbs, and low-cost electric appliances (over gas, petrol and so on). 

Bain consultant Berthold Hannes believes that total customer spending has not decreased, rather it is distributed the more efficient suppliers in the industry.  It seems investment in these areas is likely to pay off as customers increasing feel the guilt of planet ruining greenhouse gasses! Never a more profitable emotion that guilt, right? In the UK, the governments "decarbonisation" target (to be hit by 2030) was rejected in the house of commons, resulting in the BBC reporting that 'environmental campaigners [are] arguing it shows David Cameron's pledge to lead "the greenest government ever" has not been fulfilled'.(Source: BBC)
Energy secretary Ed Davey still firmly believes in the Energy Bill however. He comments "In any case, we're already bound by law to cut emissions across the whole UK economy by 50 per cent by 2025, and the Energy Bill will bring about substantial decarbonisation of the power sector as part of that." (Source: Utility Week) which still supports the German customer's new spending habits.