The transforming utility — meeting the new customer expectations (Part 1)
The harsh reality: Customer expectations have outstripped the original mandate of the electric utility. Customers want “always on” power with solutions unique to their particular needs from an industry that was originally designed to do neither.
At the same time, customers want the innovation they see in other industries while they demand that the product becomes more and more affordable (cheap). Utilities around the globe are running to meet these expectations — but in many cases it is a steep hill to run.
Notwithstanding the challenge, many utility executives, including those at Jamaica Public Servive (JPS), welcome this evolution to a customer-intimate business and the need to innovate while eliminating. While it may not seem apparent at first glance, the energy industry is making significant investment in new resources — both technical and human — to bring to life initiatives that will ultimately redefine the industry and meet growing customer expectations.
These initiatives include more than technical investment. They incorporate a deep focus on change management, and the commitment to transparency and customer interaction.
The most significant challenge to this evolution: historical mandate. Utilities were developed on the premise that all customers should be treated the “same” with a singular model, and a restriction from “discriminatory” treatment (different treatment for similar customers). We were designed to sell kilowatt hours at a regulated price according to rate class. Full stop! That’s it. Nothing more.
Customers today want unique options — budget/flat bills, multiple payment options, pricing options, multiple contact points, etc. They want to determine how and when they take electricity from the grid. They want to pay different prices for different things.
And then there is the emotional subject of power outages. Quite simply, customers want NO power outages from an industry that was designed to have power outages. While I know that sounds ludicrous, the utility wasn’t designed for uninterruptable service. In fact, the utility system’s overall concern is to protect itself: To take away power when necessary to prevent long-term damage to the infrastructure in which the customers have invested. Granted, those outages must grow more infrequent and shorter every year, but customers now are growing frustrated and impatient with any power outage.
Additionally, we know customer demands will only increase as the use and introduction of technology in our lives dramatically change customer needs. Empowered by the 24-hour connectivity of the Internet and the speed, ease and mobility of hand-held devices and the information provided by smart meters, customers have every reason to be more demanding than ever.
To meet those growing expectations, JPS is implementing a plethora of action: improving our reliability through distribution automations, investing in a smart grid technology to make outages shorter, meeting with customers to determine specific energy needs, and offering customers who demand “always on” power additional options.
To provide greater customer information and options, we are offering mobile apps, mobile money, prepaid and smart meters. Fortunately, as we modernise the customer service processes, we can simultaneously eliminate inherent waste and provide resources to improve reliability and increased optionality.
Eliminating Waste
Every part of the energy business has room to eliminate waste. From the very beginning of the process — getting fuel from a long distance to generate power, a commodity that is often impacted greatly by politics — inherent waste exists. Accordingly, for energy security and sustainability, we have to have as a key objective using resources that are local and diversify the fuel risk.
Secondly, using large generators far away from the load that they serve — requiring long transmission and distribution lines to deliver energy — results in waste. JPS downsized its power plan from 360 MW to 190 MW to allow for room on the grid for more distributed generation.
And the waste doesn’t stop with the generation process. Every part of the customer process involves avoidable waste. For instance, a human being walking and riding to read a meter in your home, and walking and driving back to the office to download that reading. Cars, gas, human capital — waste, waste, waste.
Then taking that information and creating a paper bill — waste.
Using a vehicle, gas, human capital to take that paper bill to your home or place of business — waste — not to mention the environmental impact.
And it continues: taking that paper bill with physical money to a location to pay — inefficient and wasteful.
And every month we do the process all over again!
And that’s before we get to inefficient use such as electric water heaters, inefficient building codes, and too much energy during the hours of 6:30 pm and 9:30 pm which we build entire power plants to serve.
Waste! Waste! Waste!
As we recognise that “so goes energy, so often goes the economy”, we are called to really get serious about taking the bite out of energy. That will mean deep changes for the utility and acceptance of that change by our customers. Every customer can take a step to help: minimise the use of the grid during peak period (6:30 pm and 9:30 pm), use an e-bill, install a Pay-As -You-Go meter, use mobile money, Internet instead of an office, etc. We all truly have the ability to help keep energy affordable.
Yes, I know we hate change… we like our paper bills, we don’t trust smart meters, we are used to cash, and we like to go into an office. But can we afford it?
— Kelly Tomblin is JPS President & CEO
— Kelly Tomblin is JPS President & CEO