Dynamic Energy Pricing in the energy sector
Customers want control of their lives, including the price they pay for their energy usage. The energy bill is a fixed part of everyone’s budget and an increasing portion for low income households. Energy companies that offer dynamic energy rates that allow customers to optimize their usage (and bill!) are more likely to see greater customer satisfaction. Real-time energy data holds the key to making dynamic or Time of Use (TOU) rates successful for your energy company.
As an energy company, it begins with having insights into quarterly - 15 minutes - energy trading prices. Real time knowledge of energy price fluctuations connected to time, weather and demand are imperative for effective TOU rate making. There are many data analytic tools used by energy traders to see energy trends and relationships based on weather conditions and seasonal, weekly and even daily events. Understanding these relationships could be enhanced by the Energyworx platform and most importantly, easily shared with other departments within your energy company. Energyworx’ ability to calculate fluctuating energy prices in real time allows energy companies to offer the best price to customers while ensuring a healthy margin.
What’s technically needed for this new energy pricing service is a data aggregation platform like Energyworx that is able to connect with multiple systems across many departments. Energyworx supports systems like SAP, Oracle and ERP by bringing in additional data sources such as weather, CRM and contract databases and crunching and correlating the data in real-time. These systems need to be able to calculate the price per kilowatt hour and provide end customers with insights into the cost of their energy.
Why should your company transition to TOU rates? The market is a powerful tool for grid balancing that can increase the reliability of the grid without the need for peaker plants, energy storage or other grid investments. This can reduce CAPEX and OPEX and the savings can be passed down to the final customers. The increasing competition in the energy industry is demanding more cost effective energy pricing as well as better relationships with your customers through energy efficiency opportunities. Dynamic pricing gives your energy company the opportunity to cut costs, save your customers money and reduce greenhouse gas emissions. Boost your triple bottom line with a solution that truly supports people, our planet and company profits!