Posted on: 16/10/2018
This year marks the 10th anniversary of our electricity supply business! As we celebrate the success of the last ten years, Vice President of I&C Supply, Andy Cormie looks at what’s driving the future of the supply market.
This month our I&C Supply business is 10 years old!
When we launched on the 1st October 2008 after signing our first customer, the well-known charity Barnardo’s, the supply market was very different. Dominated by the ‘Big 6’ with their asset-heavy business models, we saw an opportunity to offer something different.
So we built a business around partnerships, where the only assets we rely on are our staff and our customers, and we put them both at the heart of everything we do.
Since that time, the market has reformed; the energy system has become more flexible, more complex, and businesses have become smarter energy consumers. Our electricity supply business has grown significantly and we now supply over 2,500 UK industrial and commercial customers, including leading brand names like Saint Gobain, Arcadia, DHL, Bank of America and JLL, all of whom are long-standing customers.
As we celebrate this milestone, I thought it would be a good time to look ahead to the next 10 years and consider what’s driving the supply market and what the future energy consumer will look like.
Following our customers lead
Our success is based on having the people skills and culture to support the evolving needs of our customers. And with a +59 Net Promoter Score that’s now more equivalent to Amazon than an electricity supplier, we’ve consistently proven ourselves as a reliable partner.
Small, large, direct or brokered we treat every customer, including the consultants we work with, as an individual. Dedicated service is standard and, while we understand what it takes to deliver the basics, the quality of our people has helped us to make complex multi-site portfolios a speciality by adapting the way we work to meet the needs of our customers.
Our electricity supply contracts reflect the different customers we serve and the need to help them adapt to changes in their businesses and the energy market. They are built to respond to those “what if…” scenarios.
SmartestEnergy’s customers are already increasing their use of on-site generation and beginning to source power from local renewable projects, for example through Corporate PPAs. We’re supporting them on that journey and we expect to see future customers doing the same.
But with decentralisation driving greater change we see our future supply customer as more than just consumers of energy, but “prosumers”, buying and selling from and to the market to take advantage of emerging value opportunities.
So this summer we officially launched our Asset Optimisation function to support businesses in finding new revenues. From simply adjusting or reducing energy consumption and supporting the grid by providing energy flexibility, there are new sources of revenues to offset energy costs.
Becoming a supplier of the future
The challenge for any future supplier is simplifying the buying or selling of energy with commercial structures that help customers to get the most from the changing energy landscape.
Our dynamic business model and a solid foundation of industry leading trading and commercial expertise, gives SmartestEnergy a head start for the future, and our customers access to transparent, value-add, route to market services.
It’s impossible to predict how the future supply market will look in 10 years. With renewable generation replacing coal, increasing demand from electric vehicles and technology advancement we can’t even see yet, there’s big change ahead.
Success will always involve the right mix of products and services. But for me, being an industry leading supplier of the future is as simple as being the one supplier that exceptional people want to work for and the exceptional customers want to do business with.
They’ve been our priorities for the past 10 years and will be our priority for the next 10 too.