Utilities Industry Insights | The CEO Views https://theceoviews.com/industry/utilities/ Mon, 07 Nov 2022 10:10:20 +0000 en-US hourly 1 https://wordpress.org/?v=6.2.2 https://theceoviews.com/wp-content/uploads/2020/01/cropped-favicon.ico-1-32x32.jpg Utilities Industry Insights | The CEO Views https://theceoviews.com/industry/utilities/ 32 32 Energy Network Regulation based on Consumer-Centric https://theceoviews.com/energy-network-regulation-based-on-consumer-centric/?utm_source=rss&utm_medium=rss&utm_campaign=energy-network-regulation-based-on-consumer-centric https://theceoviews.com/energy-network-regulation-based-on-consumer-centric/#respond Wed, 03 Aug 2022 20:34:45 +0000 https://theceoviews.com/?p=13106 Consumer preference in competitive markets is what organizations care very much about as it determines their sales. They are certain ways by which businesses can learn about consumer opinions and preferred goods and services or whether the consumers are buying them at the offered price. Most large businesses do not operate this way, however. Businesses […]

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Consumer preference in competitive markets is what organizations care very much about as it determines their sales. They are certain ways by which businesses can learn about consumer opinions and preferred goods and services or whether the consumers are buying them at the offered price. Most large businesses do not operate this way, however. Businesses research consumer preferences and undertake advertising to help shape those preferences instead. Structurally separated electricity distribution network.

Telecommunications equipment manufacturer Ericsson is also this type of organisation, and it runs a consumer lab3 to identify the needs of its customers. Businesses will research consumer preferences and undertake the activity (advertising) to help shape preferences. Structurally separated electricity distribution networks technically sell their service to retailers, not consumers, but other businesses that sell through retailers (think clothing, food, electronics) undertake this research. Electricity distribution networks aren’t making the product the retailer sells; instead, they sell services that enable the retailers to make the services they sell to consumers, however.

This consumer research does not have the imperative of a monopoly of course of the competition to undertake this consumer research. Now that the consumers are making very active choices of whether to invest in Distributed Energy Resources and if they do so, what kind they should prefer and how should they use them, to networks and regulators, consumer preferences should matter foremost.

Engagement of consumers

A set of rule changes for the economic regulation of networks has been proposed in 2011 by the AER and a group of energy users. All parties turned their attention to some degree to the extent of engagement with consumers in their submissions on the initial rule changes proposals. The AEMC identified that NSPs agreed that more consumer involvement in the regulatory determination process should be considered (AEMC 2012a), In a Directions Paper in considering the rule change. The AEMC also noted that ‘the majority of the consumer groups support changes that would allow consumer groups to more meaningfully engage in the electricity regulatory determinations. The Energy Networks Association (now Energy Networks Australia or ENA) supported better resourcing for consumer participation, including developing a well-funded, national centralised consumer advocacy body.

The AEMC introduced amendments for the regulated businesses to require consumer engagement and their participation in the process of determination and allow the network business to incorporate the outcome of this engagement in their expenditure proposals, in the final determination on the rule change.

Within the realm of stakeholders engagement, practitioners have positioned consumer engagement. Freeman (1984) describes a stakeholder as ‘any group or individual who can affect or is affected by, the achievement of a corporation’s purpose. Stakeholders include employees, customers, suppliers, stockholders, banks, environmentalists, government and other groups who can help or hurt the corporation.’ In his development of a stakeholder approach to strategic management.

‘ The International Association of Public Participation (IAP2) Australasia describes itself as a ‘peak body for the community and stakeholder engagement sector’. As a case of ‘public participation’ stakeholders’ engagement has been framed.

Negotiation of consumers

Some consumer groups wanted the obligation for networks and the AER to be closer to the ’empower’ end of the IAP2 spectrum, in the determination the AEMC noted. ‘Requiring NSPs to report on customer engagement and having the AER take this into account may be meaningful if it is equivalent to the negotiated settlements approach used in some states and provinces of the United States of America and Canada.’ These same consumer groups considered that, without negotiation, engagement would not empower consumers ‘to materially influence the outcomes of the process was noted by them.

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Without Addressing Inequalities, Access to Sustainable Energy Will Remain Elusive Worldwide https://theceoviews.com/without-addressing-inequalities-access-to-sustainable-energy-will-remain-elusive-worldwide/?utm_source=rss&utm_medium=rss&utm_campaign=without-addressing-inequalities-access-to-sustainable-energy-will-remain-elusive-worldwide https://theceoviews.com/without-addressing-inequalities-access-to-sustainable-energy-will-remain-elusive-worldwide/#respond Wed, 03 Aug 2022 20:33:15 +0000 https://theceoviews.com/?p=13103 Access to electricity has increased over the past decades in the world significantly. A recent study that was based on the progress of Sustainable Development Growth shows that the world’s population with access to electricity increased from 83% in 2010 to 90% in 2018 (IRENA and WHO, 2020). During this period, the total population without […]

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Access to electricity has increased over the past decades in the world significantly. A recent study that was based on the progress of Sustainable Development Growth shows that the world’s population with access to electricity increased from 83% in 2010 to 90% in 2018 (IRENA and WHO, 2020). During this period, the total population without access to electricity decreased from 1.2 billion to 789 million. Unequal progress exists across the region because of the global increase in the population with access to electricity.

The global electrification worldwide rate reached 89 per cent and 153 million people gained access to electricity each year following a decade of steady progress. However, the enormous challenge is residuum in the most backwoods area globally and in sub-Saharan Africa where 573 million people still reside in the dark. To connect the poorest and hardest to reach households, off-grid solutions, including solar lighting, solar home systems, and increasingly mini-grids, will be crucial. Globally, at least 34 million people in 2017 gained access to basic electricity services through off-grid technologies. The report also reinforces the importance of reliability and affordability for sustainable energy access.

With the number of people living without electricity dropping to roughly 840 million from 1 billion in 2016 and 1.2 billion in 2010, notable progress has been made on energy access in recent years. The number of people without access to electricity declined from 1.2 billion in 2010 to 759 million in 2019 worldwide. Through decentralized renewable-based solutions, electrification, in particular, gained momentum. Growing from 5 to 11 million people, the number of people connected to mini-grids has more than doubled between 2010 and 2019. an estimated 660 million people would still lack access in 2030, most of them in Sub-Saharan Africa however, under current and planned policies and further affected by the COVID-19 crisis.

Some 2.6 billion people remained without access to clean cooking in 2019 at the same time, that is one-third of the population worldwide. From largely stagnant progress for a long time leads to a million deaths every year due to breathing cooking smoke. The top 20 access-deficit countries account for 81 per cent of the global population without access to clean fuels and technologies. Of these, the Democratic Republic of the Congo, Ethiopia, Madagascar, Mozambique, Niger, Uganda and Tanzania had less or equal to 5 per cent of their populations with access to clean cooking. On a positive note, Indonesia, Cambodia and Myanmar have made gains each year over the reporting period.

 As per the very recent indicators in the report, international public financial flows to developing countries depict that international financial support continues to be concentrated in a few countries and fails to reach many of those most in need. Flows to developing countries in support of clean and renewable energy reached $14 billion in 2018, with a mere 20 per cent going to the least-developed countries, which are the furthest from achieving the various SDG7 targets. An increased emphasis on “leaving no one behind” is required in the years ahead.

Accelerating the pace of progress across all regions and indicators will require stronger political commitment, long-term energy planning, and adequate policy and scale incentives to spur faster uptake of sustainable energy solutions. Although clean energy investments continue to be sourced primarily from the private sector, the public sector remains a major source of financing and is central in leveraging private capital, particularly in developing countries and in a post-COVID context.

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History of Public Utilities https://theceoviews.com/history-of-public-utilities/?utm_source=rss&utm_medium=rss&utm_campaign=history-of-public-utilities https://theceoviews.com/history-of-public-utilities/#respond Wed, 03 Aug 2022 20:31:29 +0000 https://theceoviews.com/?p=13101  Public utilities have historically been considered to be a natural monopoly. This school of thought holds that the most cost-efficient way of doing business is through a single firm because these are capital-intensive businesses with unusually large economies of scale and high fixed costs associated with building and operating the infrastructure, e.g., power plants, telephone […]

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 Public utilities have historically been considered to be a natural monopoly. This school of thought holds that the most cost-efficient way of doing business is through a single firm because these are capital-intensive businesses with unusually large economies of scale and high fixed costs associated with building and operating the infrastructure, e.g., power plants, telephone lines and water treatment facilities. However, over the past several decades, traditional public utilities’ monopoly position has eroded. For instance, wholesale electricity generation markets, electric transmission networks, electricity retailing and customer choice, telecommunication, some types of public transit and postal services have become competitive in some countries and the trend towards liberalization, deregulation and privatization of public utilities is growing. However, the infrastructure used to distribute most utility products and services has remained largely monopolistic.

 Key players in the public utility sector include:

  • Generators produce and collect the specific product to be used by customers: for example, electricity or water.
  • Network operators (grid operators, regional network operators, and distribution network operators) sell access to their networks to retail service providers, who deliver the product to the end user.
  • Traders and marketers buy and sell the actual product and create further complex structured products, combined services and derivatives products. Depending on the product structure, these companies may provide utilities and businesses with a reliable supply of a product like electricity at a stable, predictable price, or a shorter-term supply at a more volatile price.
  • Service providers and retailers are the last segments in the supply chain, selling directly to the final consumer. In some markets, final consumers can choose their own retail service provider.

Public utilities must pursue the following objective given the social responsibility their services attribute to them:

  • Ensuring services are of the highest quality and responsive to the needs and wishes of patients;
  • Ensuring that health services are effectively targeted so as to improve the health of local populations;
  • Improving the efficiency of the services so the volume of well-targeted effective services is the widest, given the available resources.

The management of public utilities continues to be important for local and general governments. By creating, expanding, and improving upon public utilities, a governmental body may attempt to improve its image or attract investment. Traditionally, public services have been provided by public legal entities, which operate much like corporations, but differ in that profit is not necessary for a functional business. A significant factor in government ownership has been to reduce the risk that activity if left to private initiative, may be considered not sufficiently profitable and neglected. Many utilities are essential for human life, national defence, or commerce, and the risk of public harm with mismanagement is considerably greater than with other goods. The principle of universality of utilities maintains that these services are best owned by, and operating for, the public. The government and the society itself would like to see these services being economically accessible to all or most of the population.

 Furthermore, other economic reasons based on the idea: public services need huge investments in infrastructures, crucial for competitiveness but with a slow return of capital; last, technical difficulties can occur in the management of a plurality of networks, for example in the city subsoil. Public pressure for renewable energy as a replacement for legacy fossil fuel power has steadily increased since the 1980s. As the technology needed to source the necessary amount of energy from renewable sources is still under study, public energy policy has been focused on short-term alternatives such as natural gas (which still produces substantial carbon dioxide) or nuclear power.

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Utilities essential for business https://theceoviews.com/utilities-essential-for-business/?utm_source=rss&utm_medium=rss&utm_campaign=utilities-essential-for-business https://theceoviews.com/utilities-essential-for-business/#respond Wed, 03 Aug 2022 20:30:09 +0000 https://theceoviews.com/?p=13095 There is a variety of utilities that are used by businesses. Some basic and common utilities are seen in almost all businesses. And few of them tend to have some other utility services as per their unique and distinct demands. A few of such utilities are given below that you are supposed to know about. […]

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There is a variety of utilities that are used by businesses. Some basic and common utilities are seen in almost all businesses. And few of them tend to have some other utility services as per their unique and distinct demands. A few of such utilities are given below that you are supposed to know about.

  • Water

 Water is the first and foremost utility need for any business. It is specifically needed for those businesses and companies that have a physical presence. Apart from drinking or making food, water is also needed for basic sanitization of the employees and other people, cleaning and washing the office, etc. Businesses that have more people need more amount of water. This requires an office or company setup connecting to a pump system or well for 24×7 water supplies. The tools and equipment used in water utility systems should be properly regulated daily. Without proper maintenance, it cannot operate and run in its best condition. There are bound to be plenty of issues and problems then. Hence, you are seriously supposed to consider this utility aspect for all the right reasons.

  • Electricity

Electricity is another essential utility requirement that every business needs. Without it, no business, company, or office can run or operate. Each business needs a considerable amount of electricity for running different tools, gadgets, equipment, and machines these days. The manufacturing unit of a company needs the most amount of electricity in this regard. As electricity costs a lot of money, you need to use it as and when required. It would be best if you found a good electricity service provider. There are various electricity service providers that you should know about before finding the right one. If you can settle for the best service provider, you will be able to save a lot of money on this utility. Doing proper research on different aspects of electricity is also going to be beneficial for you.

  • Sewage

Sewage is known to be such a utility that is normally provided as part of the water service. If it is not provided, you need to make sure that the sewage system is made and maintained regularly. You may have to spend some money to connect your company’s sewage system to maintain the drainage system. Businesses located and operated in rural areas should specifically design their sewage system to make it effective. There are also different sewage utility service providers in the market that you should do your research on. If you do proper research, you will certainly find a great service provider with nominal rates and charges. Sewage is regarded as an essential utility aspect that you are required to consider.

  • Rubbish

Like sewage, rubbish is another important utility aspect that you should think about before starting your business or company. Most companies and businesses generally overlook this utility aspect, and as a result, they face problems later. The rubbish that is produced daily should be systematically collected and taken care of. If you do not take care of your rubbish, then the workplace will be messy and hazardous. In case your business and company are big, then it is going to be even a bigger problem if rubbish is not dealt with properly. It would help if you looked for different rubbish utility service providers online. You have to visit the website of such a service provider and explore different aspects of their services. It is vital to select them only after you get satisfied after going through customer feedback and reviews. Gas is also needed for those businesses where a power system is used. It is specifically vital for food and cooking businesses such as restaurants, hotels, etc.

  • Gas

 Gas is a utility used in various appliances and machines like water heaters, central heating systems, appliances, cookers, etc. Hence, you can surely understand the importance and significance of gas for effectively running a business. It is particularly true if you are looking forward to setting up a food business. But gas may not be necessary for all kinds of businesses out there. It is not needed in those companies or workplaces where electricity is used as the only power source system. It is also important for you to consider the gas utility aspect before setting up a business or company. You need to have trained employees or individuals in your workplace that will be able to handle gas and its related stuff. It is never advised for an untrained person to deal with such stuff.

Conclusion: As you can know that it is very vital for you to consider all the above-described aspects of a business. Starting a business without considering these aspects is going to be quite problematic and hazardous for you later. Each of the above-described aspects is essential, to say the least. It would be great for you if you proceeded to talk to a business owner first before starting your business. This way, you will get to know and explore utilities for business that you should consider. Moreover, the internet is certainly the best place to do your research on this. Apart from the above-given utilities, there could be some other utilities that you must know about for your benefit and convenience. You are required to do all the research and information on the internet to know everything about business utilities. Without these utilities, you cannot possibly think of starting or operating a business.

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