Gautam Aggarwal, chief marketing officer at Bidgely , develops energy analytics for utilities using data and artificial intelligence.
The Inflation Reduction Act (IRA) aims to accelerate energy efficiency improvements and decarbonize the energy grid through a series of new economic and industrial policies that will provide $369 billion. While the law defines how funding will be distributed ($47 billion for transportation electrification, $3 billion for transportation infrastructure upgrades, and $8.8 billion for energy efficiency rebates homes), state governments, energy regulators and utilities have the power to shape that money. it looks like it stands out and is implemented.
All of these participants emphasized the need to proactively use IRA funding to turn the clock back, as they agreed that significant gains in energy efficiency are best achieved through home energy programs and initiatives that support energy efficiency for low- and moderate-income people (LMI). houses. . day when homes consume more energy.
Prior to the IRA, utility proposals for Time of Use (TOU) plans were often delayed prior to regulatory approval. However, while regulators actively encourage, and in some cases require, utilities to implement TOU plans, approvals are now coming faster than ever.
Accomplishment: Utilities are now willing to include customers in TOU plans during peak hours. History has shown that most people won't willingly sign up for new plans if it means their bills could go up. That’s why businesses are adopting artificial intelligence (AI)-based marketing strategies to improve how and what they offer. changes for customers. but also improve who is targeted for the new TOU plans.
Management of pricing plans by hour of use
Implementing execution plans is a delicate balance. This can certainly save money for some people, such as those who work outside of traditional 9-5 hours, charge their electric vehicles (EVs) at night, or have flexible schedules that allow them to easily move places. large loads in the house. . . . daytime activities such as laundry and dishes. But not everyone can be that flexible, in which case the TOU price may actually increase your monthly payments.
Additionally, if every customer switched to the same off-peak hours, a new peak would occur, again leaving utilities with limited network assets. So rather than attracting customers en masse or changing rates, utilities screen customers to target hours of use based on two main categories: those with the highest demand and the greatest potential for savings. .
But utilities serve millions of customers, and sending the same marketing message encouraging both categories of households to sign up for TOU plans is a recipe for failure. Instead, utility marketers can tailor their communications to each household's consumption habits, such as charging electric vehicles or frequently using air conditioning.
Destroyed due to high power consumption
Take electric cars, for example. AI helps utility marketers know the exact time, day or night, that customers charge their cars at home, which marketers can then use to segment the amount customers will pay during peak hours, between 4 p.m. and 9 p.m., to reach more people likely to face the load. the network. (The same goes for other equipment, like an air conditioner.)
Merchants can now provide personalized messages showing how much the customer's current billing model costs each month, along with a sample invoice from the terms of service. With a better understanding of their actual energy consumption, customers are ideally more likely to sign up for a TOU plan.
For example, a sample message might look like this: “Hi Bob. This week you only charge your electric car for 12 hours. Most charging occurs during peak hours, 5:00 p.m. to 9:00 p.m. You can save $35 each week by signing up for our new time-of-use plan and waiving the 10:00 p.m. to 11:00 p.m. fee.
In these cases, personalization is key, as messages about electric vehicles only resonate with customers who own electric vehicles, messages about air conditioners only resonate with customers who own air conditioners, etc.
But what happens when customers sign up for TOU plans but don't always change their terms and conditions? Their cost can increase considerably.
However, this should not be a major concern for customers as long as service marketers use the same segmentation and targeting strategy to signal that customer usage will occur during peak times. For example, utilities can send email or text alerts before a customer passes that peak. Since utilities can be confusing for many people, they may also send personalized educational materials such as FAQs or webinars about electric vehicles. By speaking the same language as their customers, utilities gain more customer trust.
Create transparency between customers and services
A key objective of IRA funding, and therefore TOU strategies, is to support energy efficiency improvements. Even if the majority of society shares the same opinion, energy consumers need to be motivated to make significant changes in their lifestyle. Utility marketers are responsible for developing sophisticated communications strategies that give customers insight into the impact of their personal energy use on the grid as a whole.
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