Sales in transition: a challenge for municipal utilities
The energy market in Germany is undergoing profound change. Regulatory changes, new market participants and changing customer needs are presenting municipal utilities in particular with major challenges. Traditional electricity and gas sales are under pressure as customers increasingly expect more flexible, dynamic and sustainable tariffs. At the same time, the requirements for digital processes, customer interaction and data-driven business models are increasing.
Changing customer requirements: Desire for flexibility and sustainability
Customers today are more informed and more demanding. In particular, the increasing number of prosumers – households and companies that produce and feed in energy themselves – is fundamentally changing the market. These customers not only expect a reliable energy supply, but also customised tariffs that optimise their generation and consumption.
Dynamic electricity tariffs and flexumer models are becoming increasingly important. They enable customers to benefit from fluctuating electricity prices and adjust their consumption in a targeted manner. Municipal utilities must not only implement these new tariffs technically, but also market them in an understandable way in order to convince customers of their benefits.
Regulatory requirements: EnWG, Redispatch 2.0 and the Energy Efficiency Act
The regulatory framework for municipal utilities is becoming increasingly complex. With Redispatch 2.0, grid operators and suppliers must work closely together to avoid bottlenecks. At the same time, the amended Energy Industry Act (EnWG) requires greater integration of renewable energies. In addition, the Energy Efficiency Act is focussing more on consumption management, which also brings with it new requirements for customer advice in sales.
Data-driven business models and digitalisation
Digitalisation is both a challenge and an opportunity for municipal utilities. Modern CRM and billing systems must be able to map dynamic tariffs and process data in real time. Customers also expect a digital customer journey – from tariff selection and contract conclusion to consumption analyses.
Many municipal utilities face technical challenges here, as existing systems are often not flexible enough. At the same time, access to customer data offers enormous potential for personalised offers and data-based upselling strategies.
Competition from new market players and platforms
In addition to the established energy suppliers, more and more agile competitors are entering the market, including energy start-ups, white label providers and platform solutions that poach customers from municipal utilities. Companies such as Tibber and aWATTar are showing how digital business models can revolutionise sales – with real-time pricing models and automated control via smart devices.
Municipal utilities must decide whether to develop such innovations themselves or cooperate with partners in order to remain competitive. The introduction of dynamic tariffs also requires a strategic pricing policy and strong communication with customers.
New demands on sales: Consultancy is becoming more important
While standardised electricity and gas tariffs used to be sufficient, municipal utilities now have to provide individual advice. Customers want to understand how they can save money or improve their carbon footprint with dynamic tariffs. This means for sales:
Expertise development in the areas of Flexumer, dynamic tariffs and energy management.
Sales training to communicate complex tariffs in an understandable way.
Omnichannel strategies to reach customers via digital channels as well as in person.
Conclusion
The sales organisation of municipal utilities must change fundamentally in order to remain successful in the changing energy market. Dynamic tariffs, new digital business models and increased customer counselling are key to holding one’s own against new competitors. Municipal utilities have the advantage of being regionally rooted and known as a trustworthy partner – this advantage must be utilised through innovative solutions.
