Utilities are facing a two-pronged attack on their business models, both from companies such as Google and Apple, and also from emerging technology energy firms, according to Thilo Schneider of Pinsent Masons. He said while utilities have been slow to respond to changes within their industry, making clever acquisitions could help them compete, as their large customer base and established supply chain and delivery infrastructure could make them more attractive as investors than their venture capital and private equity rivals. “They’re going to be forced into the market because they can’t compete with these new players,” he said.
Utilities are facing a two-pronged attack on their business models, both from companies such as Google and Apple, and also from emerging technology energy firms, according to Thilo Schneider of Pinsent Masons. He said while utilities have been slow to respond to changes within their industry, making clever acquisitions could help them compete, as their large customer base and established supply chain and delivery infrastructure could make them more attractive as investors than their venture capital and private equity rivals. Such joint ventures or partnerships would benefit utilities by giving them access to the technological innovations developed by start-ups.