The electric vehicle market is creating potential value by offering a cost-effective eMobility alternative and a set of unique services for its customers. Utilities have begun to evaluate the business opportunities that this EV market has to determine the feasibility of investing in the transformation of their value chain. Utility companies can focus on improving customer experience through the design of relevant and differential bundled services to increase the customer base and move forward in a rapidly growing market.
Electric vehicles are an innovative transportation alternative for customers who want to protect the environment while saving money. According to the International Energy Agency (IEA), the number of electric vehicles on the road around the world will hit 125 million by 20301. With this in mind, utilities must explore how they can face EV adoption and become more competitive in the market.
Utilities should provide an exceptional customer experience to those who own electric vehicles. To do so, utility companies could offer new products and services at affordable prices, easy access to charging stations, and the use of mobile platforms to receive important information about charging stations. These initiatives will lead utilities to create value for all their customers, which will result in an increase in revenue in the long run.
Boston Consulting Group estimates that the rise of EVs could create $3 billion to $10 billion of new value for the average utility2.
To remain competitive, utilities are offering lower rates for EV charging during off-peak periods, as well as subscription plans that include a fixed fee for electric vehicle charging. However, they also have the opportunity to offer bundled value-added services, such as private charging station installations, maintenance services, and mobile platforms for customers to manage their battery usage, make remote payments, and obtain visibility of charging prices and the location of charging stations.
Utilities do not need to move into this new market alone. They can create a partnership with EV manufacturers to offer service packages. With these EV partners, utilities can offer financial services to help customers finance the purchase of their electric vehicle, and explore value-added services such as parking, roadside assistance, groceries, and repairs.
“Utilities in the United States are uniquely positioned to play a pivotal role in the customer EV journey and stake their claim in the US$700 billion eMobility markets. 3”
Recognizing the accelerated pace at which this trend is growing, utilities should identify a new set of services that can be offered to keep a satisfactory customer experience. By doing so, utilities will continue to create value for their customers, stand out in the market, and improve cash flow.
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(1) Tom DiChristopher, Electric Vehicles will grow from 3 million to 125 million by 2030, 2018. https://www.cnbc.com/2018/05/30/electric-vehicles-will-grow-from-3-million-to-125-million-by-2030-iea.html
(2) Tomas Beker, Simone Aibino, Emanuele Belsito, Guillaume Aubert, Anshuman Sahoo, Electric Vehicle are a multibillion-dollar opportunity for utilities, 2019.
(3) Accenture strategy, Utilities: lead the charge in eMobility, 2019. https://www.accenture.com/us-en/insights/strategy/utilities-emobility
