Public Utility Companies as Information Hubs: About Fields of Interests and Chances to Increase Customers’ Trust
In recent QLab-blog articles, we discussed how German public utility companies (PUCs) drive the energy transition. One method is establishing one-stop shops that inform customers and households about the feasibility of private investments in renewables and the progress of municipalities’ energy transitions.
Considering the fear of a possible Russian gas supply stop and following price hikes, the role of PUCs as information hubs becomes even more potent.
Why public energy distributors are vital stakeholders in the energy transition
In Germany, energy is distributed through the networks of municipal public utility companies (PUCs; German: Stadtwerke). While smaller Stadtwerke buy the lawfully determined energy mix from producers, mainly via the European Energy Exchange in Leipzig (DE), the larger cities’ Stadtwerke only provide the network for energy coming directly from various producers.
Read more: How Public Utility Companies May Propel the Energy Transition and What Hinders Them to Reach Their Full Potential.
Conceptualizing one-stop shops
The crucial point of one-stop shops is the all-in-one design. While all information is readily available through stakeholders’ browsers, it is not easily accessible and often requires an act of intense research to get anywhere. Accessibility is the key to increasing customers’ confidence, motivating them to choose green energy investments and raising awareness for responsible energy usage.
Therefore, instead of hyperlinking endless numbers of external web pages and leaving it to the customer to click their way through them, PUCs should aim to provide knowledge hubs that are comprehensive and easily accessible. PUCs may even develop streamlined web pages and newsletter initiatives across municipalities, as long as the information does not have to be watered down due to generalizations across districts.
Of course, many German PUCs provide best-practice examples already, and they may inspire others to follow their lead. Therefore, PUC networks may cooperate to identify topics relevant to their audiences to reach an increasingly comprehensive information grid across the country.
Best-case scenario: Increased attractivity and improved external relations
In last week’s article, we discussed the skilled worker shortage PUCs have been facing for the past ten years due to demographical developments and the diversifying responsibilities in the light of the energy transition. One approach proposed by Rödl & Partner is increasing the attractivity of a PUC career by fostering public relations with universities and schools and improving the social media presence.
PUCs would automatically assume a progressive role more attractive to young professionals by positioning themselves as experts on energy-transition-related issues. Such content, however, should be primarily designed to inform, not entertain. No TikTok dances but appealing, professional information, please.
Informing your clients: Relevant issues
Some relevant issues are listed below. Please feel free to extend this list in the comments.
- Gas supply reliability and pricing. Businesses and households fear the potential price hikes that may result from a Russian gas supply cut, while politicians and grid stakeholders encourage voluntary limitations of personal gas consumption. While smaller firms and families have no reason to fear supply cuts as they are considered protected customers, to be hit by cuts as a last resort, a price hike is still likely. Clients may benefit from knowing who exactly belongs to the group of protected customers, under which developments to expect price hikes and the tools available to the federal policymakers and their local PUC to counter inflationary tendencies and supply shortages.
- Private PV and heating investments. According to the Fraunhofer Institute, an investment in private photovoltaic systems without storage capacity offers a return of 5%, given that the own household consumes 25% of the produced energy. Grueneshaus.de adds that the return increases with higher private consumption and is thus a feasible investment model. However, many German homeowners still refrain from investing in PV, suggesting that the myth that PV is unfeasible persists. PUCs could increase the trust in PV by providing their customers with regularly updated cost-benefit analyses and investment guidance. The same may be helpful for investments in alternative heating methods such as heat pumps and energy renovations.
- Guiding responsible energy consumption. Especially with an increasing number of political agents asking households to save gas wherever possible, PUCs may position themselves well by providing guidance on how to best do so. Which is the most efficient heating method? Which appliances may I upgrade for increased energy efficiency overall?
- New mobility: Infrastructure progress. Before switching to an electric vehicle (EV), owners want to be sure that the charging infrastructure is in place. PUCs may inform about progress in this field as well as federal substitutions that apply to buying an EV.
- Communicating internal developments. PUCs may share internal responses to the challenges they experience, thus providing transparent information on how they remain up-to-date. Showcasing how they take on challenges such as the skilled-worker shortage, their grid’s energy efficiency, and their progress on green energy supply diversification, PUCs may indicate competitive progressiveness to young professionals currently drawn to the private sector.
- On and on… Considering their responsibilities, PUCs may find additional subjects in which their municipalities’ businesses and households may benefit from further information.
Take-away and outlook
PUCs can inform their customers and the municipality’s citizenry in manifold ways and simultaneously increase their customers’ confidence in energy-related issues. The topics of interest discussed in this article are by no means exhaustive, and PUCs should focus on identifying further fields of interest for their customers.
Many German PUCs already offer comprehensive information hubs on their websites, thus providing best-practice examples. In collaboration with other PUCs and external experts, easy-access one-stop shops may be a feasible addition to many PUCs’ service portfolios. The QLab is one of those experts. We recently concluded a consultancy project with a German PUC and made the results accessible here.
In next week’s article, we will discuss best-practice information initiatives of German PUCs that may inspire other PUCs to follow their lead. Please share this article and subscribe to never miss the latest QLab insights!
Finn Faust, Webdesign & Research at QLab Think Tank GmbH
