P.R. Quinlan has partnered with Gorilla to bring you this blog post. Gorilla is a data processing platform that provides energy data applications for pricing, forecasting, and portfolio analysis. Thanks to a growing partner network and client base across the globe, Gorilla empowers retailers in the global energy community to reinvent their offerings with data that aligns financial and net-zero goals. Customers include Centrica Business Solutions, EDF, ScottishPower, Shell Energy, Gas South, SouthStar, and Synergy.
No one can predict the shape of the next crisis. Companies make plans to deal with all kinds of situations, but the nature of the modern energy industry means that surprises are always waiting around the corner. Given this, the most powerful capability an energy retailer can cultivate is the agility to react quickly and change course, no matter the incident.
The energy retailers winning in today’s volatile markets share one defining characteristic: they’ve stopped tinkering with outdated processes and started building agility into the core of their pricing and forecasting operations. Through our work with energy retailers across the globe, Gorilla has seen this transformation separate market leaders from those left struggling to keep pace.
The regulatory tightrope walk
One of the more predictable challenges facing energy retailers is the increasing pace and complexity of regulatory changes. Whether it’s major shifts in state-level regulations or the upheaval from the radical change in the federal government, retailers can be sure that there is always change on the horizon.
The one benefit? Regulations hit every retailer equally, which means a better reaction becomes a competitive advantage. Faster adaptation to new rules minimizes compliance risks and costs, while opening opportunities to quickly roll out new products or services or changes like community solar or demand response.
Perhaps the biggest opportunity has been in customer data. Customers expect easier access to and understanding of their usage data; regulators often mandate improved transparency and data access tools. Retailers with agile systems can quickly implement new billing features, integrate with smart meter data platforms, and provide customers with intuitive dashboards and personalized insights, leading to higher engagement and satisfaction.
New demands, new dynamics: Data centers, crypto, and market volatility:
The biggest long-term change that retailers are having to adapt to is the change in demand profiles. For generations, energy demand has been fairly stable; peak and off-peak times were well known and understood, while longer-term trends were predictable. This is rapidly changing, with major new sources of demand arising from data center growth, while residential profiles are far more variable due to the rise of EVs, DERs, and electrification.
Already, some regions are struggling to cope, with the PJM interconnection a notable example. Meanwhile, other parts of the country have seen rare but catastrophic price spikes brought about by extreme weather, with ERCOT being the notable example.
Retailers only have limited tools to manage these trends without building their own generation, so they must make strong use of those available. The ability to quickly adjust pricing models, product offerings, and hedging strategies is crucial. Agile risk management and forecasting allow retailers to protect margins and offer competitive, stable pricing to customers where possible, or transparently manage pass-through costs.
The tangible benefits of an agile approach:
At Gorilla, we focus a lot on the “data tsunami”, a massive wave of new data that is overwhelming traditional systems. We create software to help retailers overcome this, but the individual capabilities of our platform are not the most important feature. The shift from a reactive approach to data to a proactive, flexible mindset is the biggest benefit we see our customers achieve.
The energy retail sector will continue to face unprecedented change in the years ahead. The retailers that thrive will be those that recognize agility not as a nice-to-have capability, but as an essential strategic imperative. In a world where change is the only constant, agility isn’t just about surviving disruption—it’s about turning disruption into your greatest competitive advantage.
For more information please reach out to Gemma Beard at Gorilla
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