Energy costs continue to rise and the pressures behind that trend are only growing. Demand is increasing, driven by electrification, and large energy-intensive sites like data centers and other industrial applications. But our infrastructure hasn’t kept pace. Building new generation and transmission capacity takes years, and regulatory uncertainty adds further complexity.
Electricity is also the most volatile commodity on the planet. This recent, and in some areas still ongoing, winter storm across the U.S. serves as a prime example. While the various electricity markets across the country have their own mechanisms for how this volatility is represented (across commodity, capacity, and transmission costs), the underlying exposure remains consistent across regions. Just 1% of the hours in a year can account for 25% or more of total annual electricity costs. For energy users and suppliers alike, that volatility creates both risk and opportunity, if you can see it in time.
These challenges are amplified in competitive, deregulated markets, as a large share of commercial and industrial load has moved to competitive suppliers. In these environments, providers compete aggressively for commercial and industrial customers. Historically, that competition has centered on price alone, driving up acquisition costs and driving down loyalty. In Texas, for example, the customer switching rate is an astonishing 87%*.
Providers are searching for ways to differentiate.
Customers are searching for simplicity.
Both sides are drowning in complexity.
Every energy bill holds a gold mine of data, with line items tied to irregular service periods, tariffs, and transmission charges, yet every provider formats and delivers that data differently. For multi-site customers, this means dozens of vendors and hundreds of billing formats across regions.
The result is a massive volume of information that’s inconsistent, disconnected, and often underutilized.
Most organizations don’t need more data. They need clean, connected, trusted information to understand costs, manage risk, and act before volatility turns into surprise — in other words, clarity.
For those exploring how to bring clarity to energy data and risk, reach out to us at contactus@thgenergy.com