Life Under REV: ConEd Proposes To Bundle Services From Utility
July 2, 2015 Email This Story Copyright 2010-15 EnergyChoiceMatters.com
Reporting by Paul Ring • email@example.com
Consolidated Edison has filed several Reforming the Energy Vision products, and one of the projects, its CONnectED Homes Platform, envisions the utility bundling and reselling value-added services to customers.
Under the CONnectED Homes Platform, ConEd would analyze a customer's usage to tailor unique distributed or smart energy offers to the customer. Third-party energy service vendors of smart energy services would pay a fee to be referred to appropriate customers based on these analyses and to advertise as part of the program; however, the platform also envisions certain services will be bundled and resold by ConEd itself.
The demonstration project, which is proposed to last through the end of 2017, would be limited to residential customers in Brooklyn and Westchester
For the demonstration project, ConEd has initially selected three types of services to be offered, with companies selected by ConEd outside of an RFP. The services are solar systems, to be offered by SunPower; energy efficiency audits/retrofits and energy appliance installations and repairs, offered by HomeServe USA; and an "exclusive" bundle of smart thermostat with energy savings services, offered in conjunction with Nest, including Nest seasonal savings
Under the program, ConEdison will reach out to customers with personalized offers for energy products/services via direct mail, email, and bill inserts
ConEdison expects to generate new revenue streams through a flat referral fee, a percentage based commission, or a margin above cost of product and service from each of three energy service partners that have been selected to participate in the program
ConEd said it anticipates three sources of revenue from the CONnectED Homes Platform:
1. Lead and Conversion Revenue: Participating energy service providers will pay a fee for achieving pre-established metrics such as number of qualified leads and they will pay a percentage of revenues from converted sales.
2. Retail Sales: ConEdison will buy products and services at wholesale in order to bundle together meaningful offers marketed exclusively to its customer base.
3. Advertising Revenue: Participating energy service providers may pay a fee for access to the targeted platform. Pricing will be based on approximate customer touchpoints per year.