When you get fed up with paying to monopolist. How blockchain will help energy consumers

When you get fed up with paying to monopolist. How blockchain will help energy consumers

While the population of Ukrainian cities is discussing the new heating bills, communities of far more well-off people, that have less need for saving, are looking for new ways of reducing energy consumption.

Blockchain was chosen as one of the tools that cut resources consumption.

 

But how is blockchain connected to light/gas/water economy?

What has blockchain to do with it?

According to Navigant Research, public utility sphere will be one of the first to implement blockchain technology. In particular, this refers to companies that produce electric power or exchange it.

The existing system of energy distribution shows the declining effectiveness, including due to large customer bases. Customer satisfaction rating of energy providers is going down, claim the analysts from Navigant Research. An average consumer faces foot dragging in the system:  lots of time goes by from the moment of complaint/application submission to its processing, and the pricing policy is not always clear. Thus, Americans are showing less trust in electricity suppliers: the American Customer Satisfaction Index (ACSI) fell down to 71.9 from 74.3 last year.

When you get fed up with paying to monopolist. How blockchain will help energy consumers (1)

In order to connect a consumer with provider, Navigant Research offered the idea of creating a p2p network based on blockchain. It is expected that it will allow consumers to pay for services, have the payment history at hand, and receive fast responses on all possible requests. Blockchain could expedite the solution of nonstandard issues with multilevel actions.

A straight swap

Apart from the connection “manufacturer – consumer”, blockchain can provide another type of interaction: “manufacturer – manufacturer”. The example of such realization is showcased by the American startup LO3 Еnergy. Their project has caught the attention of Siemens, which speaks of its seriousness.

When you get fed up with paying to monopolist. How blockchain will help energy consumers (2)

The aim of their collaborative project is to build a network for flexible electricity trading. The pilot version has been tested on households equipped with solar panels. Excesses of obtained power are sold to neighbors according to effectively adaptable tariff. 

The project idea can be used for the development of local networks between manufacturers and consumers that for some reason don’t want to deal with large electricity suppliers anymore. That’s a nice way to give up on monopolists’ services, sending bills with baseless sums to Ukrainians.

Siemens believes that blockchain opportunities will open the way for new business models in the public utility sphere.

Perhaps, some Ukrainian blockchain developer will get angry about the next bill, and we will see a national startup in the sphere of energetics.

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