Electric and power retailers in Asia are feeling the heat from households and industrial users whose electricity bills have risen sharply over the past decade. Explaining the reasons for these considerable price rises to disgruntled customers is a difficult task, but there is something utilities can do to limit the damage: they can develop and implement programs that will allow them to mitigate the rising underlying costs of the energy that they procure.
In this Executive Insights, L.E.K. Partners Manas Tamotia and Simon Horan examine "demand management," a strategy widely used in the United States, Canada and Australia that involves managing demand at peak times by putting in place incentives that change behavior. Implementing demand response strategies could be a valuable tool to help Southeast Asia utility retailers better manage their rapidly growing energy needs.