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Smart home products are disappearing from the energy suppliers’ portfolios

At the beginning of 2019, 8 percent of energy suppliers in Germany were carrying smart home products in their portfolio. However, a recent study by EuPD Research shows that this supply is declining as compared to last year - either the energy providers limited their portfolios or they have not yet been sufficiently developed.

Bonn. Smart home products for light, heat and electricity are part of the portfolios of utilities in the context of the energy transition. At the beginning of 2019, every twelfth German utility carried smart home products, such as remote controllable heating thermostats, switchable sockets or light sources with LEDs, in their portfolios. However, this offer is on the decline, as the current study by the Bonn-based market and economic research company EuPD Research shows.

The analysis of the energy providers revealed that at the beginning of 2019, 16 percent of the contacted energy providers stated that they no longer had a corresponding offer. When differentiating the answers according to company size, it also becomes clear that large energy providers, in particular, are withdrawing their offerings for smart home products. 32 percent of major utilities responded that they no longer had these kind of products in their portfolio. However, among the small utilities it was only 7 percent. The share of those who, according to their own information, do not yet have products in their portfolio, was disproportionately high among energy suppliers with fewer than 49 employees.

"The decreasing number of energy suppliers with smart home offers does not mean that end customers do not need solutions. This rather shows that the utilities have not been able to sustainably establish themselves as providers, or are in strong competition with other electronic providers. The smart home market is definitely a growth segment." Martin Ammon, Head of Energy Management at EuPD Research, comments on the results.

The service quality survey is part of the annual analysis of the supply portfolios of energy providers. Within this framework, around 1,800 energy suppliers in the DACH region are examined in detail. The utilities, who demonstrate an outstanding commitment in the context of the energy transition, will be honored with the Energiewende Award on 16 May 2019 at The smarter E Europe in Munich. Initiators of the project are the DCTI Deutsches CleanTech Institute, The smarter E Europe and EuPD Research. Further information about the study and the award can be obtained from Saif Islam (islam(at)energiewende-award.de).