A utility is a company operating in a sector that provides a public utility, such as a power company or drinking water supply. Sometimes mail, telegraphy, rail transport and public transport are also considered utilities.
What does a utility do?
Because different types of companies are counted as utilities, they do not all serve the same purpose. An energy supplier supplies electricity and gas to individuals and businesses. A drinking water company supplies water. Utilities often provide services that are in the public interest. Therefore, these companies often have to adhere to strict rules, given their monopoly position.
A utility from the government
In the past, utilities were often regulated from the government. This is mostly no longer the case. The energy market has been open for quite some time, allowing a customer to choose where to be a customer. This has advantages and disadvantages.
Customers can now easily switch and choose their own supplier and associated prices. But, this can actually also be a disadvantage. Companies now have to incur different costs than in a closed market, which can increase prices. On the other hand, the competition of an open market actually reduces prices.
However, the water supply market is closed. This means that a region has a fixed supply company. As a customer, it is not possible to choose your own supplier.
What challenges do utilities face?
Utilities face several challenges. Due to the open market, competition in the energy market is high and new suppliers are popping up like mushrooms. Digitalisation and sustainability also play a major role in utilities' operations.
ICE Utility Professionals helps your business move forward
Due to the challenges within utility companies, it can sometimes be difficult to find staff with sufficient knowledge and experience. That is exactly where ICE Utility Professionals can help you. Supporting, expert or management: with an ICE Professional, you get the best solution. Feel free to contact us, call 085 - 27 35 207 or email email@example.com.