Utility companies are facing unprecedented challenges as both regulation and technological change undermine their existing business models. However, technology is both expanding and improving the market for home services, blurring the line between commodity and service provision. We view home services as an intrinsically more attractive investment proposition than commodity retail: higher margin, lower risk, and with far less political scrutiny. Utility companies transitioning to a services model are likely to see higher growth and improved ratings. Utility companies that resist the change, or continue with a business as usual model, may find they are left behind. We see Centrica as the UK utility best placed to lead the transition to service provision.
We seek to inform, to be interesting and to improve our clients' understanding of issues central to their own specific business decisions. We identify key trends and we seek to lead the debate not merely react to the news.