Navigating the now: Key trends shaping retail energy according to Gorilla and Capco

April 4, 2025

Navigating the now: Key trends shaping retail energy according to Gorilla and Capco

Gorilla and Capco combined at the Energy Marketing Conference 2025 to dissect the trends, challenges, and opportunities facing retail energy providers today. Uncover their insights here.
April 4, 2025

Navigating the now: Key trends shaping retail energy according to Gorilla and Capco

April 4, 2025

The Energy Marketing Conference 2025 brought together experts from across the energy industry to trade knowledge and seek solutions to address current market volatility. Gorilla were delighted to attend and have the chance to run our own panel with Capco, dissecting the trends, challenges, and opportunities facing retail energy providers today. Greg Videen, US Solutions consultant for Gorilla, and Jonathan Clites, Associate Partner in Retail and Wholesale Energy Practice for Capco, provided the expertise.  Here’s a look at the key insights shared.

Prefer to watch the panel? Register here for full access to the panel

Trendspotting: What's driving change?

Customers, exposed to seamless digital experiences elsewhere, are bringing heightened expectations to the energy sector. This translates to demands for:

  • More sophistication: C&I customers want complex, tailored products beyond simple fixed-price contracts, demanding quicker turnaround times for pricing.
  • Smarter homes: Residential customers are increasingly interested in integrating EVs, batteries, and participating in virtual power plants, moving beyond basic "free nights and weekends" plans.
  • Tech integration: AI and advanced analytics are no longer futuristic concepts but expected components of modern energy services and the customer experience.
  • The fundamentals: Despite the push for innovation, customers still prioritize reliability (consistent service and timely responses), affordability (transparent pricing and value), and sustainability (ranging from basic renewable options to complex PPA management and hourly matching).

However, a common thread emerged: many retailers are unhappy with their current technology platforms but struggle to make changes, often finding themselves in the same position year after year despite growth or acquisitions.

The transformation tightrope: Why change is hard (and how to succeed)

Why do so many energy retailers hesitate to upgrade systems they know are inadequate? Perhaps the sheer number of challenges is putting them off:

  1. Build vs Buy: Building a custom solution is increasingly less common and costly. Greg and Jonathan saw eye to eye on tapping into specialized vendor platforms—not just to dodge the heavy lifting of upfront infrastructure costs, but to ride the wave of collective innovation and shared feature growth.
  2. Overcoming inertia: Migration is complex and often outside an energy retailer’s core competency. Fear of the unknown, the risk of failed phased approaches leaving businesses stranded between systems, or migrating without a clear strategy to leverage the new capabilities all act as powerful deterrents.
  3. Breaking reactivity: Many operate reactively, applying "band-aid" fixes to patchwork systems. Acquisitions often compound the problem by adding more legacy tech without a proactive integration plan.

The antidote? A proactive, long-term outlook, investing in core systems designed for the near and long-term future, not just today's problems.

Data & systems: The engines of disruption

True market disruption in retail energy isn't just about flashy new products; it's increasingly about mastering systems and data.

  • Shattering scarcity: Jonathan challenged the limiting belief that platforms can only handle so much. Modern technology makes it feasible to automate pricing for millions of deals daily, reprice entire portfolios, handle any product imaginable, and manage massive billing volumes. Escaping this "scarcity mindset" is crucial for innovation. The old adage of working smarter, not harder, is increasingly relevant when it comes to breaking out of this trap
  • Data as a strategic asset: Viewing data not as a byproduct but as a core business asset is transformative. Greg highlighted the power of unified data platforms where forecasting, pricing, sales, risk, and billing all operate from a single source of truth. This alignment drives efficiency & reliability, enables sophisticated analysis, and frees up teams for strategic work. This internal disruption – improving core data management – often paves the way for bigger innovations.

Building for tomorrow: Scalability and future-proofing

How can retailers ensure their systems support growth, mergers, and future market shifts?

  • Invest ahead: Build a solid foundation before you desperately need it. While making the business case for upfront investment can be tough, tackling technical debt early prevents major roadblocks later.
  • Think integration & migration: Choose platforms built for the future – systems that can scale and integrate easily with other technologies, even those not yet developed. Critically evaluate a vendor's migration capabilities, as M&A activity will likely make this a recurring need.

Final thoughts: Focus, partner, and expect more

  1. Master the basics: Before chasing every trend, ensure your foundational systems and processes deliver reliability, affordability, and sustainability effectively. Empower core teams like pricing with tools that enable proactive, strategic contributions.
  2. Expect more from technology: Don't settle for platforms that just fix today's tactical issues. Envision what's possible if constraints were removed, aligning expectations with leading digital industries.
  3. Know your strengths: Recognize that large-scale technology transformation is a specialized skill. Focus on your core competency – the energy business – and leverage expert partners and vendors for platform implementation and migration. The retail energy business is increasingly a technology business.

By embracing robust, scalable technology platforms, leveraging data strategically, and focusing on core competencies while partnering for specialized needs, retail energy providers can navigate the complexities of the modern market and position themselves for sustained success and disruption.

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