Why you should act now on CDR for Energy
Where is CDR for energy up to?
Open Energy is almost upon us. By November this year, the big 3 retailers will need to comply with the Consumer Data Right laws as accredited data holders (ADHs) and share their customer’s data with their consent by November this year. Smaller retailers will have to comply 12 months later in 2023, creating a unique period of data asymmetry. However, we foresee there being considerable challenges in both taking the opportunity to receive data as well as complying as a data holder. Without the right strategy in place, timelines and costs would easily blow out. Once businesses have these systems in place however, customers can really begin to experience the benefits of CDR, accessing better and more customised deals with relative ease. Early engagement is critical.
Now is the time to act
If you’re a tier two retailer or intermediary and want to leverage CDR data from November to help your prospective customers make more informed purchasing decisions, you need to start thinking now. These projects take significant time and resources to implement, especially if not well prepared and with a clear strategic focus. To illustrate this point, one needs only look at AGL, Origin, and Energy Australia who have all asked Treasury for an extension to July 2023 due to the sheer amount of time and resources needed to set up this capability. They argue that they would need the 18-month timeline to “implement significant systems and business changes, including allowing sufficient time for market testing of systems”. Yet it appears Treasury is sticking firm on its deadline.
Most businesses have already, or are about to start the FY23 budgeting cycle, where CDR rollout will need to factor if the business is looking to be proactive rather than reactive. Understanding this process will be essential to do this effectively. Engaging now with CDR puts a business in a much better position to accurately budget these significant changes and coordinate the multiple teams necessary to get it right.
Where is your business up to?
The experiences of the Big 3 show just how long these projects can take and why retailers should be acting now. This is to both avoid missing the compliance deadline, as well as being ready to make the most of being able to access gentailer data from November this year, allowing retailers to offer consumers more personalised, innovative, and cost-effective plans.
Is your business thinking about this potentially significant customer switching event? Will your business be ready for compliance in late 2023?
The opportunity for those who are ready will place them well ahead in terms of lead conversion, product innovation, and compliance, whilst those who aren’t ready run the real risk of falling behind the pack.