As the 2026 election nears, energy prices are expected to be front and center in the political conversation. Lawmakers who already felt prices were too high will use that as a point of attack towards their opponents. Lawmakers facing blame for not acting enough to stop rising costs will look to try to come up with a solution that can save customers money.
If nothing else, the debates shine a light on how complicated the utilities industry can be and how much there is to consider for companies doing their best to do their work while keeping costs reasonable. Here is an examination of some of that complexity, and how analytics can help make sense of it all.
Why are prices so high?
Even in the best of times, the prices for oil and gas and other raw materials tend to fluctuate. Factor in conflicts like the United States’ attack on Iran and you get sudden increases in already high prices. There are many issues that contribute to how a global conflict can have an effect on gas and oil prices. It could be more dangerous to transport the materials, or harder to gather them in the first place, or there could be damage that prevents the materials from being gathered at all. There are political ramifications, where one country could make it harder for another country to get oil. Or there are modifications to shipping routes that could force increased prices.
It’s not just gas or home energy prices. All of these issues could trickle down to other products because of shipping prices. The increase in price of the diesel that fuels trucks making deliveries could lead to higher prices of the products that are being delivered.
What else makes the industry complex?
The utilities industry faces many different rules and regulations that can also have an impact on cost. It is expensive for organizations to improve facilities to make them more sustainable, for example. While the savings might come in the long run, there are costs that may end up getting passed on to the consumer while upgrades are being made.
In addition, the regulations can be inconsistent, depending on factors such as political leaders tightening or loosening restrictions, or how quickly certain measures are put into effect. A tax credit that may be earned under one parry in power could be taken away by the next, and organizations might have to change prices accordingly.
How can analytics help?
“There’s a lot of unpredictability in this business. It can be difficult to anticipate with exact precision what some of these changes might actually do,” Kyle Murray, Massachusetts program director for the advocacy group the Acadia Center tells The Boston Globe. Utilities companies can’t control every factor that makes the industry so hard to navigate, but they can certainly make the best of what they can control. One of their greatest resources is data, and working with the right analytics solution can allow them to take advantage of the data they have to make the best possible decisions, despite the uncertainty.
A flexible solution can adjust when an organization needs to adjust. Whether that’s because the company itself has moved forward or the conditions of the industry have shifted, a flexible solution can shift functionality as needed to keep pace.
Another challenge in the utilities industry is outages. With real-time visibility, an analytics solution can constantly refresh information related to outages and performance, allowing for instant decision-making when trouble occurs. The same data can be used for maintenance scheduling to try to keep equipment working and as up-to-date as possible.
Utilities companies have to meet high demands from customers at all times. When the political world shines its spotlight on the industry, performance is scrutinized even more. Organizations need to be prepared to face whatever comes their way during these times. With the right analytics solution, companies can do more than just get by—they can make the kinds of decisions that can help them thrive.
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