It's Not a Pretty Story.
Nor is it unique to the quickly-deregulating power business. Revenue leakage is something our colleagues in the competitive telecom game have had to deal with for years, with no end in sight. And, according to Ed Tobia and Michael Hurle of PricewaterhouseCoopers' ERM team in Philadelphia, like the retail telecom sector, revenue leakage issues in the retail power space won't go away.
"We started focusing on this issue in the telecom space in 1993-1994. The main causes for leakage should sound familiar:
- Implementation of unproven systems to address deregulation and customer-centric solutions;
- Entrance of new retail players lacking technical skill sets and back office operations to address ongoing regulatory modifications;