Open data and the energy industry
Posted on Jan. 15, 2023, 10:20 a.m.
Consumer data right or CDR - what is it?
On 5 July 2021, the Government announced its decision to implement a legislative framework to establish a consumer data right (CDR) in NZ in order to give individuals and businesses greater choice and control over their banking and financial data.
The idea behind CDR is to allow third-parties to provide greater innovation through value-added services offered directly to consumers, enabled by the access to a consumers’ data.
Effectively, CDR allows customers to consent to securely sharing their data with third parties that provide value-added services.
This is now being implemented in CDR and in the process of consultation and development, with the first sector to be implemented in the banking industry (i.e., open banking).
Other industries including financial services, energy, telecommunications, insurance and health have also been considered and are likely to be rolled out in due course.
What’s all the hype about?
Once implemented, CDR enables third-parties to provide value-add services such as payment services or financial analysis within the banking industry.
Open banking is already a requirement and a fixture in the Australian and UK banking markets. Its implementation has resulted in increased competition and the improved ability for many customers to get better deals from their banks.
Under ‘open banking’, consumers can request their bank to securely share transaction information with a competitor if they wanted to re-fix their mortgage at a lower interest rate. Alternatively, they can also instruct their bank to share specific data with a preferred financial advisor to provide more tailored and timely advice.
What does this mean for you?
Over the next decade, as we transition to ‘new energy’, we’re likely to see a rapid uptake of expanded service offerings developed by a range of third-party service providers, new entrants, and established (or incumbent) market participants.
A key focus of the ‘new energy’ transition will be on the consumer (or demand side) to help lead the change to a new energy market. Power producers and electricity retailers will look to align their investment decisions and future service offerings to marry up with what consumers want and decarbonisation activities, which will require a greater level of engagement with consumers than ever before.
Robust data safeguards to help protect the consumer (including consumer privacy and data policies/processes) are therefore required in order for new technologies and innovations to develop at pace and grow.
We envision a world where customers’ have greater control and transparency of their utility costs, consumption levels, and the key areas within their site where greater energy efficiencies could be achieved.
For example, once CDR is successfully implemented in the industry, a consumer can instruct their retailer to share their half-hourly consumption data directly with a solar installer (via an API or alternative means) to provide tailored advice on optimal solar set-up, the solar technologies they should use given their site specifications, and forecast cost savings from the investment.
When you sign up with Tensor, we provide our customers with direct access to their data (through an API endpoint) to support their investment and consumption decisions. This provides greater flexibility to consider a wider range of third-party energy options, which means the end-to-end energy solution can be fully catered to your specific energy needs.
If you’re considering switching power suppliers to help manage your utility bills and/or would like to discuss your options for power supply, contact us using our website chat, our general email address info@tensor.co.nz, or using our contact form here to talk through your options.
Further information
For more information about CDR and associated resources, see the link to the announcement below: