He told me to look out for the following:
- Oil prices will stabilise and recover to $60 a barrel, as OPEC recognises its war against US shale is impossible to win and it looks to repair the damage it has inflicted on its own member economies that are highly dependent on oil exports. The organisation will reach a consensus on the freezing or reducing of their record oil production
- The industry will see the rise of ‘EnTechs’, energy technology disruptive start-ups introducing innovative business models and services built around customer demands. As in the financial services market that has witnessed the rise of FinTechs, this will prompt a slew of acquisitions, partnerships and upheaval for incumbents
- 2017 will see the first reported instance of a utilities provider falling victim to a ransomware attack, with its systems hacked and seized by criminals who will demand a sum of money to avoid a major city having its power shut off
- One of the world’s largest technology giants – Google, Microsoft or Amazon – will enter the utilities market as they look to expand their play for the connected home and take advantage of a wealth of consumer data that will help deliver a modern, digital experience for consumers. In response, incumbents will seek to join with non-traditional partners such as retailers, in order to gain access to more sophisticated customer profiles
- Power in developed countries will come from distributed generation, as consumers increasingly adopt home generation, storage and even sell power back to the grid
Visit our blog on Monday to read about our predictions for the banking industry.