Multi-utility

Source: Wikipedia, the free encyclopedia.

Multi-utility relates to companies offering a wide range of services and/or products. In the business market, this type of service provision usually relates to energy, environmental services, waste issues, infrastructure and/or telecom services. In the consumer market, it often concerns a combined offering of services in the field of energy and digital products and services (telephony, internet and television). Providers like these are also referred to as multi-service providers. So it often concerns services and products in relation to public utilities. Multi-utility has a relation with cross-selling, offering complementary products and services.

Canada

An example of a multi-utility company in Canada is ATCO. ATCO provides engineering services, modular infrastructure, and natural gas products. Because of their diversification, Atco is able to tie together several related services which enables the company to offer excellent product consistency.

Netherlands

In the

power companies in the 1890s. As a consequence of the liberalization of the energy market, these companies were looking for opportunities to widen their product range. In addition to energy, they started to offer products and services through cable (internet, television) as well; in the business market they also became active in the fields of environment and waste. They considered these markets as logical complements to the traditional energy supply
. These markets had a strong association with public utilities, which led to the name multi-utility.

Cogeneration

In the business markets, partnerships were often created as well with (large) customers, particularly in relation to

electricity grid
. The excess steam is also used for other applications.

Outsourcing

The management of these cogeneration installations also fitted the trend of

call center
) and facility services were often outsourced. They would preferably choose a party for whom these activities concerned were part of their core activities.

Current situation

By now, most of the Dutch power companies have abandoned this multi-utility strategy. They have chosen to focus on energy: mono-utility. By doing so, they are returning to their roots as it were. An exception to this is DELTA, from the Dutch province of

energy sector, DELTA has explicitly chosen to further deepen their relationship with their customers
through a combined service provision.

This service provision has various manifestation in the business market:

1 Multiple products Customer takes several products or services
2 Framework agreement Customer enters into a contract of several years, and buys a number of products and/or services
3 Construction and management concept Investment in and management of assets at the customer, combined with the purchase of several products and services
4 Outsourcing Taking over the utility related assets (possibly incl. the personnel involved in that)
5 Full service Taking over existing assets, infrastructure and personnel on the business site of the customer, combined with the supply of products and services

Outside of the Netherlands

Outside of the Netherlands, there are various other multi-utility companies. The best known examples are Stadtwerke in

refer to themselves as multi-utility companies.

Another example is

SITA
) and industrial service provision (Cofely, called GTI until 2009).

References

External links