Utilities are facing a drop
in demand and revenue as COVID-19 impacts the broader economy. While utilities are used to adapting when emergencies strike, the COVID-19 pandemic is an emergency on an unprecedented scale. The smart use of digital technology is the key to success while adjusting to this new normal now and for the long term.
The demand for energy has dropped noticeably. The Energy Information Administration projects a bigger impact on commercial and industrial consumption compared with residential year to year (Figure 1). Despite the slowdown in business, energy at the residential level in the U.S.
will be nearly consistent. The Midcontinent Independent System Operator that delivers power to 15 U.S. states and the Canadian province of Manitoba reports an 18% drop in March peak compared with last year. Europe has seen drops of more than 20%. The U.K. is expected to use 15% less electricity. China experienced a drop of 7.8% year on year in January and February.