Utilities turn to big data to improve pricing models

Smart meters and time-of-use rates could dampen power market volatility and improve hedging

Powering up: smart meters allow utilities to track and analyse customers' electricity usage patterns

The US’s power utilities are succeeding in one area where Silicon Valley’s finest have failed: convincing homeowners to connect everyday objects – light bulbs, thermostats and refrigerators – to the internet.

The Edison Foundation estimates that by the end of 2017, electricity companies will have installed 76 million smart meters in the US, covering nearly 60% of households. By contrast, Google is said to have sold fewer than 10 million of its Nest smart thermostats.

Smart meters allow utiliti