Switching by smaller consumers is presently, in the UK gas trials, spurred purely by price. The same is true of the switching from host retailers that has been observed in NSW and Victoria with the larger customers. But with integrated businesses, another dimension, convenience, is added. Growing affluence brings a premium on quality. Consumers will pay for things that liberate their time.
Telecommunications is the key.
The telecommunications industry operates in digital and cyberspace. This means that mass customisation is cheap it means cheap metering and billing that is an integral part of marketing. In addition, the ducts and wires that water, gas and electricity businesses control offer pathways for telecommunications. And one particular feature, which may still turn out to be a mirage, is the possibility of selling electricity and other products with a service that, for example, allows remote lighting and heating controls. The integrated bill will be one feature forcing convergence.