Spoiler Alert: Innovation Is the Only Path

Consolidation is not slowing down — it’s accelerating. The comfortable middle is disappearing, and your survival depends on how effectively you adapt, innovate, and focus on building customer value instead of rebuilding infrastructure.

The Big Squeeze: Consolidation Is Accelerating

The largest players are rapidly expanding their dominance. In 2025 alone, mergers and acquisitions have doubled compared to prior years, with moves like Rhythm acquiring Inspire, IGS – Just Energy, and Constellation agreeing to acquire Calpine for $16.4 billion. Even the top of the market is consolidating, combining retail and generation assets to strengthen competitive advantages.

The Old Playbook Is Dead

Outspending giants isn’t an option for mid-tier or emerging suppliers. Scale, regulatory demands, and market cost pressures are rewriting the rules. Strategies that worked when the market was more diverse no longer guarantee a win. According to research from Harvard, companies that win during industry consolidation share a common playbook:

  • Focus resources on core differentiators that CUSTOMERS value.
  • Use vendors to fill capability gaps.
  • Invest in technology that lowers cost-to-serve and improves agility.

Build or Buy? The Innovation Choice

Where do you build, and where do you buy? I recently did a video series with CG Infinity about this – check it out for the latest thoughts on how AI is changing this age-old topic!

Building backend systems like compliance, pricing, or portals drains leadership bandwidth and increases overhead. Buying proven infrastructure lets you focus internal resources on what creates differentiation — customer experience, new product design, and speed to market.

As our industry has matured, most “home grown” CRMs are being replaced with robust off-the-shelf alternatives. Gone are the days where suppliers need to hire software developers to build a CRM or create “meter objects” in Salesforce. Modern CRMs can enable suppliers to price 60 C&I deals per salesperson per day! Deploying ready-made systems to handle operational heavy lifting is essential for agility and time-to-market.

AI as an Innovation Engine

At the Chicago TEPA event, SmartestEnergy announced:

“We estimate we save over 900 hours per quarter through pricing‑refresh automation.”

AI and automation platforms allow suppliers to act faster, price more competitively, and identify opportunities ahead of the market. This is where operational efficiency meets competitive advantage. Here are a few examples of what is coming this year, unlocked by AI:

  • Bulk import of completed contracts with data extracted, QCed and submitted for enrollment with NO HUMAN TOUCH
  • AI-enabled commissions analyst who responds to broker emails 
  • AI-enabled pricing desk which sets up Opportunities for Sales Reps directly from their inboxes, FULLY AUTOMATED.
  • AI-based margin advisor, helping sales reps to set “most likely to win this deal with this broker” margins

The game is changing. “Copy & Paste into the pricing engine” is simply going to be too slow. What are you doing to leverage AI into your sales process so your salespeople can focus on closing the deal?

Data is the New Differentiator

Beyond using AI for automation, the availability of data in the industry is finally reaching critical mass. One example? Enerex consumes over 4 million matrix prices each month across the entire country giving us a complete overview of all market price movements every day. We have now brought this data some visibility, where market participants can start to gain INSIGHTS from this previously seen as “throw away” data set:  

This is only the beginning! We can now tell you (about ANY Supplier):

  • How often are their prices in the top 10% of the market?
  • How broad is their reach (how many markets do they have active licenses?)
  • What are all their affiliate brands?
  • What is their market cap? ticker symbol? # employees? credit rating?
  • What is their PUC complaint record?

THIS DATA SERVES TO DECOMMODITIZE the price that our customers present to a customer – It’s time to get away from the “Race to the Bottom” and DATA is the answer!

Now is the Time for Action

The consolidation trend is accelerating, and the winners will be those who combine strategic focus with operational agility. By buying backend capabilities and building the customer-facing experiences that drive loyalty and margin, suppliers can position themselves not just to survive, but to grow.

What is your company doing to mine your “throw away” data?

Let’s connect at EMC this October to discuss how these strategies are playing out in the field.

By: Nate Richards, CEO, Enerex