Trapped in the transition: result controls and social inequity in long-term energy agreements

Purpose: This article aims to examine the role of long-term energy service agreements (LESAs) as a calculative practice and a form of control over an organisation’s results in the world’s transition toward sustainability and renewable energy. Within this context, we illustrate how calculative practices in the form of results controls can impact the social elements of such transitions.

Design/methodology/approach: Using a case study, we explore the calculative practices that underpin LESAs and their implications for achieving equitable energy outcomes in the drive toward zero carbon. We also apply a management control framework to understand how LESAs are structured and how they impact different consumer groups.

Findings: We find that the kinds of LESAs that provide certainty over the revenue directed toward renewable energy developers can disadvantage consumers, largely by way of higher energy prices. We also find that energy retailers are not disclosing details about the reasons for higher energy bills.

Originality/value: While prior work concerning the world’s transition to sustainability often advocates for results controls that minimise risk exposure for the private sector, we demonstrate that this can lead to unforeseen and potentially unintended consequences. We use this insight to highlight a path forward for future research on management controls, calculative practices and sustainability transitions.