How Home Energy will change over the next decade

A consumer perspectiveCambridge, September 2010

UK Home Energy Today

Consumer:• Doesn’t think about energy

• Reliable supply

• £1200/year average energy bill• 9% of disposable income

• …and zero visibility into where that money is going• In same category as the mortgage/rent

• A choice of energy supplier (but they’re all the same)• Home is “dumb” – nothing connected

Government:• 30% of all energy consumed in homes. • Legal requirement to sharply reduce carbon• Renewables not coming on stream fast-enough• UK becoming a large net importer of energy (energy security issues)

Utilities:• Forced to sell less energy• Energy retail increasingly a low-margin commodity• Need differentiation, other sources of revenue

A taste of the future

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Electricity + Gas + Microgen

A taste of the future (2)

UK Home Energy in 2020

Consumer:• Thinks of energy services like other home services:

• (Broadband, TV, mobile, …)• Energy a part of broad service “bundle” from many providers• Added-value energy services (e.g. e-commerce, switching etc.)

available from many providers• Has a Smart Meter (with Time of Use tariff & maybe DR)

• (and hopefully free access to the data from it)• Has several HANs (WiFi + others), some white goods on• Is one of the 5%(?) with microgen (PV, thermal, CHP)• Is one of the 5%(?) using an (PH)EV (= 3 houses!)• Home energy more complex, more expensive (+60%?)• Creative consumer-oriented service business models, e.g.

• Advice showing where energy spent, help budgeting & reducing• ESCO• “Buy this fridge and get its first year of energy free”• C2C energy trading?!

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Thanks for listening

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