revealing the values of the new energy consumer v24

Copyright © 2011 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.

Revealing the Values of the New Energy Consumer

Key Findings

• Why this survey?

• Methodology and sample

• Detailed survey results

• Appendix

Copyright © 2011 Accenture All Rights Reserved.

Agenda

1

• The ARBS team has launched a multiyear global research program aimed at gaining a deeper

understanding of consumers’ attitudes, opinions and preferences toward energy management programs. Completed in 2010, phase one of the program, the Understanding Consumer Preferences in Energy Efficiency, was a global consumer survey that produced fascinating insights into consumer preferences

in energy efficiency, readiness and willingness to take action. For highlights of the 2010 research key findings, please see the appendix.

• To create a more comprehensive set of insights, in 2011, we moved on to phase two of the program—

Revealing the Values of the New Energy Consumer—a research study among more than 10,000 end-consumers worldwide to further explore their preferences, opinions and priorities toward the value

they perceive in beyond-the-meter products and services investigating the following questions:

- What are the energy consumer’s traditional and non-traditional values surrounding in-home technologies, electricity management programs, and related products and services?

- How much value do consumers place on smart home appliances, mobile applications and non-

traditional channels?

- How can utilities/electricity providers differentiate electricity management programs?

- Do consumers value electricity management programs that are convenience focused?

- Are consumers interested in the delivery of energy management programs through utilities/electricity

providers and third parties?


Research context

2

https://smart.accenture.com/operations/_layouts/smart/dispform.aspx?id=2205





• Appendix


Agenda

3

• Survey targeted residential end-customers

• 10199 individuals in 18 countries surveyed in December 2010

• Selected countries represent a range of regulated and deregulated markets

• For countries with large and/or diverse populations, participants were selected from a broad spectrum of locations

• Quantitative survey with a sample statistically representative of the general population in every country*

• Approx. 30 minute survey, conducted online in native languages

• Data collection completed for Accenture by Harris Interactive

*In Brazil, China and South Africa sample representative of the urban populations

To understand the ‘new energy consumer,’ Accenture

commissioned a global survey of consumer opinions and

preferences toward electricity management programs

Copyright © 2011 Accenture All Rights Reserved. 4

# INTERVIEWS

Australia 500

Belgium 512

Brazil * 510

Canada 500

China * 502

Denmark 505

France 514

Germany 500

Italy 548

Japan 530

Netherlands 544

AGE

18-24 years 16%

25-34 years 22%

35-54 years 36%

> 55 years 26%

GENDER

Men 49%

Woman 51%

INCOME

Low (bottom 25% in every country) 25%

Medium 50%

High (top 25% in every country) 25%

# INTERVIEWS

Singapore 510

South Africa * 500

South Korea 537

Spain 550

Sweden 511

United Kingdom 724

United States 1202

Interviews by country: Repartition by gender, age, income:

*In Brazil, China and South Africa sample representative of the urban populations

Survey sample details





• Appendix


Agenda

6

Key findings

1. Emerging marketplayers - While consumers regard their utilities as the primary provider for energy-related products and services, dynamic business models are emerging

2. Beyond price - Price is the pivotal factor in the acceptance of electricity management programs, but price alone will not drive adoption

3. Diverse consumer preferences - A wide array of consumer preferences is driving the need for differentiated propositions and experiences

4. Unlocking value - Consumers will respond to programs that consider their full spectrum of values and preferences


Key finding No. 1

While consumers regard their utilities as the primary provider for energy-related products and services,

dynamic business models are emerging


While consumers’ first instinct is to go to their utility, …

Utility

Your retailer

21%

73%

23%Your phone or cable provider

25%

Your online site (e.g.,

Amazon, Google)

Please select all of the providers that you would be ready to consider for the following

products and services

22%

50%

54%

32%

Purchase electricity and

choose an electricity

pricing program for your

home

Purchase energy-

efficient products (e.g.,

smart thermostat)

Base: All respondents

67%

26%

27%

29%

Get personalized information

on your electricity usage

allowing you to understand

which appliances are using

the most electricity


… they also consider alternative providers for purchasing

electricity and beyond the meter products and services

You may currently, or in the future, have new companies offering you electricity,

energy-efficient products (e.g., smart thermostat), and/or related services (i.e.,

customized information on your electricity consumption) on top of their traditional

products and services.

Would you consider purchasing electricity, energy-efficient products, and/or related

services from the following providers?


Online site (e.g., Amazon, Google) 45%

Phone or cable provider 49%

Retailer 59%

Respondents that would

consider at least one

provider (i.e., retailer,

phone or cable provider,

online site) other than a

utility/electricity provider =

73%


Alternative providers considered to purchase electricity,

energy efficient products, and/or related services

- Country breakdown


services from retailers, phone or cable providers or online sites?

23%

BE

50%

DE

59%

JP

60%

NL

60%

DK

65%

UK

68%

AU

69%

AVG

73%

SE FRUSA

75%

CA

77%

IT

79%

ES

82%

BR

90%

SK

91%

SG

95%

ZA

96%

CN

96%

74%

Respondents that would consider

at least one provider (i.e., retailer,

phone or cable provider, online

site) other than a utility/electricity

provider



http://www.google.fr/imgres?imgurl=http://www.paulnoll.com/Korea/History/South-Korean-flag.jpg&imgrefurl=http://www.paulnoll.com/Korea/History/South-Korean-flag.html&h=302&w=452&sz=21&tbnid=y2X3R_QRtTt8CM:&tbnh=85&tbnw=127&prev=/images?q=south+korean+flag&hl=fr&usg=__AW48OTupE-MU6evFkcavq-hFw8A=&ei=jrqGS9ihNJXF4gaqxvyTDw&sa=X&oi=image_result&resnum=1&ct=image&ved=0CAkQ9QEwAA

http://en.wikipedia.org/wiki/File:Flag_of_Belgium_(civil).svg

Alternative providers considered to purchase electricity,

energy efficient products, and/or related services

- Country breakdown by provider


services from retailers, phone or cable providers or online sites?


0

10

20

30

40

50

60

70

80

90

100

ZASG CN AU AVGBR SKCA DK DEES NL JPUSA BE FRUK IT SE

Phone or cable provider

Online site

Retailer


%



Consumers interest in learning about electricity management

programs can be met by specific events and providers

Base: All respondents*All moments of truth appeared among respondents’ top three

When are you most likely to be interested in learning about electricity management

programs?

53%When I am purchasing new appliances/household electronics

When I get my bill

61%When my electricity prices increase

28%When I am renovating my home

55%

12%

When I meet with a community organization that I belong to 3%

When I am moving into a new home

46%

When I sign up for telephone or internet service

42%

When I sign up for electricity service

Top three moments of truth*


While utilities have the opportunity to improve consumer trust,

they are better positioned than alternative providers

What organizations do you trust to inform you about actions you can take to

optimize your electricity consumption?

(e.g., Google, Microsoft)

(e.g., cable television provider, telecommunications provider, etc.)

Base : All respondents

Retailers /equipment manufacturers 28% 58% 14%

Home service providers 28% 57% 15%

Online service providers 16% 62% 22%

Utilities/electricity providers 25% 47% 28%

Government /governmental organizations 25% 45% 30%

Academics /schools /scientific associations 6% 41% 53%

Environmental associations 10% 36% 54%

Consumer associations 6% 39% 55%

TrustNeither trust

nor distrust

Do not trust

2011

49%

53%

51%

28%

29%

20%

13%

13%


2010 (% Trust)

IT

21%

14%

SE

16%14%

DE

10%

14%

UK

17%16%

NL

29%

20%

AU

23%20%

ES

18%

21%

BE

24%

CA

31%

26%

AVG

29%28%

FR

19%

32%

ZA

34%

32%

BR

32%32%

JP

34% 33%

DK

39%40%

CN

41%40%

SK

40%

47%

SG

54%54%

28%

29%

USA

Trust - 2011

Trust - 2010

Do you trust your utilities/electricity providers to inform you about actions you can

take to optimize your electricity consumption?

Where there was active energy efficiency and pricing

programs, countries experienced volatility in trust

- Country breakdown





Key finding No. 2

Price is the pivotal factor in the acceptance of electricity management programs, but price alone will

not drive adoption


A reduction in consumers’ electricity bills is a key driver of

adoption

What factors would most encourage you to use electricity management programs?

Knowing that I am one

of the highest electricity user in my peer group9%

It would decrease the time required to

manage my electricity use 38%

It would allow me to better control the heating-

cooling in my home 51%

It would decrease my personal

environmental impact 66%

It would decrease the amount

of my electricity bill 88%

41%

69%

91%

16%

68%

Base: All respondents*All factors appeared among respondents’ top three

2011

2010

Top three factors*


Not surprisingly consumers place the most importance on

impact on their electricity bill for the adoption of an electricity

management program

Base: All respondentsMethodology note: Results based on a conjoint analysis


When consumers make decisions regarding electricity management programs, they

place different levels of importance on the components

Impact on your electricity bill 83%

Program 17% Program elements:

•Information display

•Service

•Usage adjustment

•Provider

•Loyalty rewards

Impact on your

electricity bill choices:

• 15% reduction

• 5% reduction

• No change

• 5% increase

Surprisingly, nearly 29% of consumers would adopt a program

that increased their bill

Base: All respondentsMethodology note: Results based on a conjoint analysis. Simulation test with “Existing device, full set up, manual adjustmen t, single provider, with loyalty rewards.”


When consumers make decisions regarding electricity management programs, they

place a decreasing level of importance on the reduction of the bill beyond 5% in

savings.

29%

33%

39%

47%

57%

65%

73%

81%85% 89% 90%

94%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

-5% -4% -3% -2% -1% 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15%

% reduction on the electricity bill

% of adoption(certainly and probably)

60%

% increase on the electricity bill

The importance of the impact on the bill is reasonably

consistent across geographies

- Country breakdown

Relative importance (weight) of each component in the decision to adopt electricity

management programs


83%

17%

FRITBECADKSGUSADEZACNAVGNLAUSK

92%

8%

SE

12%

88%

UK

14%

84%

15% 16% 16%

BR

16%

84%86% 85% 84%

ES

16%

73%

21%25% 27%

JP

33%

67%

79% 79%75%

21%

79%

21%

80%

20%

81%

19%

82%

18%

82%

18%

84%

Impact on your electricity bill

Program elements

20Copyright © 2011 Accenture All Rights Reserved.



When consumers make decisions regarding electricity

management programs, they place different levels of

importance (weight) on the program elements

Information displayThe program gives you the ability to monitor and adjust

your electricity usage through a device. This

device may be a separate unit that only provides information on your

electricity usage, or may be incorporated into already

existing devices in your home (i.e., computer, television, telephone, mobile

device).

ServiceYou may choose to setup and service

the device(s) on your own or you

may choose to have a certified technician do it for

you.

Usage adjustment In order to optimize your electricity bill you have to

change the time at which you use some appliances (e.g.,

heating/cooling of your home, dishwasher, and clothes washing machine). You have

the choice between manual turn on or off based on real

time pricing information and automatic turn on or off through a device

Provider You can receive your device,

information, and pricing program

from a single provider or multiple providers.

Loyalty rewardsYou may have an opportunity to enroll in a

rewards program. This rewards program will allow

you to collect points which can be redeemed for goods and services (e.g., travel

and personal electronics).



The mix of program elements significantly fluctuates

between geographies

– Country breakdown

Relative importance (weight) of each element in the adoption of electricity

management programs

20%

7% 7% 7% 4% 7%3%

27%

5%

16%

29%22%

10%

1%

24%

IT

1%

27%

20%

23%

29%

SK

15%

12%

16%

35%

CA

4%

9%

22%

36%

JP

16%

11%

19%

38%

DK

3%

11%

42%

39%

USA

5%

9%

18%

41%

BE

14%

1%

40%

42%

AU

13%

7%

28%

19%

AVG

9%

10%

30%

47%

DE

2%6%

13%

32%

47%

SG

10%

2%

33%

48%

BR

5%

17%

22%

49%

ES

1%

20%

23%

49%

CN

4%

FR

52%

UK

1%

13%

5%

16%

65%

ZA

2%

9%

4%

14%

71%

45%

41%

11%

28%

20%

NL

21%

11%

35%

23%

SE

1%

8%

48%

23%

Usage adjustment

Provider

Information display

Service

Loyalty rewards

22

Base: All respondentsMethodology note: Results based on a conjoint analysisCopyright © 2011 Accenture All Rights Reserved.



While rebates are the preferred reward, non-cash incentives

also appeal to consumers

How would you like to be rewarded for enrolling in an electricity management

program?

Free in-home technology installation services

55%

Activities and entertainment rewards 10%

Rebate on your electricity bill 91%

Books, music, and movie rewards 14%

Travel rewards 19%

Electronics and computer rewards 48%

Loyalty rewards that you can use in a store for products

and services of your choosing

57%

Top three rewards*

Base: All respondents*All rewards appeared among respondents’ top three


Gender and age influence reward preference

– Gender and age breakdown

How would you like to be rewarded for enrolling in an electricity

management program?

12%

92%

54%Free in-home technology installation services

9%

Books, music, and movie rewards 13%

Travel rewards19%

Electronics and computer rewards54%

Loyalty rewards that you can use in a store

for products and services of your choosing

90%Rebate on your electricity bill

60%

16%

20%

42%

60%

50%

Activities and entertainment rewards

Gender

Base: All respondentsNote: Top three rewards i.e., all rewards appeared among respondents’ top three

Women

Men

28%22%

16%

16%15%

48%55%

54%45%

54%51%

88%82%

93%

44%46%

20%

60%

96%

66%

56%

55%

18%15%

13%10%

9%5%

Income

25-34 yrs

18-24 yrs

35-54 yrs

55+ yrs


Key finding No. 3

A wide array of consumer preferences is driving the need for differentiated propositions and experiences


When a full spectrum of adoption variables are evaluated, a

balanced distribution of six core consumer segments

emerge

Electricity management program

elements:• Information display• Set up

• Usage adjustment• Provider

• Loyalty rewards

18%

14%

Traditionalists15%

Service-centrics

Cost-sensitives

22%

Social

independents18%

Self-reliants

13%

Tech-savvys



Consumer segment preferences for electricity management

program elements are fragmented

Importance of levels

11,8

Pricing information displayed on a new device 0,0

Loyalty rewards program 8,0

No loyalty rewards program 0,0

Single provider for the device, information and pricing

program0,0

Multiple providers for the device, information and pricing

program0,7

Automatic management of appliances by the device 0,0

Manual management of appliances 76,5

Full set-up and assistance by a technician 3,0

Self set-up of the device with phone support 0,0

Pricing information displayed on existing devices

0,0

16,4

0,0

39,3

0,0

1,8

0,0

39,7

0,0

2,8

81,6

0,0

0,0

2,8

0,0

1,4

8,2

0,0

6,0

0,0

10,8

0,0

0,0

2,2

3,8

0,0

81,0

0,0

2,1

0,0 0,0

10,5

0,0

82,6

0,0

0,0

0,2

2,9

0,0

3,8

Self-reliantsSocial

independentsCost-

sensitivesService-centrics Traditionalists

6,3

0,0

0,0

4,3

74,0

0,0

11,3

0,0

4,2

0,0

Tech-savvys



The six segments are present in all countries

11% 12% 15% 15% 13% 13% 12% 14% 14% 17%12% 13% 15% 13% 14%

25%18% 17% 13%

17%14%

15% 25%21%

20%

14%

18%

13%

17%

14% 18%

22%

23%21%

15%17% 17%

25%

18%

32%

11%

IT

20%

20%

13%

ZA

13%

SK

10%

26%

9%

19%

20%

20%

10% 8%

SE

31%

JP

20%

13%

14%

9%

14%

20%

11%

CNBE

17%

17% 13%

18%

25%18%

9%

SG

11%

FR

31%

10%

11%

11%

ES

15%

20%

23%

11%

UK

17%

28%

18%

11%12%

AVG

15%

22%

18%

13%

BR

9%

26%

26%

13%

DE

10%

25%

18%

14%

NL

18%

13%

21%

14%

DK

10%

20%

16%

14%

AU

16%

23%

15%

16%

CA

17%

22%

15%

20%

USA

14%

23%

15%

20%

Tech-savvys

Traditionalists

Service-centrics

Cost-sensitives

Social independents

Self -reliants

28

Base: All respondentsMethodology note: Results based on a conjoint analysisCopyright © 2011 Accenture All Rights Reserved.



A closer look at each segment

29

Self-reliants

I prefer to manage my electricity consumption on my own (13%)

Adoption attributes:

• Highest willingness to manage manually

appliances based on real time pricing

information to optimize electricity bill• Higher interest in monitoring and adjusting

their electricity usage through an existing

device

• More uncomfortable with sharing data with a

third party for commercial purposes• Higher readiness to purchase energy efficient

product from online sites

Demographics +: • Higher proportion of women (54%)

• Higher proportion of 55+ years old

Social independents

I like testing new technologies (18%)

Adoption attributes: • Highest interest in setting up personally their

in-home device with phone support

• Higher interest in monitoring and adjusting their

electricity usage through a new device

• Highest interest in receiving their device, information, and pricing program from multiple

providers

• More uncomfortable with sharing data with a

third party to make a program work

• Lowest interest in loyalty rewards but would value electronics/computer rewards

• More likely to be dissatisfied with a poor

communication of changes in the program

Demographics +: • Higher proportion of men (56%)

• All ages and levels of income

• Value a program allowing to connect with a

community to share experience

• Also value a program that would be regarded as trendy by family and friends

Cost-sensitives

I look above all for the best financial rewards (22%)


• Highest sensitivity to loyalty rewards,

especially loyalty rewards that can be used in

a store for products and services of my choosing

• Highest sensitivity to a program that would

decrease the amount of their bill

• More likely to be interested to learn about a

program when bill increases• Higher interest in a program that can be

customized to their personal needs and

usage

Demographics +: • Higher proportion of women (55%)

• Higher proportion of 25 and 34 years old

• Higher share of lower income

• Higher interest in a program which is fun to

use and is easy to use for the whole family

Base: All respondentsMethodology note: Results based on a conjoint analysis; significant differences from the average have been highlighted


Service-centrics

I want the best service for me and my family (18%)%)


• Highest interest in full set-up of the device

and assistance by a certif ied technician

• Highest sensitivity for a program that would allow them to better control the

heating/cooling of their home

• More likely to be interested in learning about

a program when moving into a new home

• More likely to be dissatisfied by a program with poor customer support and poor product

installation

• Highest preference for dealing with their

utilities to purchase electricity, energy efficient

products and get customized information in their electricity usage

• Higher interest in an in-home device display

installed at no cost

Demographics +: • Higher share of women (53%)

• All ages and level of income

• Higher interest in a program which is easy to

use for the whole family

Traditionalists

I prefer a familiar experience (15%)


• Highest interest in receiving their device,

information, and pricing program from a

single provider• Lower readiness to go to a retailer,

phone/cable provider or online site to

purchase electricity, energy efficient products,

and/or related services

• Highest likelihood to purchase energy efficient products with their utilities

• More likely to be interested in learning about

a program when they are renovating their

home

Demographics +:

• Equal repartition in terms of gender

• Higher proportion of 55+ years old

• All levels of income

Tech-savvys

I value convenience and efficiency (14%)


• Highest interest in automatic management of

their appliances by a device

• Higher interest in full set-up of the device and assistance by a certif ied technician

• Most likely to install a SetAndForget program

• Highest interest in monitoring their

consumption on their mobile phone or latest

personal electronics• Highest readiness to consider online sites to

purchase electricity, energy efficient products,

and/or related services

Demographics +:• Higher proportion of men (54%)

• Higher proportion of 25 and 34 years

• Higher proportion of high income

• More likely to choose a program that

simplifies their life

A closer look at each segment (Cont’d)

Base: All respondentsMethodology note: Results based on a conjoint analysis; significant differences from the average have been highlightedCopyright © 2011 Accenture All Rights Reserved. 30

Key finding No. 4

Consumers will respond to programs that consider their full spectrum of values and preferences


Consumers express interest in a broad set of unconventional

values and preferences

How important would each of the following characteristics be in your selection of

an electricity management program?


24%18% 6%

47%36% 11%

51%36% 15%

53%39% 14%

89%40% 49%

90%45% 45%

Is regarded as trendy by my family and f riends

92%42% 50%

Simplif ies my life

Is customized to my personal needs and usage

Allows me to connect with a community to share experience

and tips

Includes the latest technologies

Is fun to use

Is easy to use for the whole family

Somewhat important

Very important


Consumers view technology as a key component of electricity

management programs

Would you be interested in any of the following functionalities/features that may be

included with an electricity management program?

36%

The ability to customize the design of the in home display

or the online portal of my electricity management program

20%

Automatic integration of my electricity usage with popular

social internet websites (e.g., Facebook, Twitter) which

allows me to share and compare my success against f riends

35%

32%

Monitoring and managing my usage through the latest personal

electronics (e.g., tablet PC)

Family activities/games around electricity consumption

(e.g., contest on who is consuming the least each week)

60%Technology that can completely automate the management of

my electricity

13%

Applications I can download on my mobile phone to measure

my personal electricity consumption in real time



Men tend to be more interested in technology enabled

solutions

– Gender breakdown



Automatic integration of my electricity usage with popular

social internet websites (e.g., Facebook, Twitter) which allows me to

share and compare my success against f riends

15%

Family activities/games around electricity consumption (e.g.,

contest on who is consuming the least each week)

20%

Applications I can download on my mobile phone to measure

my personal electricity consumption in real time

36%

The ability to customize the design of the in home display

or the online portal of my electricity management program

39%

Monitoring and managing my usage through the latest personal

electronics (e.g., tablet PC)

41%

Technology that can completely automate the management of

my electricity

31%

31%

29%

21%

12%

56%

64%


Men

Women


The interest in mobility varies significantly by age group

– Age breakdown




58%

50%

23%

60%

42%

40%

60%

33% 29%

20%

11%

60%

17%

9%

6%

0

5

10

15

20

25

30

35

40

45

50

55

60

65

26%

35%

44%

Technology that can

completely automate

the management of my

electricity

20%

Family activities/games

around electricity

consumption

27%

30%

Applications I can

download on my mobile

phone to measure my

personal consumption

Automatic integration of

my electricity usage

with popular

social internet websites

44%

The ability to

customize the design

of the in home display

30%

38%

Monitoring and managing

my usage through the

latest personal

electronics

18-24 years

25-34 years

35-54 years

55+ years


%

Surprisingly, a majority of consumers are comfortable with a

third party having access to their usage data in order to make

an electricity management program work

Some electricity providers may need to work with third parties to deliver electricity

management programs. With your consent, these third parties may have access to your

usage data to make the program work.

Would this prevent you from signing up?

No

Yes

63%

37%

63% of consumers feel

comfortable with a third

party having access to

their usage data to make

an electricity program

work



77%72% 72%

69%67% 67% 66% 66% 64% 64% 63% 63% 62% 61% 61%

58%55%

53%

41%

CNNLBRFRSKDECAUKAVGITSGESAUBEUSAJPSEZADK

No





Across geographies the majority of consumers would be open

to sharing their usage data to make the program more effective

- Country breakdown





Furthermore nearly half of consumers would also be

comfortable to share their data for commercial purposes

No

Yes

48%

52%

If you provide consent, your utility may share your personal information with third

parties. These third parties may come back to you to offer additional services outside

of the electricity management program to help you save on your electricity bill.

Would this prevent you from signing up for an electricity management program?

48% of consumers feel

comfortable with a

third party having

access to their usage

data to of fer additional

services to help save

money on their bill



Nearly half of all consumers would also opt for more

convenience at a premium

I turn on or off pre-selected appliances four times a day resulting

in a 15 percent savings on my electricity bill

I install a smart device that automatically turns on or off pre-

selected appliances resulting in a 5 percent savings on my

electricity bill (SetAndForget program)

I don’t take any actions resulting in no savings or

even an increase in my bill of up to 10 percent

55%

35%

10%

In the future, the price you pay for electricity will change throughout the day. Electricity could be

more expensive in the morning and cheaper at night (this may already be the case in your country). This new pricing can save you money on your electricity bill if you actively manage the hours at which you use major appliances. If you don’t, your electricity bill will increase.Given

this electricity pricing, changes in behavior could have an impact on your electricity bill.

Please select your preferred scenario:



Consumers with higher incomes are more interested in

SetAndForget programs

- Gender and income breakdown

I turn on or off pre-selected appliances

four times a day resulting in a 15 percent

savings on my electricity bill

I install a smart device that automatically turns

on or off pre-selected appliances resulting in a

5 percent savings on my electricity bill

(SetAndForget program)

I don’t take any actions resulting in no savings or

even an increase in my bill of up to 10 percent

Income

35%

10%

58%

Medium

29%

13%

41%

55%

8%

HighLow

51%


In the future, the price you pay for electricity will change throughout the day. Electricity could be

more expensive in the morning and cheaper at night (this may already be the case in your country). This new pricing can save you money on your electricity bill if you actively manage the hours at which you use major appliances. If you don’t, your electricity bill will increase.Given

this electricity pricing, changes in behavior could have an impact on your electricity bill.

Please select your preferred scenario:


Consumers tend to favor face-to-face interactions for the

purchase of various energy efficiency programs and products

How would you want to purchase a

SetAndForgetprogram ?

With a staf f member over

the telephone

With a staf f member at my

place of residence

With a staf f member at an

in store location

9%

25%

Online with no interaction

with a staf f member

38%

28%

Base: All respondents interested in SetAndForgetprogram

63% prefer interacting

with a staf f member to purchase a

SetAndForget program

With a staf f member over

the telephone

With a staf f member at my

place of residence

With a staf f member at an

in store location

5%

14%

Online with no interaction

with a staf f member

52%

29%

Some programs allow you to purchase energy-

efficient products (e.g., smart thermostat) at a discount. How would you want to purchase such a product?

66% prefer interacting

with a staf f member to

purchase energy -

ef f icient products



In-person and online channel preferences vary significantly by

geography

- Country breakdown

33%

12%

8%

12%18% 18% 19% 21% 22% 24% 28% 28% 28% 30% 31%

3%

51%

8%

13%

55%

12%11%

28%

40%

5%

14%

7%5%

48%

15%

5%

49%

15%

2%

54%

5%

6%

3%

46%48%

8%

4%15%

48%

2%

14%

29%

SG

67%

15%

6%

56%

22%

4%

61%

13%

8%

54%

24%

3%

53%

17%

9%

63%

10%

5%

58%

16%

2%

58%

31% 32% 34%38%

42%47%

52%

FRBE CA NL JP BRDKAU SE AVG DEES UKZA SKUSACN IT

Some programs allow you to purchase energy-efficient products (e.g.

smart thermostat) at a discount. How would you want to purchase

such a product?

With a staff member at an in store location

With a staff member at my place of residence

With a staff member over the telephone

Online with no interaction with a staff member





Consumers are most likely to become disengaged in

electricity management programs by lack of reliable service,

billing errors, and poor customer support

Which of the following would decrease your satisfaction with an electricity

management program?

15%

Lack of reliable service

31%

Errors in my bill

44%

Poor customer support 52%

Poor product installation

62%

The programs require a large investment of my time

71%

Increased billing f requency

22%Poor communication of changes in the program

Top three factors*


*All factors appeared among respondents’ top three factors


Satisfaction factors

- Smart meter breakdown

Which of the following would decrease your satisfaction with an

electricity management program?

Increased billing f requency16%

Poor communication of changes in the program23%

The programs require a large investment of my time27%

Poor product installation46%

Poor customer support 51%

Errors in my bill63%

Lack of reliable service73%

72%

62%

52%

43%

32%

21%

14%

Top three factors*

Base: All respondents*All factors appeared among respondents’ top three

No smart meter installed

Smart meter installed


Preference for SetAndForget program

- Country breakdown

ES

25%

NL

27%

AU

30%

UK

31%

CA

31%

USA

32%

DK

32%

BR

33%

FR

33%

BE

33%

AVG

35%

SE

35%

SG

36%

IT

37%

DE

39%

ZA

39%

JP

42%

SK

44%

CN

49%


I install a smart device that automatically turns on or off pre-

selected appliances resulting in a 5 percent savings on my

electricity bill (SetAndForget program)

In the future, the price you pay for electricity will change throughout the day.

Electricity could be more expensive in the morning and cheaper at night (this may

already be the case in your country). This new pricing can save you money on your

electricity bill if you actively manage the hours at which you use major appliances.

If you don’t, your electricity bill will increase. Given this electricity pricing, changes

in behavior could have an impact on your electricity bill.




67%64%

56% 55% 54% 53%51% 50% 49% 49% 48%

45% 44%43% 43% 42%

39% 39%

35%

SE JP ESSK BRDK ITZA AU CNUKFRUSANLDESGCAAVGBE

No

Consumers sensitivity to share their data for commercial

purposes varies between countries

- Country breakdown


If you provide consent, your utility may share your personal information with third

parties. These third parties may come back to you to offer additional services

outside of the electricity management program to help you save on your electricity

bill.

Would this prevent you from signing up for an electricity management program?




Most preferences are proportionally consistent by age group

– Age breakdown

How important would each of the following characteristics be in your selection of an

electricity management program?


Is customized to my personal needs and usage

91%Simplif ies my life

89%Is easy to use for the whole family

58%

90%

Is fun to use

58%Includes the latest technologies

50%Allows me to connect with a community to share experience

and tips

35%Is regarded as trendy by my family and f riends

% of Very/somewhat important

58%

50%

31%

60%

90%

92%

92%

23%

46%

50%

53%

89%

90%

92%

14%

43%

45%

44%

86%

87%

91%

18-24 years 25-34 years 35-54 years 55+ years


Age and income influence consumers propensity to share

their usage data to make the program more effective

- Age and income breakdown





No

Yes

55+

years

66%

34%

35-54

years

64%

36%

25-34

years

63%

37%

18-24

years

59%

41%


Age Income

36%

64%No

Yes

Low

41%

59%

Medium High

67%

33%


Australia

Brazil

Canada

China

Denmark

France

Germany

Italy

Japan

Netherlands

Singapore

South Africa

South Korea

Spain

Sweden

United Kingdom

United States

Countries Surveyed1. Consumer Paradox - There is a significant

contradiction between consumer perceptions and their actual knowledge of energy efficiency.

2. Trusted Advisor - Consumers' first instinct is to contact utility/electricity providers forenergy-efficiency activities, however, providers still need to build trust and credibility.

3. Emerging Barriers - While price remains a key factor to adoption, the extent of the utility/electricity providers’ control over energy use has emerged as a potential barrier.

4. Channel Diversification - Channels and contact points for utility/electricity providers to communicate with consumers are diverse.

5. Complexity of Consumer Preferences - Adoption of electricity management programs is influenced by fragmented and nontraditional consumer preferences.

2010 End Consumer Research

Understanding Consumer Preferences in Energy

Efficiency

To access last year’s research, please access

Understanding Consumer Preferences in Energy Efficiency here.

2010: Key Findings



revealing the values of the new energy consumer v24

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