Consumers Unwilling to Allow Electricity Suppliers to Remotely Limit Energy Use
Without Significant Price Discount, Accenture Study Finds
Higher bills and data-privacy issues would deter consumers from electricity management plans
NEW YORK; April 20, 2010 -- Consumers are not willing to allow electricity providers to remotely limit the
use of their home appliances as part of electricity management plans without significant rate discounts,
according to a report issued today by Accenture (NYSE: ACN). The report also found that almost half of
consumers would be deterred from joining electricity management programs if their electricity bills were to
increase as a result.
“Understanding Consumer Preferences in Energy Efficiency,” based on a global survey of more than
9,000 consumers in 17 countries, found that while some consumers are open to the idea of moving to
electricity management plans — under which suppliers can actively help households use energy more
efficiently through the remote limiting of when home appliances are used — they demand very large price
discounts in return.
For instance, only 16 percent of consumers said they would allow electricity providers to remotely limit
their use of certain household appliances if they have no option to reverse the action taken by the
provider and if no price discount were offered. Price discounts increase that figure:
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One in four respondents (24 percent) said they would give utilities such control when offered a
price discount of 10 percent; and
One in three respondents (35 percent) said they would give utilities such control when offered a
price discount of 20 percent.
High bills and data privacy deter consumers
When asked what would discourage them from using electricity management programs, 46 percent of the
consumers surveyed cited higher electricity bills — despite the fact that electricity management programs
are designed to reduce usage during peak time rates and therefore lower costs. In addition, more than
two in five respondents (41 percent) cited as a deterrent their energy provider‟s selling, at a profit, the
electricity they themselves saved, and one-third (32 percent) said they would be discouraged from using
electricity management programs if it would give their electricity provider greater access to their personal
electricity consumption data.
“In the new energy era, residential consumers who allow major household appliances to run at off-peak
times will potentially receive a financial benefit,” said Greg Guthridge, managing director of Accenture‟s
Utility Customer Care Practice. “However, utilities must address consumer concerns about external
control, privacy and lifestyle implications before broad-based adoption by consumers will occur. In the
end, they need to articulate a simple and intuitive value-proposition that resonates with the endconsumer.”
Electricity suppliers not trusted on energy conservation. New market entrants fare worse.
The report also found that while 75 percent of consumers believe they understand the actions they need
to take to optimize their electricity consumption, only 28 percent are aware of and understand programs
offered by electricity providers to help them do so.
Further, only 29 percent of consumers said they trust their electricity providers to advise them on actions
they can take to optimize their electricity consumption. This trust is lowest in deregulated markets such
as Germany (10 percent of respondents), Sweden (16 percent) and the United Kingdom (17 percent) and
highest in regulated markets such as Singapore (54 percent), China (41 percent) and South Korea (40
percent).
Other electricity service providers fare worse. Only 20 percent of consumers said they trust online service
providers to advise them on actions they can take to optimize their electricity consumption, and even
fewer — 13 percent — said they trust retailers, equipment manufacturers, cable television or
telecommunications companies to do so. The most trusted sources of energy-efficiency advice are
environmental associations and academic / scientific associations, cited by 53 percent and 51 percent of
respondents, respectively.
Social pressure
Social pressure plays a part in encouraging consumers to enroll in electricity management programs.
Two-thirds (65 percent) of consumers said they have a positive impression of an individual who is on a
program. However responses differ by country. Respondents in Brazil and Italy were most likely to have
positive impressions of consumers enrolled in electricity management programs (92 percent and 85
percent, respectively). In contrast, enrolment in such programs does not influence the impression
consumers have of an individual for close to half of the respondents in Germany (46 percent), United
Kingdom (46 percent) and the United States (48 percent).
“Achieving broad-based and sustainable consumer adoption will ultimately define the success of energy
management programs and the extent to which a utility meets environmental regulations and mandates,”
Guthridge said. “To succeed, power suppliers will need truly differentiated programs and service — gone
are the days of the „one-size-fits all‟ utilities customer service model. The most successful utilities will be
those that blend sophisticated consumer-centric capabilities with new smart metering and in-home
technologies to best meet emerging consumer needs and expectations.”
Methodology
Accenture‟s report, “Understanding Consumer Preferences in Energy Efficiency,” is based on an online
survey of 9,108 consumers in 17 countries worldwide conducted during January 2010. The sample
included 1,505 respondents in North America; 3,054 in Western Europe; and at least 500 in each of
Australia, Brazil, China, Japan, Singapore, South Africa and South Korea. The sample was representative
of the general population as a whole in terms of age, gender and income, except for emerging economies
with low Internet penetration, where the sample was representative of the urban population. The data
collection was undertaken by Harris Interactive.
About Accenture
Accenture is a global management consulting, technology services and outsourcing company, with more
than 181,000 people serving clients in more than 120 countries. Combining unparalleled experience,
comprehensive capabilities across all industries and business functions, and extensive research on the
world‟s most successful companies, Accenture collaborates with clients to help them become highperformance businesses and governments. The company generated net revenues of US$21.58 billion for
the fiscal year ended Aug. 31, 2009. Its home page is www.accenture.com.