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Consumer First

Consumer First. The Energy Efficiency Commitment 4 th September 2007 Maxine Frerk. Consumer First. What is it? Work to date The future?. Consumer Engagement. Need to ensure we continue to capture domestic consumer interest Comparison with I&C relationships (SMUG/LUG/SBUG)

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Consumer First

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  1. Consumer First The Energy Efficiency Commitment 4th September 2007 Maxine Frerk

  2. Consumer First • What is it? • Work to date • The future?

  3. Consumer Engagement • Need to ensure we continue to capture domestic consumer interest • Comparison with I&C relationships (SMUG/LUG/SBUG) • energywatch demise • Issues becoming more complex with rise of sustainability agenda

  4. Research so far… • Best Practice Review (HenleyVisionHeadlightCentre) • Environmental Research (Stimulating World) -(pilot of new research technique)

  5. Summarising the Henley Recommendations • Strategic assessment of need for insight • Improved approach to consultation • Understanding the basic demographics • Getting a deeper understanding (‘the soft stuff’) • Anticipating future trends • Developing an initial programme • Building insight into the way we work, from the top down

  6. Environmental Research • Overall objective • Understand consumer attitudes to energy and environmental matters • With particular regard to:- • Consumers’ awareness of environmental issues • Consumers’ views on actions to tackle impact of energy on the environment • Types of action, responsibility for action, costs of action • Consumers’ willingness to pay for measures to tackle climate change

  7. The deliberative method A deliberative methodology involves bringing together between 20 and 200 citizens to deliberate on key issues of concern. Deliberative research is being used more and more to: • Inform citizens • Show transparency • Expose people to a wider range of viewpoints • Generate more effective communications • Map shifts in opinion and what is causing this

  8. Method and sample A two stage deliberative consultation was used: • Stage 1 - three initial workshops of two hours duration to benchmark spontaneous thoughts and feelings about the issues • With twenty citizens recruited according to UK socio-demographic breakdown • In three locations - London, Bristol, Glasgow • Interim period participants were provided with: • Information pack with fact sheets on climate change, energy sources and energy efficient measures • Pre-task to complete - collect articles/cuttings from newspapers/magazines/internet to bring to reconvened sessions • Stage 2 – three full day reconvened workshops to elicit more informed responses • With same twenty citizens in the same locations

  9. Findings from initial workshops • Participants were largely aware of the relationship between energy and climate change • Most took this seriously but some doubted its validity • Industry was seen as the primary cause of pollution and global warming • Growing emphasis on energy saving in the home with participants trying to ‘do their bit’ • No knowledge of Government or supplier schemes • Participants felt that responsibility for energy efficiency measures should rest on Government’ shoulders (also concerns about the nanny state) • Cost emerged as a major theme (suppliers’ profits, costs to consumers) • A general feeling of pessimism and loss of control in the face of climate change

  10. Findings from reconvened workshops • Participants had shifted their perspectives on some crucial issues • Many had become more scepticalthat global warming was a very serious issue (media coverage claiming that it was a natural occurrence) • They accepted that human influence was responsible for the acceleration of climate change • A heightened awareness of consumers’ role in creating emissions (acknowledging that industry is not the main polluter) • Greater awareness that current energy resources would run out and a resultant desire to be more energy efficient • Surprise and relief that the Government and industry were implementing energy efficient measures • Also a strong sense of distrust and anger that the public had not been adequately informed of these measures and cynicism around Government’s motives

  11. Findings from reconvened workshops (2) • A feeling that consumers should take more responsibility for implementing energy efficiency measures • All parties - Government, industry and consumers - should play their parts responsibly • A strong sense that renewable energy should be developed • A feeling of victimisation around the issue of cost for these measures • Participants’ sense of fairness and responsibility - willingness to pay their share

  12. SAVERS WITHDRAWERS More aware ‘It’s electioneering, profiteering’ Sophisticated theories Abandoned hope of transparency Withdrawing ‘We must do something’ Self assured/directed Taking action voluntarily Save the planet Who can I believe? Confused/feel powerless Sceptical Open to persuasion Likely to shift position ‘It’s a con’ Suspicious Blaming Government and industry The majority of participants DISILLUSIONED SHIFTERS Less aware

  13. More aware WITHDRAWERS SAVERS £50 -100+ per year The cost is not excessive in the bigger scheme of things Also voluntarily taking out green tariffs Nothing/up to £15 per year A scam but I will pay something Between £15 - £50 per year Depending on my personal circumstances Depending on how much I am persuaded Nothing Government and industry should shoulder the cost DISILLUSIONED SHIFTERS Less aware

  14. Willingness to pay for energy efficiency measures • A strong sense that Government and suppliers should bear much of the cost • Much distrust around stealth taxes and worries about where the money would go • An acceptance that consumers are also citizens and will have to shoulder some of the burden of payment • Feeling uncomfortable and burdened in the perceived absence of vision and leadership • The amount they were prepared to pay varied by profile • We will use this to argue for greater transparency about the costs, for example via the customers bill

  15. Future Research Options • Green tariffs? • Energy efficiency • barriers to take-up? • Switching by PPM / vulnerable customers?

  16. Conclusion • Ofgem looking to make more use of deliberative and other techniques • to make more use of publicly available information • spell out consumer impacts on consultation • New Head of Consumer and Social Policy starting 1 October to help drive this through

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