Energy Eficiency Study Europe

8/7/2019 Energy Eficiency Study Europe

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Turning concern into action:Energy effi ciency and the

European consumer

R e l e a s i n g y o u r p o t e n t i a l

logicaCMG

Survey


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logicaCMG

About LogicaCMG

LogicaCMG is a major international force in IT and business services.

It employs around 40,000 people across 41 countries. LogicaCMGs

focus is on enabling its customers to build and maintain leadership

positions using LogicaCMGs deep industry knowledge and its track

record for successful delivery. The company provides business consulting,

systems integration and IT and business process outsourcing across

diverse markets including telecoms and media, fi nancial services, energyand utilities, industry, distribution and transport and the public sector.

Headquartered in Europe, LogicaCMG is listed on both the London

Stock Exchange and Euronext (Amsterdam) (LSE:LOG; Euronext:LOG)

and traded on the Xternal List of the Nordic Exchange in Stockholm.

More information is available at www.logicacmg.com

This document is for general information purposes only and is subject to

change without notice.

E&U/Energy/CE/1007/S


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Turning concern into action:

Energy effi ciency and the European consumer 01

Contents 03 1. Executive summary

2. Concern about climate: the consumer perspective

3. Energy effi ciency: a fi nancial or an environmental concern?

4. Who is taking action to reduce energy consumption?

4.1 Perceived and real action

5. Barriers to energy saving

5.1 Lack of Government incentive 5.2 Do enough already 5.3 Upfront investment too high 5.4 No idea of how much Im using at the moment 5.5 Other reasons

6. The role of technology and innovation

6.1 Pro-innovation consumers

7. Smart metering

8. How to deliver more information on energy consumption

9. Information and trust

9.1 Preferred sources of information for energy effi ciency 9.2 Trust in information about energy effi ciency

10. Conclusions

Country Appendices

Methodology

05

07

10

14

19

23

29

25

26

30

50


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02

Foreword

There is widespread consensus that climate change is a signifi cant challenge thatrequires action. A problem on this scale has no single solution: policy, technology andbehavioural change all have important roles to play. Yet some solutions can be attractiveand not just about making lifestyle sacrifi ces. Corporate and personal action to reduceenergy consumption can not only lead to falls in carbon emissions, it can also meansubstantial cost savings for the companies and individuals involved. For the Europeanand global economies as a whole, energy effi ciency is widely seen as the most cost-effective route to reducing carbon emissions.

Important progress has already been made. Massive media exposure has meant thatconsumer awareness of the climate change challenge is high. But the more diffi cult andimportant step is translating this into new, energy effi cient behaviour.

LogicaCMG therefore commissioned a major new study based on a telephone surveyof 10,000 consumers across 10 European countries to investigate to what extentpeople are reducing consumption, as well as the drivers and blockers for this change. Inparticular, the study looks at the potential role of information and technology in facilitatingenergy saving behaviour.

The results of our consumer survey, conducted by Future Foundation and TNS,combined with other major research, suggest that timely, accurate information on energyconsumption could help the majority of Europeans to reduce their energy consumption.Smart meters, which can provide this information, are seen as a good idea by threequarters of people in the 10 countries surveyed, and could play a major role in enabling

behavioural change. Other results suggested that consumers want information fromexperts who can provide real solutions, not just talk about the problem.

Organisations that can harness the information provided by smart meters and othertechnologies will therefore play a vital role in helping companies and individuals to reduceconsumption. Furthermore, whilst this was not directly addressed in the study, energycompanies can also realise transformational benefi ts by placing smart meters at the heartof the modern utility.

Jim Tapper, Managing Director, Global Energy and Utilities, LogicaCMG.


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1. Executive summary

This major pan-European study examined consumer attitudes towards climate change, theirpersonal action to reduce consumption, blockers to this behaviour and the potential roleof information and technology as enablers of increased energy effi ciency action. This wasbased on telephone interviews with a representative sample of 10,000 consumers across10 countries.

The key insight from the new research commissioned by LogicaCMG, combined withfi ndings of previous European studies, is that information and technology may have animportant role to play in closing the gap between awareness that climate change is a

problem and behavioural changes to reduce energy consumption.

Approximately 80% of consumers claim to worry about climate change with very smalldifferences between each country. In addition, three quarters of Europeans feel that theamount of energy they use affects the climate, and nearly 70% claim to do a lot to reducetheir energy consumption at home. Yet, on average, Europeans say that they carry out only1.4 of the 6 key energy effi cient behaviours that were identifi ed, suggesting that real actionlags well behind. This is an illustration of the infamous attitude-behaviour gap. Indeed,the attitude-behaviour gap could be seen as one of the greatest challenges facing thepublic climate change agenda.

It appears that information and technology will have an important role to play in closingthis gap. Consumers seem to be enthused by the idea of having access to information ontheir energy use as and when they desire. While more than three quarters of consumersagree that smart meters sound like a good idea, around two thirds feel that it would

be useful to get information on energy use whenever they wanted it.

There is also a very strong link between desire for information and willingness to reduceconsumption if consumers were more aware of their energy use. It seems that smartmeters are seen as a way of getting relevant and actionable information and thereforerepresent an effi cient way of overcoming one the main barriers to more energy effi cientbehaviours, which we have analysed in this report. We suggest here that providing peoplewith increased information could help create an environment more conducive to energysaving. There is a long way to travel: currently almost half of consumers limit energysaving because they have no idea how much energy they are using at all.

There is widespread support for smart meters with 75% of consumers thinking they area good idea across all socio-economic groups. In particular the report identifi es younger,higher income males as potential early adopters of the technology. We suggest thatconsumers who tend to be primarily motivated by cost (such as families and those aged

over 65) might be more receptive to a language that puts an emphasis on the cost savingsachievable through smart metering. On the other hand, younger more affl uent audiencesmight be more receptive to the concept of a win-win situation environmental savings andcost savings.

New technologies such as smart meters may make it easier for consumers to takeday-to-day decisions on energy effi cient behaviour. But, the right kind of advice from trustedorganisations, delivered using messages that appeal to the sensibilities of different groups ofconsumers, will be vital to educate and to stimulate behavioural change.

From the new research conducted by LogicaCMG and from other data, it is clear thatconsumers want to hear about solutions rather than problems. As such, we found thatconsumers tend to consult many sources of information (on average 5.6) but the mostpopular were energy saving specialised company and agencies. This suggests an importantpoint: that consumers look for relevant and directly actionable information and solutions toproblems and they therefore tend to rely on organisations that are seen as specialists in thefi eld rather than relying on what their families, their supermarket or even their governmentsays.

Key insight: informationand technology may havean important part to play

in changing the attitude behaviour gap.

More than three quartersof consumers agree thatsmart meters sound like a

good idea.


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04

On the other hand, consumers seem to trust the most information from sources theyperceive to be impartial: although people might consult and even trust their gas andelectricity supplier or a company that specialises and provides energy effi ciency productsand services, endorsement from scientists or environmental organisations might beimportant when positioning energy saving products and services.

A clear understanding of motivation is important when trying to make a change in behaviourand in tailoring communications to different sets of consumers. While environmentalconcerns are important in infl uencing peoples behaviours, our study suggests that, in allEuropean countries (apart from Denmark), cost came across as the strongest motivatorfor saving energy. In addition, on average, consumers think they could potentially save22% of their energy bills if they were able to adopt more effi cient behaviours. This equates toa total of 27 billion per year for the 10 countries covered.

Even with more accurate information, tailored communications and a focus on solutionsfrom trusted sources, many challenges lie ahead. Not least the fact that changing domesticenergy use in the future is dependent on instilling the right kind of habits. According toEurobarometer research, a worrying 31% of European consumers are determined tocontinue to consume energy at their current rate, even if this means havingto pay more for it.

The drivers and barriers to energy effi cient behaviour change are extremely complexand often linked to individual circumstances. Barriers to doing more to reduce energyuse at home range from a lack of incentive to a lack of information. However, the level ofindifference is relatively low, suggesting that there is at least a willingness to do more toreduce energy use, if only to ease the fi nancial impact.

Energy effi ciency coulddeliver cost savings of27 billion or 22 per centon household fuel bills inEurope.

The study is based on a major new consumer survey, combined with data fromother sources, notably Eurobarometer.

The consumer survey was conducted by Future Foundation and TNS UK onbehalf of LogicaCMG. TNS used a computer assisted telephone interviewingmethodology in each country. A sample size of 1,000 individuals per countrywas used, with a total sample size of 10,048 across the 10 countries surveyed.Fieldwork was conducted in July and August 2007. The data was weighted toensure accurate representation. The 10 countries included in the survey were:Denmark, Finland, France, Great Britain, Germany, Norway, Portugal, Spain,The Netherlands and Sweden.

Eurobarometer is a series of surveys, established in 1973, conducted by the

Public Opinion Analysis Sector of the European Commission, and designed toaddress major topics concerning European citizenship.


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2. Concern about climate: the consumer perspective

Environmental concerns and energy effi ciency are increasingly on the radar of European

consumers. This is not surprising. Following the publication of the Stern report in

November 2006 and the urge by the European Commission chief Jose Manuel Barroso

to start a post-industrial revolution (which would see Europe slash greenhouse gases

by 20% by 2020) there has been extensive press coverage and wider discussion of the

issue across the continent and beyond.

We found that, on the whole, Europe is a pretty homogenous market at least when it

comes to the broader attitudes and concerns towards the environment. The large

majority of Europeans (approximately 80%) claim to worry about climate change. Thisis unsurprising and in agreement with a number of other studies that also suggest the

level of concern has increased greatly over the last fi ve years. The level of worry is highest

in Spain (94%) and lowest in the Netherlands (66%), and is slightly higher among women

than men.

There is also consensus across Europe that the amount of energy people use directly

affects the climate, ranging from 83% of Swedes to 59% of Portuguese, with an average

of 75% among the 10 countries. This suggests that Europeans have started to make the

link between climate change and their individual behaviour.

The chart below illustrates the combined attitudes towards climate change and energy

effi ciency in the countries that were surveyed in 2007 and the difference between the

two measures (which we might defi ne as the awareness and attitude gap). It highlights

the fact that, in most countries, people have a high sense of individual responsibility

when it comes to energy consumption and the impact that it has on the environment. On

average, we have registered a 4% awareness-attitude gap. The widest gap was found in

Portugal and Spain (more than 15%) countries that, as we will see in this report, seem

to present very low levels of knowledge about the issue of energy effi ciency.

100%

70%

30%

10%

0%

90%

50%

60%

20%

80%

40%

I worry about climate change The amount of energy I use affects the climate

Spain

Finland

Germany

France

Denmark

Sweden

Portugal

GB

Norway

Netherlands

All

0%

20%

15%

10%

5%

15%

10%

5%

Awareness/Attitude gap

Source: LogicaCMG (based on TNS/Future Foundation research)

Base: 10,048 aged 15+, 2007

Chart 1: Gap between awareness and attitudes.

Attitude to climate change and individual behaviour.


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06

The link between climate change and individual behaviour might have been boosted bythe extreme weather across Europe in the last few years. The 2003 European heatwave caused around 35,000 deaths (including 14,802 in France), with temperaturesreaching 47C in Seville. This summer saw heat in southern Europe, culminating in thedevastating forest fi res in Greece, and the wettest summer on record in Great Britain.Many of these extremes have been blamed on human-induced climate change, eventhough meteorologists have warned against jumping to conclusions.

Qualitative research conducted by the Future Foundation in July 2007 in a number oflocations seems to suggest consumers are making a link between current weathercircumstances and climate change. Inaction cannot be attributed to climate changescepticism; the vast majority of people are making the link between their energy useand climate change. However, as we will see in the next sections in this report, a greatnumber of Europeans are still taking only a few steps to reduce their energy consumption


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3. Energy effi ciency: fi nancial or environmental

concern?

A clear understanding of motivation is important when trying to make a changein behaviour. While environmental concerns are important in infl uencing peoplesbehaviours, our study suggests that, in all European countries (apart from Denmark),cost came across as the strongest motivator for saving energy. This has very importantimplications for policymakers, agencies, energy retailers and others in terms of how theyneed to engage and communicate with the public.

There are, however, signifi cant country differences when we look at the prime motivationfor energy use. The overall motivation (fi nancial or environmental) can be broadly linkedto a countrys overall GDP level. The four countries where fi nancial concerns are highest

(see Chart 3) have an average GDP of 24,050 per person, compared to an EU-15average of 27,600. The four countries that place most importance on environmentalconcerns have an average GDP per person of 39,925. We should note that this isnot a perfect correlation with GDP Germans are second only to the Danes in citingenvironmental concerns as their main motivation for saving energy despite havinglower GDP levels than Norway, Sweden, Great Britain and France. Here the Germanpassion for ethical and energy related issues is evident. However, it is a pattern worthnoting, and one that is unsurprising in the light of similar correlations of other areas ofconsumption: higher income levels enable consumer decisions to be infl uenced more byvalue-based concerns, rather than purely monetary ones. For example, 2005 data fromthe European Social Survey shows that levels of ethical shopping are highest in the highincome countries of Sweden, Switzerland and Denmark, and lowest in the lower incomecountries of Southern Europe.


Base: 10,048 aged 15+, 2007

Financial cost

Environmental cost

Dont know

4%

58%

37%

Chart 2: Concerns about energy use: fi nancial or environmental.

First of all, what is likely to make you most concerned about the amount of energyyou are using is it the fi nancial cost to you personally, or the cost to theenvironment?


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Base: 10,048 aged 15+, 2007

We have asked consumers to estimate how much they think they could save from energyeffi ciency. The 10 country average was 22%, which suggests that consumers are awarethat they could save a signifi cant proportion on their bills by being more energy effi cient.This equates to a total of 27 billion per year for the 10 countries covered. Interestinglythis links with the push from the European Commission, which suggests a 20% energysaving target for the member states.

Lower scores in Denmark, Sweden and Finland could refl ect the fact that they arealready taking more energy saving measures than most countries. There were manyDont Know responses in Spain (where almost 60% also say they dont know howmuch energy they use at any one moment) and Portugal, owing perhaps to lower levelsof energy effi ciency knowledge. In light of many people being unaware of how muchenergy they are actually using at any one time, there is a strong argument that if people

were more aware of the actual cost saving they could make they would be more inclinedto take energy saving measures. In lower GDP countries, and for many consumerselsewhere a benefi t of protecting the cl imate may not be suffi cient motivation.

100%

70%

30%

10%

0%

90%

50%

60%

20%

80%

40%

Financial cost

Environmental cost

France

Portugal

GB

Netherlands

Finland

Spain

Sweden

Norway

Germany

Denmark A

ll

Chart 3: Concerns about energy use: fi nancial or environmental.

First of all, what is likely to make you most concerned about the amount of energyyou are using is it the fi nancial cost to you personally, or the cost to theenvironment?

Energy effi ciency coulddeliver cost savings of27 billion or 22 per centon household fuel bills inEurope.


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Base : 10,048 aged 15+, 2007

0%

30%

10%

40%

20%

GB

Germany

Portugal

Norway

France

Spain

Finland

Netherlands

Denmark

Sweden

All

Chart 4: Perceived possible cost savings using energy effi cient measures.

How much do you think the average household could save each year on their energybills if they employed more energy effi cient measures in their home, such as switchingoff appliances instead of leaving them on standby, or putting in extra roof insulation?


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4. Who is taking action to reduce energy

consumption?

Examining consumer attitudes from a pan European perspective prompts several keyareas of discussion. With specifi c reference to energy saving behaviour, key motivationsfor those behaviours and the barriers for change are of great importance.

This section explores why knowledge and attitudes about climate change orenvironmental issues often fail to be translated into changes in behaviour to mitigate itseffects - this is the infamous attitude-behaviour gap. Indeed, the attitude-behaviour

gap could be described as one of the greatest challenges facing the public climatechange agenda.

Interestingly, the majority of European consumers (nearly 70%) claim to do a lot to reducethe amount of energy they use at home, although a sense of futility (not believing that oneperson can make a difference) does prevent 24% from doing more to reduce their energyuse, while roughly the same proportion are concerned about the impact on their lifestyle ifthey do reduce energy use further.

Respondents from the Netherlands were most likely to say they do a lot to reduce theirenergy consumption at home (87%). They were followed by Germany and Great Britain.It is somewhat surprising to see respondents from the Nordic countries saying theyare much less likely to reduce their energy consumption, given that they are seen asgenerally environmentally aware countries. Indeed the Nordic countries have adoptedenergy effi cient behaviours a long time ago and, as a result they might think that there is

little they can meaningfully add to their day-to-day behaviour to really make a difference.

The attitude-behaviourgap could be described

as one of the greatestchallenges facing thepublic climate changeagenda.


Base: 10,048 aged 15+, 2007

30%

10%

0%

50%

60%

20%

40%

70%

Netherlands

Germany

GB

France

Portugal

Denmark

Sweden

Spain

Norway

All

Finland

80%

90%

100%

Chart 5: I do a lot to reduce my energy consumption at home.

% who agree


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Looking at the results of this question by demographic group reveals some consistentpatterns across the 10 countries. Women are slightly more likely than men to agree theydo a lot to reduce their energy consumption at home, and the older consumers are, themore likely they are to agree. Lower income respondents are also more likely to say theydo a lot to reduce their energy consumption, demonstrating the importance of reducingenergy spending.

4.1 Perceived and realaction

Eurobarometer data also offers a rich picture of European consumers taking variousactions to reduce energy consumption. This picture is a slightly different one to thepicture we get from the more subjective measure above. We have combined six specifi cenergy effi cient actions (cutting down on heating or/and air conditioning; cutting down onlighting and use of domestic appliances; taking initiatives to save energy at work; usingyour car less; changing your car to another one that uses less fuel; using public transportmore) into a single number. The numbers represented in Chart 5 illustrate how manyenergy saving actions on average people have done in the last year.

Source: Eurobarometer/nVision

Base: 26,755 aged 15+, 2006

0.2

0

1

1.2

0.6

1.4

Ge

rmany

GB

France

Nethe

rlands

De

nmark

Sweden

F

inland

Spain

Portugal

All

1.6

1.8

2

Chart 6: Actions to reduce energy consumption average.

Index of six actions to reduce energy consumption in the past year.

During the past year, have you done any of the following to save energy: cutdown on heating or\and air conditioning; cut down on lighting and use of domesticappliances; took initiatives to save energy at work; used your car less; changedyour car to another one that uses less fuel; used public transport more?

0.4

0.8


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It appears that the average number of energy saving actions is quite low, suggesting thatpeople feel a pressure to say they are being green even when they do not have theconcrete actions to back it up. Germany comes top in this energy effi ciency action index.In Germany each respondent claims to have taken an average of 1.9 consumption-reducing actions out of six in total, much higher than the 1.44 that we have calculatedfor the average European household. The Netherlands, however, is ranked lower thanpreviously noted, possibly indicating that their perceptions of how much they do toreduce their energy consumption are higher than the reality, or that they reduce energyconsumption in ways not measured by the index above. The same is true for Spain andPortugal. Finland, which was ranked last in Chart 1 with only 44% saying they did a lot toreduce their consumption, is here no longer ranked last; their score is almost identical tothe EU-25 average.

There are some interesting variations by country in terms of the different actionsto reduce energy consumption. Cutting down on heating or air conditioning is,unsurprisingly, more common in the more temperate climates of Germany, France,Netherlands and GB, as opposed to the colder Nordic countries or warmer Spain andPortugal. Danes are most likely to reduce their lighting and electrical goods consumption(60% do this), but otherwise there is little variation across countries. Taking initiatives tosave energy at work was less common overall, with Great Britain leading with 12% (Spainand Portugal were least likely to do this, with 4%). This suggests that people take themost action where they feel they can have a personal impact and expect their employerto initiate changes in the workplace.

Finally, with regard to reducing energy through transport choices, Great Britain, Germanyand Sweden were most likely to use public transport more; 36% of German respondents

said they used their car less (the highest of any country) while Swedish respondents weremost likely to change their car for a more effi cient one (15% did this in the last year).

The average number ofenergy saving actions isquite low, suggesting thatpeople feel a pressureto say they are beinggreen even when theydo not have the concreteactions to back it up.

Respondents from Spain and Portugal were least likely to undertake any of these energy-saving transport options. We speculate that this may be due to a lack of public transportoptions that would enable people to make more effi cient transport choices.

10%

0

30%

40%

20%

50%

France

Denmark

Portugal

Germany

Netherlands

Sweden

GB

Finland

Spain

EU-15

60%

70%

80% Light bulb

Refrigerator

Car


Base: 25,000 aged 15+, 2005

Chart 7: Attention to energy usage when buying new consumer goods.

% who say they pay a lot of attention, by country.


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The above chart shows the proportion in each country that pay attention to energyusage when buying a new car, refrigerator, or light bulb. Perhaps because this is asa low-ticket item (and thus a low involvement buying decision with little informationsearch or evaluation prior to purchase), respondents are least likely to take energy intoaccount when buying a new light bulb, although almost half in France, Denmark andPortugal have done this. The other countries are below the EU-15 average of 41%. Thisfi nding is in line with academic research on consumer behaviour that suggests that habitplays an important part in purchasing behaviours of everyday goods with the averagesupermarket shopping decision being made in the space of four seconds. This contrastsstarkly with more important and expensive items such as electrical appliances and carsfor which we know consumers spend time researching and comparing,

Energy effi ciency is a strong driver of usage costs for cars, and many take energyusage into account when buying a new vehicle, including 70% in Sweden and 64% inGermany. Spain, GB and Portugal are least likely to take energy usage into accountwhen purchasing any of the above products. France, Denmark and Portugal are the mostlikely to pay attention to the energy usage of their refrigerators, consistent with their highawareness of the energy usage of their light bulbs.

If we look at the future however energy profl igacy looks set to become more and more asocial taboo; indeed, a 2007 Norwich Union Study revealed that 56% of GB consumersfeel that unethical living is as much a social taboo as drink driving. Peer pressure andfi nancial costs will have as much a part to play in peoples future energy use as altruismand environmental concerns. Ethical living has become, according to some analysts,a new area of one-upmanship, of keeping up with the Joneses. Whether the nameis Jones, Blanc, Johansson or Schmidt, ethical behaviour looks set to increase its

importance as a builder of social capital. Gone are the days of the smiling businessmanshowing off his new 4x4 to the neighbours low CO2 g/km is more fashionable andtrendy than V8 or V12 in contemporary European society, school gate conversations aremore likely to focus on Prius rather than Porsche Cayenne.

Less attention to energyusage for low-ticketitems like light bulbs.


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5. Barriers to saving energy

We have seen that there is sometimes a gap between claims of energy savingbehaviour and real action. So what is holding people back? The study revealed someinteresting country differences, however if we look at Europe as a whole we see thata lack of information on exact energy usage, insuffi cient government incentivesand investment costs were amongst the top reasons. Worryingly, more than halfof consumers feel that they already do enough to save energy. In addition there aresignifi cant differences when it comes to the specifi cs of energy saving behaviour andthe barriers that consumers are confronted with. Climate, culture, tradition as well asaffl uence and legislat ive framework also go a long way in explaining the differences that

occur between the different countries. Below we analyse the main reasons for not takingaction on a country by country basis.

Chart 8: Reasons for not saving energy Europe total.

% agreeing with the statement belowWhich of the following would you say were reasons that you DONT do more to try to limit your

energy consumption?

30%

10%

0%

50%

60%

20%

40%

Doenough

already

Toomuchinfo

Unawareof

energyused

Noclear

government

incentive

Costsavings

dontmake

difference

Upfront

costtoohigh

Moreimportant

thingstoworry

about

Neverthink

aboutit

Oneperson

cantmakea

difference

Wouldlimit

lifestyle


Base: 10,048 aged 15+, 2007

70%

... a lack of informationon exact energy usage,insuffi cient governmentincentives and investmentcosts were amongst thetop reasons for not savingenergy.


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The lack of an incentive from the government was the most commonly cited reason fornot saving energy at an overall level. There are some strong country variations howeverwhen we look at this measure. For example Danish and Norwegian consumers areless likely to blame incentives from governments. This is unsurprising as, as we know,governments in these countries have been the more dynamic in terms of energy effi cientregulation. From this perspective the higher result scored in Germany is somewhat moresurprising, given that the government has adopted policies to encourage renewables.

Relying on incentives offered by the Government can be seen in the context of energysaving having both a private benefi t and a social benefi t; energy saving actions benefi tindividual consumers, as they result in lower bills, but they also bring benefi ts for societyas a whole. Since this social benefi t is enjoyed by more than just the individual consumer,they may well feel that there should be a reward from the government, in the form of anincentive, for taking the socially responsible actions. Alternatively, the issue may be the

lack of appreciation of the potential cost savings from energy effi cient action as wehave seen, the average European believes they could cut their bills by almost a quarter.

Governments have certainly been taking some visible action, such as tax and congestioncharge exemptions for low emissions vehicles, but there is a lot of agreement thatgovernments could offer much more. Measures such as reducing council tax forenergy-effi cient households, a VAT incentive that takes into account energy effi ciencyor a vehicle tax based on CO2 emissions would be appreciated by many.

5.1 Lack of Governmentincentive

Around half of Europeans feel that they do enough to save energy already. In the lightof the relatively low number of energy saving actions that people actually undertake,this is a worrying statistic. There is also a disconnect between the very widespreadconcern about climate change, the recognition that personal energy consumptionmakes a difference to climate change, and what appears here to be a certain level ofcomplacency about energy saving we might call this the attitudes behavioural gap.

Interestingly, those countries where consumers are more likely to take action (the Nordiccountries) are also the countries that are least likely to say that they do enough already.

5.2 Do enough already

10%

0

30%

40%

20%

50%

Spain

Sweden

Finland

France

Germany

GB

Netherlands

Portugal

Norway

Denmark

60%

70%

80% No incentive

Do enough already

Upfront investment too high


Base: 10,048 aged 15+, 2007

90%

Chart 9: Reasons for not saving energy: no incentive from the government,do enough already and the upfront investment is too high.

The lack of an incentivefrom the government wasthe most commonly citedreason for not savingenergy at an overall level.

Around half of Europeansfeel that they do enoughto save energy already.


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Many face a barrier from upfront investment being too high. One reason can be that thepayback on the investment (for example in solar power or roof insulation) can be slowor uncertain. This varies greatly by country, as the Chart shows. It is mentioned by morethan two thirds of consumers in France, almost as many in Spain, and almost half inGermany and GB.

In other countries this is less important as a barrier. However, the four countries justmentioned account for a population of 242 million out of a total population of 292 in the10 countries surveyed, so the initial cost of energy saving actions, such as double glazingor loft insulation, is proving a barrier to a large proportion of European consumers. It isless of an obstacle in the Nordic countries this may be partly attributed to higher GDP inthese countries, and partly because the colder climate means that energy effi ciency ofthis type is seen as necessary and is therefore not a barrier. There is a lot of demand forhelp from public authorities so that people can make these investments. Clearly some ofthese investments are likely to be made in the future at the point of construction for newbuildings, we refer here to what is happening in Catalonia where Barcelona municipalityhas imposed the installation of a solar water heater for any new construction.

5.3 Upfront investment toohigh

Interestingly, 45% of respondents overall claimed that they had no idea of how muchenergy they were using at any moment (well over 60% in France and Spain). Providingup-to-date information to consumers is key; even though three-quarters of people believethat their energy consumption affects climate change, if they do not know how muchenergy they are consuming then their concern is not put into an actionable context. Yet,it is very diffi cult to provide precise information based on traditional forms of metering andbilling. Later in this report we will show how new technologies may provide the key to

giving people information they can act on whenever they need it. If people were aware ofjust how much energy certain appliances used, they would be more likely to turn them offwhen they werent being used or to reduce their usage more.

5.4 No idea of how much Imusing at the moment

100%

70%

30%

10%

0%

90%

50%

60%

20%

80%

40%

Not aware of how much Im using

Too much information

France

Spain

GB

Sweden

Netherlands

Portugal

Norway

Germany

Finland

Denmark All


Base: 10,048 aged 15+, 2007

Chart 10: Reasons for not saving energy I have no idea how much Im

using, too much information.

Which of the following would you say were reasons that you DONT do more totry to limit your energy consumptionIve got no idea how much energy Imactually using at any one momentthere is too much information to go through

Upfront investment is anissue in the four mostpopulous countriessurveyed.


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We would like to point out here that, although it might seem a contradiction, consumershere seem to be both unaware of the amount of energy they use and are swampedby information about saving energy with 39% in France for example citing this as afactor. This links well with a common theme of contemporary European consumerslives of information overload. This major consumer trend is particularly apparent inthe ethical/environmental sphere where the level of information available to consumershas moved from very little to excessive in a short space of time, yet the quantity ofinformation available is not always matched by the quality. Consumers feel that they arebombarded with information and advice on carbon emissions and environmentalpollution but have still very little knowledge about what the solutions to theproblem are.

The above data from Eurobarometer provides strong evidence that consumers arelooking for more than large amounts of environmental information. When asked whether

they would like to know more about environmental problems or more aboutsolutions to environmental problems, a large majority in all countries except Spainand Portugal indicated that they would prefer information about solutions only.Knowledge of environmental problems and of climate change in particular, is now verywidespread. The advice that people hear and can act on needs to be improved; vagueexhortations to reduce your carbon footprint are not very actionable. Finally, it seemsthat the problem is that, while there are lots of organisations talking about energy saving,knowing who to trust and how to act is very diffi cult.

Too much information is as likely to lead to consumer apathy as too little in termsof actually changing behaviour rather than just expressing concern. With so manymessages, consumers will have to become better editors of information regarding energyeffi ciency and rely on word of mouth for advice. The explosion of coverage of carbonfootprint issues in the last few years has left many consumers confused. According tonVision research, in 2005 41% of GB consumers agreed that I am concerned about

what I personally can do to help protect the environment. By 2007 this had risento 69%. To put this in context, the fi gure rose by just 0.7% between 1990 and 2005(compared to 28% between 2005 and 2007).


Base: 1,000 per country aged 15+, 2004

10%

0

30%

40%

20%

50%

Finland

GB

Sweden

France

Denmark

Netherlands

Germany

Portugal

Spain

EU25

60%

70%

90%

More about environmental problems

More about solutions to environmental problems

Both

None of these

80%

100%

A large majority in all

countries except Spainand Portugal indicatethat they would preferinformation aboutenvironmental solutionsonly.

Consumers feel thatthey are bombarded withinformation and adviceon carbon emissions andenvironmental pollutionbut have still very littleknowledge about whatsolutions there are to theproblem.

Chart 11: People who would like to know more about environmental problems.


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18

Finally, there is a lower level of agreement with other factors (One person cant makea difference/ I just never think about it/ Ive always got more important things to thinkabout/ Limiting my energy consumption would put limits on my lifestyle). Although mostdisagree with the statement that only one person cant make a difference, realisingtherefore that energy saving begins at home (we are all responsible for our contribution toclimate change), this confl icts with the relatively low number of energy-saving actions thatpeople actually undertake. The crucial issue is therefore how to translate this recognitionof personal responsibility for the issue into a greater degree of action.

Most disagree with I just never think about it and Limiting my energy consumptionwould put limits on my lifestyle. This could be because it is increasingly taboo to livein an unethical, eco-unfriendly manner. It may be true for many people that they dontcut down on energy because it would limit their lifestyle. It is, after all, the nature ofour lifestyles that demands so much energy production at all. However, it is a selfi shstatement to make. A Norwich Union study conducted in Great Britain shows that 56%of consumers feel that unethical living is as much of a social taboo as drink driving. Thissocial trend could be the catalyst behind a new syndrome, which some analysts havelabelled be good guilt: people feel so overloaded by ethical pressure that they dontknow where to start in changing their behaviour. This is consistent with our fi nding aboutpeople feeling overloaded by information, particularly in the ethical living sphere.

5.5 Other reasons


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We have now explained in some detail broader attitudes and behaviours with regard toenergy effi ciency. Its important at this point to understand if technological innovationcould be pivotal in helping consumers to close the attitudes-behavioural gap that wediscussed earlier in this report. Technology is sometimes held up as the answer to manyproblems, and it will have an important role to play in reducing carbon emissions from theenergy used in peoples homes in several ways.

Clearly, emissions can be reduced by changing to forms of power generation with littleor no carbon dioxide output, including renewables and nuclear. But technology can also

be used in the home to help individuals to consume less energy. If the right technologies(such as micro-generation, smart meters and energy effi ciency appliances) are providedand embraced in the home, then this can bring energy savings that aid the environmentand bring people fi nancial benefi ts at the same time. It may also be important that suchtechnologies are seen to be visually appealing, even fashionable.

On the whole European consumers are both optimistic and realistic in their opinionsregarding the future of technology and innovation. For example, 43% feel that by theyear 2035, new technologies generating clean energies will mean that energy use willno longer harm the environment. Eurobarometer research reveals widespread supportfor the development of such technologies with 71% of consumers feeling that theirgovernment should prioritise improvements to energy technology over placing theemphasis on reducing consumption, while six in 10 believe that energy research shouldbe a high priority.

Such techno-optimism has to be balanced against the belief among a third of Europeansthat in 2035, the equivalent of ration coupons for energy usage will exist, or against the38% who feel that car ownership will be the preserve of the rich by the same date.

The belief in a technical fi x could be a dangerous one: consumers may have the bestof intentions, but there is a distinct possibility of an I will if you will mentality developingor worse, a fatalistic attitude towards climate change. However, we observe lowlevels of agreement with the statement One person cannot make a difference whichsuggests that most people do have a sense of personal responsibility. However, peoplesresponses to a questionnaire may be very different to their actual behaviour, especiallywhen they are greeted with regular news items detailing the Chinese/Indian economicboom with one (or even now two) new power plants in China every week, accompaniedby the obligatory footage of a Shenzhen/Mumbai factory spewing out fumes.

Consumers also believe that the balance of energy technologies will shift signifi cantly over

the next three decades, with a far greater emphasis on renewable energy sources suchas solar and wind power. Less than 10% of Europeans think that coal will be one of thetop three used energy sources by 2035. Renewable energy sources currently account forless than 7% of EU energy use (although according to the International Energy Agencythey are the fastest growing energy source), signifying the need for massive change overthe next 30 years in order to be consistent with consumer expectation. It may be toolate by then, if certain experts are to be believed. In a speech to the British AssociationFestival of Science, Peter Smith, Professor of Sustainable Energy at the University ofNottingham stated that the world has only 10 years to develop and implement newtechnologies to generate clean electricity before climate change reaches the point of noreturn.

Their support for renewable energies, however, does not extend to a willingness to paymore for energy from such sources. More than half (58%) of those questioned wereunwilling to pay any more for renewable energy, with a further 26% only willing to pay

up to 5% more. Europeans are seemingly willing to pay for investment into research anddevelopment of such technologies but not to pay more on an ongoing basis. This resultis somewhat unsurprising; it is often the case that consumers speak from both sides of

6. The role of technology and innovation

Technology can be usedin the home to saveenergy and money.


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20

their mouths, on one hand wanting a technology and the associated benefi ts that comewith it but unwill ing to make the necessary fi nancial sacrifi ces to pay for them.

Here again, it is important to demonstrate where consumers can make fi nancial aswell as environmental gains through the use of new technologies in the home. Someorganisations are already addressing this by providing innovative fi nancial arrangements for example a company in Spain is offering domestic customers the option to install aPV solar roof offering a 5% return on investment and in the meantime a discount on theenergy provided by the network.


Base: 26,755 aged 15+, 2007

10%

0

30%

40%

20%

50%

Portugal

Germany

Sweden

Spain

France

Netherlands

Finland

GB

Denmark A

ll

60%

70%

90%

80%

100%

No, I am not prepared to pay more

Yes, I would pay up to 5% more

Yes I would pay 6 to 10% more

Yes I would pay 11 to 25% more

Yes, I would pay more than 25% more

Chart 12: Would you be prepared to pay more for energy produced from

renewable sources?

Another point of note is the dichotomy between consumers opinions on the future roleof nuclear energy and their attitudes towards its safety. A third of Europeans believethat nuclear will be one of the three most used energy sources in 30 years time, only

surpassed by wind and solar energy. However, well over half feel that nuclear powerreliance should be decreased due to possible safety issues.

Such fears regarding the safety of nuclear energy, combined with long planning anddevelopment cycles, mean that renewable energy sources will need to play an increasingrole in achieving a low carbon future. Europeans are very supportive of setting mandatoryminimum levels of energy usage from renewable sources.

From these fi ndings it appears that Europeans have a meet-in-the-middle attitude to therole of technology in reducing the damage that energy use does to the environment. Theyare enthusiastic and optimistic about the part technology can play in reducing carbonemissions, but also accepting/resigned to a future where people will have to be far moreaware of the energy they are using and discerning in their energy use.


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There are signifi cant country differences when it comes to accepting and embracingnew technologies, especially ones that are likely, for example nuclear energy, to havelong-term effects on the future of the planet. In order to summarise and present in aconcise way all of our data on new energy technologies and innovation to do with energyeffi ciency we have calculated a pro-innovation index, using responses to a variety ofquestions from both our primary research and Eurobarometer research. These includeattitudes to the use of nuclear energy, renewable energy, belief that energy researchshould be a priority and optimism towards new technologies such as smart meters.The index saw the Nordic region, France and Germany emerge as the most optimisticabout future benefi ts that technology can bring. By contrast, Spain and Portugal emergeas the least techno-friendly, demonstrating lower levels of familiarity with newer energytechnologies. The result for France doesnt surprise us; traditionally the French have aCartesian approach and in general tend to believe in technology. The Nordic result isconsistent with 2006 nVision research, in which only 6% of Danes, 10% of Swedes, and11% of Norwegians disagreed with the statement In general, I feel confi dent using newtechnologies, compared to a European average of 30%.

We have looked for correlations between our pro-innovation index and other measures,in particular to do with the nature of concerns with regard to energy use and whetherthese are primarily fi nancially or environmentally driven. Chart 13 illustrates this point.

We found an inverse correlation between positive attitudes to innovation and fi nancialconcerns. On the whole countries that are more pro-innovation tend to be relatively moreconcerned about the environment than the cost of energy and vice versa. For examplePortugal and Spain score high on the cost variables of the map whereas Denmark,Sweden and Germany, which score high on the innovation index also tend to be most

motivated by environmental rather than fi nancial concerns. This represents an importantfi nding: where consumers have little faith in technology and are motivated primarily byfi nancial reasons the emphasis will presumably need to be on the fi nancial benefi ts thatare achievable through this new technology in order to win their trust.

6.1 Pro-innovationconsumers

Chart 13: Are pro-innovation consumers driven by environment or costconcerns?

Correlation map: pro-innovation index vs cost:What is most likely to make you concerned about the amount of energy you are using.

90

70

60

110

120

80

100

Cost

Innovation60 70 80 90 100 110 120

Environmental

Financial

Spain

Portugal

Netherlands

GB

Finland

Germany

France

Sweden

Denmark

Source: LogicaCMG (based on TNS/Future Foundation research) plus Eurobarometer/nVision

The above chart maps attitudes towards the cost of energy against a pro-innovationindex. Individual country results have been indexed against the European average, setto 100. Attitudes towards the cost of energy were measured by asking respondents if


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logicaCMG

22

their concern about energy is mainly environmental or fi nancial; the higher on the index,the more the concern is fi nancial in nature. The pro-innovation index is calculated fromresponses to fi ve questions about energy technology innovation; the further to the right acountry is, the more pro-innovation its responses to these questions.


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Smart meters are a piece of technology that can provide detailed information to helpconsumers to save money from their energy bills. We would expect therefore to fi nd highlevels of support for smart meters among those consumers who are primarily motivatedby fi nancial concerns like for example those in the family stage and the over 65s.However, when we carried out a cross-analysis of the data we found out that the highestlevel of support for smart meters was instead to be found from those who are motivatedby environmental concerns.

Support for smart meters is indeed highest amongst younger, higher-income males(although admittedly the gender difference is very small) a consumer group that isalso clearly motivated by environmental concerns. This is consistent with other analysisconducted among this group revealing them as the early adopters of new technology.Could the smart meter be seen as an aspirational piece of new technology?

What is a smart meter? A smart meter is an intelligent meter for electricity or gas that canbe read remotely. It can tell you exactly how much energy you are using in your home atany single moment, and it will also show you how the amount of energy you use changesthrough the day. This will help you understand how much your energy use is costing youand will give you information to support you in becoming more energy effi cient.

The concept of smart metering is one that is fi nding increasing support at governmentallevel across the continent. There is widespread support for smart meters across Europe.According to the study we conducted in August approximately 75% of Europeans and a

very high majority of Nordic and French consumers think it would be a good idea to haveone. In Great Britain the government is currently considering plans that would requireenergy suppliers to install smart meters in all but the smallest businesses by 2012,while the Swedish government has been active in promoting the widespread rollout ofthe technology, which will be mandatory by 2009. Similarly the Spanish governmenthas imposed a requirement for smart meters to be installed for any new point ofconsumption.

7. Smart metering

Three quarters ofconsumers think smart

meters sounds like agood idea.


Base: 10,048 aged 15+, 2007

10

0

30

40

20

50

Sweden

Denmark

France

Finland

Germany

GB

Spain

Norway

Netherlands

All

60

80

100

90

70

Portugal

Chart 14: Smart meters sound like a good idea to me.


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logicaCMG

24

What we suggest here is that those consumer groups that tend to be motivated bycost might be more receptive to a language that puts an emphasis on the cost savingsthat are achievable through smart metering. On the other hand, younger more affl uentaudiences might be more receptive to the concept of double whammy environmentalsavings, cost savings at the same time.

Consumers seem to be enthused by the idea of having access to information on theirenergy use as and when they desire. While more than three quarters of consumers agreethat smart meters sound like a good idea, around two thirds feel that it would be useful toget information on energy use whenever they wanted it.

There is also a very strong link between desire for information and willingness to reduceconsumption if consumers were more aware of their energy use. As the chart aboveshows, it seems that smart meters are seen as a way of getting relevant and actionable

information and therefore represent an effi cient way of overcoming one of the mainbarriers to more energy effi cient behaviours, which we have analysed in this report. Wesuggest here that providing people with increased information could help create anenvironment more conducive to energy saving.

Such widespread desire for more information on actual usage should help hasten theroll-out of smart metering in Europe. The analysis fi rm Berg Insight (a Swedish businessintelligence fi rm which has been involved in measuring the take-up of smart meters)estimates that the number of smart electricity meters will exceed 60 million by 2012,while Datamonitor predict that by the same date 41% of European households will havethe technology installed. Current penetration stands at 6%. Tobias Ryberg, senior analystat Berg Insight states: People want control over surging energy costs, governments areobliged to promote energy conservation and competitive markets force the industry tobecome more effi cient. Smart metering contributes to all of these things.

Cleary the initial cost of having a smart meter installed could potentially be a dissuadingfactor, especially in the less affl uent countries. However we see here a role for therespective governments to incentivise the adoption of such technologies.


Base: 10,048 aged 15+, 2007

100%

70%

30%

10%

0%

90%

50%

60%

20%

80%

40%

Smart meters good ideaWould like information as and when they want

Sweden

Denmark

France

Finland

Germany

GB

Spain

Norway

Netherlands

Portugal

All

Chart 15: Smart meters sound like a good idea to me/It would be useful to beable to get information on my households energy usage whenever I need it/Iwould reduce my consumption if more aware.

There is also a verystrong link between

desire for informationand willingness toreduce consumption ifconsumers were moreaware of their energy use.

Useful to get more energy info at any time


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So, consumers are hungry for information on energy consumption whenever they want itand see a role for smart meters in helping to provide it. The question now is: how shouldit be delivered? The answers vary greatly depending on the country surveyed, however,if we look at Europe as a whole, we fi nd that the two most popular methods of receivingsmart meter information are through more detailed bills (57%) and a screen showingup-to-date energy usage information (55%).

8. How to deliver more information on energy

consumption

Increased information on bills is very popular in Spain but fi nds little favour in the Nordiccountries, which prefer to receive information as and when they want it, either on apersonalised web page or on a screen. Internet penetration is high in the Nordics, andas experienced users of the internet they are more inclined to carry out a wider range of

tasks on the internet, including bill payment. 2007 nVision research found that 92% ofNorwegians, 79% of Swedes and 68% of Danes had paid a regular bill online in the past6 months, compared with a European average of 23%.

Call centres only fi nd favour in Spain and Great Britain as a method of deliveringinformation. In Great Britain consumers are familiar with these centres as a method ofobtaining information although something of a national love/hate relationship exists (withsentiment skewed toward the latter). We can assume that higher than average preferencefor call centres comes from familiarity rather than affection. As mentioned previously,preference for information via a personalised web page is, unsurprisingly, highest incountries with greater levels of internet penetration. The notable exception here is theNetherlands, where only 23% would choose this as a preferred method of receivingsmart meter information. Dutch consumers do not seem particularly enamoured withany of the four options they were offered, 37% choosing none of these as their chosenmethod of receiving smart meter information.

30%

10%

0%

50%

60%

20%

40%

Screen

Webpage

More

detailed

bills

Noneofthe

options


Base: 10,048 aged 15+, 2007

Callcentre

Chart 16: Preferred method of receiving smart meter information countryaverage.

% agreeing with the statement belowBearing that in mind, and assuming it is affordable, please say if you would like to have access to

information from a smart meter, giving you up-to-date information on energy consumption in your

home, in any of the following ways that I read out:


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Our analysis reveals that there is widespread consumer appetite for more information onpersonal energy usage. But where would consumers go for more general information onenergy effi ciency and, crucially, which of these sources do they trust the most?

When we look at Europe as a whole we fi nd that consumers tend to consult manysources of information (on average 5.6) but the most popular are energy savingspecialised companies and agencies that specialise in energy advice. According tothis research these organisations are also the most trusted sources of advice. Thepopularity of agencies specialising in energy saving advice and energy saving specialised

companies suggests an important point: that consumers look for relevant and directlyactionable information and that therefore tend to rely on organisations, which areseen as specialists in the fi eld rather than relying on their supermarket or even on theirgovernment.

9.1 Preferred sources ofinformation for energyeffi ciency

9. Information and trust

Consumers consult manysources of information specialists are the mostpopular.

30%

10%

0%

50%

60%

20%

40%

Energysaving

specialist

company

Environmental

charity/lobby

group

Family

Energysaving

advice-agency

Green/env.

goods

manufacturers

Utilities

company

Internetsearch

Energy

regulator

Boiler

maintenance

company

Supermarkets


Base: 10,048 aged 15+, 2007

70%

The role of family and word of mouth deserves a few words here. We note that it isthe fourth most consulted source of information on energy effi ciency after gas andelectricity suppliers and before charities, lobbies, government and green manufacturers.Interestingly here one of the key consumer trends in Europe the Personalisation ofAuthority (backed up by many studies) seems to extend to the realm of energy effi ciencyalthough only to a minor degree. On one level consumers seem to favour the adviceand information on goods and services from family and acquaintances over traditionalauthorit ies such as the energy regulator or the government. However, energy effi ciencyremains a technical subject for many and, as a result, energy effi ciency and savingspecialist agencies or companies score higher than family because they are seen asmore knowledgeable and best placed to provide such information.

An overview of the average number of sources that individuals would consult revealssome signifi cant country differences. Firstly some countries are far more likely than othersto seek information and use a variety of sources.

Government

Chart 17: Sources of advice for energy effi ciency information.

Which particular people or organisations would you go to for advice about how to save energy


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Nordic and Portuguese consumers emerge as the least likely seekers of information onthis subject. Danes would be prepared to consult an average of four different sources,Norwegians 3.6 and Swedes just 2.6, well below the 10 country average of 5.6 sources.Portuguese consumers are even less inclined to use a wide array of sources, stating thatthey would consult an average of 2.3 sources. We would suggest that the reasons forthis also vary between countries. Energy effi ciency is a concept that is very much a partof the Nordic way of life, with consumers more likely to take energy saving measuressuch as taking public transport and turning off lighting when not in use. Therefore theseconsumers may be less likely to seek information on leading an energy effi cient lifestyleas they believe that they are already undertaking enough measures. This is supported bythe relatively low amounts that Nordic consumers feel that they could save on their utilitybills.

By contrast, Portuguese consumers are less inclined to seek information due to lowawareness about energy effi ciency. Witness the high number of consumers that statethat they dont know where they would obtain information regarding energy saving(20.2% of all respondents compared to a 10 country average of 1.7%).

Spanish, German and British consumers are the most likely to seek data from multiplesources. As the most perturbed by climate change (94%), Spaniards are keen to fi nd outinformation on what they can do to improve their energy effi ciency in order to avert furtherclimate change. Germans are voracious consumers of energy effi ciency information, withhigh levels of awareness about energy used (63% against an average of 50%).

According to our primary research, energy saving specialised companies and agenciesalso came up as the most trusted sources of advice when it comes to energy advice

16% and 15% of European consumers respectively chose them when asked to picktheir most trusted source of advice. This compares with only 6% who chose theirgovernment and 3% the energy regulator.

The issue of trust in information about energy related issues was also explored in aEurobarometer study although in this case respondents were prompted with a differentlist of options. From this study scientists emerge as the most trusted source withenvironmental protection/consumer associations ranking second. These fi ndings highlightan important point: that consumers seem to trust the most information from sources theyperceive to be impartial.

Energy issues might be seen to have a political and economic weight today so citizenstend to trust individuals that do not appear to have a direct interest in the energyfi eld in commercial or political terms. More than two thirds of people across the 10countries have total/a lot of faith in scientists, while 64% express a similar level of faith

in environmental protection/consumer associations. Compare that to the 35% that trustutility companies, 29% journalists and just 16% that have faith in advice from politicalparties. Combining the Eurobarometer fi ndings with our primary research we found thatalthough people do consult and even trust their gas and electricity supplier or companiesthat special ise and provide energy effi ciency products and services, endorsement fromscientists or environmental organisations might be important when positioning energysaving products and services.

9.2 Trust in informationabout energy effi ciency


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Source: Eurobarometer/nVisionBase: 26,755 aged 15+, 2007

Chart 18: Level of trust in information about energy related issues fromdifferent sources.

Which particular people or organisations would you go to, to seek advice about how to save energy?

If we combine levels of trust from the Eurobarometer data we fi nd that, notably, GreatBritain is well adrift at the bottom of the trust ladder. Could this be due to the surfeit ofinformation or the belief that too many institutions have vested interests in their provisionof information? British consumers are third most likely to seek out information, so whydo they have such little trust in the bodies that provide it? A report for the TaxPayersAlliance in Great Britain claimed that Britons are paying more than 10bn extra a year ingreen taxes than is required to cover their carbon footprint. The same organisation alsopublished the results of a YouGov poll, which revealed that 63% of people agreed thatPoliticians are not serious about the environment and are using the issue as an excuseto raise more revenue from green taxes. It is crucial that taxation/installation costs forsmart-meters are not seen as being mere revenue raising exercises.

Consumers also do not separate the issue from the institution providing it. Only 9% ofFrench people trust information from their national government on energy related issues(the lowest in Western Europe), not because they are particularly distrustful of theirgovernment for their advice on this subject, rather that they have little faith in the veracityof their governments information on nearly any subject. We see a similar situationin Great Britain and the European Union.

10%

0

30%

40%

20%

50%

Scientists

Environmental

protection

organisations

TheEU

Local/regional

government

Utilities

companies

Journalists

National

Government

Political

parties

60%

70%

90%

80%

100%Totally A lot


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European consumers are clearly concerned about climate change and see that theirpersonal actions have an impact. Technology, notably smart meters, can play a signifi cantrole in providing the kind of information that consumers say would lead them to reducetheir energy consumption. Additionally, information on solutions (not problems) fromtrusted sources will be important in order to stimulate enduring changes to behaviour. Inorder to be effective, communications will need to focus on the messages that are mostlikely to appeal to different audiences. Overall cost saving is a bigger motivator for energysaving than environmental concerns, but pro-environment and pro-innovation attitudeswill be important for some potential early adopters of smart metering.

Key fi ndings to take from the report include:

Unsurprisingly, consumers are concerned about climate change (about 80% are) andfeel that their personal actions have an impact on climate change (75%)

A clear majority claim to be taking action to reduce consumption (69% say they doa lot to reduce their energy consumption at home). Yet there seems to be a gapbetween perceived and actual behaviour (The average European takes only 1.4energy saving actions out of 6 that were identifi ed in Eurobarometer research)

Financial cost is most likely to lead consumers to reduce energy consumption (58%say this) versus environmental concerns (37% say yes).

On average, consumers think they could save around 22% of their energy billsthrough more energy effi cient behaviour.

Lack of information is one of the top four reasons why people do not take more actionto reduce their energy consumption.

Respondents claim that information would lead them to reduce consumption; the highlevels of support for smart metering in Europe also reinforce this.

Support for smart metering is highest among younger, higher-income males whocould be early adopters of this new technology.

When we asked who people would trust the most to give energy saving advicethe top three answers were: (1) energy saving specialised company; (2) agencyspecialising in energy saving advice (almost level with 1); (3) utilities (a little behind

1 and 2). These are all organisations that are specialists in the fi eld and are able toprovide specialist advice.

The issue of trust in information about energy related issues was also explored in aEurobarometer study, which suggests that scientists and environmental protection/consumer associations are also regarded as trustworthy sources of advice. Thissuggests that consumers are likely to trust information from sources they perceive tobe impartial.

10. Conclusions


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A gas or electric company would also be the most trusted source of advice, with 21%,easily the highest level in any country, choosing this as their most trusted source. Thirteenper cent would trust an energy saving company the most, and 10% an agency.

A screen at home would be the most popular way of receiving smart meter informationfor Danish consumers, with 58% expressing a desire for this method. Many (41%) wouldlike a personalised web page to view this information this method attracted moresupport in Denmark than in any other country. Relatively few, 29%, wanted more detailedbills, although among females this received as much interest as the web page option. Acall centre was least popular with only 10% interest.

Attitudes towards climate change are almost average in Denmark, with 77% worriedabout climate change and 75% believing that their energy consumption affects climatechange. Propensity towards the benefi ts offered by smart metering also measure asaverage; 64% say that it would be useful to be able to get energy information at any timeand 68% say that they would reduce their consumption of energy if they had a betteridea of it at any point. For both of these questions, lower income and older respondentswere less enthusiastic. Eighty one per cent, the second highest after Sweden, said thatsmart metering sounded like a good idea (especially among those on medium or highincomes).

Smart meters and attitudesto climate change (Q5 andQ6)

Bearing that in mind, and assuming it is affordable, please say if you would like to haveaccess to information from a smart meter, giving you up-to-date information on energyconsumption in your home, in any of the following ways: A single screen in your homethat showed you how much energy each of your main appliances was using at any onemoment, a personalised web page, more detailed utility bills or information via a callcentre.

30%

10%

0%

50%

60%

20%

40%

Screen

athome

Personalised

webpage

More

detailed

bills

Telephone

(callcentre)

service


Base: 1001 individuals aged 15+, 2007

Preferred method for receiving smart meter information.



home, in any of the following ways that I read out: FULL QUESTION BELOW.


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Why do consumers not domore to limit their energyconsumption? (Q3)

Country Summary: Finland

Financial and environmentalcost of saving energy (Q1and Q2)

Concern about the cost of saving energy was more fi nancial than environmental inFinland, with 56% saying that their main concern was fi nancial and 34% environmental,a ratio very close to the European average. Environmental concern was morecommonplace among younger age groups.

Finns gave an estimate of 18% for how much energy they could save by using moreeffi cient measures, a fi gure slightly below the 10-country average. Older and lowerincome respondents were more likely to be uncertain about how much energy they couldsave.

Sixty per cent of Finnish consumers (more than in any country except Sweden andSpain) said that the lack of an incentive from the government was a barrier to their savingenergy. This was the most commonly cited barrier in Finland, and was quite consistentacross demographic and income sub-groups. A total of 46% (well below the Europeanaverage of 56%) said that they did enough already, although many respondents in the45+ age bracket agreed with this barrier and 42%, more than in any other country, saidthat they had more important things to worry about. This is perhaps perhaps a refl ectionof the high level of energy saving already in place. Few Finns, relative to consumers inother countries, said that signifi cant barriers included the upfront investment being toohigh (31%).

Only 18% of Finns felt that being swamped by information was a barrier to saving energy,and was even less when taking out the high score given by the 15-24 age bracket, who

are less likely to be responsible for paying energy bills. Only 23%, again comparativelyfew, felt that the fact that cost savings made little difference was a barrier to savingenergy, and only 34%, relatively few compared to other countries, said that beingunaware of their energy consumption was a barrier. These fi gures suggest that thereis a large degree of clarity and certainty among Finnish consumers about their energyconsumption.

30%

10%

0%

50%

60%

20%

40%

Doenough

already

Moreimportant

thingstoworry

about

Notawareof

energyused

Noincentive

fromthe

government

Costsavings

makelittle

difference

Upfront

investment

toohigh

Neverthink

aboutit

Wouldlimit

lifestyle

Oneperson

cantmakea

difference

Swampedby

information


Base: 1000 individuals aged 15-79, 2007

70%

Reasons for not saving energy.

% agreeing with the statement belowWhich of the following would you say were reasons that you DONT do more to try to limit your

energy consumption?


35/56




Finns are prepared to use a wide variety of sources for advice on how to save energy.Their most popular source is an energy saving agency (72% would use such a source),followed by a gas or electric company (65%), an internet search or telephone directory(59%), and a specialised energy saving company (51%). Many females would alsoconsider a charity/lobby group or a green goods company, and many males would seekadvice from a boiler maintenance company.

An agency is trusted for energy saving advice among Finns, with 28% rating it as theirmost trusted source. With 19% trusting a specialised company the most, and 13%trusting a gas or electric company the most, we see Finns turning to corporate sourcesof advice readily.

Sources of advice abouthow to save energy (Q4)

Smart meters and attitudesto climate change (Q5 andQ6)

A screen at home would be the most popular way of receiving smart meter informationamong Finnish consumers; 68% would like to receive information in this way, the highestnumber in any country. 46% would like more detailed bills to show this information, and34% a personalised web page. As in most countries, a call centre receives much lesssupport, though it would be appreciated by some in the 65+ age bracket.

Concern about climate change is quite high in Finland 84% say that they worry aboutit and 78% say that their personal energy use contributes towards it. Demand for smartmeters is also quite high, with 78% saying that smart meters sound like a good idea. Wesee some demographic and income group patterns in the desire for the benefi ts thatsmart meters bring; older consumers, lower income consumers, and males are all lesslikely to say that it would be useful to be able to access energy consumption informationat any point, and that they would reduce their energy consumption if they knew thisinformation.

Preferred method for receiving smart meter information.



home, in any of the following ways that I read out: FULL QUESTION BELOW.

30%

10%

0%

50%

60%

20%

40%

Screen

athome

Personalised

webpage

More

detailed

bills

Telephone

(callcentre)

service


Base: 1000 individuals aged 15-79, 2007

70%

Bearing that in mind, and assuming it is affordable, please say if you would like to haveaccess to information from a smart meter, giving you up-to-date information on energyconsumption in your home, in any of the following ways: A single screen in your homethat showed you how much energy each of your main appliances was using at any onemoment, a personalised web page, more detailed utility bills or information via a callcentre.


36/56

logicaCMG

34

Country Summary: France

Financial and environmentalcost of saving energy (Q1and Q2)

The main concern about energy use is fi nancial rather than environmental. France hasthe highest proportion of any country who state that their main concern is fi nancial (65%vs. a 10-countery average of 58%). The 35-54 age bracket is particularly likely to statefi nancial concerns as their main motivation. When asked how much they could saveon their energy bills, the average estimate given was 20%. This was slightly less thanthe average from respondents across all countries. Given that fi nancial concerns areparticularly important for energy saving in France, accurate knowledge would surely beappreciated by French consumers.

Why do consumers not domore to limit their energyconsumption? (Q3)

The most commonly cited reasons French consumers give for not limiting their energyconsumption are that the upfront investment is too high (69%) and that they are notaware of how much energy they are using at any point (63%). French respondents weremore likely to cite each of these reasons than respondents from any other country. Sucha high level of uncertainty about their energy consumption indicates that many Frenchconsumers would appreciate advice or technology (such as smart meters) that helpsthem to better understand their levels of consumption.

The most popular reasons across all countries were a lack of incentive from thegovernment and a belief that consumers do enough already; although a majority ofFrench respondents also cited these (55% and 53% respectively), they were no morelikely to do so than the European average. The French are (with Spaniards) the keenestto list reasons for not saving energy. On average they are citing 4.3 out of 10 possibilities.This high level of scepticism about energy savings could be a function of the uncertainty

noted above about how much energy consumers are actually using. Interestingly, thelower income group was most likely to feel that cost savings would make little difference,and was also very likely to feel swamped by information. A feeling among many of beingswamped by information indicates that clear and straightforward information aboutindividual energy consumption is not available.

30%

10%

0%

50%

60%

20%

40%

Doenough

already

Moreimportant

thingstoworry

about

Notawareof

energyused

Noincentive

fromthe

government

Costsavings

makelittle

Documents

Energy Eficiency Study Europe