Talk for Technology World 20108th Dec 2010

Pilgrim Beart – Founder Director, AlertMe

Changing behaviour - harnessing the power of the consumerCan a cultural shift be achieved in how people use energy?

AG

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Today

1. Domestic consumption is a big part of the problem

2. Consumer psychology

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Domestic consumption

• Consumers are a big part of the carbon emissions problem

• 30% of all UK energy is consumed at home

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Domestic consumption

• Consumers are a big part of the carbon emissions problem

• 30% of all UK energy is consumed at home

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About 50% of the nation’s energyis consumed directly by you and me!

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Domestic consumption

• Consumers can be a big part of the carbon emissions solution

• 30% of all UK energy is consumed at home

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About 50% of the nation’s energyis consumed directly by you and me!

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Consumer psychology

How do consumers think?

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AbstractConsuming Energy

ConcreteUsing a washing machine

Motivation + Empowerment = Action

Motivation – Empowerment = Frustration

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Consumer psychology

Motivation: Money• Energy bills ≈9% of disposable income• 90% of householders concerned about bills

• Standing charge exactly the wrong model

• Rule of thumb: 1W = £1/year

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Consumer psychology

We are social animals• Motivated by Competition, Collaboration,

and Peer pressure

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Consumer psychology

So what empowers consumers?• Householders today feel un-empowered

• View energy bill as outside their control• Like mortgage or rent

• Bring energy costs into the here-and-now• Per-use• Associate cost with use

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Consumer psychology

Make energy visible

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Consumer psychology

Analytics – beyond kW and kWh• from Data into Information

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Segmentation

• There are challenges for every segment• Affluent – cost not an issue, but reputation is• Sociable middle class – community peer pressure• Children and young adults – education and online• Social housing – local government• Home Workers – as extension to CRC

• Some offer a particular challenges:• Elderly – ensure they don’t economise, help insulate• Illiterate/Innumerate – need non-numerical visual

representation• Less well off – help with false economies, help to budget

“He who would do good to another, must do it in Minute Particulars.

General Good is the plea of the scoundrel, hypocrite and flatterer”

Blake

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Consumer psychology

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Consumer psychology

If you can’t understand numbers…

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Away/NightAt Home Tumble Drier

:

Coloured speedometer

Ambient light

Reveal false economies

• If you buy, A class £1000 cheaper over 10 years

• If you rent, A class immediately cheaper

Assumptions:5 washes/week

electricity at 13p/kWh

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Consumer psychology

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Helping budget

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Consumer psychology

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3 steps, and repeat

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Delivering change

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ReduceRenewRecycle

RevealReduceRenew

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• AlertMe works alongside the utility to benefit consumer through 3 phases of the journey

• Provides visibility, control & automation• Enabling consumers to reduce energy use, cost and CO2

• Takes consumer on a journey through behaviour change, control and onto self-generation

• Active behaviour change can offset energy price rises

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Overall home energy usage and bill over time

Identify appliances using most energy

Better tariff

“Free” energy contribution - self generation (eg. Solar panels)

RENEW(Self-Generation)

REVEAL(Diagnostics)

Smarter use

Use appliances more cost effectively

Turn off standby

More efficient appliances

Sustained usage levels

REDUCE(Establishing Active Behaviour Change)

Reductions necessary to offset likely future consumer energy price rises

“Usage Shock”

Stages of Behaviour Change

Likely Future Unit Energy Price Trend

Possible Net Bill Position

Driven by the cost of investing in smart

grid and low carbon power technologies

Delivering Change

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Conclusion

• Consumers are a big part of the problem solution• We won’t hit our targets without them

• Consumer psychology• Motivations include Money, Competition & Collaboration, Peer

pressure• Need Empowerment too:

• Explain running-costs up-front• Bring per-use costs into the “here & now”

• Everyone is different!

• Our deregulated market empowers consumers

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Talk for Technology World 20108th Dec 2010

Pilgrim Beart – Founder Director, AlertMe

Changing behaviour - harnessing the power of the consumerCan a cultural shift be achieved in how people use energy?