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Collective energy switching:
a tickle towards engaged action?
Will Eadson
• Collective Switching - an introduction
• Research agenda
• Switching as community/collective
energy movement
• Switching as behavioural nudging
• Tickling towards engaged action?
• Not all switching projects are equal
Overview
• Origins in Belgium and the Netherlands
• Core principles
– Individuals sign-up online
– Reverse auction
– Individuals decide whether to go with offer
• DECC interest from 2011
• South Lakeland first UK council
• DECC funding Jan-March 2013
Collective Energy Switching
• Chart the rise of collective switching as a
policy movement
• Explore rationales for collective switching
for different stakeholders
• Explore role of collective energy switching
in changing consumer behaviour
• Explore impacts of collective energy
switching
• In particular, explore engagement with and
benefits for people in or at risk of fuel
poverty
Research agenda
• Residents can/will save money
• It is a form of collective action that will
empower communities
• It will change consumer energy behaviour
– more engaged with energy markets (especially
'sticky' consumers)
– more engaged with energy usage?
• It will help shape the energy market:
– bring down prices
– open up to greater number of suppliers
– encourage move to 'green' tariffs?
Some claims / suppositions
• Most forms are top-down projects
• Little/no collective activity involved
• Use of profit-making intermediary
organisations (near monopoly):
– possible questions re. transparency?
– further marketisation of energy industry?
(rather than move towards community
empowerment?)
Collective Energy Switching as
community/collective energy movement
• Some proponents have linked to
behavioural psychology theories, especially
ideas around nudging
• Some appeal to social norms
• But largely passive and no real feedback
mechanism
• No 'default options'
• What does it nudge consumers to do in
terms of behaviour change?
Collective energy switching as behavioural nudging
• Not really a community/collective movement...
• Not really a behavioural nudge in itself...
• But... LAs using as route to engaging on other
energy-related projects and advice
• And for many a first experience of engaging with
energy market
• A hook to get people involved in energy action:
– could be seen as ploy to gather data on communities for
marketing
– ...or as genuine means for engaging people on energy
• Possibility to generate surpluses to reinvest in
community energy action?
Tickling towards active engagement?
• Scale of project/auction
• Partnership approaches
– other LAs (generate scale)
– Housing associations
– Community groups (depth?)
• Engaging residents
– Mass media
– Housing officers
– Community energy champions
– Local service centres / small businesses
• Engaging energy suppliers
– Reverse auction through intermediary
– Direct contact
• 'Add-ons' to switch
– Sweep of energy market for alternative tariffs
– Using to engage with Green Deal, energy advice, income maximisations (for fuel poor)
• Use of surpluses(?)
– Fund future projects
– Fund fuel poverty
– Profits?
Variety of local collective switching approaches
• A new phenomenon in the UK
– Still being perfected in action
• Not a panacea for market or individual
energy ills
• Lots of questions remain re.
equity, transparency and efficacy
• But... potentially a useful hook to draw into
other schemes / interventions
• And... begin journey towards energy
awareness
Summary

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Collective energy switching: a tickle towards engaged action? by Will Eadson

  • 1. Collective energy switching: a tickle towards engaged action? Will Eadson
  • 2. • Collective Switching - an introduction • Research agenda • Switching as community/collective energy movement • Switching as behavioural nudging • Tickling towards engaged action? • Not all switching projects are equal Overview
  • 3. • Origins in Belgium and the Netherlands • Core principles – Individuals sign-up online – Reverse auction – Individuals decide whether to go with offer • DECC interest from 2011 • South Lakeland first UK council • DECC funding Jan-March 2013 Collective Energy Switching
  • 4. • Chart the rise of collective switching as a policy movement • Explore rationales for collective switching for different stakeholders • Explore role of collective energy switching in changing consumer behaviour • Explore impacts of collective energy switching • In particular, explore engagement with and benefits for people in or at risk of fuel poverty Research agenda
  • 5. • Residents can/will save money • It is a form of collective action that will empower communities • It will change consumer energy behaviour – more engaged with energy markets (especially 'sticky' consumers) – more engaged with energy usage? • It will help shape the energy market: – bring down prices – open up to greater number of suppliers – encourage move to 'green' tariffs? Some claims / suppositions
  • 6. • Most forms are top-down projects • Little/no collective activity involved • Use of profit-making intermediary organisations (near monopoly): – possible questions re. transparency? – further marketisation of energy industry? (rather than move towards community empowerment?) Collective Energy Switching as community/collective energy movement
  • 7. • Some proponents have linked to behavioural psychology theories, especially ideas around nudging • Some appeal to social norms • But largely passive and no real feedback mechanism • No 'default options' • What does it nudge consumers to do in terms of behaviour change? Collective energy switching as behavioural nudging
  • 8. • Not really a community/collective movement... • Not really a behavioural nudge in itself... • But... LAs using as route to engaging on other energy-related projects and advice • And for many a first experience of engaging with energy market • A hook to get people involved in energy action: – could be seen as ploy to gather data on communities for marketing – ...or as genuine means for engaging people on energy • Possibility to generate surpluses to reinvest in community energy action? Tickling towards active engagement?
  • 9. • Scale of project/auction • Partnership approaches – other LAs (generate scale) – Housing associations – Community groups (depth?) • Engaging residents – Mass media – Housing officers – Community energy champions – Local service centres / small businesses • Engaging energy suppliers – Reverse auction through intermediary – Direct contact • 'Add-ons' to switch – Sweep of energy market for alternative tariffs – Using to engage with Green Deal, energy advice, income maximisations (for fuel poor) • Use of surpluses(?) – Fund future projects – Fund fuel poverty – Profits? Variety of local collective switching approaches
  • 10. • A new phenomenon in the UK – Still being perfected in action • Not a panacea for market or individual energy ills • Lots of questions remain re. equity, transparency and efficacy • But... potentially a useful hook to draw into other schemes / interventions • And... begin journey towards energy awareness Summary