Pilgrim Beart's presentation to the Technology World, London, 8th Dec 2010

1. Changing behaviour - harnessing the power of the consumer
Can a cultural shift be achieved in how people use energy?
Talk for Technology World 2010
8th Dec 2010
Pilgrim Beart – Founder Director, AlertMe

2. Today
1. Domestic consumption is a big part of the problem
2. Consumer psychology
AGENDA
1

3. Domestic consumption
• Consumers are a big part of the carbon emissions problem
• 30% of all UK energy is consumed at home
DOMESTIC CONSUMPTION
2

4. Domestic consumption
• Consumers are a big part of the carbon emissions problem
• 30% of all UK energy is consumed at home
DOMESTIC CONSUMPTION
About 50% of the nation’s energy
is consumed directly by you and me!
3

5. Domestic consumption
• Consumers can be a big part of the carbon emissions solution
• 30% of all UK energy is consumed at home
DOMESTIC CONSUMPTION
About 50% of the nation’s energy
is consumed directly by you and me!
4

6. Consumer psychology
How do consumers think?
Abstract Concrete
Consuming Energy Using a washing machine
Motivation – Empowerment = Frustration
CONSUMER PSYCHOLOGY
Motivation + Empowerment = Action
5

7. 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
CONSUMER PSYCHOLOGY
6

8. Consumer psychology
We are social animals
• Motivated by Competition, Collaboration,
and Peer pressure
CONSUMER PSYCHOLOGY
7

9. 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
CONSUMER PSYCHOLOGY
8

10. Consumer psychology
Make energy visible
9

11. Consumer psychology
Analytics – beyond kW and kWh
• from Data into Information
CONSUMER PSYCHOLOGY
10

12. Consumer psychology
Segmentation
“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
• 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
CONSUMER PSYCHOLOGY
• 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
11

13. Consumer psychology
If you can’t understand numbers…
Coloured speedometer
CONSUMER PSYCHOLOGY
Ambient light :
At Home Tumble Drier Away/Night
12

14. Consumer psychology
Reveal false economies
CONSUMER PSYCHOLOGY
• If you buy, A class £1000 cheaper over 10 years Assumptions:
5 washes/week
• If you rent, A class immediately cheaper electricity at 13p/kWh
13

15. Consumer psychology
Helping budget
CONSUMER PSYCHOLOGY
14

16. Delivering change
3 steps, and repeat
Reveal
Reduce
Reduce
Renew
Renew
Recycle
DELIVERING CHANGE
15

17. Delivering Change
• 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
Overall home energy usage and bill over time
“Usage Shock” Possible Net Bill Position
Better tariff
Turn off standby Reductions necessary to offset likely future
Identify consumer energy price rises
appliances Smarter use
DELIVERING CHANGE
using most More efficient appliances
energy
Use
Sustained usage levels “Free” energy contribution - self
appliances
more cost generation (eg. Solar panels)
effectively
REVEAL REDUCE RENEW
(Diagnostics) (Establishing Active Behaviour Change) (Self-Generation)
Stages of Behaviour Change 16

18. 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
CONCLUSION
17

19. Changing behaviour - harnessing the power of the consumer
Can a cultural shift be achieved in how people use energy?
Talk for Technology World 2010
8th Dec 2010
Pilgrim Beart – Founder Director, AlertMe