Cost of living crisis is a chance to engage consumers on sustainability

The second instalment of a project commissioned by Cadent, the Energy Diaries, following the real-life experiences of consumers throughout the cost of living crisis, has highlighted that the continued concern of high energy bills is naturally driving consumers to adopt more sustainable energy behaviours in their home.

A poll of more than 2,000 people asked what approaches consumers have taken to manage their energy bills, with 75% reducing their usage, such as turning appliances off at the socket and making sure lights are off when not in use. The main motivation for these behaviours is to reduce costs – helping the environment is seen as an added bonus, but ultimately a secondary priority. In fact, many do not spontaneously link reducing energy usage, to sustainability, instead being more likely to associate the term with actions such as recycling, buying organic food and reducing their use of plastic.

Furthermore, the sustainability steps predominately taken by families are relatively small scale and low impact and therefore not enough to significantly drive the scale of change required to reach net zero goals. 66% say the cost of being sustainable in their energy usage is a key barrier to making more substantial changes, such as installing solar panels or heat pumps, with 41% saying they will never install solar panels in their home.

We also see that although consumers are more engaged with energy by taking meter readings and looking online for help, they can face challenges in understanding the full detail of their bills, which further prevents them from making changes. 43% are not confident they understand the full breakdown of their energy bill, for example tax, network charges for pipes and running the grid, with lower social grades in particular being less confident understanding some aspects. For example 35% of lower social groups do not understand the green levy and 31% don’t feel confident reading their bill.

The parent problem

The research also demonstrated some interesting trends linked to families, highlighting that parents in particular face extra barriers in being sustainable. Firstly, they may face additional time pressures compared to others. Secondly, they may wish to prioritise the comfort of their children over being sustainable (for example, keeping the heating on for longer). Finally, they may face challenges in getting their children to pick up sustainable habits, such as turning off appliances when they are not in use.

Young people aged 18-24 are also particularly affected by cost of living challenges. Despite being the age group most likely to engage with sustainable behaviours, such as buying second hand and avoiding single use plastic (but not necessarily reducing energy consumption), 48% report putting sustainability on hold due to financial pressures, compared to 28% of the wider public.

Industry Trust

The research also highlighted consumers’ complex relationship with energy companies, which is further preventing them from making sustainable, cost-saving choices. Although 72% expect energy companies to support vulnerable customers with being more sustainable, 60% agree that energy companies can’t be trusted to help individuals and families to make more sustainable choices, because it isn’t in their commercial interest. Furthermore, 71% have never made contact with their provider for help, preferring to find more informal support on money saving websites and community forums.

Despite this, 61% would like there to be one single comprehensive information source for accurate and trustworthy information about energy bills and support. Customers also think that the energy industry should be offering more support to groups such as the elderly or those with learning difficulties to help understand and reduce their bills.

This changing relationship with energy presents an opportunity for the industry to;

• use their expertise to support consumers with tips to adopt better energy saving behaviours, as well as targeting support to those who need it such as parents and vulnerable groups;
• help consumers understand how costs are calculated, supporting them to target their efforts for bigger impacts on their bills; and
• to show accountability within the industry that demonstrates collective action between consumers and energy companies. Small changes by consumers alone will not be enough to meet the common goal of net zero, business must support this transition wherever it can.

Is there more that the industry and government could do to support this goal?

Jennifer Summers is research director at Thinks Insight and Strategy, which carried out the research for Cadent