Points for good behaviour

How well do utilities understand the role of behavioural science in achieving energy efficiency asks Claire Jakobbson.

Earlier this week Shadow Energy and Climate Change Minister, Caroline Flint, told the Labour Party conference that the party’s plans would make 5 million homes more energy efficient within ten years, without additional government spending or adding to consumer energy bills. Labour has also committed to the delivery of half a million free home energy reports, in order to help families know how and where they can cut their energy bills.

What’s interesting here is the political acknowledgement that infrastructure alone (i.e. the UK’s smart meter roll out mandated for 2015), is neither the panacea when it comes to reducing pressure on the UK’s energy sector, nor in fact a resolution for rising household bills across the nation.

While the relative value of the UK’s smart meter rollout has been much debated, there is no debating the fact that it remains a key step in the UK’s journey towards a smart grid, which in turn should enable better energy management at a household level.  But it is only the first step. Tapping into how consumer behaviour impacts energy use, is vital in Britain’s move towards a low-carbon economy.

However, behavioural energy-saving programmes are not just about pure energy efficiency savings. They are also about giving some level of control back to consumers, restoring their faith in our energy companies and empowering individuals to take control over their energy use.

Opower has worked closely with utility companies around the world to support smart meter rollouts and our experience tells us there are three key ingredients for a successful programme.

One, you must gain consumer acceptance; two, timing is key – you have to actively prepare people for what’s to come; and three, encouraging behaviour change based on a series of nudges and incentives is essential in order for the programme to be effective and gain true value in terms of energy saving.

Fuurthermore, the role of behavioural science can go beyond straightforward and not insignificant efficiency savings. It can also be used to help with the initial adoption of new technologies and could be a valuable part of the toolkit for managing next year’s smart meter rollout successfully.

We’ve seen the impact that behavioural science can have in other parts of the world – having helped 93 utilities across nine countries to save more than 5.6 terawatt hours to date.

It will be interesting to see if Flint’s announcement translates into a national discussion on the potential to reduce household energy consumption for the UK in the lead up to the 2015 General Election, and how utilities view their role in supporting this ambition.