The Smart Consumer is still not here
Announcement posted by Connection Research 13 Dec 2010
The smart energy revolution has many hurdles to overcome if it is to have any significant effect on energy consumption in Australia. Devices like smart meters are yet to be fully implemented or accepted, and there is still no guarantee that they will achieve the desired outcome of reducing energy usage.
This is the finding of a new consumer study released by Connection Research, based on a survey of over 2700 households combined with comprehensive research into the Australian energy industry. The report, Residential Energy Management in Australia 2010, lists a number of obstacles that must be dealt with before smart devices are seen in every household.
One of the main hindrances is consumer education and their lack of awareness of smart technologies. Just what are they, and how can they help? For a smart meter to work successfully, the person using it must be able to understand its benefits. They must monitor their usage trends, be conscious of varying time of use electricity tariffs, and then decide for themselves how they can better use their electricity. This energy monitoring, peak-load conscious, decision making consumer is different from today’s average consumer, who, according to the report, will rarely check their quarterly energy bill for any undesirable patterns they could change.
Max Philipson is co author of the report, and believes the findings are important. “The unsuccessful smart meter rollout in Victoria is an example of how new the idea of ‘smart technology’ really is to everyone,” he says. “Certain aspects of the proposal weren’t thoroughly examined, and as a result, a moratorium on their use was declared six months after the rollout began. One of the many problems was that consumers weren’t to be given complete access to the information collected by the meters. Only the energy suppliers would have complete access. That’s not how smart meters are supposed to work.”
The majority of consumers in Australia are unaware of how smart meters can help them, and very few have ever heard of the concept of the smart grid, where an entire city can monitor its energy usage building by building. As smart energy technology continues to become more of a reality, it is important that this low level of knowledge be addressed. Consumers need to be aware that they play just as important a part in the smart energy revolution as the energy providers.
The report found that the Victorian experience with smart meters has risked giving the technology a bad name. If the benefits of smart energy systems are perceived as benefitting the utility companies more than the consumer, there is likely to be a similar backlash against their introduction elsewhere. More than half of those surveyed say one of the most significant advantages of smart meters is that they themselves can monitor and control their energy usage, rather than the energy company.
While many hail smart energy technology as the next big thing to tackle global warning, there is still no guarantee that it will have the desired effect. Smart meters can show everyone how energy is being used, from the utilities to the distributors to the householders. But ultimately it will be the consumer who needs to change their behaviour if smart technology is to live up to its name.
For more information about the Residential Energy Management in Australia report contact Cassandra Phillips on +61 2 9467 9833
Connection Research is an Australian market research and analysis company with a focus on corporate and consumer usage of sustainable and digital technologies. Its primary methodology is demand-side research, surveying consumers of technology about usage patterns, attitudes and plans. It operates across four practice areas: Green IT, Carbon and Compliance, Building Industry and Trades, and Community Sustainability.