New Energy Consumer. Research Chile results 2016

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1 New Energy Consumer Research Chile results 2016

Accenture s global New Energy Consumer multi-year research program tracks major trends and the next big ideas

Energy Efficiency and Conservation Readiness & willingness to actively manage energy use Revealing the Values of

Preferences related to beyond-themeter products and services Actionable Insights for the New Energy Consumer

Consumer Handbook Addressing key consumer dissatisfiers Small and medium business needs Currents of change and

New energy solutions connected home, solar, electric vehicles Unleashing Business Value in a Digital World

platform (r)evolution Thriving in the Energy Ecosystem Trends in the Energy Ecosystem Market shifts and

2 Accenture s global New Energy Consumer multi-year research program tracks major trends and the next big ideas Understanding Consumer Preferences in Energy Efficiency Consumer knowledge of Energy Efficiency and Conservation Readiness & willingness to actively manage energy use Revealing the Values of the New Energy Consumer Scope of the emerging energy marketplace Interest in nontraditional providers Preferences related to beyond-themeter products and services Actionable Insights for the New Energy Consumer Consumer choice, connection and loyalty Balancing consumer expectations and operational imperatives New Energy Consumer Handbook Addressing key consumer dissatisfiers Small and medium business needs Currents of change and core competencies for the future Architecting for the Future The connected consumer Digital customer interaction New energy solutions connected home, solar, electric vehicles Unleashing Business Value in a Digital World Unlocking the digital value of the new energy consumer Extending the value proposition The digital energy platform (r)evolution Thriving in the Energy Ecosystem Trends in the Energy Ecosystem Market shifts and asymmetric competition Customer plays for energy providers The next wave of disruptive innovations Copyright 2016 Accenture All rights reserved. 2

Tapping into the Value of the New Energy

The New Energy Millennials tend to be more engaged and value-driven % 18-34 76% 74% more likely to consider DER products and services after receiving information % 55+ 78% 86% more likely to be more

5 The New Energy Millennials tend to be more engaged and value-driven % % 74% more likely to consider DER products and services after receiving information % % 86% more likely to be more satisfied if offered an in home system that automatically limits electricity usage at peak periods of the day and in return provides credits to the bill 85% 84% more likely to sign up for solar panels in the next 5 years 83% 83% more likely to be more satisfied if offered an in home assistant and monitoring device that provides energy usage feedback and suggests customized new products and services offers 77% 82% more likely to be more satisfied if offered a pre-pay rate that is personalized to their average energy consumption 75% 77% more likely to sign up for an application that enables them to remotely monitor and control home elements in the next 5 years 68% 70% more likely to be more satisfied if able to log into provider s portal via social media credentials 36% 44% more interested in automated home energy management services and willing to pay for it Copyright 2016 Accenture All rights reserved. 5

6 One millennial energy consumer out of three will be among the first to adopt the latest products and services 12% 11% 34% 37% 22% 26% 37% 29% 5% 14% 27% 19% Early adopters Early majority Late majority 29% 34% 54% Late adopters New Energy Millennials Copyright 2016 Accenture All rights reserved. 6

7 Millennials value set and forget and new tech savvy solutions 7% 7% 7% 1% 6% 8% 19% 15% 21% I prefer to manage my electricity consumption on my own I buy new technologies 25% 25% 9% I value convenience 27% I want to experiment with new technologies 18% 24% I want the lowest cost service 25% 21% 35% I prefer a simple and consistent experience New Energy Millennials Copyright 2016 Accenture All rights reserved. 7

8 But watch out, millennials are a demanding generation 91% 90% Would likely be discouraged to sign up for additional products and services if their provider was not able to provide a seamless experience 12.5min Time spent interacting with a representative over the past 12 months 14.1min % % % Interact more frequently with their energy provider using social media 17% 86% 87% Would be interested in an online personalized marketplace to select and purchase energyrelated products and services Copyright 2016 Accenture All rights reserved. 8

N 1 type of service expected by the millennial energy

An ENERGY OPTIMIZER that provides a range of products

usage (e.g., energy efficiency programs/rebates, and

9 N 1 type of service expected by the millennial energy consumers from their energy provider? An ENERGY OPTIMIZER that provides a range of products and services to optimize their energy usage (e.g., energy efficiency programs/rebates, and time of use energy rates) Base: All respondents Copyright 2016 Accenture All rights reserved. 9

12 The digital energy consumer continues to enable business value for energy providers 67% 57% 67% 52% 24% 11% 40% 36% More satisfied with their energy provider Recommended or promoted their current energy provider in the past 12 months More trust in their energy provider More trust in their energy provider to protect their data 89% 90% 59% 53% 88% 88% 84% 83% 77% 76% Interested in connected home service More likely to purchase an electric vehicle or PHEV in 5 years Interested in energy trading marketplace Likely to sign up for solar panels in 5 years Likely to sign up for an application to remotely monitor and control home elements Digital users (53% of all respondents) Copyright 2016 Accenture All rights reserved. Non-digital users 12

Yet, digital energy consumers have high expectations 49% 48% Give high importance to a consistent customer experience whatever channel they use 17.0 min 11.

13 Yet, digital energy consumers have high expectations 49% 48% Give high importance to a consistent customer experience whatever channel they use 17.0 min 11.2 min Spent more time interacting with a representative over the past 12 months 92% 92% Give high importance to a seamless experience across all digital channels 99% 95% More likely to switch to an alternative provider for electricity, energy-efficient products or services 91% 86% More interest in an online personalized marketplace 80% 79% Expect their energy provider to partner with other companies to offer DER related packages 70% 72% Likely to be more satisfied if able to log into provider s portal via social media credentials Digital users (53% of all respondents) Copyright 2016 Accenture All rights reserved. Non-digital users 13

14 Overall, digital customer service expectations are similar across providers Q When considering customer service through digital channels (e.g., web, , mobile app, online portal, social media, automated voice, etc.), compared to each of the providers listed below, do you currently expect higher, lower or the same level of digital customer service from your energy provider? Phone, cable, or internet provider 5% 38% 57% Bank 4% 48% 48% Consumer electronics company (e.g., Apple, Samsung 4% 50% 46% Traditional retailer 5% 51% 45% Home monitoring company (e.g., security, health, safety) 6% 51% 43% Online site (e.g., Google, Amazon) 5% 54% 41% Lower The same Higher Copyright 2016 Accenture All rights reserved. 14

15 Energy provider s digital channel navigation is considered very easy for one consumer out of five Q How easy did you find it to navigate your energy provider s digital channel(s)? Very difficult 1% Somewhat difficult 14% 20% Very easy Somewhat easy 65% that interacted via digital channels in the last 12 months Copyright 2016 Accenture All rights reserved. 15

16 Security and a seamless experience are key to increasing the adoption of digital channels Q How important are each of the following factors to motivate you to use more digital channels when interacting with your energy provider? Based on your experience to date, how would you rate your energy provider s performance on each of the following factors? 93% 92% 90% 90% 89% 89% 88% 88% 87% 86% 84% 74% Ensures the security of my personal data 62% 64% 66% Seamless experience across all digital channels Simplified service transactions through mobile apps and online portals Faster transactions via digital channels than non- digital channels 58% Digital tools to help identify relevant energy cost savings actions I can take 64% Variety of digital interaction channels 50% Proactively advises me via digital channels 54% Digital cost comparison tools to help me understand the value of solar panels and battery storage and/or clean energy alternatives options 58% Personalized experience across digital channels 62% Utilizes the latest digital interaction technologies 56% Relevant information and timely responses on social media channels Importance (Somewhat + very important) Performance (Good + excellent) Copyright 2016 Accenture All rights reserved. 16

17 WHAT TYPES OF EXPERIENCES DO CONSUMERS WANT? (% very important + somewhat important) CONSISTENT EFFORTLESS INTUITIVE 91% 90% 86% the customer experience is the same whatever channel you use it is easy to complete transactions whatever channel you use it is easy to navigate from one interaction channel to another Copyright 2016 Accenture All rights reserved. 17

18 A SEAMLESS experience is foundational to drive value and to reinforce engagement 94% of consumers believe it is important to have a seamless customer experience with their energy provider across all digital and nondigital channels 93% of consumers said it would negatively impact their customer satisfaction if their energy provider was not able to provide a seamless experience 92% of consumers would be discouraged to sign up for additional products and services if their energy provider was not able to provide a seamless experience Copyright 2016 Accenture All rights reserved. 18

19 ENGAGEMENT Interactions are increasing across channels Consumer interactions with current energy provider: Over the telephone with a representative 65% Over the phone using automated menu options In person in a store Online portal-website In person at your home Using social media Paper mail Mobile application SMS-text message Online chat with a representative 60% 53% 51% 43% 35% 28% 23% 21% 20% 20% Non-digital channels Digital channels Not interacted 11% pts +16pts +12pts +4pts +10pts +7pts +9pts +1pts +8pts +7pts +7pts % interacted % 44% 41% 47% 33% 28% 19% 22% 13% 13% 13% Copyright 2016 Accenture All rights reserved. 19

20 TIME SPENT interacting with energy provider in the past 12 months With a representative AVG 2016: 14.2 Mins Through digital channels AVG 2016: 8.1 Mins 30% 36% 32% 44% 6% 7% 21% 3% 2% 19% 0 0 to 10 minutes 10 to 30 minutes 30 minutes to one hour Greater than one hour I have not interacted with my energy provider in the past 12 months Copyright 2016 Accenture All rights reserved. 20

21 INTEREST in a convenience-led new bundled value proposition Automated home energy management 51% 7% 42% Consumers interested in automated home energy management and willing to pay for it 42% [VALUE] 47% Early adopters Late majority 43% 32% Early majority Late adopters A service to lower energy costs, make the home more comfortable, optimize distributed energy resources, and personalize home energy savings programs I am interested and willing to pay for it I am not interested I am interested but not willing to pay for it Copyright 2016 Accenture All rights reserved. 21

22 Energy providers and specialized providers are the preferred choices for automated home management services at a premium Which providers do you think are the best positioned to offer automated Q home management services? Top three A specialized provider for this particular service 79% Your current energy provider 61% A consumer electronics company 49% A phone, cable, or internet provider 32% A home monitoring company 19% An online site 17% A traditional retailer 12% interested and willing to pay to benefit from automated home management (n=464) Copyright 2016 Accenture All rights reserved. 22

24 Energy-related products and services relevance are diverse 9% 11% 5% 15% 7% 7% 33% 10% 12% 8% I buy new technologies I prefer to manage my electricity consumption on my own I value convenience 73% 37% 10% 15% 40% I want to experiment with new technologies 10% I want the lowest cost service 8% 10% 22% 28% 30% I prefer a simple and consistent experience Early adopters Early majority Late majority Late adopters Copyright 2016 Accenture All rights reserved. 24

25 A PERSONALIZED experience is critical to drive digital engagement and increase satisfaction 98% of consumers would be more satisfied if their energy provider could personalize their overall customer experience 87% of consumers would use more digital channels if they were provided with a personalized experience across digital channels A pre-pay rate that is personalized to my average energy consumption The ability to log into an energy provider s portal with social media credentials An in home assistant and monitoring device that provides energy usage feedback and suggests customized new products and services offers 80% A website/app which knows my realtime energy usage and automatically signs me up to the best available offer from my provider 71% 85% 88% 83% 77% Ability to receive individualized advice and relevant new product and service offers from ANY customer service representative A customizable digital bill where I can select the usage information to be displayed, bill layout, and frequency of the payment periods 76% A text message or that provides me regular updates on my real-time energy usage and projected end of month bill 86% An in home system that automatically limits my electricity usage at peak periods of the day and in return provides credits to my bill Copyright 2016 Accenture All rights reserved. 25

26 The majority of consumers are somewhat or very interested in an online PERSONALIZED marketplace How interested would you be in an online personalized marketplace from your energy provider where you can select and purchase energy-related products and services? Not interested at all Not very interested 10% 1% Very interested 43% 46% Somewhat interested Copyright 2016 Accenture All rights reserved. 26

The majority of consumers are interested in DIGITAL NOTIFICATIONS for relevant new products and services Q For new energy-related products and services identified as relevant to you by your energy

27 The majority of consumers are interested in DIGITAL NOTIFICATIONS for relevant new products and services Q For new energy-related products and services identified as relevant to you by your energy provider, how interested would you be to get digital notifications (e.g., sending you an , getting notifications while navigating the internet, personalized web ads, etc.)? Not interested at all Not very interested 15% 3% 35% Very interested 82% 47% Somewhat interested Base: All respondents Chile respondents Copyright 2016 Accenture All rights reserved. 27

28 INFORMATION from energy providers is essential to influence new products and services adoption Q To what extent would each of the following factors most influence you to adopt/sign up for new energy-related products and services? (Top two significantly + somewhat) Receiving detailed information from my energy provider 90% Learning about these in conversations 74% Learning about these via advertisements 72% Learning about these on social media 71% Learning about these in my community 61% Copyright 2016 Accenture All rights reserved. 28

29 Energy providers have the opportunity to drive the adoption of new energy-related products and services Q To what extent would each of the following factors most influence you to adopt/sign up for new energy-related products and services? (Top two significantly + somewhat) Receiving detailed information from my energy provider 89% 92% Learning about these in conversations 76% 71% Learning about these via advertisements 73% 71% Learning about these on social media 73% 69% Learning about these in my community 60% 63% 0 Digital Channel Users Non Digital Channel Users Copyright 2016 Accenture All rights reserved. 29

31 The majority of consumers would consider alternative providers for electricity and energy-related products and services Q You may currently, or in the future, have new companies offering you electricity, energy-efficient products (i.e., smart thermostats), and/or related services (i.e., customized information on your electricity consumption) on top of their traditional products and services. Would you consider purchasing electricity, energy-efficient products, and/or related services from the following providers? [Yes %] Yes, would consider alternative providers (i.e., retailer, phone or cable provider, online site, etc.) Specialized energy services company Phone, cable, or internet provider Consumer electronics company Online site Retailer Home monitoring company 97% 81% 75% 73% 58% 53% 50% Copyright 2016 Accenture All rights reserved. 31

32 Price is the main (but not the only) reason that may make consumers consider alternate providers Q Why would you consider purchasing energy, energy-efficient products (i.e., smart thermostats), and/or related services (i.e., customized information on your electricity consumption) from a provider other than your energy provider (e.g., retailer, phone, cable or internet provider, online site, home monitoring company, consumer electronics company etc.)? The provider has lower prices than my energy provider I can bundle products and services to receive a discount The provider has better service than my energy provider The provider has more information and knowledge of these products and services The provider has a store where I can talk to a representative, see products and discuss services I have had better customer experiences dealing with this provider than with my energy provider The provider has a better return or service cancellation policy than my energy provider I trust the provider more than my energy provider The provider is a local company I belong to the provider's loyalty rewards program 7% 30% 26% 23% 21% 16% 16% 43% 43% 59% considering purchasing energy, energy-efficient products, and/or related services from alternate providers Copyright 2016 Accenture All rights reserved. 32

33 ENGAGEMENT Interactions are increasing across channels Consumer interactions with current energy provider: Over the telephone with a representative 65% Over the phone using automated menu options In person in a store Online portal-website In person at your home Using social media Paper mail Mobile application SMS-text message Online chat with a representative 60% 53% 51% 43% 35% 28% 23% 21% 20% 20% Non-digital channels Digital channels Not interacted 11% pts +16pts +12pts +4pts +10pts +7pts +9pts +1pts +8pts +7pts +7pts % interacted % 44% 41% 47% 33% 28% 19% 22% 13% 13% 13% Copyright 2016 Accenture All rights reserved. 33

34 The majority of consumers have not received information from their energy provider on DER products and/or services Distributed Energy Resources (i.e., residential power sources) products and related services include: Energy generation products (e.g., solar panels, fuel cells, etc.), Energy storage products (e.g. residential scale batteries), Electric vehicle in-home charging stations, Financing, warranty or maintenance services for distributed energy resource products. Q Have you received information from your energy provider on any distributed energy resource products and/or related services in the past 12 months? I don t remember 17% 12% Yes No 71% Copyright 2016 Accenture All rights reserved. 34

Share of respondents answering YES 79% who received information from their energy provider on

35 INFORMATION is a powerful door opener for DER Q Did the information you received from your energy provider motivate you to consider distributed energy resource products and related services? Share of respondents answering YES 79% who received information from their energy provider on distributed energy resources products and/or related services in the past 12 months Copyright 2016 Accenture All rights reserved. 35

36 Specialized providers are the most trusted sources of information about DER products and services Q What organizations do you trust to inform you about distributed energy resource products and related services (e.g., solar panels, electric vehicle charging, and maintenance services related to batteries in your home)? A specialized provider for these particular products and related services 6% 35% 59% Your current energy provider 13% 51% 36% A consumer electronics company 8% 56% 36% An online site 14% 62% 24% A phone, cable, or internet provider 17% 60% 23% A home monitoring company 17% 67% 16% A traditional retailer 24% 62% 14% Do not trust Neither trust nor distrust Trust Copyright 2016 Accenture All rights reserved. 36

37 Consumers trust in their current energy provider to inform them about distributed energy resources products What organizations do you trust to inform you about distributed energy Q resource products and related services (e.g., solar panels, electric vehicle charging, and maintenance services related to batteries in your home)? % DER Trust of utilities/energy providers % Trust of utilities/energy providers - by geography Average:46% 56% 53% 51% 51% 50% 49% 49% 47% 47% 46% 46% 44% 41% 38% 36% 36% 32% 30% SG NL MY US CN IE PH CA PT FR IT AU UK DE CL ES BR JP Base: All respondents Copyright 2016 Accenture All rights reserved. 37

38 PARTNERING for new value propositions? YES 80% 80% of consumers expect their energy provider to partner with other companies to offer distributed energy resource related packages that enable them to generate and store energy Copyright 2016 Accenture All rights reserved. 38

39 Consumer interest in current energy provider as their solar panel provider is second only to specialized providers 84% of consumers are planning to sign up for rooftop solar panels (buying or leasing) in the next five years Preferred provider*? Your current energy provider A phone, cable, or internet provider A specialized provider for this particular service 14% 4% 60% ; *All respondents that plan to buy/lease rooftop solar panels Copyright 2016 Accenture All rights reserved. 39

40 The opportunity to decrease the energy bill is the main driver of adoption of solar panels, followed by the opportunity to decrease impact on environment and to become energy dependent Q Please rank the top three reasons that motivated you to adopt or would motivate you to adopt solar panels that you buy or lease? Top three Opportunity to lower my energy bill Opportunity to decrease my impact on environment Opportunity to become energy independent 66% 61% 57% Improves the reliability of my energy supply Opportunity to sell excess power to my energy provider or third party I know someone who is already using solar panels Improved battery technology is now available to reliably store my energy Availability of government subsidies Opportunity to get revenues from my solar panels Availability of leasing agreements 26% 18% 18% 17% 15% 13% 6% who have bought or leased OR plan to buy or lease solar panels in the next 5 years Copyright 2016 Accenture All rights reserved. 40

41 Up-front investment, difficulty of installation in the current residence and lack of proactive offering by providers are the main reasons why consumers do not adopt solar panels Q Please rank the top three reasons why you decided not to adopt solar panels? Top three The up-front investment is too expensive 27% My current residence does not allow for the installation of solar panels No one has offered them to me Solar panels may not generate enough power to meet my daily needs I am waiting for the price of solar panels to come down further My current energy provider meets my energy needs and I do not see any reason why I would generate my own energy Installation, maintenance, and management is too difficult 3% 5% 10% 10% 22% 21% I do not currently understand enough about them 2% who do not plan to buy/lease solar panels in the next 5 years Copyright 2016 Accenture All rights reserved. 41

42 SOLAR PANELS ++ Share of respondents that plan to sign up within the next 5 years A program that allows me to sell the excess power I produce Batteries to store the electricity I produce 73% 83% Preferred provider? A program that allows me to sell the excess power I produce* A specialized provider for this particular service Your current energy provider A phone, cable, or internet provider A specialized provider for this particular service Batteries to store the 44% 28% 4% 53% electricity I produce** Your current energy provider A phone, cable, or internet provider 16% 4% owning or planning to buy or lease solar panels in the next 5 years; *Consumers who are planning to sign up for A program that allows me to sell the excess power I produce / ** Consumers who are planning to sign up for Batteries to store the electricity I produce Copyright 2016 Accenture All rights reserved. 42

43 WANTED in the next five years 78% 76% 76% 56% 4%* 3%* 3%* 3%* A program that credits my bill when my provider makes minor adjustments to my smart thermostat during peak usage hours A smart thermostat that learns what temperatures I like, automatically adjusts the temperature when I m away, and allows me to make adjustments from anywhere via my smartphone An application that enables me to remotely monitor and control elements of my home An electric or plug-in electric vehicle that I buy or lease, * % have already signed up or purchased Copyright 2016 Accenture All rights reserved. 43

44 One millennial energy consumer out of three will be among the first to adopt the latest products and services 12% 11% 34% 37% 22% 26% 37% 29% 5% 14% 27% 19% Early adopters Early majority Late majority 29% 34% 54% Late adopters New Energy Millennials Other age groups Copyright 2016 Accenture All rights reserved. 44

45 WANTED in the next five years 78% 76% 76% 56% A program that credits my bill when my provider makes minor adjustments to my smart thermostat during peak usage hours A smart thermostat that learns what temperatures I like, automatically adjusts the temperature when I m away, and allows me to make adjustments from anywhere via my smartphone An application that enables me to remotely monitor and control elements of my home An electric or plug-in electric vehicle that I buy or lease [VALUE] 88% 76% 74% [VALUE] 78% 83% 69% [VALUE] 82% 82% 68% [VALUE] 61% 57% 51% Early adopters Early majority Late majority Late adopters Copyright 2016 Accenture All rights reserved. 45

46 WANTED in the next five years 78% 76% 76% 56% A program that credits my bill when my provider makes minor adjustments to my smart thermostat during peak usage hours A smart thermostat that learns what temperatures I like, automatically adjusts the temperature when I m away, and allows me to make adjustments from anywhere via my smartphone An application that enables me to remotely monitor and control elements of my home An electric or plug-in electric vehicle that I buy or lease 69% 90% 78% 76% 84% [VALUE] 73% 75% 83% 70% 78% [VALUE] 70% 90% 79% 72% 75% [VALUE] 45% 67% 57% 51% 71% [VALUE] I want the lowest cost service I prefer to manage my energy consumption on my own I value convenience I prefer a simple and consistent experience I buy new technologies I want to experiment new technologies Copyright 2016 Accenture All rights reserved. 46

47 Energy providers and specialized providers are the best positioned for energy-related products and services Q For each of the following energy-related products and services, please indicate your preferred provider? Your current energy provider A specialized provider for this particular service A phone, cable, or internet provider An electric or plug-in electric vehicle that I buy or lease (n=17)* 16% 54% 2% A smart thermostat that learns what temperatures I like, automatically adjusts the temperature when I'm away, and allows me to make adjustments from anywhere via my smartphone (n=14)* 16% 47% 5% A program that credits my bill when my provider makes minor adjustments to my smart thermostat during peak usage hours (n=22)* 30% 39% 7% An application that enables me to remotely monitor and control elements of my home (n=17)* 15% 38% 10% A payment plan for charging your electric vehicle in public places that is consolidated with an existing bill for your home (n=14)* 23% 47% 5% that plan to sign up for each product/service *Note: Small base size, results indicative only Copyright 2016 Accenture All rights reserved. 47

48 INTEREST in a new all in one bundled value proposition Connected home [VALUE] 10% 43% Consumers interested in connected home and willing to pay for it 45% 45% 33% 47% 43% Early adopters Late majority Early majority Late adopters A bundled service including an automated home energy management service, plus home monitoring and automated control services, plus connected car services and connected media and entertainment services I am interested and willing to pay for it I am not interested I am interested but not willing to pay for it Copyright 2016 Accenture All rights reserved. 48

49 Specialized providers are the preferred choices for connected home services at a premium Which providers do you think are the best positioned to offer connected Q home service? Top three A specialized provider for this particular service 75% Your current energy provider 55% A consumer electronics company 43% A phone, cable, or internet provider 39% A home monitoring company 28% An online site 20% A traditional retailer 11% interested and willing to pay to benefit from an integrated connected home service Copyright 2016 Accenture All rights reserved. 49

Over a third of consumers are interested and willing to pay for a new peer-to-peer platform bundled value proposition Energy trading marketplace 12% 34% Consumers interested in an energy trading

51 Over a third of consumers are interested and willing to pay for a new peer-to-peer platform bundled value proposition Energy trading marketplace 12% 34% Consumers interested in an energy trading marketplace and willing to pay for it [VALUE] 41% 33% 26% 54% 34% Early adopters Late majority Early majority Late adopters A service to maximize the money made from the energy generated from distributed energy resources by automatically deciding when to buy energy from third party providers, as well as other consumers and/or when to sell energy to third party providers as well as other consumers I am interested and willing to pay for it I am not interested I am interested but not willing to pay for it Copyright 2016 Accenture All rights reserved. 51

52 Energy providers and specialized providers are the preferred choices for energy trading marketplace services at a premium Which providers do you think are the best positioned to offer an energy Q trading marketplace service? Top three Your current energy provider 76% A specialized provider for this particular service [VALUE] A consumer electronics company 46% A home monitoring company 36% A phone, cable, or internet provider 22% An online site 18% A traditional retailer 11% interested and willing to pay to benefit from an energy trading marketplace Copyright 2016 Accenture All rights reserved. 52

53 79% of consumers are planning to sign up to a COMMUNITY SOLAR PROGRAM managed by a third-party and that allows them to benefit from solar power even if they do not have solar panels on their property in the next five years Preferred provider*? A specialized provider for this particular service Your current energy provider A phone, cable, or internet provider 55% 16% 3% ; *All respondents that plan to sign up to a community solar program Copyright 2016 Accenture All rights reserved. 53

54 Consumers are confident in their energy provider s ability to protect their data Q For each of the following providers, how confident are you with their ability to protect your personal and energy usage data? Very confident + somewhat confident Your current energy provider 60% A consumer electronics company A phone, cable, or internet provider An online site 60% 56% 56% A traditional retailer 45% A home monitoring company 44% Copyright 2016 Accenture All rights reserved. 54

56 New Energy Consumer 2016 survey sample details # Interviews by country Gender Australia Japan 500 Brazil* China* Chile France Germany Ireland Italy Malaysia* Netherlands Philippines* Portugal Singapore Spain 48% 52% Age 16% 20% 39% 25% ,358 Canada United Kingdom United States Income Regulated markets: Brazil, Canada (some provinces), Chile, China, Japan**, Malaysia, Singapore, United States (some states) Competitive markets: Australia, Canada (some provinces), France, Germany, Ireland, Italy, Netherlands, Portugal, Philippines, Spain, United Kingdom, United States (some states) Low (bottom 25% in every country) 30% 30% 40% Medium High (top 25% in every country) Notes: *Sample representative of the urban population. **Regulated at the time of the survey. The maximum margin of error is of +/- 1 point on the total sample and +/- 4.5 points at the country level. Trend data: countries have been added/removed from the scope in the 2016 survey compared with previous years; however, this change does not impact trends. Copyright 2016 Accenture All rights reserved. 56

57 Digital channel users sample structure Digital channel users are those respondents who have interacted at least once with their energy provider via online website or mobile app over the past year. They account for 53% of the overall sample. Gender Age 50% 50% 17% 21% 47% 15% Income 29% 28% 43% Digital channel users n=263 Non-digital channel users n=237 Low (bottom 25% in every country) Medium High (top 25% in every country) Copyright 2016 Accenture All rights reserved. 57

58 Q Which of the following statements best describes you and your attitudes towards ANY new products and services? Late adopters I usually wait until a majority of people have started using a product or service and can find out how good it is before buying 37% 10% 22% Early adopters I always like to have the latest products and services and be the first one in my group to have them Late majority I like to buy new products and services but I often wait for others to try them out first 31% Early majority I m usually one of the first to try out and buy new products and services Copyright 2016 Accenture All rights reserved. 58

59 While utilities remain a trusted advisor, alternative providers are gaining traction Q What organizations do you trust to inform you about actions you can take to optimize your energy consumption? Academics-schoolsscientific Associations 6% 31% 63% pts % Trust % Environmental associations 7% 32% 61% 5pts 56% Consumer associations 10% 43% 47% 2pts 45% Utilities/energy providers 24% 38% 38% 1pts 37% Online service providers 11% 52% 37% 9pts 28% Home service providers 21% 47% 32% 9pts 23% Government/governmental organizations 35% 39% 26% 12pts 38% Retailers/equipment manufacturers 20% 60% 20% 5pts 15% Do not trust Neither trust nor distrust Trust Copyright 2016 Accenture All rights reserved. 59

60 Consumers trust in their energy provider to inform them about actions to optimize energy consumption Q 69% What organizations do you trust to inform you about actions you can take to optimize your energy consumption? % Trust of utilities/energy providers - by geography Average:40% 63% 58% 52% 51% 47% 40% 38% 36% 34% 30% 30% 30% 28% 27% 26% 26% 25% PH SG MY IT CN US CA CH FR IE AU BR DE PT JP NL ES UK Base: All respondents Copyright 2016 Accenture All rights reserved. 60

61 Consumers level of satisfaction with their energy provider remains high Q What is your level of satisfaction with your current energy provider? Please use a 10-point scale for which 1 means that you are extremely dissatisfied and 10 means that you are extremely satisfied 63% 62% Satisfied 26% 27% Neutral 11% 11% Dissatisfied Copyright 2016 Accenture All rights reserved. 61

62 Satisfaction is still heavily anchored on traditional commodity delivery factors Q How important are each of the following factors in increasing your customer satisfaction with your energy provider? Based on your experience to date, how would you rate your energy provider's performance on each of the following factors? 95% 95% 95% 92% 92% 92% 74% 79% 79% 77% 76% 72% 62% 61% 67% 58% 49% 51% 61% 44% 46% Consistently gets my bill correct Provides me with reliable energy delivery Provides clear and easy-tounderstand pricing information Provides me with efficient customer service Provides me with information on how I can improve my energy efficiency Offers me clean energy options Offers me a variety of payment options Connects me with a network of certified home and energy service providers Offers me the latest energyrelated technology 41% Is actively involved in my community Makes investments to build their brand awareness Importance (Somewhat + very important) Performance (Good + excellent) Copyright 2016 Accenture All rights reserved. 62

63 While price remains important, it is not the only factor that would motivate consumers to switch to a new energy provider Q What factors would motivate you to switch to a new energy provider? Top three Reduced energy bill 63% Provides renewable energy options 61% Rate plans that better suit my needs 51% Product and service bundles that better suit my needs 34% Better loyalty rewards program 28% Better customer service-support 29% Better payment options 19% 2016 Copyright 2016 Accenture All rights reserved. 63

64 Q What organizations do you trust to inform you about actions you can take to optimize your energy consumption? % Trust 2016 % Trust 2014 Academics/schools/scientific associations 63% Environmental associations 60% 56% Consumer associations 47% 45% Utilities/energy providers 38% 37% Online service providers 37% 28% Home service providers Government/governmental organizations 32% 26% 23% 38% Retailers/equipment manufacturers 20% 15% Copyright 2016 Accenture All rights reserved. 64

65 Consumers prefer Web-enabled channels for the majority of interactions, notably for receiving and paying their bills Preferred method of interaction with energy provider for select events Learn about new energy packages Learn about new home energy services Sign up for new energy packages and services Change your address/ move Receive bill Pay bill Resolve issues Get outage information Report an outage In person (e.g., at your home or in a store) 17% 25% 23% 30% 35% 41% 25% 23% 22% 20% 31% 28% Over the telephone 8% 9% 6% 9% 12% 18% 24% 18% 3% 7% 31% 20% 37% 29% 41% 32% Webenabled channels 56% 62% 59% 65% 39% 49% 50% 56% 88% 84% 70% 72% 38% 53% 56% 63% 50% 59% SMS/text message 2% 2% 8% 8% 8% 9% Paper mail 2% 5% 2% 5% 1% 3% 1% 4% 12% 14% 2% 4% Base: All respondents (n=500) Copyright 2016 Accenture All rights reserved. 65

66 Q Which of the following statements best describes you relating to energy-related products and services I prefer to manage my electricity consumption on my own I actively manage my electricity usage and am willing to make changes to my lifestyle to reduce my bill. 18% 7% 6% 26% I prefer a simple and consistent experience I prefer to keep things simple by dealing with a single provider for my energy needs and am only interested in using established and proven energy related technologies. I buy new technologies I like to shop around for new energy related products and install them on my own. I value convenience I like new energy related technologies that make energy management convenient and prefer to have someone install these technologies for me." 21% 22% I want the lowest cost service I am primarily focused on receiving the lowest-cost electricity service. I want to experiment new technologies I like to be one of the first consumers to adopt and use new energy related products and services. Copyright 2016 Accenture All rights reserved. 66

Understanding Consumer Preferences in Energy Efficiency

Understanding Consumer Preferences in Energy Efficiency Consumers what do they think? Do end-consumers have a clear understanding of the impact of electricity consumption on the environment? Do they understand