Smart Grid Communications in 2012
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1 Smart Grid Communications in 2012 Presentation by Jamie Wimberly, CEO, DEFG EcoAlign SGCC Consumer Symposium, January 23 rd, 2011
2 The Energy and Environment Experts Management consulting firm focused on aligning corporate business goals and consumer consumption behaviors with the future of energy and environment Jamie Jorge Tom Nat Cindy
3 Smart Grid Communications in Consumers Find Smart Grid To Be Appealing Consumers looking for new billing, payment and incentive options
4 Smart Grid Communications in Top Line Findings from DETech Industry Survey 200+ energy professionals took part in a survey regarding effective smart grid communications; nearly 1/3 of the respondents were from electric utilities. Top line findings include: Almost half of all stakeholders in the utility sector feel that smart grid communications have been ineffective. When thinking about the metrics to measure effectiveness of utility smart grid communications, respondents believe that general awareness that deployment is planned or in progress is important for consumers to know; They also want consumers to understand the principles and benefits of smart grid By far, the biggest barrier to effective smart grid communications from among a list of nine items offered is a lack of a comprehensive strategy by utilities The activities that have worked well include a need to communicate frequently and persistently, and consumer benefits, including programs and offerings 45% of respondents expect utility activities in smart grid to be somewhat higher in 2012; 30% expect utility activities in smart grid to be about the same
5 Smart Grid Communications in Industry Rate Utility Smart Grid Communications As Ineffective Energy professionals rate smart grid communications as below average on a 10-point scale 40% view it as ineffective (1, 2 or 3 on the 10-point scale) 8% view it as effective (8, 9 or 10)
6 Smart Grid Communications in Barriers to Effective Smart Grid Communications Utilities lack a comprehensive strategy to smart grid communications according to respondents who ranked that as a top barrier to effective communications
7 Smart Grid Communications in Opinions Vary on Causes for SG Communications Struggles Utilities have focused on bill savings, failing to connect smart meters to reliability Regulatory uncertainty makes it difficult to have a comprehensive strategy that can be implemented Lack of consistency of message. Poor planning, timing and execution of campaigns One-size-fits-all messaging. Lack of segmentation. The majority of customers don't care enough to listen to the communications Consumer benefits have not been documented. So opponents can point to the costs without context. The past hundred years have trained consumers to be passive. It will take time and a lot of effort to make consumers the smartest part of the smart grid. I expect real consumer interest to start when rates made possible by the smart grid, offer options to consumers that will provide them with opportunities to save money while helping the utility to shave or shift peaks. Participant in Smart Grid Executive Forum. Sources: Smart Grid Newsletter, Smart Grid Executive Forum, and Various Press Articles
8 Smart Grid Communications in Mismatch Between Smart Grid and Consumer Needs Consumers see smart grid as a means to reduce bills, but consumers could be paying more at the end of the day despite smart grid and best efforts to manage costs Level of Consumer Concern Over Rising Utility Bills
9 Smart Grid Communications in What is needed in 2012? The respondents focused on the need to communicate frequently and persistently Others focused on consumer benefits, e.g., programs and offerings for consumers A variety of comments were made about the need to be prepared and proactive, and about general education and awareness
10 Smart Grid Communications in Effective Visibility Strategies Vary By Key Drivers Fly Under the Radar Active Engagement Slow Build Back end deployment first in sequence High % of indifferent customers Low energy prices and costs to deploy Biz case justified on operational grounds Minimal residential participation needed in initial stages Build foundation for community x-change AMI rollout in process or pilots are imminent Motivational mix, active stakeholders, media Costs may precede full benefits and offerings Inspiring vision to justify investment, slower ROI Community champions and influencers available and motivated to partner Reflect local social norms, phases, don t overpromise Practice incremental modernization efforts Limited stakeholder urgency or interest Pay as you go approach Customers or voters may be owners Pattern of community involvement in plans and decisions Emphasis on energy literacy for youth
11 Smart Grid Communications in Communications Framework: Distinct Tones and Goals Administrative Establish account, transfer, or discontinue service; provide contact info, collect preferred channels Transactional Balance notifications, payment options, bill design, activity portals, rebates News Notification of maintenance, visits to site, storm alerts, outages, restoration, responses to hot button issues Promotional Brand awareness, product announcements, ads, commercials, billboards, community events, contests Inspirational Vision, community connection of sustainability to + economics, + personal opportunity or impact, PSAs Documentary Scientific validation, behind the scenes, event coverage, human interest: real customer experiences Instructional How to? What is? How does? Peer-to-peer advice, Tell us what you think about Interactive Two-way exchange, customer generated content, peer-to-peer advice
12 Smart Grid Communications in Translating Communications Into Consumer Benefits Customer engagement strategy enabled by smart grid Bill Pay Options Customer Channels Smart Grid New Supply Options Managing Energy Tiered Service
13 Summary Consumers are receptive to smart grid but industry has struggled to date in regard to smart grid communications Differing opinions on why and what has to be done, but most stakeholders agree that it starts with having a comprehensive customer strategy Segmentation will be important segmentation of customers and channels tied to a communications framework Need to translate communications to the tangible tools and options to manage energy and costs
14 CONTACT Jamie Wimberly, CEO (202)
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