Consumer Engagement. Good answers to tough questions. Jean-Paul Piques, Oct 10 th 2012 METERING EUROPE

Transcription

1 Consumer Engagement Good answers to tough questions Jean-Paul Piques, Oct 10 th 2012 METERING EUROPE

2 AGENDA 1. Where do we stand 2. Mitigating consumers concerns 3. Crafting the value proposition 4. Open ended conclusion

3 THE DECARBONISATION OF EUROPE S ENERGY SUPPLY EU Energy Policy to 2050: 80-95% EMISSIONS REDUCTIONS 34% RENEWABLE ELECTRICITY IN % RENEWABLES BY 2050

4 SMART METERING TODAY From a security of supply model to a Nation centric product design

5 SMART METERING POSITIONING Lexus and Infiniti Luxury cars, Tax attorney Versace designer clothes Cosmetic dentistry Pre-need funeral plans Cancer insurance policies Remedial math programs Specialty Goods Unsought Goods Convenience Goods Shopping Goods Impulse Items: Carwash, snack foods Staples: Gasoline, Bread. Emergency Items: Emergency room visit, Plumbing repair kit, Insect bite ointment Homogeneous: Washer and dryer, Gold s Gym, Auto insurance Heterogeneous: Child care, Furniture, Caribbean cruise

6 CONTEXT FOR CONSUMER ENGAGEMENT THE GROWING TIDE OF OPPOSITION» Security and Safety issues: Threats to network attacks from hackers. Possible health risks.» Privacy issues Smart meter will not be compulsory in Holland after consumer groups raised privacy concerns.» Higher costs for customers Deploying smart metering to customers across nations will cost Billions in capex. Who s going to pay?

7 CONSUMER ENGAGEMENT STRATEGY Step 1: Mitigating consumer concerns around Smart Metering

8 COMPARISON OF RF LEVELS IN MICROWATTS/CM 2

9 SECURITY AND DATA PRIVACY» AMR: same data one would see on meter itself» AMI: System provides in-depth security: encryption of data, authentication of messages, key management; can extend to protect meter s optical port» AMI: No personally identifiable info transits the network» AMI threat profile extremely low relative to other consumer activities (e.g. on-line banking, e-commerce, social media)» AMI meets all applicable NIST and NERC CIP requirements» AMI meters do not measure usage by individual devices in home. 9

10 DATA OWNERSHIP

11 CONSUMER ENGAGEMENT STRATEGY Step 2: Craft the Smart Grid Value Proposition

12 OPTIMIZE THE GRID

13 INTEGRATE CLEAN ENERGY

14 EMPOWER CONSUMERS

15 EFFECTIVE SEGMENTATION Different Technologies for Different Consumers Affluent ~ 20% Traditional ~ 11% Low income ~ 16% Young ~ 23% Concerned Greens ~ 31%

16 WHAT DO CONSUMERS WANT? Motivation Concerned Greens - 31% Young-23% Affluent-20% Low Income 16% Traditional-11% Primary Message Control and Environment Budget and Environment Comfort Cost savings Budget and Comfort Economic Benefits Save energy Minimize waste Protect the Environment Save money, save energy Dynamic pricing Payment options (credit / debit) Not interested Save money Dynamic pricing Payment options (credit / debit) Save money Dynamic pricing Payment options (credit / debit) Technology Benefits One Product Does Not Fit All. Act Now! Open to Smart Metering Require high level of functionalities Save money and help the environment! Open to smart metering Cost sensitive Require Modularity Big toy, big spend! Open to smart metering Sensitive to new energy services Save money with My meter! Pre-payment customers Require ease of use and low cost Opt in/ Opt out Image Benefits From Security of Supply to Consumer centric. Participate in Energy Management Programs Active in Green social networks Enhance goodwill through caring image High tech hot gadget. Participate in home automation. Increase customer goodwill through socially minded image. Manage negative goodwill through staged messaging program.

17 IS IT ENOUGH?

18 CONSUMER ENGAGEMENT BEST PRACTICES Motivational campaigns Incentives Programs Education Address Minority issues Trust Engagement strategies and services Consumer Engagement Goodwill

19 From a Nation centric product Design To Customer Centric Applications..

20 MARKET DNO Demand Response Revenue Protection RETAILER Revenue Collection Demand Response Consumer Engagement ENERGY SERVICE PROVIDER Home Energy Management Distributed Generation EV Control Consumer Engagement HAN GPRS SMART PAYMENT ECOSYSTEMS RF NETWORK PLC Well off CONSUMER CONSUMER Home Energy Management Distributed Generation EV Control Revenue Collection Consumer Engagement

21 THANK YOU