What role will household consumer behaviour play in the future of our electricity networks?

CitySmart undertook an Australia-wide research project for Energy Consumers Australia to uncover how consumer households make decisions and develop habits around electricity purchase and consumption.

With moves towards electricity pricing reform and Time-of Use pricing in Australia, the aim of the study was to understand the changing needs of consumers in the digital age pending the introduction of these new pricing structures for electricity.

Key insights from the study included:

• Electricity buying decisions vary between households based on their decision-making style.
• When communicating with consumers, they want plain language with no jargon, focusing on the key benefits and actions required to lower costs rather than technical explanations about pricing
• Consumers don’t think they can control their electricity, which shows the importance for a feedback loop like digital smart meters that help consumers monitor their use.

The researchers identified a set of six household consumer segments that differ in the way they set goals, make decisions, gather information and use technology.

Understanding these segments will prove useful in a whole range of scenarios; whether it’s educating people about choosing electricity tariffs, helping change energy-use habits, or delivering smartphone apps to help them take control of energy use.

CONCLUSION

The research project's insights about electricity consumers are useful well beyond questions of tariff reform. Its findings are particularly valuable to developing energy policy, and to any stakeholder in the energy supply chain developing consumer messages and digital solutions for households.