Smart bills can reduce household consumption
Smart bills can reduce household electricity consumption by between 1.1% and 2.7% and gas consumption by between 2.2% and 2.8%, while at the same time proving cost-effective compared to other feedback and energy efficiency programs. These are some of the results revealed by the newly published global smart billing study performed by the global energy think tank, VaasaETT for the World Energy Council and ADEME.
VaasaETT performed a global study including 8 case studies covering: Victoria (Australia), California, Hong Kong, Sweden, Chile, Abu Dabi, South Africa and the Republic of Ireland. The study explores best practices in smart billing. Smart billing as a concept is about engaging with the energy customer via informative billing, which actively helps the customer to reduce their energy consumption. Households account for about 30% of the European Union’s final electricity consumption and so reducing household electricity consumption via smart billing is a potential way forward for the EU to reach its objective of being more energy efficient in the future.
Traditional Bills Are Simply Not Acceptable to Customers Any More
The smart bills have proven to be the most efficient when supported by adequate regulation and forming part of a bigger education and feedback package. Electricity companies need to provide bills that will let the customer compare normative energy use, explain to the customer how to actually reduce their consumption and how they benefit from changing behavior, show the progress by displaying historical consumption data, show the correlation between consumption and emissions and finally provide price transparency for the customer.
According to VaasaETT’s head of research, Christophe Dromacque “we now know how to reduce consumption through more innovative billing. Customers need more from their energy bills than most utilities currently give them. At a time of increasing energy bills and financial austerity, customers’ trust in energy companies will increasingly depend on bills that help customers to save on their energy costs”