National Grid has highlighted an “energy awareness gap” among consumers, with many left bamboozled by carbon jargon and struggling to understand how to consume electricity when it is at its greenest.
Despite much-publicised green milestones over the past year, National Grid’s research shows that 42 per cent of people think Britain gets only 10 per cent of its electricity from zero or low carbon sources, compared to the actual figure of 55 per cent.
Polling of just over 2,000 adults in March found that 38 per cent of UK adults feel hopeless about climate change and worry about the future of the planet. Half of the respondents said they would feel more hopeful if they understood the steps being taking towards reaching net zero. Meanwhile 41 per cent said they would feel more positive if they knew the cleanest time of day to use electricity.
Chief executive John Pettigrew said that as a principal partner of COP26, the company wanted to “give people hope by making them aware of the transformational changes taking place in the energy sector as we move towards a clean energy future”.
He added: “We know there is still lots to do, but by showing people the progress that’s been made and bringing them together to better understand energy consumption with tools like the Green Light Signal, collectively we can make a real and significant impact in the fight against climate change.”
One obstacle highlighted by National Grid’s survey was the use of carbon jargon, with 42 per cent having never heard the term “carbon neutral” and 61 per cent for “net zero”.
This is lower than the latest results from the Department for Business, Energy & Industrial Strategy’s Public Attitudes Tracker, which showed that as of December 2020, 76 per cent were aware of term, up from 52 per cent when the tracker was launched last March.
Consumers ‘willing to pay their part’ in net zero
There was also a more positive picture painted by a separate poll from PwC. Its Energy Retail Survey, also of 2,000 people and conducted in January, showed that 56 per cent were familiar with the term net zero. Of this cohort, 93 per cent said they cared about hitting the 2050 target. When net zero was explained to the remainder, 80 per cent were keen for the UK to reduce carbon emissions close to zero and replace fossil fuels in energy systems.
PwC said its figures show a significant shift away from a world in which customers were seen as only caring about two things when it comes to energy – price and customer service.
The survey revealed that 73 per cent of net-zero conscious consumers believe securing the right low-carbon tariff is as important as price, with 27 per cent willing to pay more for it. Some 60 per cent ranked a low-carbon tariff in the top three most important things when selecting a supplier.
The poll also showed that a third of customers are more inquisitive about their energy and want more data on their consumption patterns. They are also more likely to have invested in “low ticket” home energy technology, such as smart plugs, lighting, or heating. They are also looking to the future, with more than half hoping to be driving an electric vehicle with the next three years.
According to PwC, suppliers have a “window of opportunity” to differentiate their brand and products to appeal to this emerging consumer.
Michael Timar, head of power and utilities at PwC, said: “This convergence of attitudinal, environmental, and technological factors, producing the rise of a potentially underserved customer segment, is powerful. And given the direction of travel across society at large in respect to hybrid home-office working, greater ability to track usage and sustainability awareness, it is highly unlikely to slow in retail energy supply.
“Our research shows that consumers are now differentiating between the ‘type’ of energy they receive, which introduces the prospect of premium products that can align to customer’s concerns around carbon emissions. The time is now for energy companies to seize this opportunity and either reinforce or reposition their brand and their capabilities – if they don’t, they could lose out in the long run.”