Prove it: generating commercial evidence on behaviour change for UK government policy making a case study on smart meters Dr. Jeremy Vincent; Behaviour, Energy & Climate Change conference, 17 th October 2017 1
Smart Metering Implementation Programme Conservative Party manifesto commitment: Ensure that smart meters will be offered to every household and business by the end of 2020, giving people control over their energy bills that they have not had before. Great Britain (Northern Ireland excluded) roll-out: ~53 million meters to be replaced by end 2020; nearly 7.7 million meters now operated in smart mode by large energy suppliers in residential properties Biggest change in British retail energy market since privatisation. Objectives include energy saving, consumer engagement, improved customer service and competition, smart grids o Design stage: prospectus 2010 o Foundation stage: 2011-2015 o Main installation stage: 2016-2020 2
Programme depends on successful delivery by multiple players Industry Government Regulator 3
Government research programme Energy Demand Research Project (EDRP 2007-10) COI Evidence review on behaviour change (2010) Qualitative research to inform policy design and consumer engagement strategy(201 0-12) Tracking public awareness and response (on-going) Large-scale study into early experiences of the roll out (2015) Smart Metering Energy Efficiency Advice Project (2017) IHD alternative trials (underway) Longitudinal consumer research (underway) Mystery shopping (underway) Design Foundation Main installation stage
Other evidence used for policy-making Evidence generated by and with energy suppliers: Trials during foundation stage Provide quarterly data on installations Facilitate access to consumers for government research Published research by academics and others 5
In-Home Display is key means of prompting customer behaviour change Suppliers required to: Offer and install smart meters to all residential customers Offer In-Home Display for easy access to near real-time information on energy consumption and tariff information Provide energy efficiency advice at installation Projected energy consumption reductions of 2.8% for electricity and 2% for gas (credit) customers 6
Theory for enabling energy reduction Exposure to general awareness raising activities Engagement with installation of smart meter Engagement with (information generated by) smart meter Making changes in energy consumption 7
Alternative energy feedback approaches* 8
Trials to test alternatives to In-Home Display Differing interventions, methods and timescales Analytical capability Quality assurance of implementation and evaluation Commercial sensitivities publish synthesis findings only Government has: o Published guidance for trials considered sufficient quality o Encouraged suppliers to sub-contract analytical capability o Reviewed analysis plans and agreed reporting milestones o Commissioned behaviouralists to assure and synthesise 9
Other emerging evidence sources University College London led consortium awarded ~$8m grant (2017-2022) to develop Smart Meters Research Portal to allow researchers to access data: Data linking Data repository to facilitate secondary analysis Energy Advice Service for consumers that request use of their smart meter data for this purpose Consumer and behavioural research from Smart Energy GB 10
Conclusions Opportunities for expanding the evidence base and learning potential to support policy development and evaluation Challenges around delivery across partners and evidence synthesis Forthcoming opportunities presented by data Questions and suggestions? 11
Jeremy.Vincent@beis.gov.uk 2015 Early Learning Project 2016 Derogation trials guidance and approved applications 2017 Energy Efficiency Advice Project 2017 customer experience study Smart Meter Research Portal * Sourced from Mendoca (2016), Séminaire de Recherche en Economie de l'energie, Paris & Geelen, D. et al (2016), The effect of direct feedback apps on households energy savings, Behave Conference DECCCHD-40-4748 12