American Consumers Financially Driven to Demand Response Programmes

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24th June 2014 14:22 - Utilities

Results from parago’s energy survey shows that although awareness for demand response programmes (DRP) is low, with the right incentives American customers are willing to sign-up.

Electric energy companies are trying to drive participation for DRP – a programme designed to reduce or shift customers’ electricity usage during peak periods – to boost bottom lines and ease the burden on the nation’s electric grid.

Of those surveyed, just 14% said they currently use the programme, with almost nine out of 10 (87%) American’s saying they would use it if the right monetary incentives were offered.

Lower monthly bills (70%) were the most popular form of enticement, with prepaid cards based on the amount of energy saved (27%) a distant second. Other welcomed incentives include:

  • Prepaid cards reloaded at energy saving milestones (up to$200 a year) – 25%
  • Free energy saving equipment when signing up – 25%
  • Prepaid cards for meeting monthly energy saving goals – 24%

Less than one sixth (13%) said none of the above would encourage them to sign-up. Collectively, 84% of Americans were financially driven, with less than one tenth (6%) motivated by environmental concerns.

Awareness of the programme, however, was low. Half of respondents did not know if their energy supplier offered the programme, with 25% believing their provider does not offer DRP. Less than one sixth (14%) said they knew about the programme and that they were involved with one or more, and 12% know their utility company offers the programme, but choose not to participate.

Of those who are already using DRP, two out of three are not satisfied or not sure about the rewards available and the communication they receive regarding the programmes:

  Not satisfied/not sure Very satisfied/satisfied
Rewards given 69% 31%
Utility bill discounts 67% 33%
Information & help
from utility provider
53% 47%
Clarity of information
about days required
49% 51%

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