Attitudes around buying gas and electricity with

smart pay-as-you-go

November 2014
EMBARGOED UNTIL: 00:01 MONDAY 17 NOV 2014
Contents
― Background & methodology
E D
G O
― The smart pay-as-you-go concept

AR
― Benefits of smart pay-as-you-go

M B
- E
― Using a smartphone app

F T
R A
D
― Overall interest
Background & methodology
Objectives and approach

E D
O
A short survey examining the appetite and interest for using smart meters operating in pay-as-

G
R
you-go mode.

Approach

B A
― A bespoke 10 minute online survey

- E M
T
― A total of 3,710 GB Nat Rep sample was achieved, this included boosts for both The North

F
East and Wales

R A
― 18 years+, with quotas on: age, gender, region, SEG to ensure a robust GB representative

D
sample design

― Data collection between: 9th - 14th October 2014

4
Respondent demographics

E D
O
Gender Age Social Grade Region

47 Average age

R G
A
22% 18-24 24% DE
37%

B
15% 25-34
22% 46%
35-44 C2
49% 51% 18%

M
17% 45-54 35% 28% C1 9%

E
17% 55-64
27% AB 55%

-
12% 65+ 29%
4%

F T
11%
Bill Payment Method 9%
Property type Housing Tenure

A
NET: Either Gas/Electric 7%

R
9% 10%
5%

D
17%
Pre-payment meter (PPM, or
Detached: 20% Semi: 33% card or key meter)
Own: 59% 13%
Direct Debit/Standing Order
69% 9% 14%
Quarterly bill (payment on
demand)

Terraced: 23% Maisonette/ Rent: 39% 13% Other/DK

Flats : 21% Non-prepayment

customers
Q1 Gender, Q2 Age, Q3 Region, Q8 House Tenure, Q17 Property Type, Q22 Social Grade 5
Base: All respondents
Introducing smart meters operating
in pay-as-you-go mode
The smart pay-as-you-go concept

E D
G O
Every household will be offered a smart meter in the next six years. Smart meters will allow you to choose
whether to pay for your energy in credit or pay-as-you-go mode. With pay-as-you-go you can top up your

AR
credit quickly and easily, perhaps online, over the phone, or via a smart phone app. You will also be able to
pay in cash at a convenient pay point with credit being loaded automatically onto your meter when you pay.

B
You will not have to access the meter itself.

E M
pay-as-you-go will not have to be more expensive than other ways of paying. Your meter will also be able to

-
change quickly and easily, between pay-as-you-go and other payment methods, such as direct debit, or

T
quarterly bills, should you want to.

A F
Smart meters will all have a handheld device, or IHD (In Home Display) which you can keep in a convenient

R
location, such as the kitchen. When the meter is in pay-as-you-go mode this device will clearly tell you how

D
much credit you have left and will also show you how much you have spent in the last day, week, month
and year. It will also alert you if credit is getting low, potentially via an app on your smart phone, if this is
convenient for you.

7
Benefits of smart meters operating in pay-as-you-go
mode
Amongst the population more accessibility of information and greater levels of
control/ management are seen to be the biggest benefits

E D
O
Agreement with potential benefits of a smart meter operating in pay-as-you-go mode – All respondents

G
Handheld device

R
100%

A
Manage credit over the phone Manage credit online
80%

B
74%
60%

E M
65%
40%
50%

-
20%

F T
Manage credit w/smartphone app 53% 0% 64% Greater control over spend

R A
D
57%
62%

61%

Never go into debt with energy co Convenient to manage budget

Top 2 box scores

All Respondents Switch between PAYG other methods

Q.11/12 Listed below are a number of potential benefits of a smart meter operating in pay-as-you-go mode. For each one can 9
you indicate whether you agree or disagree that it will benefit you?
Base: All respondents 3710
Amongst the population, younger audiences identify more with the benefits

E D
O
Agreement with potential benefits of a smart meter operating in pay-as-you-go mode – Demographic age breaks

G
Handheld device

R
100%

A
Manage credit over the phone Manage credit online
80%

B
75%
60%

M
69%

E
69%
55% 40%

-
59%
43% 20%

F T
Manage credit w/smartphone app 68% 36% 0% 58% 71% Greater control over spend

R A
55%
55%
57%

D
58%
68%

63%

Never go into debt with energy co Convenient to manage budget

Top 2 box scores

All Respondents Switch between
18-34 55+PAYG other methods

Q.11/12 Listed below are a number of potential benefits of a smart meter operating in pay-as-you-go mode. For each one can 10
you indicate whether you agree or disagree that it will benefit you?
Base: All Respondents 3710, Age 990-1389
Amongst the GB population, those situated in the North identify much more with the
benefits offered through a smart meter operating in pay-as-you-go mode

E D
O
Regional agreement with potential benefits of a smart meter operating in pay-as-you-go mode – All Respondents

R G
A
Total Scotland North East North Yorks/ East of South
Humber West Mids East Mids Wales London South East

B
West England West

M
Handheld device 74% 70% 82% 76% 75% 70% 74% 76% 74% 67% 75% 77%

- E
Manage credit online 65% 61% 71% 71% 67% 62% 67% 69% 62% 62% 65% 60%

T
Greater control over spend 64% 65% 70% 69% 64% 62% 61% 64% 65% 62% 63% 63%

F
62%

A
Convenient to manage budget 60% 68% 64% 64% 60% 62% 65% 61% 61% 59% 63%

R
Switch between PAYG other methods 61% 59% 66% 67% 61% 56% 61% 64% 60% 56% 64% 59%

D
Never go into debt with energy co 57% 56% 66% 61% 58% 53% 57% 60% 57% 52% 57% 59%

Manage credit w/smartphone app 53% 51% 60% 58% 56% 50% 52% 56% 48% 56% 51% 53%

Manage credit over the phone 50% 47% 59% 54% 52% 48% 49% 54% 47% 49% 49% 51%

Top 2 box scores

Q.11/12 Listed below are a number of potential benefits of a smart meter operating in pay-as-you-go mode. For each one can 11
you indicate whether you agree or disagree that it will benefit you?
Base: All Respondents 3710 Regions 233-510
Benefits resonate more amongst current prepayment customers, particularly
with regards to added convenience and control

E D
O
Agreement with potential benefits of a smart meter operating in pay-as-you-go mode – All respondents

G
Handheld device

R
100%

A
Manage credit over the phone Manage credit online
80%

B
76%
60%

M
73% 69%

E
60% 40%

-
64%
48% 20%

F T
Manage credit w/smartphone app 65% 51% 0% 62% 73% Greater control over spend

R A 55%
59%

D
60%
67%
74%
64%

Never go into debt with energy co Convenient to manage budget

Top 2 box scores

Prepay Non-Prepay SwitchAll
between PAYG other methods
Respondents

Q.11/12 Listed below are a number of potential benefits of a smart meter operating in pay-as-you-go mode. For each one can 12
you indicate whether you agree or disagree that it will benefit you?
Base: All non-prepayment customers 3067 , All prepayment customers 634
Amongst non-prepayment customers, more accessibility of information and
greater levels of control/ management are seen to be the biggest benefits

E D
O
Agreement with potential benefits of a smart meter operating in pay-as-you-go mode – Non-prepayment customers
Handheld device

Manage credit over phone

100%

R G
Manage credit online

A
73%80%

B
60%
64%

M
48% 40%

- E
Never worry about bill 20% Greater control over spend
51% 62%

T
0%

A F 51%

R
60%

D
Manage credit w/smartphone app 55% 59% Switch between PAYG and other methods

Never go into debt with energy co. Convenient to manage budget

Top 2 box scores Agreement w/statement

Q.11 Listed below are a number of potential benefits of a smart meter operating in pay-as-you-go mode. For each one can you 13
indicate whether you agree or disagree that it will benefit you?
Base: All non-prepayment customers 3067, Group renters (non-prepayment) 174 – See notes for specific wording
Benefits resonate more amongst females than males, in particular, managing

D
credit with a smartphone app, never going into debt and having greater control
Agreement with potential benefits of a smart meter operating in pay-as-you-go mode – Non-prepayment customers M/F
Handheld device

O E
R G
100%
Manage credit over phone Manage credit online

A
76%80%

B
60%
66%

M
71%
51%

E
40%
62%

-
Never worry about bill 46% 20% Greater control over spend
66%

T
54% 58%
48%

F
0%

A
44%
57%

R
51%
57% 57% 63%

D Manage credit w/smartphone app 60% 62% Switch between PAYG and other methods

Never go into debt with energy co. Convenient to manage budget

Top 2 box scores Males Females

Q.11 Listed below are a number of potential benefits of a smart meter operating in pay-as-you-go mode. For each one can you 14
indicate whether you agree or disagree that it will benefit you?
Base: All non-prepayment customers, Males 1513, Females 1563
7 in 10 prepayment customers agree that not needing to access the meter, top
up at a shop or pay more for their energy would be a benefit to them

E D
O
Agreement with potential benefits of a smart meter operating in pay-as-you-go mode – Prepayment customers
Handheld device

G
Not have a different meter 100% Convenient to manage budget

R
76%80%

B A
74%
Manage credit over the phone 60% Greater control over spend
53%

M
40% 73%

E
60%

-
20%

T
Switch between PAYG other methods 64% 0% 71% No need to top up at shop

A F
R
65% 70%

D
Manage credit w/smartphone app 67% No need to pay more
69%
69%

Never go into debt with energy co No need to access meter

Manage credit online
Top 2 box scores Agreement w/statement

Q.12 Listed below are a number of potential benefits of a smart meter operating in pay-as-you-go mode. For each one can you 15
indicate whether you agree or disagree that it will benefit you?
Base: All prepayment customers 634, Prepayment group renters 54 – See notes for specific wording
Not having a different meter from other customers is seen as more of a benefit
by females compared to male prepayment customers

E D
O
Agreement with potential benefits of a smart meter operating in pay-as-you-go mode – Prepayment customers M/F
Handheld device

G
Not have a different meter Convenient to manage budget

R
100%

A
77%
80%

B
77%
Manage credit over the phone 60% Greater control over spend
74%

M
57%
71% 76%

E
63% 40%

-
49% 70%
56% 20%

F T
Switch between PAYG other methods 67% 61% 0% 67% 74% No need to top up at shop

A
60%

R
69%
69%

D
65% 67% 71%
65%
Manage credit w/smartphone app 68% No need to pay more
71%
72%

Never go into debt with energy co No need to access meter

Top 2 box scores Males Females Manage credit online

Q.12 Listed below are a number of potential benefits of a smart meter operating in pay-as-you-go mode. For each one can you 16
indicate whether you agree or disagree that it will benefit you?
Base: All prepayment customers Males 292, Females, 342
Using a smartphone app
There is an appetite for using a smartphone app, particularly
amongst prepayment customers and group renters
E D
O
% who selected at least one benefit of a smartphone app

R G
57% would use a
74%
B A
80% 61% 35% 59% 55%
smartphone app

- E M
T
Prepayment Those in fuel Those with a
18-34 35-54 55+

F
customers poverty disability
Age

R A
63%
D61%

Yorks/
61% 60% 59% 59% 58% 56% 53% 52% 47%

East of
London North West North East East Mids Scotland Wales West Mids South East South West
Humber England

Q.13 A smart meter operating in pay-as-you-go mode could allow you to top up using a smartphone app. For which of the 18
following reasons, if any, would you use a smartphone app?
Base: All respondents 3710 Regions 233 – 510 Groups of interest 228-634
Overall interest
48% of the GB population are interested in using a smart meter operating in
pay-as-you-go mode

E D
O
Overall interest using a smart meter operating in pay-as-you-go mode

G
Total GB population and regional breaks

Net Interested:
48%

AR
Total 48%

Very interested 20%

M B
North East 57%

E
Yorks/ Humber 51%

-
Fairly interested North West 50%

T
28% Scotland 50%

F
Neither
Wales 49%

R A 16% South West 48%

Not very in-

D
terested South East 47%
13%
London 47%
Not at all in-
terested East Mids 47%
20%
West Mids 46%
East of England 40%

Q.14 Overall, how interested would you be in using a smart meter operating in pay-as-you-go mode? 20
Base: All respondents 3710 Regions 233 – 510
59% of 18-34 year olds are interested in using a smart meter operating in pay-as-you-
go mode

E D
O
Overall interest using a smart meter operating in pay-as-you-go mode

G
Total GB population versus demographic groups

Net Interested:
48%

AR
Total 48%

Very interested 20%

M B
E
18-34 59%

-
Fairly interested

T
Age
28% 35-54 52%

F
Neither
55+ 35%

Not very in-

R A 16%
Male 46%

D Gender
terested
13% Female 49%
Not at all in-
terested ABC1 46%
20% SEG

C2DE 50%

Q.14 Overall, how interested would you be in using a smart meter operating in pay-as-you-go mode? 21
Base: All respondents 3710