Going Green: Ensuring Customer BuyIn

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Going Green Ensuring Customer Buy-In

• Gearóid Lane
• Managing Director, British Gas New Energy
• Climate Change 07 Creating a Low Carbon Economy
• 5th September 2007

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Consumers havent yet fully accepted their role
in tackling climate change
Environmental damage Who is most at fault for
causing/responsible for tackling?
Most responsible for tackling
Most at fault for causing
Source HCHLV Planning for Consumer Change 2007
Source HCHLV Planning for Consumer Change 2007
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Green Turning Point

• Shift in public attitude towards green living
• Real consumer demand emerging
• Looking back what will the view be in five years
  time?
• Opportunity - to stimulate demand and clear up
  confusion
• Risk - that we kill off demand and create apathy

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Henley Centre research
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Energy saving starts at home .

• We face a huge environmental challenge
• Energy use accounts for around 27 of the average
  UK households carbon footprint
• EST Rise of the Machines report clearly shows
  the extent of the problem
• Henley Centre highlights 34 of people feel bad
  about not living as ethically as they would like
  to
• Higher energy costs have led consumers to
  proactively seek ways to save money/ use less
  energy
• but high energy prices no longer the only
  stimulus

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Energy Supply Companies have unique positioning

• Energy supplier linked to biggest individual
  component of consumers carbon footprint
• We have expertise and technologies to make
  significant difference to footprint
• We can cut through noise and provide clear,
  simple, trusted messages to consumers
• We can help customers take the first steps with
  through innovative partnerships and campaigns
• We can supply high quality products and services
  that customers know will make a real difference
• We have the legislative basis to work with
  Government to find the right balance between
  sticks and carrots
• This positioning brings a huge responsibility
  energy companies must not blow the opportunity
  by
• Adding to customer confusion
• Providing products and services that dont make a
  difference
• Paying lip service to the green agenda rather
  than really engaging

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Case for focusing on homes is clear now
business can help remove the barriers to being
energy efficient

• BUT NOW
• Consumers more and more aware of own
  environmental impact want to know more about
  their carbon footprint
• Appetite for options on what they can do to save
  energy and tackle climate change
• Now looking for expert advice, help and options

BEFORE - Mixture of apathy, lack of understanding
and real barriers. NOW - Increasing evidence of
desire to reduce carbon footprint
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Encouraging energy efficiency
Our Energy Savers Report is one of the biggest
energy efficiency surveys ever undertaken and
shows a rising level of demand for green advice

• Seventeen simple questions covering basic details
  of house
• Produces personalised report
• Rates home on A to G scale
• Provides an environmental rating for home
• Provides summary of recommended energy efficiency
  measures
• Itemises potential energy savings
• 1.5m households have participated, a response
  rate of more than 20
• Customer feedback indicates 51 will take some
  action as a result
• Evidence of 10 reduction in energy demand as a
  result of ESR

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Analysis of the Energy Savers Report responses
provides some interesting insights about Britain
Encouraging energy efficiency
Potential Rating
Current Rating

• Average D rating for Britain
• Potential to be a high C
• Red areas rated a D or less

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Incentivising energy efficiency
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Our successful Council Tax rebate programme is
another great example of active engagement the
results speak for themselves
Proposition
Marketing
Customer Benefit

• 60 said they preferred to receive the discount
  on the Council Tax bill rather than a straight
  product discount
• 35 of customers said they would not have
  purchased insulation if it wasnt for the Council
  Tax rebate
• And we recently launched a solar proposition
  across 6 LAs in England, covering approx 330,000
  households

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Products services that deliver credibility

• Greenest Energy Tariff
• If I sign up for this green energy product, will
  environmental
• benefits occur that would not have happened
  anyway?
• Zero Carbon launched July 07
• Greenest energy tariff available on the market
• Delivers 2.5 times the new renewable energy than
  government requires
• Ofgem / EST consultation
• Opportunity to establish fair and honest playing
  field
• Does it do what it says on the tin?

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Summary British Gas is well positioned to lead
in the low carbon future

• Energy saving starts at home
• Clear evidence of active consumer engagement
• Energy companies can help stimulate and satisfy
  consumer demand
• We can also help public sector meet carbon
  reduction targets
• British Gas uniquely positioned in low carbon
  energy services

• Step 1 Helping customers start the journey
• Engaging tools such as Energy Savers Report
• Step 2 Provide tools and ease of take-up
• Local Authority partnerships, innovative
  campaigns
• Step 3 Deliver credible products and services
  that make a difference
• Lowest carbon intensity, green energy, carbon
  offsets
• Through step 1 to 3 - Provide good quality
  education