With more than 53,000 approved rates across U.S. utilities, customers have more options — and more control over their energy bills — than ever before. This is a tenfold increase over the past five years.
However, many utility customers are unaware of their rate options and the cost-saving benefits. If utilities want to achieve aggressive sustainability goals, it’s going to require a large percentage of utility customers to change their energy usage behaviors.
Recently Utility Dive shared an article about the importance of customer education within the energy sector.
With the growth of beneficial electrification, demand for electricity is at an all-time high. To ensure the electric grid can handle this rising demand, utilities are marketing dynamic pricing, like time-of-use (TOU) rates, at an accelerated pace. According to the Energy Information Administration (EIA), 63% of U.S. customers have a TOU rate plan available to them, but only 7.3% are enrolled.
As this data illustrates, utility customers are unaware of dynamic pricing and the potential benefits from both a savings and sustainability perspective. Since rate plans can be complex and difficult for the average customer to understand, utilities must make education a priority in marketing communications.
Utility customers don’t understand the complexity of a new rate or how they could benefit from it. To get more customers on board, education is key.
Without customer education, enrollments will lag behind.
Utilities need to explain the “what” and “why” of dynamic pricing without using complicated industry jargon. However, this is only one piece of the puzzle. Education should also familiarize customers with ideal energy usage behaviors, such as running appliances during off-peak periods. Customers may not realize that small changes to their lifestyle can dramatically increase savings.
Most customers will benefit from an alternative rate plan if they can shift their energy usage to off-peak times. However, they must first be aware of off-peak time periods and the benefits of changing their behavior.
Check out the complete article here.
About Deposit Alternatives
Deposit Alternatives, founded in 2016, is a leading innovator in the utility industry. Drawing on over seventy combined years of expertise in the utility and financial sectors, Deposit Alternative has disrupted the world of utility deposits to provide better service and greater customer satisfaction with innovative deposit solutions across the US.