Greater Energy Use Information Empowers Consumers

Smart meters combined with enhanced information from utilities could significantly reduce electricity consumption and costs, according to a new report from the American Council for an Energy-Efficient Economy (ACEEE).
 
Researchers reviewed 57 different residential utility sector feedback programs between 1974 and 2010 and found significant potential benefits of greater communication between utilities and consumers. Feedback on energy-use can empower consumers to reduce wasted energy and consumption by 4 to 12 percent. If robust feedback programs were implemented by all the nation’s electric utilities, consumers could save $2 to $5 billion dollars on energy costs by 2030.
 
Researchers also highlighted solutions like dynamic pricing – a key component of competitive markets – as critical to unlocking greater consumer participation. Innovations like this are created when market participants in restructured states compete against each other to provide the best possible service at the lowest cost in order to attract and retain customers. Comparatively, incumbent power providers in monopoly-regulated states have no incentive to innovate or lower costs because their ratepayers are held captive without other options.
 
This report shows when consumers are given information about price signals, they are incentivized to make smart decisions about their energy use. More efficient energy use reduces emissions, saves money and increases system reliability. We welcome ACEEE’s findings that more transparency and greater access to information for consumers – hallmarks of competitive markets – yield significant environmental and economic results.

Joel Malina | July 26, 2010