IEEE Power & Energy Magazine - January/February 2017 - 56

displays (IHDs) but also more static measures such as labels
relating to the energy performance of buildings and a host
of energy-using appliances. With or without IHDs, smart
meters facilitate large-scale flexibility by allowing control of
electricity use remotely.
Smart meters provide consumers with real-time information on their energy consumption via IHDs, websites, or
mobile apps. This is an advantage over traditional communication methods, where more generic information was provided via billing or other (paper-based) information. With
Information and Feedback
Another category of instruments or interventions relates smart meters, utilities can tailor the information provided to
to the provision of feedback and information. This can a particular costumer in real time, which is considered a great
have several objectives. First, information policies may be advantage for both the consumer and the utility. This inforrequired to increase knowledge and raise awareness among mation could be related to individual energy consumption,
consumers as to the importance of their energy decisions. prices, forecasts of future energy use, generation sources,
Many governments have introduced mandates to provide and payments. Targeted information to the individual user
information to consumers on their energy use. This includes has been shown to be more effective in changing behavior
feedback technologies such as smart meters with in-house than generic information. Providing tailored information in
real-time is important to avoid overload or redundancy, which would be
counterproductive in increasing consumers' knowledge and awareness of
What Organizations Do You Trust to Inform You About Actions You Can Take
to Optimize Your Electricity Consumption?
their energy consumption.
Although the provision of inforDo Not Trust Neither Trust Nor Distrust Trust
mation can be effective in making
13
13
20
consumers' energy behavior more
28
29
flexible, the effects are fairly small
49
51
53
(in the range of 5-15%) and tend to
be short term. It has been suggested
59
60
48
that to create a long-term learning
46
66
effect, consumers need help in inter43
36
preting their energy consumption
42
and frequent reminders, which can
28
27
26
25
be accomplished by adding infor14
11
8
7
mation on the consequences of their
consumption (e.g., financial consequences or carbon footprint). Also,
combining energy consumption with
feedback about one's own historical
energy use, others' energy use (e.g.,
neighbors or "similar" consumers)
can be effective. The electric utility
OPOWER in the United States, for
example, has had success using this
technique with their consumers.
An important note: it is crucial
that consumers trust both the information and the provider of it if this
*e.g., Google, Microsoft
technique is to have any effect. Fig**e.g., Cable Television Providers, Telecommunication Providers, Home
ure 3 shows that the same informaSecurity Companies
tion may be trusted when it comes
from one source but not when it
comes from another. That is, inforfigure 3. Consumers' level of trust in sources that provide information on actions
mation on how to optimize one's
they can take to optimize their electricity consumption. (Data derived from Accenture, Understanding Consumer Preferences in Energy Efficiency, 2010.)
electricity consumption is deemed
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ieee power & energy magazine

Environmental Associations

Academics/Schools/Scientific Associations

Consumer Associations

Utilities/ Electricity Provides

Government/Governmental Organizations

Online Service Providers**

Retainers/Equipment Manufactures

Home Service Provides**

showed that the introduction of ToU tariffs could shift the
energy consumption at peak times to off-peak hours by 8%.
However, average consumption was found to reduce little
or remain the same. If energy efficiency is also a goal, ToU
tariffs should be combined with the provision of information on energy consumption and costs (e.g., feedback information through paper bills and technology displays or
smart meters).

january/february 2017

Table of Contents for the Digital Edition of IEEE Power & Energy Magazine - January/February 2017