Energy Losses Management Programme From Strategy to Implementation ‘Social Marketing Strategy Overview’

2 2 Content  Eskom Distribution’s Energy Losses Problem  ELP Public Awareness Campaign Approach  Understanding deviant behaviour  ELP Social Marketing Strategy  Integrated approach

3 3 Problem and Goal  Problem: Eskom is suffering revenue loss due to illegal connections across the spectrum from LPUs to SPUs  Distribution non-technical losses are fluctuating on a moving twelve month average between 6% and 5%  Goal: To get consumers to stop using electricity illegally and become legal, therefore contributing towards reducing the levels of non-technical energy losses caused by external issues including electricity theft, tampering, bypassing, etc.

4 4 ELP Public Awareness Campaign Approach  Solution lies in effecting behaviour-change  Traditional advertising or a communications campaign cannot change behaviour on its own  We use ‘Social Marketing’ … … applying commercial and innovative marketing technologies in behaviour-change programmes, with the aim of influencing the voluntary behaviour of target audiences for the greater good of the individual and society, whilst doing the most good for the company / organisation

5 5 Changing Deviant Behaviour  Change deviant behaviour to desired behaviour through: SYSTEMS & CONTROLS, CONSTRAINING MEASURES VALUES, CULTURE, EDUCATION, COMMUNICATION PERFORMANCE REWARD, INCENTIVES & RECOGNITION DETECTION, REPORTING, LAW ENFORCEMENT LEADERSHIP & SOCIAL MOBILISATION PERCEPTION MANAGEMENT

6 6 Social Marketing Strategy Objective  To influence the voluntary behaviour of Eskom customers to be legal electricity users by:  Reducing the number of illegal electricity customers  Mobilising consumers to report and prevent illegal connections  Building partnerships to deal with illegal electricity consumption

7 7 Strategy essence (1)  The essence of the strategy is built on two integrated pillars aimed at achieving a sustainable strategy with substance and impact: Objective: Behaviour-change towards legal electricity usage Compliance-based Pillar Code of Conduct Systems/Controls Audits Info management Detection Law Policies Reporting Pro-active Integrity- based Pillar Values, Self-regulation Integrity Standard Leadership visible Awareness, Info, feedback Unity, Commitment Peers, value drivers Partnerships Mobilisation A holistic approach based on a two- pillar strategy Social Marketing Campaign

8 8 Strategy essence (2)  Show target audiences the impact & risk of illegal use of electricity – on themselves, their community, the country  Show target audiences the benefits of legal electricity usage – how they can play a role in sustainable power for the country, equitably  Empower target audiences through partnerships, organised structures and mobilisation  The focus is on both LPUs/Large SPUs, and residential SPUs/PPUs.  The strategy will also have integration points with safety, infrastructure theft, energy efficiency and non-payment.

9 9 Channels : Not a traditional Advertisement Campaign  Traditional advertising still to be determined, but could include: ATL & BTL Elements ▬ Television ▬ Radio ▬ Viral SMS & ▬ Direct mail ▬ Print ▬ Outdoor ▬ Web ▬ Brochures ▬ Activations  Social marketing In addition to traditional advertising channels, we will be using: ▬ A social mobilisation effort at business and organised business level, and at individual and community level … building a movement for legal electricity usage among consumers and in the hearts and minds of ordinary South Africans ▬ Work with organisations and institutions that the LPUs, Large SPUs, residential SPUs and PPUs, and other citizens interact with on a regular basis, to mobilise and spread the message

10 Integrated Campaign Tenets Performance-based incentive for joint problem-solving approach (both individual and community incentives) INTEGRATED CAMPAIGN Drive desired behaviour through: Social Marketing (incl partnerships, mobilisation, etc) Restrictive measures (e.g. split metering, secure boxes, etc) Compliance measures (e.g Audits, law, policy, reporting line, etc)

11 Campaign Positioning  Overall theme to be explored for the campaign: Sustainability -: ▬ Energy/revenue loss = business/financial sustainability ▬ Energy efficiency = supply/environmental sustainability ▬ Safety = sustainability of life ▬ Illegal connections = financial sustainability ▬ Theft = infrastructure sustainability ▬ Non-payment = financial sustainability To be positioned as follows:

12 Message positioning Alignment with Eskom Brand Positioning Campaign theme: Sustainability Safe Electricity Safe Electricity Infrastructure Theft Infrastructure Theft Energy Efficiency Energy Efficiency Illegal Connections Illegal Connections Non- payment Non- payment Campaign: ELP Social Marketing Area specific messaging as per individual campaigns ELP & integrated campaign messaging The ELP Public Communications Strategy will be focused on its objective of reducing energy losses and ensuring operational sustainability, but the concept of sustainability is big enough and has “the legs” to walk across and touch all the points of integration

13 Thank You