1. November 2014 Attitudes around buying gas and electricity with smart pay-as-you-go

2. Contents ―Background & methodology ―The smart pay-as-you-go concept ―Benefits of smart pay-as-you-go ―Using a smartphone app ―Overall interest

3. Background & methodology

4. 4 A short survey examining the appetite and interest for using smart meters operating in pay-as- you-go mode. Approach ―A bespoke 10 minute online survey ―A total of 3,710 GB Nat Rep sample was achieved, this included boosts for both The North East and Wales ―18 years+, with quotas on: age, gender, region, SEG to ensure a robust GB representative sample design ―Data collection between: 9 th - 14th October 2014 Objectives and approach

5. 5 Respondent demographics Q1 Gender, Q2 Age, Q3 Region, Q8 House Tenure, Q17 Property Type, Q22 Social Grade Base: All respondents 51%49% 47 Average age Region 35% 37% 29% 7% 9% 10% 13% 9% 4% 11% 9% 5% 14% 9% GenderAge Property type Social Grade 55% 46% Housing Tenure Terraced: 23% Detached: 20% Semi: 33% Maisonette/ Flats : 21% Own: 59% Rent: 39% Bill Payment Method NET: Either Gas/Electric Non-prepayment customers

6. Introducing smart meters operating in pay-as-you-go mode

7. 7 The smart pay-as-you-go concept Every household will be offered a smart meter in the next six years. Smart meters will allow you to choose whether to pay for your energy in credit or pay-as-you-go mode. With pay-as-you-go you can top up your credit quickly and easily, perhaps online, over the phone, or via a smart phone app. You will also be able to pay in cash at a convenient pay point with credit being loaded automatically onto your meter when you pay. You will not have to access the meter itself. pay-as-you-go will not have to be more expensive than other ways of paying. Your meter will also be able to change quickly and easily, between pay-as-you-go and other payment methods, such as direct debit, or quarterly bills, should you want to. Smart meters will all have a handheld device, or IHD (In Home Display) which you can keep in a convenient location, such as the kitchen. When the meter is in pay-as-you-go mode this device will clearly tell you how much credit you have left and will also show you how much you have spent in the last day, week, month and year. It will also alert you if credit is getting low, potentially via an app on your smart phone, if this is convenient for you.

8. Benefits of smart meters operating in pay-as-you- go mode

9. 9 Amongst the population more accessibility of information and greater levels of control/ management are seen to be the biggest benefits Q.11/12 Listed below are a number of potential benefits of a smart meter operating in pay-as-you-go mode. For each one can you indicate whether you agree or disagree that it will benefit you? Base: All respondents 3710 Agreement with potential benefits of a smart meter operating in pay-as-you-go mode – All respondents Top 2 box scores

10. 10 Amongst the population, younger audiences identify more with the benefits Q.11/12 Listed below are a number of potential benefits of a smart meter operating in pay-as-you-go mode. For each one can you indicate whether you agree or disagree that it will benefit you? Base: All Respondents 3710, Age 990-1389 Agreement with potential benefits of a smart meter operating in pay-as-you-go mode – Demographic age breaks Top 2 box scores

11. TotalScotlandNorth East North West Yorks/ Humber West MidsEast MidsWales East of England LondonSouth East South West Handheld device 74% 70%82%76%75%70%74%76%74%67%75%77% Manage credit online 65% 61%71% 67%62%67%69%62% 65%60% Greater control over spend 64% 65%70%69%64%62%61%64%65%62%63% Convenient to manage budget 62% 60%68%64% 60%62%65%61% 59%63% Switch between PAYG other methods 61% 59%66%67%61%56%61%64%60%56%64%59% Never go into debt with energy co 57% 56%66%61%58%53%57%60%57%52%57%59% Manage credit w/smartphone app 53% 51%60%58%56%50%52%56%48%56%51%53% Manage credit over the phone 50% 47%59%54%52%48%49%54%47%49% 51% 11 Amongst the GB population, those situated in the North identify much more with the benefits offered through a smart meter operating in pay-as-you-go mode Q.11/12 Listed below are a number of potential benefits of a smart meter operating in pay-as-you-go mode. For each one can you indicate whether you agree or disagree that it will benefit you? Base: All Respondents 3710 Regions 233-510 Regional agreement with potential benefits of a smart meter operating in pay-as-you-go mode – All Respondents Top 2 box scores

12. 12 Benefits resonate more amongst current prepayment customers, particularly with regards to added convenience and control Q.11/12 Listed below are a number of potential benefits of a smart meter operating in pay-as-you-go mode. For each one can you indicate whether you agree or disagree that it will benefit you? Base: All non-prepayment customers 3067, All prepayment customers 634 Agreement with potential benefits of a smart meter operating in pay-as-you-go mode – All respondents Top 2 box scores

13. 13 Amongst non-prepayment customers, more accessibility of information and greater levels of control/ management are seen to be the biggest benefits Q.11 Listed below are a number of potential benefits of a smart meter operating in pay-as-you-go mode. For each one can you indicate whether you agree or disagree that it will benefit you? Base: All non-prepayment customers 3067, Group renters (non-prepayment) 174 – See notes for specific wording Agreement with potential benefits of a smart meter operating in pay-as-you-go mode – Non-prepayment customers Top 2 box scores

14. 14 Benefits resonate more amongst females than males, in particular, managing credit with a smartphone app, never going into debt and having greater control Q.11 Listed below are a number of potential benefits of a smart meter operating in pay-as-you-go mode. For each one can you indicate whether you agree or disagree that it will benefit you? Base: All non-prepayment customers, Males 1513, Females 1563 Agreement with potential benefits of a smart meter operating in pay-as-you-go mode – Non-prepayment customers M/F Top 2 box scores

15. 15 7 in 10 prepayment customers agree that not needing to access the meter, top up at a shop or pay more for their energy would be a benefit to them Q.12 Listed below are a number of potential benefits of a smart meter operating in pay-as-you-go mode. For each one can you indicate whether you agree or disagree that it will benefit you? Base: All prepayment customers 634, Prepayment group renters 54 – See notes for specific wording Agreement with potential benefits of a smart meter operating in pay-as-you-go mode – Prepayment customers Top 2 box scores

16. 16 Not having a different meter from other customers is seen as more of a benefit by females compared to male prepayment customers Q.12 Listed below are a number of potential benefits of a smart meter operating in pay-as-you-go mode. For each one can you indicate whether you agree or disagree that it will benefit you? Base: All prepayment customers Males 292, Females, 342 Agreement with potential benefits of a smart meter operating in pay-as-you-go mode – Prepayment customers M/F Top 2 box scores

17. Using a smartphone app

18. 18 There is an appetite for using a smartphone app, particularly amongst prepayment customers and group renters Q.13 A smart meter operating in pay-as-you-go mode could allow you to top up using a smartphone app. For which of the following reasons, if any, would you use a smartphone app? Base: All respondents 3710 Regions 233 – 510 Groups of interest 228-634 % who selected at least one benefit of a smartphone app 63%61% 60%59% 58%56%53%52%47% London Yorks/ Humber North WestNorth EastEast MidsScotlandWalesWest MidsSouth EastSouth West East of England 57% would use a smartphone app 74%80%61%35%59%55% Prepayment customers 18-3435-5455+ Those in fuel poverty Those with a disability Age

19. Overall interest

20. 20 48% of the GB population are interested in using a smart meter operating in pay-as-you-go mode Q.14 Overall, how interested would you be in using a smart meter operating in pay-as-you-go mode? Base: All respondents 3710 Regions 233 – 510 Overall interest using a smart meter operating in pay-as-you-go mode Total GB population and regional breaks Net Interested: 48%

21. 21 59% of 18-34 year olds are interested in using a smart meter operating in pay-as-you- go mode Q.14 Overall, how interested would you be in using a smart meter operating in pay-as-you-go mode? Base: All respondents 3710 Overall interest using a smart meter operating in pay-as-you-go mode Total GB population versus demographic groups Net Interested: 48% SEG Age Gender