Want to be smart about smart grid? Lower consumer expectations

The recent EcoPinion clearly reveals that consumers look at smart grid as a commodity, an extension of what they think of energy and electricity today.
Consumers see smart grid as a means to lower and/or manage rising energy bills. Concurrently, consumers expect and are concerned about bill increases.

Customer’s expectations of lower bills and expectations that bills may go up with new meters, presents a communication challenge especially as utilities implement new time based rate designs.

The implication here is that if smart grid does not reduce utility bills, or the savings are not visible or don’t offset rate increases, smart grid will likely be seen as an expensive failure. Moreover, if smart meters, the first physical manifestation of the smart grid in the eyes of consumers, are associated with rate increases then utilities will face significant challenges, which could extend to and affect the entire smart grid ecosystem. People will blame smart meters and smart grid for the rate increases.

In this initial phase of smart meter deployment, utilities should focus on setting realistic expectations in the eyes of the end users as smart meters are deployed. Messaging should be primarily focused on reliability enhancements and improved visibility into energy consumption through web interfaces, both of which are benefits utilities or other energy providers can deliver from the start. The focus should not (and cannot) be on cost savings to consumers. Cost savings will not be delivered until smart meters are in place and will clash against rate increases or time-of-use pricing programs that are likely to occur or are planned to occur over the next few years across the utility space.

Only when benefits beyond reliability and visibility into energy consumption are ready to be delivered to consumers utilities should change the tone.

Until then, the smart approach to smart grid development is to lower expectations and focus on infrastructure enhancements.