Report shows Millennials do not follow prepay energy misconceptions
While some in the utility sector assume that prepay energy is meant for low-income Americans, the management consulting firm DEFG recently released a report showing that Millenials are more likely to choose the option as well.
In fact, Millennials appear to be two times more likely to engage in prepay energy than the rest of the population, according to DEF’s EcoPinion No. 33 consumer survey. The survey focused on Americans between 18 and 34 years old and found that they enjoyed such methods openly for its convenience and ease of use. The report also speculated that if the connection were made between prepay and saving energy -which, in turn, sustains the environment – that age group would be even more likely to use it.
“The top line findings are not really a surprise,” Jamie Wimberly, CEO of DEFG LLC, said. “Prepay energy fits into an evolving mode of transactional preferences adopted by young people: incremental payments, quick and easy, mobile, and pay-as-you-go to stay out of debt.”
In contrast, while only 17 percent of the general population are interested in prepay options, 36 percent of Millennials are interested. A firm 70 percent of Millennials appear to have used some form of prepayment, and Millennial or otherwise, it’s a form of payment that comes with high satisfaction among all its users.
“Combined with our other research, we have clearly established segments of consumers who feel strongly about being served differently and with new options beyond the traditional service model,” Wimberly said. “Utilities and regulators need to allow more voluntary options in order to keep up with important trends like prepay energy.”
