Smart Energy Consumer Collaborative releases report on customer interest in alternative rates

The Smart Energy Consumer Collaborative (SECC) recently released a new report, which found that the majority of small-and-medium business (SMB) customers prefer alternative, time-varying rate plans, while residential customers represent an education opportunity.

The “Rate Design: What Do Consumers Want and Need?” report used survey responses from approximately 1,100 residential customers and 500 SMBs across the United States. The report found that SMBs are very aware of alternative rates and that 73 percent prefer them over traditional flat rates.

More than half of residential consumers are open to trying alternative rates, the report found, although many had not heard of them. Approximately half of residential consumers are not sure what type of electricity rate plan they currently have.

SMBs were more confident about their current rate plan, but both residential consumers and SMBs reported having alternative rate plans at higher rates than reported in the latest U.S. Energy Information Administration estimates.

The report indicates that both residential consumers and SMBs prefer simple time-of-use rate plans over more complex alternative rate structures but that many in both sectors are willing to participate in more complicated rate offerings. Extra fees, the survey found, decrease interest from both residential consumer and SMB customers, while sign-on benefits increase interest. Technologies that help automate demand response also increase willingness to participate in alternative rates.