September 17, 2014

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CSR Press Release

Prepay Energy at an Inflection Point for Rapid Adoption in the Utility Sector

DEFG's EcoPinion Survey Points to Growing Consumer Interest

Submitted by: DEFG LLC/EcoAlign

Categories: Green Products & Services, Research, Reports & Publications

Posted: Feb 20, 2014 – 11:25 AM EST

 

WASHINGTON, Feb. 20 /CSRwire/ - DEFG, a management consulting firm specializing in energy (www.defgllc.com), released today EcoPinion No. 18, “Prepay Energy at an Inflection Point.” DEFG worked with a broad array of market participants and public stakeholders through the Prepay Energy Working Group in late 2013 to survey 1,000 consumers. The national survey examined consumer perceptions and satisfaction levels with prepaid options in general, and took a more in depth look at consumer awareness and acceptance of prepaid electricity service.

“There is compelling evidence that a growing number of Americans are very interested in a prepay energy offering as a voluntary bill pay option,” stated Jamie Wimberly, CEO of DEFG. “It helps them to understand and control their usage, and manage their home budget. We believe that 2014 will be a critical year for the prepay energy market.”

The primary findings from the consumer survey are:

  • Prepay in all its manifestations, e.g., reloadable debit cards, gift cards, etc., is part of an intensifying mega-trend in consumer finance.
  • Prepayment is not limited to low income consumers. It has gone mainstream with over two-thirds of Americans currently using some form of prepay.
  • Americans are satisfied with prepayment. In 2013, 75% of Americans surveyed were either “very satisfied” or “somewhat satisfied” to make purchases or contract for services using prepayment. Younger, mobile Americans were especially well satisfied.
  • The percentage of Americans interested in a voluntary prepaid energy option increased by 3% from 2012 to 2013. Since 2010, those who are “extremely interested” or “very interested” has increased 7 points, from 17% in 2010 to 22% in 2012 to 24% in 2013.

“Based on these results, over a fifth of a utility’s consumer base could switch to a prepaid electricity account within a fairly short period of time (2 -3 years), and perhaps more with education and growing awareness of the option over a longer period of time,” Wimberly continued. “This would be a remarkable shift.”

For a free copy of the report, go to: www.defgllc.com.

DEFG is a management consulting firm specializing in energy. We believe that customers are the future of energy. Since 2003, we have helped clients create value in a commodity marketplace. In our rapidly changing marketplace, customer engagement is key to success, and our clients learn to better engage with residential and commercial customers. These customers provide unique resources, reduce risks and increase revenue potential.

For more information, please contact:

Phone: (202) 255-2860

 

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