Consumer Confidence Decline in US Energy System Calls for Action

According to the EY Energy Consumer Confidence Index (ECCI), consumer confidence towards the US energy system has experienced an 8-point decline, dropping from 64.8 in 2022 to 56.9 today. Most Americans believe they are making a difference in promoting sustainability, with 68% of consumers stating that they are doing everything they can to be sustainable. Additionally, 65% believe that energy providers should be at the forefront of shifting to cleaner energy, followed by local government (42%), and oil and gas companies (38%).

A global energy transition consumer insights report conducted by Ernst & Young LLP (EY) provides a comprehensive overview of consumer sentiment in the US energy market and the optimism surrounding the progress towards cleaner and lower-carbon energy sources. The EY research concludes that consumers need affordable, accessible, and appealing energy options to inspire confidence and action in shaping their energy future.

EY Americas Power & Utilities Leader, Trey Thornton, acknowledges that US consumers are concerned about the costs and accessibility of clean energy options, emphasizing the need for energy providers, regulators, and policymakers to work together to progress carbon ambitions. The study found that consumer action is the biggest driver for the demand of lower-carbon and renewable energies. Nevertheless, the research concludes that more needs to be done to spur greater consumer adoption of these products.

Affordability emerges as the most significant concern for American consumers, with 75% of respondents considering it as the most important factor in their energy experience. A majority of Americans (65%) are unable to afford a 10% increase in energy costs, leading to only 30% feeling confident that their energy will remain affordable. Cost and accessibility are entrenched as primary barriers, with 40% of US consumers uncertain about the energy-related actions they should undertake to be more sustainable. Moreover, only 30% feel confident they can access clean energy options, a sentiment more prevalent among renters and low-income households.

In terms of new energy products and services, only a third of US consumers express consideration in making a purchase over the next three years. The research indicates that consumers are waiting for lower costs, better reliability, and easier experiences. Additionally, most Americans are not inclined to electrify their gas appliances, with only 20% being interested in switching to electric.

The study also points to consumer distrust of third-party sources and technology controlling their energy devices. However, if energy prices become more volatile, 84% of consumers express a willingness to manage their energy use, but with a preference for notifications and personal control. Furthermore, the majority of consumers (85%) prefer to have the option to opt-out of sharing their data with energy providers, although they are comfortable with artificial intelligence (AI) being integrated into their energy experience, indicating a strong preference for convenience.

EY’s research encompasses data from nearly 100,000 residential energy consumers across 21 markets, providing essential insights to help energy providers, regulators, policymakers, and stakeholders make consumer-centric decisions about the energy transition. EY aims to assist in identifying strategy, investment, and operational priorities to ensure a successful and consumer-focused energy transition.

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