Dentsu Inc. Conducts "6th Survey on Consumer Awareness Regarding Energy Liberalization"
The text of the Dentsu Inc. news release distributed on March 26 is as follows.
March 26, 2018
Dentsu Inc. Conducts "6th Survey on Consumer Awareness Regarding Energy Liberalization"
Team DEMS (Dentsu Energy Management Services), a cross-organizational group within Dentsu Inc. (Headquarters: Minato-ku, Tokyo; President: Toshihiro Yamamoto) comprising energy professionals, has conducted a survey on consumer awareness regarding energy liberalization. and the first anniversary of full gas retail liberalization in April this year. To highlight challenges for market progress, including consumer awareness and understanding of electricity and gas retail liberalization, as well as intentions and actual actions to switch suppliers, DEMS conducted the "6th Survey on Consumer Awareness Regarding Energy Liberalization" in December 2017. The survey targeted 5,600 men and women aged 20 to 69 nationwide.
This release presents key findings, including comparisons with previous surveys: the 5th (June 2017), 4th (November 2016), 3rd (June 2016), 2nd (November 2015), and 1st (December 2014) surveys.
Key topics from the 6th survey are as follows:
● Awareness of household electricity retail liberalization remains high at over 90%, but understanding of its details is below 30%.
● Awareness of household gas retail liberalization is just under 80%, while understanding of its details is just under 20%.
● The percentage of people who changed their electricity supplier or rate plan increased to 19.3%, while those who changed their gas supplier increased to 7.8%.
●Intent to switch providers for both electricity and gas remains below 10%, showing stagnation.
●Understanding of basic liberalization matters shows slight but sluggish growth. Among those not switching, concerns about changing their lifestyle and a preference for maintaining the status quo are evident for both electricity and gas.
● For electricity and gas suppliers, consumers continue to prioritize affordability, customer service, simplicity/clarity, and trust/reliability.
● Expectations are rising for anticipated lifestyle changes and new services driven by various technological advances.
＜Key Survey Findings＞
1. Awareness of liberalization: Electricity 92.3% (previous 91.6%), Gas 77.4% (previous 80.1%).
Understanding of details: Electricity 25.1% (previous 24.6%), Gas 15.2% (previous 16.1%).
Regarding electricity liberalization: "Know the details" 25.1% (previous 24.6%), "I don't understand the details, but I definitely know it was liberalized" 51.7% (previous 52.3%), "I've heard about it" 15.4% (previous 14.7%). Combined, this totals 92.3% (previous 91.6%), indicating electricity liberalization is widely known and awareness remains high.
Regarding gas liberalization, 15.2% (previous: 16.1%) "know the details," 39.7% (previous: 41.7%) "don't know the details but are certain it was liberalized," and 22.5% (previous: 22.3%) "have heard about it." Combined, this totals 77.4% (previous: 80.1%) awareness. There remains room for expansion in awareness of gas liberalization.
Furthermore, a gap exists between those aware of liberalization (awareness total) and those who "understand the details"—67 points for electricity and 62 points for gas—suggesting a slow pace of understanding regarding liberalization.
Continuing from the previous survey (5th survey), respondents were asked about awareness of 13 basic items related to electricity and gas liberalization. While awareness slightly improved for all items, the only item recognized by over 60% was "You can freely choose the electricity or gas company providing service in your area."
Awareness of other items remained around 30%, continuing a similar trend. This underscores the need to promote a correct understanding of liberalization.
2.Those who changed their electricity supplier were 11.4% (previous: 9.8%), and those who changed their rate plan were 7.9% (previous: 6.9%).
Both switching suppliers and changing rate plans showed regional disparities.
Among those affected by electricity liberalization, 11.4% (previous: 9.8%) changed their electricity supplier and 7.9% (previous: 6.9%) changed their electricity rate plan. This means 19.3% of respondents made changes, a 2.6-point increase from the previous 16.7%.
By service area, switching electricity suppliers was highest in the Tokyo Electric Power Company service area (19.0%), followed by Kansai Electric Power Company (17.6%) and Hokkaido Electric Power Company (15.0%). Changing electricity rate plans was highest in the Chugoku Electric Power Company service area (17.2%), followed by Chubu Electric Power Company (15.0%) and Shikoku Electric Power Company (12.4%), showing regional differences in switching activity.
3.Gas supplier switchers reached 7.8% (previous survey: 4.7%). Sluggish growth in the Kanto region was notable.
Following gas liberalization, 7.8% of respondents changed their gas supplier, a 3.1-point increase from the previous survey.
Those who "compared options but did not switch" increased by 1.7 percentage points to 23.0%.
For comparison, the fourth survey (November 2016), conducted eight months after electricity liberalization, showed 9.4% had changed electricity suppliers and 31.4% had compared options but not switched. When comparing these figures to the point approximately six months after liberalization, both the proportion of those who changed suppliers and those who compared options are higher for gas liberalization.
By service area, gas supplier changes were 12.8% in Osaka Gas's Kansai service area, 9.5% in Toho Gas's Chubu service area, and 8.5% in Seibu Gas's Kyushu service area. In contrast, the Tokyo Electric Power Company service area in Kanto recorded only 2.0%, roughly one-fourth of the others, highlighting significant regional differences in change rates.
The "intention to change" electricity suppliers stood at 8.1% overall (up from 7.9% previously), rising to 47.7% when including those "considering a change" (up from 46.5%). The "intention to change" gas suppliers was 7.6% overall (up from 7.3%), rising to 44.8% including those "considering a change" (down from 46.9%). Both electricity and gas figures remained largely flat.
The electricity supplier change intention, combining "Want to change immediately" (1.1%) and "Want to consider changing" (6.9%), totaled 8.1%, an increase of 0.2 points from the previous survey. Adding "Considering, but unsure if I will change" (39.6%) brings the total to 47.7%, an increase of 1.2 points from the previous survey, but still below half.
The intention to change gas suppliers totaled 7.6%, combining "Want to change immediately" (0.7%) and "Want to consider changing" (6.9%). This represents a 0.3-point increase from the previous survey. Adding those who "Want to consider changing but are unsure" (37.2%) brings the total to 44.8%, a 2.1-point decrease from the previous survey, also remaining below half.
When asked why they had not switched suppliers and had no intention to do so, the top responses were: "The switching process seems troublesome/difficult" (electricity: 27.6%, gas: 23.0%), "I prefer the company I'm used to" (electricity: 27.1%, gas: 25.0%), "It wouldn't be cheaper than my current provider" (electricity 24.9%, gas 22.1%), "I don't really understand the benefits" (electricity 24.8%, gas 22.1%), "I feel uneasy about switching" (electricity 23.1%, gas 21.2%), and "I don't want to lose out by switching" (electricity 22.9%, gas 21.5%). While cost-effectiveness is a consideration, a strong preference for maintaining the status quo is evident for both electricity and gas, accompanied by concerns and worries about changing their current lifestyle.
Key considerations when choosing electricity and gas providers include cost-effectiveness, customer service, simplicity/clarity, and trustworthiness/reliability. No significant shifts were observed.
Regarding electricity and gas providers, respondents strongly prioritize "cost savings" (68.2%), "better deals than competitors" (34.1%), and "generous points programs" (15.2%). Simultaneously, they value "response to accidents/troubles" (40.9%), "routine maintenance" (36.7%), "simple procedures" (29.6%), "service response" (24.7%), "clear and easy-to-understand contract terms" (38.2%), "stable supply" (41.8%), and "well-known and trustworthy" (33.5%).
6.With technological advances bringing new services and lifestyle changes, engagement and interest in energy are likely to increase further.
When asked about services and technologies expected to increase energy involvement/interest, continuing from the previous survey (5th survey), the top responses were: "Wireless charging" 47.6% (previous 46.1%), "Generating electricity from small amounts of energy around us" 45.9% (previous 43.9%), and "Products and services include the electricity needed for their use in their price" at 45.4% (previous: 43.3%). Scores increased for all items, indicating rising expectations for the changes in daily life and new services expected to be created and developed for the next generation.
<Survey Overview>
Title: 6th Survey on Consumer Awareness Regarding Energy Liberalization
Survey Method: Internet survey
Survey Agency: Dentsu Macromill Insight, Inc .
Survey Period: December 22–27, 2017
Area: 9 Electric Power Company Service Areas (excluding Okinawa Electric Power service area)
Respondents: 5,600 men and women aged 20–69 nationwide
Respondent Criteria: Household heads or their spouses who pay their own or their spouse's electricity bills
Survey Content: 35 questions in this survey
Basic attributes of general consumers (demographic attributes, family composition, housing type, etc.), energy usage patterns (energy supply type, proportion of energy costs relative to income, etc.), knowledge and awareness regarding energy liberalization, status of considering or changing suppliers, general attitudes and awareness trends regarding energy, desired image and services from suppliers, awareness of electric power companies and new power suppliers, process and information sources for changing suppliers, awareness of content related to electricity liberalization, etc.
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