Hill+Knowlton Strategies

Which? The consumer affairs group today launches the Big Switch campaign, designed to get the more than six in ten households who have never switched their energy supplier to consider doing so. Featured today in The Mirror and The Sun the campaign is encouraging consumers to submit their (non-binding) interest in order to collectively negotiate a better deal from the large energy suppliers.

The timing couldn’t be better and the Which? team deserve credit for launching in the middle of a cold snap when interest in energy prices is set to peak again. It is also just days into the term of new Secretary for Energy & Climate Change, Ed Davey, who began his Cabinet career by suggesting his focus would be on enabling consumers to get a better deal from their energy supplier. 

Which? Has long been a trusted consumer brand and I remember blogging last year about CBI research around the Green Deal that showed Which? to be the most trusted brand by consumers looking for advice. This campaign is in my mind overdue and I hope that it will be successful. I’ve signed up this morning and it was dead simple. Congratulations to Which? for kicking it off.

They will though face an uphill struggle in encouraging consumers to make the switch if the latest research from Ofgem is to be believed. In a report available on the regulator’s website they review attitudes to switching and new devices aimed at simplifying bills. It’s clear from the opening of the report though that the vast majority of energy users fall within a ‘disengaged’ category of people who don’t understand their bill, don’t appear to want to understand their bill and/or don’t feel there is much value in better understanding their bill because ultimately they do not trust that their time and interest will save them money. As I mentioned the Which? campaign faces and uphill struggle, but they have made the right start. I also just noticed the first tweets about this from @whichaction and @whichconvo. This is encouraging because a campaign like this is made for social networks. A shame though that Facebook hasn’t also been engaged by Which? I did look for their page to show an example of what they are doing, but perhaps they are waiting for the new Facebook timeline to launch on 29^th February.

Either way don’t delay, expressions of interest need to be logged on the campaign site by 31^st March.

There will be few on this fair isle (or elsewhere in the world) that have not witnessed something of the mania that has followed the nuptials of Prince William and Kate Middleton due to take place tomorrow. The media have been pouring over the details of the event – the flowers, the dress, the rehearsal, the security, the cost but few have so far looked at the power that will bring the event to life. Now before you ask I don’t mean love, but instead something far less romantic and far more practical - the national power grid.

I read with interest the release from the National Grid today which talks about the unique set of circumstances from which their team of forecasters are having to conjure an accurate forecast of demand for Friday. Without the sterling work of these forecasters the lack of an invitation for the former PM may not be the only brownout of the day.

Apparently the 1,000 MW surge forecasters are anticipating after the exchange of rings is equivalent to 400,000 kettles being boiled – so it looks like we’ll all be toasting the wedding with a cuppa rather than the traditional bubbly.

Bunting Cuppa

Personally speaking I probably won’t give over much of a welcome day off to watch the celebrations and so will give the forecasters little to worry about, but I’d like to wish the happy couple and the forecasters the best of luck!

H&K were fortunate enough to have the opportunity to host a very interesting event by the Confederation of British Industry (CBI)yesterday morning. The event was not only one of the first outings of new Director General, John Cridland, but also featured Secretary of State at the Department for Energy and Climate Change, Chris Huhne MP in one of his first outings since the launch earlier this week of his government’s Carbon Plan. The CBI used this event to share some insights about consumer attitudes toward ‘low carbon economy’ products and initiatives and from a communications perspective the conclusions gave some food for thought. First though some really useful stats from the CBI report entitled ‘Making the Consumer Case for Low Carbon’:

•  Three quarters of the UK’s greenhouse gas emissions are either directly or indirectly attributable to consumer actions (Sustainable Consumption Institute)
• Seven out of ten people feel a sense of responsibility to do something about climate change (Ipsos MORI, March 2010)
• 39% of respondents to Ipsos MORI said that ‘clear evidence of reduced running costs’ would change their purchasing attitudes toward more energy efficient products
• 83% of respondents either strong agreed or tended to agree with the statement that ‘companies have a responsibility to give consumers as much information as they can about the energy efficiency of the products they sell’.
• When asked about which sources of information they trust to provide reliable information about energy efficiency or climate change, 40% said Which? Magazine, 30% Government or Government agencies, 28% scientists, 16% action groups like Greenpeace, 16% manufacturers, 12% trade associations. 9% newspapers, 9% TV and 9% retailers/shops. There were striking differences between different age groups too.

So what was so interesting from a communications perspective? Well one of the overriding messages that Mr Cridland was sharing with the audience and his members was that they had a challenge to communicate better with consumers if they were to convince them that low carbon products were worth their consideration.

When the leadership of an organisation like the CBI starts to make statements like this it can feel like manna from heaven for a communications specialist, especially when they conclude by saying that this is about more than spin and offering worthy but premium priced alternatives, it is about creating compelling price points and standards that consumers can trust. I couldn’t agree more and so look forward to working with our clients to define compelling low-carbon propositions for consumers. With the launch of the government’s Carbon Plan, policy appears to at last be providing a relatively clear path for more investment by business in the low carbon economy. Let’s hope the joined up approach continues.

I’ll admit it. 

I didn’t want to go. 

Where, I hear you ask? 

Ecobuild. 

Nothing against sustainable construction, mind you.  It’s just I’m not a huge fan of the ExCeL centre, or – and I hate to say it – trade shows in general. 

But….

I was pleasantly surprised. Dare I say it, I even enjoyed myself.

This year’s event was HUGE.  Bigger than I anticipated, even though I did check out the website and peep some of the vendors sites before I went.  There were more than 1,300 exhibitors from the fields of design, construction and what Ecobuild calls “the built environment”.  Still not sure what that is. Seems a bit vague….but I think they mean people who sell and install things for inside your building…floors, toilets, plumbing, windows, etc.

So, why did I enjoy it?

1. I got to know a very cool company – REC Solar.

2.  I was thrilled to see what a huge presence solar was at the show.  Despite concerns around the government’s planned review of feed in tariff policy and what this could mean for the UK solar industry – all the big players were out in force. Go team.

It’s a solar bear…get it?!

3.  I got to get back in touch with my techie roots and play with phase change materials (PCMs for the uninitiated) – check out BASF and DuPont.  There was a great little demo centre called the Cool Workspace, which showed how PCMs can be used to create a more sustainable office environment by storing both heating and cooling, reducing the carbon footprint of buildings by up to 30%.

4.  The people. Yes, that old chestnut.  I was genuinely impressed with the huge range of people that were drawn in.  From the big corporate sales guys, to students, to apprentice builders, to eco-conscious consumers, to, er… models dressed as Canadian mounties (see below).  While most of the attendees were indeed more of the corporate ilk, it was refreshing to see that there was a noticeable representation from a huge range of people. 

As nice as it would be to preserve all the green space left in the world, that’s never going to happen.  Construction and physical development is a reality.  Even here on our little island, we’re expected to increase our population to from 61 million to 70 million in about 15 years.  Whether that growth is sustainable from a resources point of view or not is a different blog post, but that’s a lot of new housing, schools and hospitals. Let’s hope they’re built in a way that takes a lesson from Ecobuild.

Forgot to mention on our January energy round-up that we have welcomed a new colleague to our office in Houston, none other than former Bloomberg Bureau Chief Kimberley Jordan.

Kimberley joins as a Vice-President in our energy practice after more than 17 years in journalism and said:

“I am delighted that my energy knowledge and journalism background can provide clients with valuable insights that will keep them informed and prepared regarding policy decisions and industry shifts.”

Here’s hoping we can have her come and guest blog for the Energy & Industry blog very soon.

Speaking of which we will try to have Glen Hodgson’s view on the Heads of State Summit in Brussels tomorrow. The agenda was set to focus on energy, although Egypt is bound to come up.

Amid concerns that energy companies are enjoying widening profit margins at the expense of their customers, Ofgem has announced that it will launch a review into the retail energy market.

With British Gas, Scottish and Southern Energy, and Scottish power all announcing price hikes in recent weeks, resentment has been growing as many home owners struggle in a difficult economic climate.

This Tweet sums up the general feeling nicely:

While many have welcomed Ofgem’s decision, there has also been significant scepticism in terms of what the review will mean in reality. In truth, this is not the first time that the market has been investigated in this manner, and as a spokesperson for Energy UK said today:

“The review is the latest in a long line of investigations into the energy market in recent years and no previous investigation has found anything to concern the competition authorities.”

While Sara Vaughan, head of energy policy at Eon, today heralded the beginning of a new era of ‘interactive relationships’ between energy companies and their customers, consumer groups are more sceptical.

As Adam Scorer of Consumer Watchdog pointedly stated, energy companiues “do not feel the hot breath of competition on their necks”. With the market closed to new entrants as a result of the dominance of the ‘big six’, market structure rather than conspiracy and cartels seem to be to blame for consumers’ current predicament.

If this is the case, then Ofgem’s investigation will merely provide lip service to the public’s bitterness, and could ultimately prove a further irritation rather than a solution. Watch this space.

After watching the $30bn Blowout – A Money Programme Special looking at the BP Spill last night, I was compelled to watch Newsnight after a trailer gave the news about Councils planning to turn off street lights to save money as the public sector cuts start to bite.

Judging from the reaction in this morning’s print media, most notably the Daily Mail (up to 75% of councils dimming lights for new Dark Age) and Daily Telegraph  (Half of Councils cut back on Street Lights) this is an issue that concerns many, although personally speaking (and as a person who is predominantly a pedestrian or cyclist) I don’t see this being too much of a problem from a security or safety perspective. Who knows, maybe this will see a new dawn of slower, safer driving on unlit roads as a result.

It strikes me as a move that may well save money and save energy, although you can bet that those against will be flagging the first fatality, tragic though it will be, as evidence that these plans need to be rolled back at the sake of a few more council worker jobs. Overlooking of course the all too frequent fatalities on Britain’s roads and perhaps the other contributory factors. 

What was also interesting about last night’s programme was that this could be an issue which will strain the relationship of the coalition parties in the weeks and months to come. This will be an interesting one to watch played out. Am also wondering what will be the impact in terms of freeing up grid capacity. I haven’t seen anyone yet try to quantify the impact in terms of Megawatts, but would be interesting to know.

Now if this was April 1st, I would have sworn that the story about the Volkswagen Beetle powered by human waste was an April Fools’ Day joke. However, it’s not April and this is not a joke. As reviewed by The Telegraph’s Harry Wallop, the clever people at GENeco, a Wessex Water subsidiary have converted a good old VW Beetle and made it run on biogas.

How we get and use fuel is an ever increasing hot topic with fuel companies looking at how wind and solar power can power our homes and car manufacturers looking at hybrid and electric engines. It seems we have become a nation obsessed with finding new ways of powering our homes and cars.

Personally, I think what we flush down the toilet is called waste for a reason and shouldn’t end up powering my car to the supermarket or the beach but you have to admit with an ever growing population – projections suggest UK population will exceed 65million by 2018 – it seems there will be an endless supply of ‘suitable materials’ that could be turned into biogas for many years to come.