- Singapore ranks 6th position on the EY Energy Consumer Confidence Index
- Singapore respondents believe they are doing all they can to be sustainable in their energy usage, and expect energy providers to do more to drive the energy transition
- Energy companies may risk energy consumers losing faith in the “three As” of energy: affordability, access and appeal
While consumers are more interested than ever in sustainability and a clean energy future, the majority are not willing to commit more resources to be more sustainable in their energy usage, according to the EY report, Energy transition consumer insights.
The EY survey covered 100,000 residential energy consumers in 21 markets around the world over three years. This year, there are close to 2,900 respondents across Indonesia, Malaysia and Singapore.
The survey found that 77% of energy consumers in Singapore (Southeast Asia (SEA) 81%) believe that they are doing as much as they can to be sustainable, and 80% (SEA 83%) say that the responsibility of managing sustainable energy use lies with the energy providers. In fact, many (Singapore 53%, SEA 35%) are not willing to pay more for more sustainable products; among those who are willing, the majority are the Gen Z and millennials.
Mark Bennett, EY Asia-Pacific Energy & Resources Customer Experience Transformation Leader, says:
“Consumers are grappling with uncertainty as we enter a new phase of the energy transition, amid higher energy prices, geopolitical volatility, and growing concerns around energy equity. While efforts on the supply side are gaining momentum, we need a fundamental shift in how we encourage sustainable consumer behavior. Consumers want a clean energy future but need a broad range of support to make personal energy choices. To close the gap between consumers’ intentions and actions, everyone in the broader energy ecosystem, including the energy providers and the government, must work together to pull every lever.”
Strong confidence among SEA consumers in energy transition
The survey findings were collated into the EY Energy Consumer Confidence Index, which measures, tracks and compares how confident consumers feel about their own energy situation, the energy market and the future of the energy transition across 38 indicators of energy transition progress.
The Index found that energy consumers from SEA were more confident about their energy future than global respondents. Indonesia ranks 2nd on the Index with a score of 72.2; Malaysia ranks 3rd with a score of 69.4; Singapore takes the 6th position with a score of 61.7. In comparison, the global average score is 58.7.
Bennett says:
“The findings reveal a correlation between countries' progress in the energy transition and energy consumer confidence. As a market progresses through the energy transition, consumer confidence first rises, reflecting positive sentiment around the future, before falling sharply. This could be because as the energy transition shifts from concept to implementation, the magnitude, intricacy, and extent of disruption inherent in this journey become increasingly apparent to consumers.
“Given that SEA is still relatively early stage in its energy transition, consumers in the region remain more confident about their energy future than the global respondents. Building and maintaining consumer confidence throughout the energy transition journey is an important determinant of a country's ability to achieve its decarbonization goals. SEA is in a unique position to learn from the experience of countries that are further along in their energy transition journey and choose to do some things differently in achieving its net-zero commitments.”
Consumers lose faith in the “three As” of energy
Despite having confidence in their energy future, many said the energy system just isn’t delivering on the three fundamental aspects of the energy experience: affordability, access, and appeal. About a third (31%) of Singapore respondents (SEA 45%) are confident about the affordability of their energy costs; 36% (SEA 49%) are confident they have access to clean and new energy options; while 22% (SEA 23%) would adopt new energy products and services if it was easier to purchase and install them.
In addition, 85% of Singapore (SEA 86%) expect their energy providers to offer low-cost and high-quality products. While 15% of Singapore respondents (SEA 24%) are fully satisfied with the products and services from their energy providers, they would like to see increased sustainable products and services from them (Singapore 36%, SEA 42%).
Eric Jost, EY Asean Energy & Resources Leader, says:
“Change is accelerating exponentially across the world’s multiple energy transitions. The energy sector is undergoing significant disruption and the pace is increasing. One of the factors driving this change is consumer demand for cleaner, more sustainable energy solutions.
“The EY research shows consumers are interested in change but want partners to help. This creates an opportunity for energy providers to reshape themselves as trusted advisors –
making change easier, faster, broader and deeper. A broad, consumer-centric approach to the energy transition is to accelerate progress toward a fairer, greener, and better energy system that delivers more value for everyone.”
Find out more here.
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