More consumers will accept the smart grid. Not everyone bought a cell phone on the first day August 13, 2010
Posted by Darren Epps in Utility Industry News.Tags: billing and payment, cell phones, electric vehicle, privacy, radiation, radio frequency, smart grid, smart meter, utilities, utility communications, utility customer engagement, utility marketing, Web-based transactions
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Read this New York Times article from 2000. Ten years after uncertainty swirled around the cell phone (in addition to reports of exploding batteries and rumors that using your cell while pumping gas can cause a fire), we’re seeing a similar pattern of uneasiness and misinformation surrounding smart meters. The correction at the bottom of the NYT piece only reinforces the point.
From Baltimore to Northern California, groups of consumers and regulators are rebelling against smart grids and meters. The Department of Energy will decide Aug. 16 whether Baltimore Gas & Electric can keep a $200 million grant for its embattled smart grid project after the Maryland Public Service Commission rejected the plan in June. (Maryland regulators will probably decide on the revised plan before then.) Instances of customers ordering smart meter installers off their property are being reported in California.
In 10 years, we’ll look back at this period much like we do the advent of cell phones. We’ll recall those unsettling first couple of years, the mistakes made and attempt to remember life without a smart grid. And then we’ll plug in our flying electric vehicles and relax in our silver radiation suits.
But progression toward this futuristic moment will be difficult, much more challenging than the adoption of cellular technology. Americans, thanks to the struggling economy, remain increasingly distrustful of the government and more conscience about their money. June was the hottest month on record in many states, unless you count July. Not a good time to start altering the way customers see their energy bills. The health issue surrounding smart meters continues even though, like cell phones, studies consistently show that they don’t emit harmful amounts of radiation.
And, somewhere along the way, leaders in the smart grid industry failed to market this change properly. Communication between the industry and the consumers didn’t exist. We all have friends who either aren’t familiar with the term “smart meter” or simply know it as “the thing that keeps messing up.” The business model is foreign to customers.
Utilities are taking corrective steps. Duke Energy is recruiting volunteers in Ohio to test the smart meter. Cooperatives are launching similar demonstration projects. PG&E is releasing side-by-side testing of smart meters and regular meters on its website, proving they don’t cheat the customer out of money. PG&E representatives also made themselves available at community meetings to answer questions.
The marketing plan for smart grids turned out to need a lot more than, “Trust us, this is a much better way.” And maybe that’s how it should be. Mistakes are being corrected. Like they did with the e-commerce platform, consumers soon will realize the efficiency of interacting with large companies. Acceptance will come in time.
Remember, not everyone bought a cell phone on the first day.
I’m afraid I cannot accept your analogy to cell phones when discussing smart meters.
On one hand we have people calling North America a capitalist economy. Yes, there may be examples of that. On the other hand, we have a paternalistic (red) approach to smart meters.
Cell phones – customers had (and continue to have) a choice.
Smart meters – will customers have a choice (which meter? which service provider? WHETHER TO HAVE A SMART METER, AT ALL?)? Will the choice be unskewed by various corporate interests? Doomsday types? Utilities? Manufacturers? IT service providers? BPO service providers? Consultants who get work from all of the above?
Give me a break. The analogy simply does not work.