According to accounting firm Ernst and Young’s (EY) energy transition consumer insights report, consumers in Southeast Asia (SEA) are increasingly enthusiastic towards clean energy despite the lack of committed action towards more sustainable energy practices.
The EY survey garnered responses from 100,000 residential energy consumers across 21 markets over the span of three years.
Survey responses have reflected an alarming sentiment trending in the SEA region. While 77% of energy consumers in Singapore believe that they are maximising their efforts towards sustainability, 80% responded that energy providers shoulder the most responsibility in managing sustainable energy.
“While efforts on the supply side are gaining momentum, we need a fundamental shift in how we encourage sustainable consumer behaviour,” says Mark Bennett, EY Asia-Pacific (APAC) Energy and Resources Customer Experience Transformation Leader.
Despite consumers favouring a clean energy future, they require greater support to influence their personal energy practices.
“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,” adds Bennett.
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Strong confidence towards SEA energy transition
Additionally, the survey findings were combined with the EY Energy Consumer Confidence Index. The index, which compares and tracks consumer confidence in the current and future energy market, found that SEA energy consumers were comparatively more optimistic of their energy future than global consumers.
In contrast with the global average score of 58.7, Singapore ranks sixth on the Index with a score of 61.7
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“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,” says Bennett.
Bennett explains that as SEA is still undertaking “a relatively early stage” in its energy transition, consumers will continue to remain more certain about their energy futures as compared to their global counterparts.
Declining faith in the “three As”
The “three As”, affordability, access and appeal, are used in measuring the performance of the energy experience. However, according to the EY survey, many respondents feel that their energy systems are not fulfilling these important aspects.
Survey responses show that only an estimated 31% of Singapore residents are optimistic about the affordability of their energy costs while 36% of them are certain in gaining access to clean and new energy options.
In addition, only a small percentage of 15% of Singapore respondents stated that they were completely satisfied with the current products and services supplied by their energy suppliers, with 38% of them responding that they desire greater and varied sustainable products in the future.
“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,” says Eric Jost, EY Asean Energy and Resources Leader.
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He concludes: “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.”
