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5 tips for electric utilities 

Proactively addressing 

consumer concerns 

6

Winning over consumers 

Consumer education is key to long-term success of the Smart Grid 

Control your news—the good and the bad 

Get out ahead of industry news—even if it has nothing to do with you 

Help consumers to see benefits from data immediately 

Smart Grid is a process, not a project 

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3 Control your news 

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Help consumers to see benefits 

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Consumer education is key 

4 Get out ahead of industry news 

6 Smart Grid is a process 

www.dnvkema.com



Cost reductions and efficiency benefits made possible by the Smart Grid are only realized 

when all energy users in a given region support the system, sending back actionable data 

about power usage. The question is: how do we change 110 years of consumer behavior 

For a century energy consumers have treated energy as a commodity that was simply there 

at the flip of a switch. Now, asking them to adopt smart meters and other energy usage 

tracking devices requires opening a dialogue about the new era of energy. 

In addition, in response to consumer concerns, many governments require utilities to offer 

homeowners the chance to opt-out of smart meter upgrades. With ongoing worry about 

privacy, security, and public health, and most recently the fires that have accompanied 

the installation of some meters across the United States and Europe, homeowners have 

more reasons to take advantage of that opt-out option. Unfortunately for utilities, the 

more consumers who opt-out of smart meter upgrades, the less effective the Smart Grid 

investment will be. 

The following are a few steps from DNV KEMA, using the recent 

fires that have accompanied some new meter installations 

as a continued example, that a utility can take to deal with 

consumer concerns and reduce opt-outs. A comprehensive 

action plan can be summarized with two words: 

Be proactive. 

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5 Help consumers to see benefits 



www.dnvkema.com 

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Tip 1 

Consumer outreach is key to long-term success 

of the Smart Grid 

Consumers have a number of understandable concerns about the Smart Grid and smart 

meters in particular—many of which are being actively addressed by utilities. However, 

consumer doubts persist. A comprehensive outreach campaign geared towards explaining 

the long-term value of the Smart Grid, begun well in advance of smart meter installation, 

can dramatically increase smart meter acceptance. While this type of campaign requires an 

upfront investment by utilities, that investment will more than pay for itself by decreasing 

active opposition to smart meter installation and the number of opt-outs. 

A good outreach program includes: 

• The benefits of smart grid technologies to consumers, and how they can take advantage 

of those benefits 

• Current efforts by utilities to address safety, public health, and privacy concerns 

• Timing for the rollout of smart meters 

• What to expect once the smart meters have been installed 

> When pricing structures might change 

> When efficiency measures will be implemented 

> When demand response programs, if any, will begin 

> What data is being collected, and why 

In a survey of German energy consumers: 

• 87% knew little or nothing about German Smart Grid 

implementation 

• Just 3% said utilities provide enough information about 

Smart Grid 

• 66% thought it was the utility’s responsibility to educate 

consumers 

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Tip 2 

Control your news—the good and the bad 

Fires accompanying the installation of new meters have been a mounting concern in 

the United States and Europe. Several utilities have experienced the problem, and consumers 

are justifiably uneasy. Most consumers do not understand, however, that these fires are 

not caused by the smart meters themselves, but rather by old or faulty connections in the 

equipemt itself. Unfortunately, the story of these smart meter fires was published first by 

a largely uninformed media—and the reality of the situation was not coming through 

to consumers. 

One of the best ways to manage this is to dedicate one team 

member to monitoring news, consumers’ calls, social media, 

etc, associated with the meter rollout for the service territory, 

and the area at large. Arm that person with a list of likely 

concerns and appropriate responses, and let them be proactive 

– responding to reporters, engaging in conversations on social 

media, and answering questions from consumers. 

Responsive media announcements about the fires and the related causes, and detailed 

plans to identify buildings with potentially faulty wiring to prevent future mishaps, could 

have mitigated the initial level of shock. Controlling the story with the full facts, rather than 

being forced to respond to inaccurate information, is critical to maintaining consumer peace 

of mind, and educating them about the need to participate in smart meter programs. 

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Tip 3 

Get out ahead of industry news—even if it 

has nothing to do with you 

Just as a rising tide raises all ships, a receding tide drops them all. Utilities not directly involved in high 

profile industry news like smart meter fires still need to get out ahead of the story. Returning to our 

example, what would a proactive utility have done to get ahead of potentially bad news 

First, set a plan before mishaps occur: what steps would be taken to prevent these fires in subsequent 

rollouts The plan might include doing a pre-inspection of the home to identify at-risk wiring, or 

improving training of smart meter installation teams. It seems obvious, and many utilities have enacted 

this sort of plan, but some utilities consider the state of wiring in the house to be up to the homeowner 

to maintain. However, it is clear that homeowners view anything to do with smart meters, even the 

connection to their house, to be the responsibility of the utility. 

The second step is to promote that plan. Utilities should proactively 

reach out to their consumer base and inform them of exactly how 

they plan to mitigate the risk of these fires—as well as explaining the 

root causes. These plans can easily be incorporated into the consumer 

education program, which should already be in place by the time 

smart meter installation begins. Then utilities can work with PR teams 

to identify opportunities to promote this plan in the media, which can 

position the utility as a forward-thinking company that emphasizes 

public safety and education. 

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Tip 4 

Help consumers to see benefits from 

data immediately 

Installing smart meters is only one part of a longer-term data management program for 

utilities, and there are many other pieces that need to be in place before the data is 

actually actionable from the utility side. However, residents have no such restrictions. If 

given access to data about their overall consumption levels, which is readily accessible as 

soon as the smart meter is installed, then they can start making changes in their energy 

use immediately. While enabling residents to see their energy use may require an additional 

investment by utilities for in-home displays, the longer-term benefits of reduced energy 

consumption could well offset those costs in the form of fewer engagements with costly 

backup power plants. Additionally, this reduced consumption will translate to lower energy 

bills for consumers—which will go a long way toward helping them understand the value 

of smart meters, and the Smart Grid generally. 

On Tidy Street in Brighton, England, residents were given 

meters that allow them to monitor their daily energy use, and 

identify how much energy each device is using. An artist was 

hired to graph these households’ energy consumption on the 

street. 

In the first three weeks, average energy use had dropped 15%. 

The lesson If given the data in an actionable way, consumers 

will act. 

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Tip 5 

Smart Grid is a process, not a project 

Long after the final smart meter is installed in a community, utilities need to continue 

proactive, regular interaction with energy consumers. Anxiety around smart meters is likely 

to last for years, even in communities where they have been installed and performed well 

for years. Reassuring residents as new concerns arise in the industry, and continuing to 

educate them about ways to capture the benefits of their smart meters will be critical. On 

top of this maintenance of consumer outreach, utilities should share information regularly 

about future Smart Grid plans, and what has been done with the data being collected 

by smart meters. Maintaining a steady presence in the community, and getting ahead of 

future questions and concerns, will be critical to the ongoing success of the Smart Grid, and 

preventing consumer backlash in the future. 

As part of their initial Smart Grid project of connecting 200 

Montana homes to the Smart Grid, Northwestern Energy is 

partnering with DNV KEMA to help consumers understand 

exactly how their smart meters and home area networks (HAN) 

work. This initial outreach, and ongoing support once the 

meters are installed, is critical to the success of the project. 

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Visit www.SmartGridSherpa.com 

A free knowledge base and blog providing expert guidance on your 

path to the Smart Grid. 

For general inquiries, please contact 

our head office in Arnhem, the 

Netherlands at +31 26 356 91 11 or 

via email at smartgrid@dnvkema.com 

To find specific contact information for 

your region, please visit 

www.dnvkema.com/locations 


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Help consumers to see benefits 

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