IN a recent report released by EY titled “Energy Transition Consumer Insights,” it has been highlighted that while there is a growing interest in sustainability and a clean energy future among consumers, there remains a reluctance to invest further resources in bolstering sustainability efforts particularly in energy consumption.
According to the findings of the report, a significant 81% of energy consumers in Malaysia believe they are already maximising their efforts to be sustainable. This sentiment is echoed by 85% of Malaysians who indicated that the responsibility for managing sustainable energy use primarily lies with energy providers.
Despite this, there appears to be a reluctance to pay more for sustainable products with 31% of Malaysians expressing unwillingness to invest additional funds. Interestingly, among those willing to pay more, the majority belong to the Gen Z and millennial demographics.
EY Asia-Pacific Energy and Resources customer experience transformation leader Mark Bennett commented on the findings, stating that consumers are facing uncertainty as the energy transition progresses, compounded by factors such as higher energy prices, geopolitical volatility and concerns about energy equity.
Bennett pointed out the need for a fundamental shift in encouraging sustainable consumer behaviour.
“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.”
The EY survey which spanned 100,000 residential energy consumers across 21 markets worldwide over three years including close to 6,900 respondents from Malaysia, Indonesia and Singapore also led to the development of the EY Energy Consumer Confidence Index.
Southeast Asian countries including Indonesia (ranked second) and Malaysia (ranked third), displayed higher confidence in their energy future compared to the global average, indicating a correlation between the progress of countries in the energy transition and consumer confidence.
“Given that Southeast Asia is still relatively in the early stages of its energy transition, consumers in the region remain more confident about their energy future than global respondents.
“Building and maintaining consumer confidence throughout the energy transition journey is an important determinant of a country’s ability to achieve its decarbonisation goals.
“Southeast Asia 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,” he added.
However, many Malaysians feel that the energy system is not delivering on fundamental aspects such as affordability, access and appeal. Only 49% of respondents expressed confidence in the affordability of their energy costs, while 51% felt confident about accessing clean and new energy options.
Moreover, 23% stated they would adopt new energy products and services if the purchasing and installation process were easier.
Furthermore, the report highlighted that 85% of Malaysians expect their energy providers to offer low-cost and high-quality products yet only 28% reported being fully satisfied with the products and services received. There is also a demand for increased sustainable offerings from energy providers with 44% expressing this desire. – May 1, 2024
