EY, one of the largest consulting and auditing companies in the world, recently published the document Energy Consumer Survey, reporting that around 50% of consumers around the world say they have spent more on electricity in the last year. Furthermore, more than a third of them believe they are in a situation of energy poverty, that is, they dedicate at least 10% of their income to electricity and/or natural gas.
As a result, 85% of Brazilian consumers are taking steps to reduce energy consumption, and 84% are prioritizing decisions aimed at reducing energy costs. However, only 15% of consumers worldwide are satisfied with energy prices and affordability.
Factors that Influence the Price of Energy
The Energy Consumer Survey revealed that 22% of respondents blame geopolitical tensions, such as the war between Russia and Ukraine, for rising energy prices. On the other hand, 35% of respondents point to energy suppliers as responsible, as they raised prices to obtain higher revenues.
The survey also presented the Energy Consumer Confidence Index (ECCI), an index that measures consumer confidence in the energy market, including the energy transition and its optimization. The ECCI provides an overview of the energy market, taking into account consumers' perceptions of the energy market, the value offered by energy suppliers, access to clean energy options, affordability and progress in the transition to a clean energy reality. with low or no carbon emissions.
According to the ECCI, China leads the ranking, with 77.6 points, followed by Malaysia, with 70.6; Hong Kong, with 69.2; Canada, with 66.2; Brazil and Australia, with 65.5; USA, with 64.8; and Holland, with 63.2. Among Brazilian consumers, Generation Z (under 25 years old) has the highest reliability index, while boomers (over 57 years old) are the least confident.
Interest in Renewable Energy
The study also highlighted that more than two-thirds of Brazilian respondents are interested in renewable energy, domestic power generation and new clean energy products and services. Nearly half – 47% – are willing to pay more for sustainable products and services. These results are encouraging, as they demonstrate the growing concern of Brazilian consumers with the preservation of the environment and the search for more ecological alternatives for energy generation.
The energy sector faces a major transformation in recent years, with technological evolution and the growing demand for renewable sources. In this scenario, domestic energy generation has become increasingly attractive, allowing consumers to control their energy costs and reduce their carbon footprint. In addition, the availability of new energy products and services has contributed to increasing energy efficiency and making energy more affordable.
Generation Z is at the forefront of these changes
The Energy Consumer Survey carried out by EY points to a challenging reality, but also hopeful, for the energy market in Brazil and in the world. Gen Z is the main hope in this scenario, with their confidence, they are also the most interested in renewable energy, home power generation and new energy products and services. The trend of paying more for sustainable products and services is also seen, with 47% of Brazilian consumers willing to pay more.
There is a need for the energy sector to invest in affordable and sustainable solutions to meet consumer demands, ensure energy security and help combat climate change.
But at the same time, around 50% of consumers reported that they spent more on electricity in the last year, and more than a third of them are in energy poverty, devoting at least 10% of their income to electricity and/or natural gas. To address this situation, 85% of Brazilian consumers are taking steps to reduce energy consumption, and 84% are prioritizing decisions focused on reducing energy costs.
Worldwide, only 15% of consumers are satisfied with energy prices and affordability. Only 22% blamed geopolitical tensions such as the war between Russia and Ukraine for rising energy prices, while 35% blamed energy suppliers who raised prices to capture higher revenues.
O Energy Consumer Survey conducted by EY points to a challenging but also hopeful reality for the energy market in Brazil and worldwide. Generation Z is the main hope in this scenario, with its confidence and interest in the energy market, but energy poverty is a real concern for many consumers. There is a need for the energy sector to invest in affordable and sustainable solutions to meet consumer demands, ensure energy security and help combat climate change.
