Smart meters and consumer behaviour: Insights from the empirical literature

This paper summarises the insights to be gained from a systematic literature review of empirical research devoted to behavioural considerations associated with the use of smart meters and energy information feedback. Above and beyond the mass rollout of smart meters, there are various behavioural considerations that can affect the way in which consumers react to information enabling the adaptation of their consumption behaviour in response to dynamic pricing. Indeed, many empirical studies have been conducted in various countries aimed at determining how consumers respond to feedback on their consumption and prices. However, if users fail to demonstrate a pro-active attitude, they cannot hope to take advantage of the opportunities afforded by new technologies. By reporting a systematic analysis of bibliographic references, this article seeks to further understanding as to why consumers behave as they do when managing their demand, a process that, ultimately, is for the benefit of the electrical system, in particular, and of the whole of society, in general. The policy implications that emerge from our analysis highlight the heterogeneity of consumer engagement in demand management programs, depending on the degree of preference satisfaction achieved by means of personalised contract terms and the degree and persistence of consumer change, which are dependent on the cost, frequency and quality of information.