Bridging Affordability and Sustainability: Key Insights from our Energy Roundtable

In November 2024, Level5 Strategy and The Harris Poll Canada conducted consumer research into these evolving consumer priorities (you can find this research here). This research was the basis of a roundtable discussion with industry leaders from leading Canadian utilities. This discussion uncovered five major themes that should be considered by utilities in this dynamic time.

Theme 1 – Affordability vs. Sustainability: The Consumer Lens

Our discussion underscored a stark reality: while sustainability remains a societal priority, affordability is the dominant concern for Canadian consumers. In fact, 57% of Canadians now cite ‘keeping electricity costs low’ as their top priority, far outpacing interest in environmental progress or technological innovation. Canadian utility leaders live this reality day-to-day, as they balance affordability with other factors like championing decarbonization. Although decarbonization is a priority, the direct willingness of consumers to pay for a more sustainable grid is limited. This shows from limited customer investments in small-scale energy efficiency technologies, and even less investments in larger purchases like electric vehicles or solar panels.

“Cost effectiveness is front and center for consumers. As utilities, we need to demonstrate a cost-led value proposition to customers.”

– Canadian Utility Leader

Key Implications:

• Utilities must recognize that cost sensitivity trumps green aspirations for most consumers, especially in times of economic uncertainty.
• There is a clear disconnect between stated environmental values and actual consumer investment or behaviour.
• The stated disconnect will influence how utility leaders make decisions about how to manage their grid.
• In today’s environment, the societal need for green solutions is not enough to entice usage; there needs to be an advantageous financial case to drive consumer behaviour towards adoption of these solutions.

Theme 2 – The Brand of Utilities: From Providers to Trusted Advisors

Utilities are uniquely positioned – operating at the intersection of grid management, policy, and consumer engagement. The roundtable discussion highlighted a growing opportunity for utilities to play a dual role as both educators and innovators. As utility leaders pioneer innovation, it will be crucial to orient the cost discussion on the medium and long-term benefits of investments vs. the short-term mindset of saving money on the next bill. Utilities should focus their customer communications on the long-term benefits of pioneering innovation. They should highlight these benefits to consumers – such as improved reliability, sustainability, and long-term cost savings – to build a brand as a trusted partner.

“We are customer focused people that strive to understand our customer’s needs, and then work with internal stakeholders to make sure we are meeting the customer’s needs in the long-term. It is essential that we bring consumers along in this journey.”

– Canadian Utility Leader

Strategic Actions:

• Proactive Education: Consumers want more information, especially about rebates (44%) and energy efficiency (30%), but are not actively searching for it. With only 5% of consumers seeking information on solar panels and 4% on EVs, utilities appear to have the societal permission to reach out, not wait for inbound interest. Providing this information to consumers empowers them to opt into programs, reducing the need for utilities to force consumers to opt-out which can adversely impact the brand.
• Innovative Engagement: Moving beyond transactional relationships (i.e., billing, outages), utilities could invest in digital platforms, mobile apps, and tailored communications that make it easy for customers to access and act on relevant information.

Theme 3 – Balancing Infrastructure Investment with Customer Expectations

The energy transition demands significant investment in grid modernization to support distributed energy resources, electrification, and resilience. Yet, the appetite for rate increases is low: 88% of Canadians worry about higher electricity rates, and nearly half oppose federal EV mandates. In the middle of this, it is important for utilities to steward the quality of the grid and the service levels provided to customers. Utilities sit at the intersection of the customer and regulator’s priorities and should ensure education about the needs of various interested parties.

“It’s a tough time for utilities to deliver more with less. There is a lot of pressure to keep the cost low, while still managing the grid in a reliable, future-proof matter.”

– Canadian Utility Leader

Strategic Considerations:

• Data-Driven Decision Making: Utilities are leveraging research to justify infrastructure investments and to ensure spending aligns with real, not assumed, customer priorities.
• Smart Phasing: By using customer data and predictive analytics, utilities can stage investments to match actual adoption rates of new technologies, avoiding overbuilding and unnecessary cost burdens.

“Well done consumer research gives us the permission to ask the regulator for relevant grid modernization and customer programs.”

– Canadian Utility Leader

Theme 4 – Culture Shift: Embracing Technology to be More Customer-Centric

The sector is undergoing a generational transformation, with digitalization and innovation reshaping not only operations but also organizational culture. Utilities are moving toward a more agile, customer-focused model, recognizing that brand credibility and trust are built on transparency and proactive communication. It is important to not only build this credibility with customers but also with regulators and policymakers, fostering collaboration to better serve customers.

“I am at the heart of a big wave of digitization that is happening in our organization. The purpose of this is to develop solutions that improve the customer experience.”

– Canadian Utility Leader

Key Behaviors:

• Transparent Communication: Openly explaining the rationale behind investments, rate changes, and new programs builds trust, especially during challenging periods such as major rate increases. While communication alone is not a complete answer, it is the necessary first step.
• Personalized Engagement: Utilities that leverage segmentation and targeted outreach see higher engagement and satisfaction. Understanding differences between customers and tailoring communications to these differences are important prerequisite for utilities to become more customer-centric.

Theme 5 – The Path Forward: Strategic and Research-Driven Recommendations

To bridge the gap between affordability and sustainability, utilities should:

• Lead with Empathy and Evidence: Recognize the importance of affordability and use robust research to inform both investment and engagement strategies.
• Invest in Digital and Data Capabilities: Enable proactive, personalized engagement through modern platforms and analytics.
• Champion Transparency: Communicate clearly, simply, and often – especially around costs, investments, and the value delivered.
• Innovate Responsibly: Pilot new technologies and programs that deliver both environmental and economic value, ensuring customers see tangible benefits.
• Build Brand as a Trusted Partner: Position the utility as a source of trusted advice and support, not just a service provider.

Conclusion

Utilities are at a defining moment. By embracing their role as both educators and innovators, and by grounding decisions in rigorous research and authentic customer engagement, they can forge a path where affordability and sustainability reinforce – not undermine – one another. Those who act now to build trust, transparency, and relevance will not only navigate today’s challenges but also shape the future of energy in Canada.

“Transparent communication builds trust, especially during challenging periods such as rate increases.”

– Canadian Utility Leader