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Lack of Cost Understanding is a Leading Cause of Energy Wastage

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LONDON, May 9 /PRNewswire/ --

- LogicaCMG Study Reveals Consumer Attitudes to Energy Usage Amidst Escalating Costs

Twenty million British adults have little or no understanding of the amount they spend on electricity or gas while using domestic appliances, listening to music or watching TV, according to research released today by LogicaCMG (LSE: LOG), a provider of business services to the energy sector. Despite spiralling energy costs and the looming energy gap crisis, 90 per cent of respondents have little concept of how much energy per year a household could save through energy efficient practices. The research report entitled "Energy Efficiency - Public attitude, private action" looks at attitudes of 2,010 respondents towards saving energy and the understanding of energy costs in the average UK household.

Energy Saving versus Environmental Concern

While a significant three quarters of respondents feel that as individuals they can make a difference in saving the planet, there appears to be confusion about domestic energy consumption. Encouragingly the report indicates that 75 per cent of respondents would be willing to change their lifestyle, with over half of respondents willing to go a step further to actually change their daily habits in order to be more energy efficient. Asked what would actually change their behaviour on a day-to-day basis to allow them to be more energy efficient, respondents cited global warming and the doubling of energy prices as key motivators.

Understanding Energy Costs

One of the primary causes of domestic energy wastage identified by the research is a lack of understanding of energy costs. Forty-two per cent of 18-44 year olds admitted that they have little concept of their household energy consumption, compared to a third of 45+ year olds. Whereas petrol consumed, and the cost of taxis and mobile phones were perceived to be transparent, the cost of energy remains unclear. The report further investigated the issue of energy use within the home. While children have an increasing amount of pester power in the way households spend their money, when it comes to domestic energy, children are the least likely to raise the issue. This clearly outlines the need for education at the grass roots level in the practicalities of energy cost and consumption. Smart Metering as potential solution

In order to better manage their energy consumption, two thirds of respondents would like more information on the day-to-day practicalities of energy consumption, such as a weekly/monthly profile of their domestic energy use, or clear costs of running individual appliances. An overwhelming 82 per cent responded that a little screen in the home (smart meter), which enables consumers to monitor household energy consumption would assist them in helping change their day-to-day behaviour. Only 3 per cent of respondents felt that they would have no problem understanding how to use a smart meter, with just 7 per cent concerned about the look of the meter.

Regional Differences to Energy Consumption

On a national scale, Londoners have the least understanding of energy use, with 41 per cent having "no idea how much energy they are using at the moment". Respondents in Glasgow claim to be the biggest worriers about climate change in the UK but are the least likely to translate words into actions in the household. In the wake of the energy price hikes of 30 per cent in the last two years, respondents were asked if energy prices continued to rise what would they do. Alarmingly 55 per cent of respondents from Leeds and Newcastle would continue to consume energy at the current level, despite the energy gap crisis.

Allan Asher, Chief Executive, energywatch, commented:

'This research highlights how willing consumers are to use energy more responsibly in the home. It also reinforces the point energywatch has been making for some time - that without having the necessary information to hand about where and when energy is consumed in the home it is extremely difficult for most of us to change our habits. energywatch believes smarter metering must be integral to the UK's energy policy. Consumers can be a major part of the solution to curbing carbon emissions but not until they have the means to act.'

Kieron Brennan, managing director of LogicaCMG's energy and utilities business in the UK commented:

"The results are clear: households want to be more energy efficient but need to be equipped with the technology to enable them to play a role in the climate change challenge. LogicaCMG has a strong heritage in the field of smart metering and over 25 years of experience in the energy and utilities sector. A smart meter is a flexible, reliable and easy to use tool that allows energy costs to be made more transparent. The research shows that if people could see the amount of energy they were consuming, they would automatically start saving energy. The Government needs to further educate the population, in particular the younger generation about more intelligent energy consumption, and provide the infrastructure in order to make smart metering in every home a reality."

The research results are part of a wider study comparing energy efficiency attitudes and habits from other countries around the world. These will be made available in May 2006.

About LogicaCMG

LogicaCMG is a major international force in IT services. It employs 30,000 people across 36 countries. LogicaCMG's focus is on enabling its customers to build and maintain leadership positions using LogicaCMG's deep industry knowledge and its track record for successful delivery. The company provides business consulting, systems integration and IT and business process outsourcing across diverse markets including telecoms, financial services, energy and utilities, industry, distribution and transport and the public sector. Headquartered in Europe, LogicaCMG is listed on both the London Stock Exchange and Euronext (Amsterdam) (LSE:LOG; Euronext:LOG). More information is available at www.logicacmg.com.

Background to the Report

"Energy Efficiency - Public attitude, private action" was carried out by leading research consultancy, the Future Foundation. The results are based on interviews with 2,010 adults aged 16+ across the UK, who were asked their views of energy awareness and energy awareness. The survey ran from February to March 2006.

Report available to download at www.logicacmg.com/uk/energyefficiency

Available for comment:

Kieron Brennan, managing director, energy and utilities, LogicaCMG UK

Rick Hanks, metering director, energy and utilities, LogicaCMG UK

Ted Hopcroft, strategy director, energy and utilities, LogicaCMG UK

SOURCE LogicaCMG Plc



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