CFL TORCHIERE 2004 PILOT

OUTLINE  OBJECTIVES  TORCHIERE MARKET  BARRIERS (5 As)  STRATEGY  PROGRAM DESIGN  RESULTS  CONCLUSION/NEXT STEPS  VIDEO

OBJECTIVES   Acquire 2.4 GWh by stimulating the sale of 12,000 compact fluorescent torchieres (CFTs)   Drive a greater permanent market share for more efficient lighting by working with existing market channels to overcome the barriers to adoption   Test customer acceptance Note: While SLEDs and CFLs were included in this program this presentation will only focus on CFTs

TORCHIERE MARKET  Approximately 700,000 halogen and incandescent torchieres currently in BC households  The average energy consumed is estimated at 300 watts for halogen torchieres and 150 watts for incandescent torchieres  If each of these torchieres was replaced with a CFL torchiere drawing 55 watts, the annual energy savings would be 175 GWh  CFTs account for less than 4% of all torchiere sales

BARRIERS (5 As)  Awareness - the majority of customers are unaware of the technology  Acceptance - will customers like CFTs as an alternative to halogen or incandescent torchieres  Accessibility - only 1 major retailer currently stocks CFTs  Availability - limited selection  Affordability - $50-70 vs. $18-20

STRATEGY   Partnered with retailers and manufacturers to ensure that the supply of CFTs continues to expand   Promoted CFTs as a replacement to halogen and incandescent torchieres   Offered customers valuable incentives for purchasing CFTs (co-funded with retailers, manufacturers and NRCan)

PROGRAM DESIGN  Two-tier program that offered customers valuable incentives towards the purchase of ENERGY STAR qualified CFTs

PROGRAM DESIGN  Tier 1  Staged “exchange events” at participating retailers  Events were held from October-December 2004 in the Lower Mainland and on Vancouver Island  PSOT hosted the events & distributed a $30 in-store coupon towards the purchase of a CFT to customers that turned-in an old torchiere  Coupons were only valid on the day of the “turn-in” and at the retailer where the “exchange” was made  PSOT educated customers on the benefits of CFTs  Recycled the old torchieres

PROGRAM DESIGN  Tier 1 (continued)  In order to get a PSOT event, the retailer had to sell qualifying CFT, CFL and SLED products  Retail partners included Home Depot and 9 independent retailers

PROGRAM DESIGN  Tier 2  A $15 mail-in coupon towards the purchase of a CFT  Did not have to attend an event to acquire a mail-in coupon (available at retail shelves and on the BC Hydro website)  Available to all BC Hydro customers  Valid from October-December 2004

PROGRAM DESIGN  Promotion  Theme - BC Hydro’s “Most Wanted Energy Offenders”  Newspaper  Radio (including retail remotes)  TV sponsorships  Media releases  BC Hydro website  IVR  Bill Insert  PSOT

RESULTS  All participating retailers sold out of CFT product  In the last 2 weeks some events were cancelled due to product shortage  In-store coupons  Passed out 13,673 coupons of which 10,984 were redeemed (80% redemption)  Mail-in coupons  627 coupons received  Mail-in coupons were pulled after week 2 due to product shortage

RESULTS  Recycled 13,673 torchieres  Over 90% of recycled torchieres were halogen drawing 300 watts  Stimulated the sale of 11,611 CFTs against a target of 12,000 (fell short due to product shortages)  All CFTs sold were 55 watts  Acquired 3.42 GWh against a target of 2.4 GWh

CONCLUSION/NEXT STEPS  An overwhelming positive response from both customers and supply partners  Next Steps  Roll the program out this fall across all of BC for a longer period of time (12 weeks vs. 8 weeks)  Greatly increase the number of participating retailers and manufacturers (287 events vs. 112 events)  Determine a recycling strategy that in coming years the retailers can own

VIDEO

Alicia Forrester Product Manager (604)