DEFG LLC, a management consulting firm focused on consumers and consumer-facing offerings in the utility sector,¹ partnered in November 2014 with Russell Research to conduct 980 online interviews based on the Russell Research Omnibus Methodology.² The project team worked with the members of the Prepay Energy Working Group³ to finalize the survey instrument.

Prepay in all forms gift cards, reloadable debit cards, etc. represents a megatrend in consumer finance. TransCard projects that prepayments from all segments (consumer, commercial and public) will total $421 billion in transactions in 2017. Of that, the consumer segment will represent $112 billion, mainly reloadable cards but also other forms of prepayment.⁴

Prepay energy continues to grow in the United States and is projected to grow even faster over the coming years. A recent study by Navigant Research projects that "for North America, the installed base of prepay meters is expected to grow from 650,000 to 3.1 million during the forecast period, with a CAGR of 17.0%. Utilities that have installed advanced metering infrastructure (AMI) systems and smart meters with remote disconnect and that operate in states where prepaid metering is permitted are the ones expected to help drive this growth."⁵

¹ DEFG LLC believes that retail customers are the future of energy. We partner with clients to improve all aspects of the customer relationship. We identify opportunities to create value in a commodity marketplace. Learn more here: http://defgllc.com/
² The Russell Research Omnibus Methodology is described on pages 10-11.
³ The Prepay Energy Working Group (PEWG), managed by DEFG, is the energy utility industry's leading forum on prepaid energy service. The working group is comprised of utilities, energy retailers, metering and software vendors, energy efficiency organizations, and it includes an advisory panel of regulatory commissioners and consumer advocates. Members interact on a regular basis and develop a research agenda after thoughtful discussion. Research findings are subjected to member review.
⁴ Transcard (2014). Prepaid Preview 2014. Presentation November 2014.
⁵ Navigant Research (2015). Prepaid Metering: Meters, Software, and Services: Opportuni-ties, Challenges, and Global Market Analysis and Forecasts. Executive Summary 1Q 2015.

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