CFL TORCHIERE 2004 CFL TORCHIERE 2004 PILOTPILOT

OUTLINEOUTLINE OBJECTIVESOBJECTIVES TORCHIERE MARKETTORCHIERE MARKET BARRIERS (5 As)BARRIERS (5 As) STRATEGYSTRATEGY PROGRAM DESIGNPROGRAM DESIGN RESULTSRESULTS CONCLUSION/NEXT STEPSCONCLUSION/NEXT STEPS VIDEOVIDEO

OBJECTIVESOBJECTIVES 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 MARKETTORCHIERE MARKET Approximately 700,000 halogen and incandescent Approximately 700,000 halogen and incandescent

torchieres currently in BC households torchieres currently in BC households The average energy consumed is estimated at 300 The average energy consumed is estimated at 300

watts for halogen torchieres and 150 watts for watts for halogen torchieres and 150 watts for incandescent torchieresincandescent torchieres

If each of these torchieres was replaced with a CFL If each of these torchieres was replaced with a CFL torchiere drawing 55 watts, the annual energy savings torchiere drawing 55 watts, the annual energy savings would be 175 GWhwould be 175 GWh

CFTs account for less than 4% of all torchiere salesCFTs account for less than 4% of all torchiere sales

BARRIERS (5 As)BARRIERS (5 As) Awareness - the majority of customers are unaware of Awareness - the majority of customers are unaware of

the technologythe technology Acceptance - will customers like CFTs as an alternative Acceptance - will customers like CFTs as an alternative

to halogen or incandescent torchieresto halogen or incandescent torchieres Accessibility - only 1 major retailer currently stocks Accessibility - only 1 major retailer currently stocks

CFTsCFTs Availability - limited selectionAvailability - limited selection Affordability - $50-70 vs. $18-20Affordability - $50-70 vs. $18-20

STRATEGYSTRATEGY 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 DESIGNPROGRAM DESIGN

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

PROGRAM DESIGNPROGRAM DESIGN Tier 1Tier 1

Staged “exchange events” at participating retailersStaged “exchange events” at participating retailers Events were held from October-December 2004 in the Lower Events were held from October-December 2004 in the Lower

Mainland and on Vancouver Island Mainland and on Vancouver Island PSOT hosted the events & distributed a $30 in-store coupon PSOT hosted the events & distributed a $30 in-store coupon

towards the purchase of a CFT to customers that turned-in an towards the purchase of a CFT to customers that turned-in an old torchiereold torchiere

Coupons were only valid on the day of the “turn-in” and at the Coupons were only valid on the day of the “turn-in” and at the retailer where the “exchange” was maderetailer where the “exchange” was made

PSOT educated customers on the benefits of CFTsPSOT educated customers on the benefits of CFTs Recycled the old torchieresRecycled the old torchieres

PROGRAM DESIGNPROGRAM DESIGN Tier 1 (continued)Tier 1 (continued)

In order to get a PSOT event, the retailer had to sell qualifying In order to get a PSOT event, the retailer had to sell qualifying CFT, CFL and SLED productsCFT, CFL and SLED products

Retail partners included Home Depot and 9 independent Retail partners included Home Depot and 9 independent retailersretailers

PROGRAM DESIGNPROGRAM DESIGN Tier 2Tier 2

A $15 mail-in coupon towards the purchase of a CFTA $15 mail-in coupon towards the purchase of a CFT Did not have to attend an event to acquire a mail-in coupon Did not have to attend an event to acquire a mail-in coupon

(available at retail shelves and on the BC Hydro website)(available at retail shelves and on the BC Hydro website) Available to all BC Hydro customersAvailable to all BC Hydro customers Valid from October-December 2004Valid from October-December 2004

PROGRAM DESIGNPROGRAM DESIGN PromotionPromotion

Theme - BC Hydro’s “Most Wanted Energy Offenders”Theme - BC Hydro’s “Most Wanted Energy Offenders” Newspaper Newspaper Radio (including retail remotes)Radio (including retail remotes) TV sponsorshipsTV sponsorships Media releasesMedia releases BC Hydro websiteBC Hydro website IVRIVR Bill InsertBill Insert PSOTPSOT

RESULTSRESULTS All participating retailers sold out of CFT productAll participating retailers sold out of CFT product In the last 2 weeks some events were cancelled due to In the last 2 weeks some events were cancelled due to

product shortageproduct shortage In-store couponsIn-store coupons

Passed out 13,673 coupons of which 10,984 were redeemed Passed out 13,673 coupons of which 10,984 were redeemed (80% redemption)(80% redemption)

Mail-in couponsMail-in coupons 627 coupons received627 coupons received Mail-in coupons were pulled after week 2 due to product Mail-in coupons were pulled after week 2 due to product

shortageshortage

RESULTSRESULTS Recycled 13,673 torchieresRecycled 13,673 torchieres Over 90% of recycled torchieres were halogen drawing Over 90% of recycled torchieres were halogen drawing

300 watts300 watts Stimulated the sale of 11,611 CFTs against a target of Stimulated the sale of 11,611 CFTs against a target of

12,000 (fell short due to product shortages)12,000 (fell short due to product shortages) All CFTs sold were 55 watts All CFTs sold were 55 watts Acquired 3.42 GWh against a target of 2.4 GWh Acquired 3.42 GWh against a target of 2.4 GWh

CONCLUSION/NEXT STEPSCONCLUSION/NEXT STEPS An overwhelming positive response from both An overwhelming positive response from both

customers and supply partnerscustomers and supply partners Next StepsNext Steps

Roll the program out this fall across all of BC for a longer Roll the program out this fall across all of BC for a longer period of time (12 weeks vs. 8 weeks)period of time (12 weeks vs. 8 weeks)

Greatly increase the number of participating retailers and Greatly increase the number of participating retailers and manufacturers (287 events vs. 112 events)manufacturers (287 events vs. 112 events)

Determine a recycling strategy that in coming years the Determine a recycling strategy that in coming years the retailers can ownretailers can own

VIDEOVIDEO

Alicia ForresterAlicia ForresterProduct ManagerProduct Manager(604) 453-6387(604) 453-6387

alicia.forrester@bchydro.coalicia.forrester@bchydro.comm