The UK Government has set out its plans for a more flexible electricity system as it aims to enable customers to take advantage of low prices when clean energy is abundant.
Consumers will have the opportunity to switch to a flexible tariff and use smart appliances to automatically get rewards of cheaper power at non-peak times.
It follows products already available to consumers, such as smart charging for electric vehicles overnight, which can save as much as £330 per year in costs.
The Clean Flexibility Roadmap will now allow EV drivers to get discounts on electricity when using public chargers at off-peak times, as well as requiring suppliers to make information on smart tariffs more accessible to consumers – and taking the next steps to help consumers access tailored products and services based on their electricity usage.
According to the government, such support to use off-peak electricity could produce £70bn in estimated savings by 2050.
Energy Minister Michael Shanks said:
“The flexible electricity system we are working to build will help make that a reality for consumers across the country, by supporting them to bring down their bills through using new tariffs and technologies. In this way we will protect working people’s pockets and ensure they are the first to benefit from our clean power mission.”
Kayte O’Neill, Chief Operating Officer, NESO, said:
“The journey towards a decarbonised system will bring opportunities for industry and consumers if we can solve the challenges of using the system flexibly.
“This roadmap provides clear direction for that, setting out the actions needed to increase flexibility across Great Britain and the rewards it will bring.”
Akshay Kaul Director General for Infrastructure Group, Ofgem, said:
“A more flexible energy market will be a real game changer, giving households more control over what they pay for their energy.
Naomi Baker, Senior Policy Manager at Energy UK, said:
“Energy UK welcomes the roadmap as a positive step towards a smarter, more flexible electricity system that passes the lower cost of renewables through to bill payers. We support the comprehensive scope – from the major new technologies (long duration storage, CCUS and hydrogen) that will ensure system resilience, through to the knotty regulatory barriers that limit market access from consumer assets.”
Kelly Butler, Director of External Affairs at BEAMA, said:
With appropriate lead times for product development, a technology agnostic approach within electrification and a clear connection across consumer facing policies such as EPCs, we anticipate major supply chain investment to meet the challenge.
“With the oversight of a new Flexibility Commissioner, the roadmap has the potential to help grow the sector, and bring increased momentum to delivering flexibility to consumers and businesses through mass market uptake of Energy Smart Appliances.”
Ramona Vlasiu, Chief Operating Officer at E.ON Next said:
“Flexibility is key to a cleaner, more affordable energy future. We support continued progress on the policies and regulations that will make it easier and more accessible for people to transform their relationship with energy, tackle long-term affordability, and ensure everyone can benefit from Britain’s transition to clean power.”
Merlin Hyman OBE, Chief Executive of Regen, said:
“The roadmap is an important step to bring together reforms needed to unlock the full value of the rapidly developing grid scale storage sector and consumer led flexibility in a coordinated work programme.
“The challenge now is to deliver what is a significant programme of reform of the way our electricity markets and system work to enable a rapid transition to a clean power system and to deliver value to customers.”
Chris O’Shea, Centrica CEO, said:
“A one-size-fits-all approach to energy doesn’t work for the world we live in now. The Government’s shift to personalised power is the right one. We know consumers want flexibility and fairness, and this roadmap delivers both. At British Gas we’ve already started this work through our market-leading Peak Save scheme, saving our customers over £25 million on their energy bills. Whether it’s smart charging an EV overnight or running appliances off-peak, we’re empowering households to get cheaper, greener energy with tech that works around our customers lives – not the other way around.”
Barnaby Wharton, Director of Future Electricity Systems, RenewableUK, said:
“By embracing smart tariffs and technologies like EVs, modern heating systems and home batteries, and by accelerating the roll-out of more grid-scale batteries and Long Duration Energy Storage alongside renewables, we can build a more agile system which can shift, adapt and respond to demand faster. Scaling up our capacity to store energy is essential to strengthen the grid and enhance the UK’s energy security.”
Sarah Honan, Head of Policy at ADE: Demand, said:
“Industry demanded a step change in leadership to match our ambition – and this roadmap delivers. A dedicated Flexibility Commissioner aligns squarely with our sector’s blueprint for consumer-led clean power.” “Now, we must place British homes and businesses at the heart of the system; paying them to flex, not paying gas plants to bail us out. That’s how we lower bills, ditch fossil fuel dependency and make clean power by 2030 real.”
Image from Shutterstock
