New proposals to give consumers confidence to take up smart devices.
- Consultation part of wider action to modernise the energy system, proposals will reduce pressure on the electricity grid, support up to 24,000 jobs and save up to £50 billion
- New measures to help consumers benefit from the best energy deals via a smart, flexible electricity system to save money on bills
- Strengthened protections will mean consumers can be confident their data will be handled securely and that they can access the best deals using any device
Consumers are set to benefit from cheaper and more convenient energy deals as part of new measures to create a smart, flexible electricity system to help save money on bills.
New proposals set out in a consultation today will introduce minimum requirements for cyber security and grid stability, and minimum product standards for energy smart appliances to give consumers confidence to take up smart devices and make it easier for them to benefit from cheaper bills. Electric heating appliances with the greatest flexibility potential – like heat pumps – could also be required to have smart functionality.
Smart appliances enable consumers to manage their energy use to benefit from cheaper tariffs at times of low electricity demand, for example a smart charge point which waits for a period of low-demand overnight to charge the car. This will reduce the consumer’s bill while also ensuring that their car is ready to be used in the morning.
By shifting some electricity use away from peak periods, this will ease pressure on the grid and reduce reliance on backup fossil fuel generation and the need for new infrastructure like pylons, helping to save up to £50 billion by 2050. The use of smart systems and flexibility could create 10,000 jobs and increase GDP by up to £1.3 billion by 2050. A further 14,000 jobs could be created by exporting the technology.
Proportionate standards will be set for organisations providing smart energy services, giving consumers the power to easily compare services whilst ensuring they are not unfairly locked in or out of contracts, and preventing the mis-selling of services.
The plans will also address the issue of some tariffs only working with certain brands of appliance. This will ensure that appliances like EV smart charge points and smart heat pumps can work with any supplier or tariff, making it easier for consumers to access the best deals regardless of what device they have.
The flexible operation of smart appliances is supported by smart meters, which are unlocking smart tariffs for consumers, helping them save energy and money. Over half of British homes already have smart meters, meaning they can access cheaper, off-peak energy tariffs which can save households around £900 a year.
The measures also include a legal requirement to treat consumers fairly and require service providers to have a consumer complaints process in line with that required for energy suppliers, as well as access to a redress process. Government will also reduce the barriers to those switching providers and strengthen cybersecurity and data protection requirements for all smart energy providers.
