Call for evidence on smart data initiative to help households manage energy costs

A new smart data scheme aimed at giving households greater control over their energy use and helping them save money on bills is being explored by the government. This initiative could enable consumers to access tailored support for lower-carbon tariffs, switch suppliers and compare prices more easily.

Smart data involves the secure sharing of customers’ energy consumption information with authorised third parties (ATPs). These ATPs can then offer bespoke products and services to consumers, enhancing their understanding of energy usage and providing personalised solutions. The government aims to replicate the success of Open Banking, which has transformed the financial sector, by applying similar principles to the energy market.

Minister for Energy Michael Shanks emphasised the importance of data and digitalisation in achieving a zero-carbon electricity system by 2030. The proposed smart data scheme seeks to stimulate innovation in the energy sector and attract investment, ultimately contributing to the growth of Britain’s data economy, which accounts for up to 6.7% of UK economic activity.

The call for evidence announced by the government will gather insights from industry stakeholders on how to effectively implement the smart data scheme. This step is part of a broader effort to repair the UK’s energy market, ensuring consumers’ needs are prioritised.

The smart data scheme could provide consumers with the ability to find the best energy tariffs based on their actual usage, leading to better services and increased choice. By facilitating easier comparisons and transitions between energy suppliers, the scheme aims to empower consumers while promoting cleaner energy options.

The government has previously announced plans to bolster Ofgem’s regulatory powers to protect consumers and enhance support for home upgrades through the Warm Homes Plan.

Developing an energy smart data scheme: call for evidence