A new scheme to harness smart data for energy could help the British public lower their energy bills as well as gain greater control over their energy consumption.
Smart data allows customers to access their energy consumption data through authorised third parties (ATPs), which then use the data, at the customer’s quest, to provide customers with tailored product and service recommendations.
Thus, smart data has the capability to offer customers more control over their own data, helping them better understand their energy use to make more informed choices and save money. For example, new services could help customers compare prices, change suppliers, and switch to low-carbon tariffs.
Smart data has already revolutionised Open Banking by giving customers 24/7 access to their own dat, alongside new products and services.]
The government’s decision to roll out an energy smart data scheme aligns with their Plan for Change, through working towards making Britain a clean energy superpower. The scheme would deliver growth to businesses, and allow consumers to make more informed choices about their energy use.
Consequently, Britain’s pioneering data economy, which drives investments worth up to 6.7 per cent of UK economic activity, would be boosted to grow even more.
Minister for energy Michael Shanks said: “Data and digitalisation will be an essential foundation of our mission to deliver a zero-carbon electricity system by 2030. Reforms will help consumers and businesses to benefit from the new era of clean power.
“Following the world-leading example of open banking, energy smart data could help consumers find the best tariff based on their actual consumption, providing personalised solutions, better services and greater choice, whilst saving them money
“We look forward to working with industry and other key stakeholders to explore how we can implement an effective and safe smart data scheme in the energy market.”
Until 10th March 2025, the government is seeking views on the potential for developing a Smart Data initiative for energy, and encourages options on the current energy landscape and the potential for scope, opportunities, barriers and risks to developing an energy smart data scheme.
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