How consumer-led flexibility can benefit households and our future energy system
Smart meters can help households cut electricity bills while supporting a cleaner, more resilient energy system. Sara Higham, Director of Corporate Affairs for Smart Energy GB, emphasises all types of households could benefit, with the right support and options available
Consumer-led flexibility can help households lower their electricity bills by using power at times when it is cheaper, while also supporting a more efficient, resilient and secure energy system.
For example, the government highlights that electric vehicle users could save £332 a year, by charging their cars on a time-of-use tariff.1
How do households get involved?
Households can get involved by shifting when they use electricity, for example by running a washing machine at times when renewable energy, such as wind or solar, is abundant or when overall demand is lower.
Smart meters are a key enabler. Without one, suppliers cannot see when electricity is being used and so cannot reward households for shifting demand. Broadly, suppliers do this in two ways:
- Time of use tariffs: which offer cheaper electricity at off-peak times, often overnight, at weekends and sometimes during the day.
- Flexible reward schemes: which sit alongside a normal tariff and offer free or cheaper electricity at certain times, or reward households for reducing demand when the electricity system is under pressure.
Many households are already taking part in consumer-led flexibility, and many more may be able to benefit if the right options and support are in place.
Why is this important?
Consumer-led flexibility can play an important role in building a more efficient, resilient and secure electricity system, while also helping households reduce their energy bills.
As Great Britain relies more on renewable electricity, supply becomes more variable. At the same time, demand for electricity is expected to rise as more households switch to electric vehicles and low-carbon heating.
Shifting electricity use to times when renewable power is more abundant can help reduce waste, ease pressure on the grid at peak times and make better use of low-carbon energy. This can lower system costs overall, while also giving households more opportunities to save money through flexible tariffs and reward schemes.
At a time when many households continue to feel pressure on their finances, these savings can make a real difference.
What about vulnerable households?
Consumers must be at the heart of the future energy system, and it is important that no one is left behind, particularly those in vulnerable circumstances. Our latest report looks at how consumers in vulnerable circumstances can, and in some cases already are, benefiting from consumer-led flexibility. It highlights conditions that might support further take-up such as:
- Financial protections
- Predictable savings windows
- User-governed automation
- Simple tariffs and billing
- Timely communications that can be revisited
- Advice and support from trusted intermediaries
Ultimately, consumer-led flexibility has the potential to help lower household energy bills and support a more efficient energy system. Making that system more inclusive will help ensure that all households can make informed choices about whether and how to take part and can share in the benefits where it is suitable for them.
Want to learn more about consumer led flexibility? Click here to watch Smart Energy GB’s video, which brings together industry experts to explain how smart meters support consumer-led flexibility and how households can benefit.
Reference
- DESNZ; New smart appliance standards will help consumers save on bills. April 2025
