Why demand flexibility is the future and why consumer engagement is critical

Freddy Parker, Advisor - Energy and Sustainability, BIT | Smart Energy GB

Imagine if shifting when you run your dishwasher, charge your electric vehicle, or do the laundry could help you save money, stabilise the energy grid and cut carbon all at once. That’s the promise of demand flexibility. While the concept is gaining traction, market penetration of flexible products and services will need to continue to grow to support our future energy system, and consumers will need support to engage. 

Why does demand flexibility matter? 

As we rely more on renewable sources of electricity, our supply is becoming more variable. At the same time, demand is rising as we electrify how we travel and heat our homes. Demand flexibility (shifting when we use electricity to better match the time when it’s cheapest and cleanest) is essential to avoid waste, manage peaks and make the most of low-carbon power. It’s also a chance for consumers to take more control over their energy use and costs. 

Our new report, Empowering Flexibility, investigates why some consumers are yet to get on board with demand flexibility and how we can change that. 

What do consumers currently think about demand flexibility? 

We found that consumer awareness of demand flexibility is mixed – 48 per cent were aware of the term ‘demand flexibility’, yet 75 per cent did not feel confident in explaining how to sign up for a time-of-use tariff. However, 74 per cent said they’d be willing to shift their electricity use to off-peak times, despite some consumers having reservations around convenience, household schedules or lifestyles. This suggests consumers are open and willing to engage but need support to find out more. 

In order to engage, people want support, and the messenger matters 

The public is open to learning more – nearly three-quarters of participants said a public communications campaign would help them understand demand flexibility and how to engage. People want simple, clear information, like what times are ‘off-peak’, how much they could save, and what behaviours are most impactful. Participants wanted to hear from trusted bodies and independent experts.  

Smart meters as a gateway to understanding 

 One of our most compelling findings was the clear difference between households with and without smart meters. Smart meter owners were consistently more aware, more confident, more engaged and more willing to participate in flexibility. They understand the broader national benefits better, such as supporting the transition to using greater renewable sources of energy. 

 This suggests that smart meters act as a gateway, both technically and psychologically, to a more flexible energy system. But there is more work to be done – the majority of people without smart meters didn’t realise that having one, and the data they provide, is essential to having a time-of-use tariff or signing up for a flexibility scheme. 

Making flexibility mainstream 

If we invest now in building awareness, trust and ease of use, demand flexibility could evolve from a technical term into a household habit, unlocking a smarter, greener, fairer energy future for all.  

To read the report, visit BIT’s website. To read more about being rewarded for using your energy flexibly, visit www.smartenergygb.org/flex

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