Smart data scheme could give people greater control over their
energy use and help save money on bills.
Consumers could get greater control over their energy usage and
save money on their bills under plans for an energy smart data
scheme.
Smart data is the process of securely sharing customers' data,
such as information on their energy consumption, with businesses
known as authorised third parties (ATPs). These third-party
providers then use the data, which is only shared at the
customer's request, to provide customers with bespoke
products and services which can be tailored to consumers'
needs.
Smart data has the potential to give customers more control over
their own data which will help them better understand their
energy usage as well as access more personalised services that
help them save money. For example, new services could help
customers compare prices, change suppliers and switch to
low-carbon tariffs.
Smart data has already transformed Open Banking in the UK, giving
customers 24/7 access to their own data, as well as new
products and services. It has driven huge innovation and economic
growth in the banking sector and the government's ambition is to
achieve similar success in the energy market.
With the government sprinting to make Britain a clean energy
superpower and protect working people from price spikes, as part
of the Prime Minister's Plan for Change, an energy smart data
scheme would deliver growth to businesses and help them to seize
opportunities from the new era of clean electricity.
By paving the way for the creation of a new range of
technologies, a potential scheme would provide British businesses
with scope to innovate and help them to attract investment.
In turn Britain's world-leading data economy, which drives
investments worth up to 6.7% of UK economic activity, would be
stimulated to grow even further.
Minister for Energy 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.
An energy smart data scheme would aim to replicate the success of
Open Banking, which allows people to share their financial data
with ATPs who help
them manage their money. Open Banking, the only active example of
a smart data scheme in the UK, is now regularly used by over 11
million consumers and businesses. 82 firms alone have raised over
£2 billion in private funding through the scheme.
This call for evidence is the next step in the government's
roadmap to repair Britain's broken energy market and put
billpayers back at the forefront of the sector's priorities. It
follows the announcements of plans to empower Ofgem, the energy
regulator, to protect consumers, to support more households to
benefit from home upgrades this year through the Warm Homes Plan,
and to drive a new era of clean electricity by 2030 through the
Clean Power Action Plan.
Developing an energy smart
data scheme: call for evidence
Notes to editors
The call for evidence on developing smart data in the energy
sector will be open until 10 March 2025.
It invites views on the current energy landscape, the potential
customer problems that could be solved through a smart data
scheme, and the challenges, barriers and risks to developing a
scheme.
A smart data scheme is a set of rules that govern how smart data
(the sharing of customer data) works in a specific sector. It
provides an overarching framework and structure under which data
sharing operates, and specifies the roles and responsibilities of
customers, data holders and third-party providers.
Customers are in complete control of their data. They decide if
and when their data is shared, and can withdraw consent at any
time. Customer protection and best-in-class privacy and security
measures would be at the forefront of any smart data scheme
implemented.
According to estimates
from the Organisation for Economic Co-Operation and
Development, Britain's data economy drives investments
worth between 3% to 6.7% of UK economic activity.
