Aspect Group Services have been championing innovative approaches for smarter ways to use energy as a Trusted Partner of Octopus Energy covering Norfolk, Suffolk and Cambridgeshire. We have seen the introduction of this initiative and promote these measures, which are now beginning to build traction across the energy regulators. Ofgem is advancing with plans to simplify the process so that British homeowners can benefit from using electric car chargers and heat pumps during off-peak times, as the grid increasingly depends on wind and solar energy.
The Energy Regulator has proposed measures to promote flexible electricity usage in homes by establishing a single register. This will allow flexibility service providers (FSPs) easier access to more markets and better rates for owners of energy assets like EV chargers and battery storage systems.
This initiative aims to shift both consumers and businesses towards more adaptable energy usage as demand grows and the grid relies more on intermittent low-carbon sources such as Solar Panels. Currently, FSPs, which aggregate flexible energy assets on behalf of customers, must register multiple times to access various local and national flexibility markets, resulting in customers often missing out on the best rates. The new streamlined system will feature a “one-stop sign-up point” for FSPs to access all flexibility markets, enabling customers to benefit more from lower tariffs when demand is low or supply is high.
Ofgem stated that the existing complex system is a barrier to market access for millions of small-scale energy assets, preventing consumers from maximizing the value of their equipment.
The necessity for more flexible electricity usage arises as domestic energy consumption is projected to increase by 50% by 2035 due to the rising adoption of EVs and heat pumps, while more energy will come from intermittent sources like wind and solar as the UK strives to achieve net zero emissions targets. Ofgem believes this overhaul could lead to between £30bn to £70bn in savings and lower bills for all consumers by reducing the need for expensive infrastructure development.
Several energy providers and distribution networks have already started offering flexible services to homeowners to prevent grid overload during peak times. These include Octopus Energy, with its Go electric tariff that manages the charging of 150,000 electric cars, offering lower tariffs for nighttime charging.
Since January, National Grid has also conducted a series of demand flexibility days where households and businesses were compensated for reducing electricity use during peak periods, typically between 4pm and 7pm.
Eleanor Warburton, Ofgem’s director, stated: “We are already witnessing significant acceleration in small-scale flexible energy use as consumers increasingly access cheaper energy through more flexible consumption… Asset registration will create a streamlined one-stop sign-up point, helping to maximize consumer participation.”
If you have any questions on how Variable tariffs could help you to reduce your energy costs speak to one of our team; we can provide advice on Solar Panels, EV chargers, Battery Storage and Air Source Heat Pumps and are the leading charge in East Anglia to promote Energy Efficiency.
Adapted from: https://amp.theguardian.com/business/article/2024/jul/29/ofgem-flexible-use-cheap-off-peak-energy-elexon