Net Zero Transition: Consumer-led Flexibility

Debate between Claire Young and Martin Vickers

Tuesday 9th December 2025 Westminster Hall

[Claire Young]

I absolutely agree, and I am coming to those points.

The Government have set out a clean flexibility road map, and E.ON has found that 84% of people want more control over energy, so what is the catch? It might be said that this is all well and good for affluent consumers, who can afford the smart technology—the electric cars, battery storage and heat pumps, and the washing machines and dishwashers with timers so that they do not have to get up in the middle of the night to switch them on. It is all right for those who are digitally literate and for those who have heard of smart tariffs—let alone got their head around how they work. What about those who do not fit into those privileged categories? How does consumer-led flexibility fit with a just transition?

A report by the MCS Foundation in August found that 78% of people are unaware of schemes that reward households for reducing energy use at certain times and 41% are unlikely to switch to tariffs offering cheaper electricity outside peak times. If only a privileged few can access flexibility, will it deliver the potential benefits or simply place more of a burden on those already struggling to pay? It has the potential to lower all bills—as previously mentioned—by driving costs out of the system. That benefits even those who cannot participate. But we need to do more. To achieve the scale of change necessary, we need more action from the Government.

About three in 10 homes still do not even have smart meters, and the Government concede that, in those that do, one in 10 is faulty, while others put the figure even higher. That does not bode well for the roll-out of more advanced smart technology. What about the digitally excluded? The Government should oblige energy suppliers to engage with digitally excluded groups and those on low incomes on the benefits of flexibility. Does it not make comparing tariffs more complicated? Potentially it does, so why not support a “try it and see” approach by requiring energy suppliers to offer risk-free trial periods for time-of-use tariffs?

We have all seen, in other periods of rapid technological change, that some projects fail, so Ofgem needs to strengthen consumer protection, with clear redress powers if that happens. The Government’s own clean power action plan says that to reach clean power 2030, we need 12 GW of consumer-led flexibility—more than nuclear, hydrogen and carbon capture combined. But flexibility gets none of the coverage that those technologies do. It is all very well having a road map. What are Ministers actually doing to change the fact that nearly four in five people do not even know that they can be rewarded for changing when they use electricity?

The markets have been designed for the traditional fossil fuel generators, not for individuals and businesses that generate their own power or can offer storage. We need a presumption of openness in energy market design and rules to support them. If a rule from a market maker prevents a family with a battery, or a business with thermal storage, from participating in the market, it should be forced to justify why. The way that the network costs and final consumption levies work means that consumers cannot currently be paid to use excess renewable power when electricity prices go negative. That needs urgent reform. Imagine how much easier it would be to make the case for the clean energy transition if people could be paid for using clean, free power.

If flexibility is to be delivered, there needs to be clear accountability, without room for buck passing between the Department for Energy Security and Net Zero, Ofgem and the National Energy System Operator. The new flexibility commissioner needs to be given teeth, the ability to demand transparency and accountability from everybody involved, and the authority to call out failure. Have Ministers looked closely at the industry progress board that has been set up, and can the commissioner work with it?

It is time to give people the chance to take control and be active participants in our energy system, rather than being at its mercy. The road map, the commissioner and the technology are all in place, and we know that the public want more control over their energy and their bills. Will the Government take the extra steps needed to make this happen, or will they allow the dinosaurs of the old system to stand in the way? Let us move beyond the map to make this a reality and slash bills for everyone.

[Martin Vickers (in the Chair)]

I remind Members that they should bob if they wish to be called during the debate.