The Government lays out plans to increase energy market competition and innovation.

As part of government plans to increase competition and innovation in the energy market, British households will have improved access to energy bargains and greater control over their energy consumption.

Energy Consumers and Affordability Minister Amanda Solloway outlined plans to provide consumers with broader energy usage options. 

Including tariffs with lower prices at certain times of the day, smart chargers that automatically place users on the lowest rate to charge electric vehicles, and opportunities to purchase shares in renewable energy in exchange for electricity bill discounts.

Some retailers offer these flexible and individualised energy usage options, but the current proposals would ensure that even more households take advantage of them.

As a result of Putin’s barbaric attack on Ukraine, energy prices skyrocketed, prompting the government to cover half of a typical household’s energy expenses this winter. Even though prices have decreased by two-thirds since their peak, most suppliers continue to charge consumers the utmost amount permitted by the default tariff price cap instead of providing more innovative and flexible products.

As the government continues collaborating with stakeholders and consumer groups on energy bill assistance for vulnerable households, it seeks to ensure that the market is resilient, competitive, future-proof, and consumer-oriented.

As a result, energy suppliers are being asked to present ideas that will ensure consumers benefit from the lower cost of powering their residences as a greater proportion of their electricity comes from renewable sources and as they utilise their energy when demand is lower.

Minister for Energy Consumers and Affordability Amanda Solloway stated: “The global increases in energy prices caused by Putin’s barbaric invasion of Ukraine demonstrate why we must strengthen our energy security and market to safeguard families and businesses while ensuring a fair deal. During the winter, we provided unprecedented levels of assistance, including paying nearly half the average household’s energy bill, and took decisive measures to stabilise the retail market.”

“Now, we want to put the authority back in the hands of consumers, giving them more options to reduce their energy bills in a future-proof market. Today, I urge the business sector to collaborate with us and seize the opportunities to invest in low-carbon technologies and provide superior consumer service.”

“As the United Kingdom transitions to a greener, more secure energy system, today’s announcement signifies a positive stride forward in future-proofing the market, with renewable energy now accounting for 40% of electricity supply.”

The government desires that energy retailers play a pivotal role in removing barriers to innovation that will yield tangible benefits for both consumers and suppliers.

To achieve this objective, the government will now collaborate with the industry to collect their perspectives and evidence on making low-carbon technologies more prevalent, thereby bringing about this monumental tidal change in our energy retail market.