Our second Smart and Fair report argued that a key challenge in the transition to a low-carbon energy system is a lack of clear, comprehensive information. Not only is the information available to consumers about new smart energy products, services and tariffs often confusing, but we also know very little on a national level about who is taking up and benefitting from these smart offers.  

To help build a clearer picture of the smart energy market in the UK, CSE has created a new webinar series to provide regular updates of key consumer fairness developments. By communicating insights from our Smart and Fair market monitoring and analysis relating to consumer access and fairness, we hope to improve understanding of the smart energy market, and advocate for improved industry practice and support for consumers. 

The first webinar took place in Autumn 2024, and the next will take place in March 2025.  

We share some of the key insights from our first webinar below. Read the full summary for more information. 

More offers = more capabilities required

The last decade has seen a steady growth in the number of smart energy offer types (products, services and tariffs) on the UK market: from almost none to over 30. Through analysing each offer type using our Smart Energy Capabilities Lens, we’ve found that as offers have become more technical or nuanced over time, there has been a trend for offers to require more capabilities of consumers. For example, people may need certain technologies to be able to benefit from offers, they might need a level of digital literacy or the ability to absorb financial risk. 

Our wider Smart and Fair work has revealed that this market complexity has outpaced the ability of standard energy advice to keep up. Consumers without smart meters, digital skills, or the ability to handle variable bills are at risk of being penalised or excluded from new market offerings. 

Access to offers is unequal

We’ve developed consumer personas to help visualise the availability of smart offers. These personas have highlighted that whilst some consumers have the capabilities to take up a wide range of offers, many are excluded due to a lack of capabilities – often because they do not own or cannot afford certain energy technologies, or because they don’t own their homes. And sometimes, because they don’t have access to appropriate energy advice.  

Prepayment and digital barriers

Our analysis also highlights a consistent lack of smart offer options for consumers with prepayment meters, or for those with limited digital technology or skills. Most smart tariffs are incompatible with prepayment meters, and almost all new smart products require smartphone activation. 

Proliferation of some tariffs

The rise in the number of offer types and their capability requirements in the past few years is partly due to the emergence of two types of smart tariffs. There are now tech-specific tariffs for heat pump and storage heater users, as well as for EV charging. Type-of-use tariffs – in which the supplier can ‘manage’ the tariff to maximise savings and grid efficiency – are also offering new opportunities for saving. As these tariffs depend on the consumer owning a specific technology, many are excluded. 

More demand shifting options

Since the successful pioneering of the Demand Flexibility Service, there are now options to take part in a variety of different demand shifting services, including services that are year-round and involve demand turn-up. These options are significant for enabling participation from consumers with no significant energy assets. However, as shown by our evaluation of consumer experiences of the DFS, rewards for these consumers are often negligible. 

Financial analysis offers clarity

A key ask emerging from our DFS consumer evaluation was a need for more clarity on expected financial impacts. We can use the consumer archetypes we recently developed for NESO to help model the impacts of different smart offers for different consumers. In the webinar, we presented some example analysis on the different tariff options for storage heater users and the impact of adding a battery to a solar PV system (these can be seen in the webinar summary). 

Coordinated action for a fair transition

Drawing from our wider Smart and Fair insights, along with our detailed response to Ofgem’s Consumer Vulnerability Strategy consultation and insights from over 22,000 flexibility service participants, we are calling for: 

• Development of robust methods to assess cost and benefit distribution across consumer groups. 

• A requirement for energy suppliers to proactively evaluate smart tariff inclusivity. 

• Mandated standardised consumer information to help consumers compare products. 

• Improved monitoring of smart meter functionality, especially for vulnerable customers. 

• Investment in independent smart energy advice services. 

Our goal is to ensure the energy transition works for everyone, not just those with the ‘right’ circumstances. But it’s clear from our smart energy market monitoring that we currently risk a two-tiered energy system that benefits some people but excludes others. We’ll continue to share our insights and analysis and advocate for a smart energy transition that leaves no one behind.