Since 2019, our Smart & Fair research programme has been at the forefront of understanding what a fair smart energy transition looks like in practice. As one of the first organisations to systematically examine who benefits from smart energy innovation – and who gets left behind – we’ve developed tools, frameworks and evidence that are shaping how industry, regulators and government think about fairness in the energy market.  

Our latest report brings together seven years of that work. And its central finding shows the UK’s smart energy market is growing fast. But who it’s working for is still shaped by existing advantage – and without action from government and industry, that’s unlikely to change. 

The report shows that, while more people than ever are participating in smart energy schemes, access to the real benefits – lower bills, greener energy, greater control – remains strongly shaped by the technology a household owns, its income and its housing tenure.

The government has decided against intervening in the current market-led approach to engaging customers in flexibility. At CSE, we think this misses a significant opportunity for the kind of advice, support and consumer protections that would give households the confidence to take part and risks allowing inequalities to become permanently embedded in the energy system. 

A market that works for some, not all 

Our market analysis shows a household with solar panels and an electric vehicle can currently access 25 different smart energy offer types and save up to £523 a year. A household renting with a gas boiler and a prepayment meter has access to just one offer type and can save as little as £38. 

Both households are paying into an energy system that is being reshaped around smart technology – but only one is positioned to benefit from it. 

There are encouraging signs that the market can work more broadly. More than 2.5 million customers – most without low-carbon technologies – have now participated in demand shifting schemes. This shows that flexibility isn’t just for households with electric vehicles or solar panels. Ordinary households are willing and able to shift their energy use when given the opportunity and a straightforward way to do so. 

But our research found the customer journey is getting harder, not easier, as the market grows. And flexibility isn’t suitable for everyone. Households with very low energy use have little to gain from participating in flexibility markets, yet they still contribute to the costs of building and running the system through their bills. 

When flexibility does more harm than good 

The report also raises serious concerns about what flexibility participation can mean for the most financially stretched households. 

Evidence from the CrowdFlex flexibility trial – in which we gathered feedback from 37,000 participants – found that some households already rationing their energy use were reducing essential electricity consumption, turning off necessary appliances, or altering care routines in order to earn flexibility rewards. Flexibility services, the report concludes, are not risk-neutral. 

The case for coordinated action 

Chloe McLaren Webb, lead of our Smart & Fair research programme, said: “The transition to a smart, flexible energy system is one of the greatest opportunities we have to improve both the social and environmental impact of how we use energy. But seven years of evidence shows that fairness won’t emerge naturally, it has to be designed and delivered. We have the evidence, and a clear opportunity for coordinated action across markets, network and policymakers.”

The report sets out four outcomes that define a fair smart energy transition: 

• Responsible networks: system operators that keep costs low for all bill payers and protect consumers through their supply chain. 

• A diverse market: innovation that works for a broader range of households, supported by strong regulatory oversight. 

• Good customer outcomes: coordinated support to make sure households are on the right combination of technology, tariffs and behaviours. 

• Confident consumers: access to clear information, trusted advice and effective protections. 

To deliver these outcomes, we’re calling on government, Ofgem, network operators and industry to act. The most urgent steps include establishing formal monitoring of who participates in and benefits from smart energy offers, requiring that all grant and loan-funded low-carbon technology installations include tailored advice and follow-up support, and developing vulnerability indicators specifically designed for flexibility services. 

Independent advice can change outcomes but it’s not reaching enough people 

In a market of growing complexity, impartial energy advice is one of the most effective tools available for helping households navigate their options and make decisions that are right for them. 

Our Smart Energy Action Plan service (SMEAPs) – which provides independent smart energy advice to people on low incomes and in vulnerable circumstances – has now supported 2,680 households. Of those, 93% reported increased knowledge of their smart energy options and 75% planned to take at least one recommended action. 

But provision remains far below the scale needed. Without sustained investment in advice and adviser capability, the gap between who the smart energy system works for and who it leaves behind will only grow wider. 

Chloe McLaren Webb added:”Delivering the clean and flexible energy system is not just a technical challenge, it will require millions of households to engage with new ways of using energy. But widespread and meaningful participation will not happen by itself. We need to create the right conditions across the energy system – trusted consumer support is an essential part of this.”

Smart & Fair will continue into its next phase, expanding market monitoring, developing tools to improve financial analysis of smart energy options, and working to embed the Capabilities Lens across industry and government planning. 

The Smart & Fair programme is supported by Scottish & Southern Electricity Networks and National Grid Electricity Distribution.