Households will be able to switch to flexible energy tariffs and use smart appliances to help cut electricity bills under plans set out by the Government.
Energy minister Michael Shanks unveiled the next steps to give households and businesses more freedom and choice over how and when they use energy as part of aims to make savings of up to £70 billion in system costs by 2050.
The Government wants to offer consumers new ways to take advantage of off-peak, lower electricity prices, through flexible tariffs and smart technology.
This includes helping electric vehicle (EV) drivers get discounts on their electricity when using public chargers at off-peak times.
It also plans to ensure suppliers make information on smart tariffs more accessible to consumers, while taking the next steps to offer tailored products and services based on electricity usage.
The so-called Clean Flexibility Roadmap comes as part of the UK’s net-zero aims, while also helping lower bills and boosting the resilience of the power network.
Britain will need to shift towards more flexible energy use as the UK becomes more dependent on wind and solar power, such as charging EV batteries when wind is generating a lot of electricity.
Mr Shanks said: “This roadmap gives households and businesses the choice and control over when and how they use their energy.
“The flexible electricity system we are working to build will help make that a reality for consumers across the country, by supporting them to bring down their bills through using new tariffs and technologies.
“In this way we will protect working people’s pockets and ensure they are the first to benefit from our clean power mission.”
A flexibility commissioner will be appointed to lead the policy work, and an annual forum will be set up to track progress on the initiative.
Akshay Kaul, Ofgem’s director general for infrastructure group, said: “A more flexible energy market will be a real game changer, giving households more control over what they pay for their energy.
“Small lifestyle tweaks such as programming a dishwasher or tumble dryer to run overnight when costs are low or charging your electric car during high winds can have a material impact on people’s bills.
“At Ofgem we’re opening up flexibility markets to bring better tariffs and products to consumers to make cheaper bills a reality.”
The Government has also launched a two-month consultation looking at how more consumers can be supported to use energy flexibly.
