Across Great Britain, the energy system is undergoing one of the biggest transformations in its history. As more homes switch to electric heating, electric vehicles, and other low-carbon technologies, demand on the electricity network is rising\u00a0rapidly. This shift is\u00a0key to making the transition to clean energy work for everyone, but it also brings a challenge: how to expand the system without pushing energy bills even higher\u2014especially\u00a0when so many are\u00a0already struggling to afford them.\u00a0<\/p>\n
Across the UK,\u00a0fuel poverty\u00a0remains\u00a0a pressing reality, with families forced to choose between heating and other essentials, and more than ever as we have seen the fragility of the energy market\u00a0highlighted in recent weeks.\u00a0Against this backdrop, the transition to a cleaner energy system must be designed not only to reduce carbon emissions, but also to deliver\u00a0clean, sustainable\u00a0local power,\u00a0that does not rely on\u00a0foreign gas and oil.\u00a0<\/p>\n
Traditionally, when the electricity network comes under pressure, the solution has been to invest in new infrastructure\u2014bigger cables, upgraded substations, and expanded capacity. While necessary, these upgrades are expensive\u00a0and take time, and the costs are\u00a0ultimately passed\u00a0on to customers. There is a growing recognition that relying solely on this approach risks increasing bills\u00a0and\u00a0fossil fuel reliance,\u00a0at a time when affordability is already stretched, an access to imported and fossil fuels\u00a0isn\u2019t\u00a0a given.\u00a0<\/p>\n
A different solution is now gaining momentum: flexibility. At its simplest, flexibility means using electricity in smarter ways\u2014shifting when energy is used, storing it when it is cheaper, and reducing demand at peak times. By smoothing out pressure on the network, flexibility can reduce the need for costly upgrades\u00a0optimise existing distribution infrastructure, and lower overall system costs.\u00a0<\/p>\n
This matters because,\u00a0as\u00a0DESNZ\u00a0has set out in its\u00a0vision for the future energy system<\/a>, reducing system costs\u00a0ultimately leads\u00a0to lower bills for consumers. Flexibility is not just a technical fix; it is a way to make the entire system more efficient and more affordable.\u00a0<\/p>\n However, there is a risk that these benefits are not shared equally. Many low-carbon technologies\u2014such as home batteries or smart energy systems\u2014require upfront investment, digital access, or confidence in navigating new tariffs. For households in vulnerable circumstances, these barriers can be significant. Without intervention, the energy transition could unintentionally widen the gap between those who can\u00a0participate\u00a0and those who cannot.\u00a0<\/p>\n Evidence from\u00a0our\u00a0recent trials and engagement highlights this challenge clearly. Some households miss out not because they are unwilling, but because they lack awareness, the ability to invest, or the support needed to take part. This is where\u00a0new approaches\u00a0are beginning to make a difference.\u00a0<\/p>\n In cities like Coventry and Glasgow, integrated support programmes have been developed to address fuel poverty directly. These schemes combine multiple forms of\u00a0assistance: energy efficiency improvements, help with energy debt,\u00a0mentoring\u00a0and the installation of home battery systems. Crucially, these batteries allow households to store cheaper, off-peak electricity and use it when prices are higher, delivering ongoing savings without requiring behavioural change.\u00a0<\/p>\n But our trials\u00a0don\u2019t\u00a0end there,\u00a0we\u2019re\u00a0looking at the benefits of flexibility across the board. From removing barriers to adoption\u00a0(cost) in our\u00a0Next Gen Home pilot<\/a>, looking at how\u00a0flexibility can reduce\u00a0both\u00a0grid constraint and curtailment costs<\/a>\u00a0(the money spent to switch off wind farms when there is\u00a0not enough demand for the production), as well\u00a0bills\u00a0in our\u00a0pilot with Northern Powergrid<\/a>, to making meaningful inroads into\u00a0alleviating child poverty in\u00a0Glasgow<\/a>, we\u2019re looking at the whole picture of how flexible assets can\u00a0deliver\u00a0affordable\u00a0energy\u00a0now.\u00a0\u00a0<\/p>\n For many participants, the impact has been immediate and meaningful. Households\u00a0participating\u00a0in our\u00a0Northern Powergrid trial\u00a0have reported significant reductions in their energy costs<\/a>, in some cases up to 30% of monthly bills. Just as importantly, the process has been designed to be simple and accessible, removing the complexity that often prevents people from engaging with new energy solutions.\u00a0<\/p>\n Building on these insights, a new model\u2014known as\u00a0Firm Flexibility\u2014is\u00a0emerging\u00a0as a way to\u00a0scale these benefits more widely. The idea is straightforward but powerful. Instead of expecting customers to invest in technology themselves, energy providers install and manage equipment such as batteries directly in homes, often at no upfront cost. In return, the electricity network can draw on this flexibility when and where it is needed, and customers receive guaranteed reductions in their bills.\u00a0<\/p>\n This approach changes the relationship between households and the energy system. Rather than being passive bill payers, customers become active participants\u2014without taking on risk or complexity. At the same time, it allows support to be targeted more effectively. Areas with higher levels of fuel poverty can be prioritised, and social housing can become a key focus for deployment.\u00a0<\/p>\n