Energy changes will save consumers £40bn in coming decades - Government
3 min read
New technologies which allow consumers to manage their energy use could save the country up to £40bn by 2050, according to the Government and regulator Ofgem.
Increasing the use of smart meters and apps to control energy use from their mobile phone are among the plans to drive down costs, Energy Secretary Greg Clark said.
New rules will make it easier for people to generate power with solar panels, store it in batteries and sell it to the National Grid. Energy storage firm Moixa claimed the changes could help consumers save up to 60% on their electricity bills.
Furthermore, by reducing or increasing customers’ energy use at certain times, businesses are in turn helped to balance the demand on the electricity network.
In a speech launching a phase of the Government’s industrial strategy, Mr Clark also announced plans for a £45m competition – the 'Faraday Challenge' – to establish a centre for battery research.
Speaking at the University of Birmingham, he said as well as cutting costs, upgrading Britain’s energy system would create jobs and ensure infrastructure is able to cope with demand.
“We are determined through our Industrial Strategy to address the challenges we face and ensure our energy is reliable, affordable and clean,” he said.
“By rolling out smart meters, enabling suppliers to offer lower tariffs and making it easier for firms to develop smart appliances and gadgets, the plan will help consumers use energy when it is cheapest or get rewarded for returning it to the grid when it is needed.
"The plan also recognises the role that energy storage can play in a smart energy grid and the opportunities presented by falling costs of battery technologies designed to store surplus energy.
“To allow industry to exploit these new technologies Government and Ofgem have committed to removing barriers to the introduction of this technology into our power network.
Energy regulator Ofgem said the reforms were about modernising the “rapidly” changing way in which energy is being generated.
“We want to open the door to new technologies and services so that they can help to reduce bills for consumers in the long term. It is vital that we get the changes in place as there is potential for a smarter system to save consumers billions between now and 2050.”
Lord Adonis, the chairman of the National Infrastructure Commission (NIC), said the plans implemented many of the recommendations of the NIC’s Smart Power report – proposals he branded “a matter of urgency”.
“Our study demonstrated the revolution our energy sector is going through, and the real benefits we can get from that in terms of greater efficiency, flexibility and value for money for customers,” he added.
“The measures announced today will lead to exciting innovations in the industry to help make that happen.”
'DAMP SQUIB'
But the Labour party described today’s speech as “something of a damp squib”.
Rebecca Long-Bailey, the Shadow Business, Energy and Industrial Strategy Secretary, said: “Labour’s plans for energy market reform would see consumers’ bills slashed by £120 and our industrial strategy to create one million good jobs and ensure that we find 60% of our energy from renewable sources by 2030 has real teeth, backed up our £250bn National Transformation Fund.
“This scale of vision and investment is what is needed to transform the UK economy, not a re-announcement of the same small pot of funding.”
The SNP’s Drew Hendry said the plans were “too little – and much too late”.
“For years the Tories, Labour and Liberal Democrats have avoided tackling an energy market that is leaving thousands of families facing fuel poverty, and while the new industrial strategy must support energy initiatives like this one, it must also tackle inequity in the market,” he said.
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