New Smart Energy Tariffs Set to Reduce Household Bills
In a move aimed at helping households save money while accelerating progress towards net zero, the UK government has announced new requirements for smart appliances that will unlock access to cheaper, more flexible energy tariffs.
Making Electrification Affordable
As the transition from gas to electricity continues and technologies like heat pumps and electric vehicles (EVs) become more common, many homeowners have yet to see financial benefits from switching to electric, mainly due to the higher cost of electricity.
The government’s latest initiative seeks to address this by promoting the use of “smart-ready” appliances and supporting the rollout of tariffs that allow users to consume electricity during off-peak hours, when it is cheaper.
The Clean Power Action Plan
The reforms are part of the government’s broader Clean Power Action Plan, designed to give consumers more control over their energy usage while helping them cut costs. Smart appliances, such as EV charge points, heat pumps, and battery storage systems, will be required to work across different tariffs and energy suppliers. This initiative not only encourages competition between suppliers but also ensures that consumers are not locked into one provider, allowing them to shop around for the best deals.
How much can consumers save with the new tariffs?
By utilising time-of-use tariffs, it is projected that households can make significant savings. For instance, it is estimated that EV owners can save up to £332 per year by charging their cars overnight. Similarly, smart heat pump users could save approximately £100 annually compared to traditional gas boiler heating.
The government also anticipates broader savings of £40–50 billion by 2050 by encouraging energy usage during off-peak times. As energy demand is used more strategically, this may reduce the need for costly infrastructure upgrades to support increased electricity demand from the grid and EV charging points.
Elmhurst’s Thoughts
Andrew Parkin, Technical Development Director at Elmhurst Energy looks at the positive impact this initiative will have:
“Elmhurst Energy welcomes this initiative, which supports the UK’s journey to net zero while helping households manage rising energy costs. As the Energy Performance Certificate (EPC) plays a crucial role in informing energy decisions and property transactions, it is essential that it evolves to reflect these new smart tariffs – giving homeowners and tenants the information  they need to make more informed, cost-effective energy choices.”
Further Resources
https://www.gov.uk/government/news/new-smart-appliance-standards-will-help-consumers-save-on-bills