Ofgem Advances Plans for Flexible Energy Use in Homes

Ofgem is moving forward with initiatives aimed at enabling British homeowners to optimize the use of electric car chargers and heat pumps during non-peak hours. As the energy grid increasingly relies on renewable sources like wind and solar power, the regulator has proposed the creation of a unified register for flexibility service providers (FSPs). This new system is designed to facilitate access to various markets and improve rates for owners of energy assets, thereby promoting more flexible electricity consumption. Currently, FSPs must navigate a complex registration process to access different local and national flexibility markets, often resulting in missed opportunities for consumers to secure the best rates. The proposed streamlined approach will introduce a “one-stop sign-up point,” allowing FSPs to tap into all flexibility markets, which could lead to lower tariffs during periods of low demand or high supply. Ofgem has identified the existing system as a significant barrier for millions of small-scale energy assets, limiting consumer benefits. With domestic energy use projected to rise by 50% by 2035 due to the growing adoption of electric vehicles and heat pumps, the need for flexible electricity consumption is critical. The regulator anticipates that these changes could yield savings of £30 billion to £70 billion for consumers by reducing the necessity for costly infrastructure development. Eleanor Warburton, Ofgem’s director, emphasized the importance of this initiative, noting the acceleration in small-scale flexible energy use. Additionally, Ofgem has appointed Elexon as the new market facilitator to enhance local flexibility markets, with operations expected to commence by early 2026.