We assessed consumer perceptions, the commercial viability, and the potential benefit to the system of allowing multiple energy suppliers per home

The “secondary supplier” model may be a particularly effective way to balance innovation with protection and unlock additional flexibility in the system. Better-targeted regulation would ensure protections match actual risks, supporting innovation without compromising consumer safety.

We also aimed to demonstrate the value of testing policy and regulatory changes with consumers in a safe space such as the Catapult’s Living Lab/WESA, to facilitate and de-risk Net Zero innovation.

Our approach included consumer research, modelling, and business model analysis

We ran consumer interviews with Living Lab EV owners, using simulated energy bills created from their real EV charging and smart meter data to represent secondary supplier propositions. We also assessed the commercial viability and feasibility of the secondary supplier model and the potential increase in flexibility that it could provide to the energy system.

Key findings:

• Consumers would accept the secondary supplier model if it saved them money
  • As long as they had good automated tools for managing EV smart charging, and good customer service, they were willing to adjust their behaviours – such as plugging in more often and for longer – to benefit from highly dynamic tariffs for EV charging.
• Propositions within the secondary supplier model could provide additional system flexibility
  • The level of flexibility provided would depend on the attractiveness of consumer incentives. Recent and ongoing code reforms make implementing a secondary supplier relatively straightforward.
• The model requires regulatory change to be commercially viable
  • Current low off-peak (and loss-making) tariffs limit the potential for secondary suppliers to be profitable. However, these tariffs may not be sustainable into the future. Also, tailored regulation that reduces compliance costs – along with access to flexibility revenues – could improve the competitiveness and commercial viability of secondary supplier models.