As the UK moves towards a decarbonised energy system, there is growing recognition that households will play a central role in enabling system flexibility. Smart energy appliances such as EV chargers, heat pumps, and batteries, offer the potential to automate energy use in line with grid needs, lowering costs and reducing emissions without placing burdens on consumers.

This report, commissioned by the Energy Technology Group and authored by Energy Systems Catapult, sets out a practical vision for how to build a consumer-centric energy retail market by 2030. It identifies the barriers in the current system, the critical role of smart energy appliances, and the reforms needed to unlock value for both consumers and the wider system.

Key findings:

• Flexibility from households is essential to Net Zero
  The energy system needs a fivefold increase in domestic flexibility by 2030. Smart energy appliances are uniquely placed to deliver this through automated demand-shifting.
• The current retail market is not designed around consumers
  Access to flexibility services is limited, often requiring engagement with traditional energy suppliers. Many consumers have low trust in suppliers and limited control over how their appliances participate in the market.
• The market undervalues demand-side flexibility
  Existing incentives do not reflect the whole-system benefits of flexibility. Smart appliances are often excluded from markets or restricted by outdated rules and metering standards.
• Vulnerable and low-income consumers risk being left behind
  Time-of-use tariffs and smart services are often unavailable to households on pre-payment meters or with limited digital access. Yet these groups may benefit most from automation and energy savings.
• A new market model is needed
  The report proposes five principles for a consumer-centric market: design around the consumer; open, merit-based market access; standardisation and interoperability; incentives for innovation; and a commitment to embracing technology.