Powering Change: Crafting an Inclusive Approach

The energy system is changing. Throughout most of my lifetime, the energy I need at home has had one price. Keeping up with bills can be challenging, especially with unexpected price increases. However, most of the time, by monitoring my usage, I can anticipate what I owe. Staying in one home might even allow me to roughly predict my annual expenses.

However a fundamental shift in the new energy system is the introduction of variable pricing depending on the time of day. You may have experienced a tariff like this - a minority of homes have had access to cheaper electricity during the night for decades. Now, energy companies are expanding these tariffs to encourage us to spread our energy use throughout the day and night.

Currently, power stations and power lines must ensure everyone can switch on their lights and appliances during peak times. In the UK, this is typically the evening hours after school and most offices close for the day, and we turn on the lights, cook dinner, activate our devices, and perhaps take an evening shower. This means the country needs a lot of energy between approximately 4 pm and 8 pm - especially during winter evenings!

Minimizing the evening energy peak could save us money. It would reduce the need to build new power stations and power lines to support the massive demand experienced only a few hours each day. That's why there's a significant push to make us mindful of when we're using energy. For energy companies, this involves offering tariffs that are cheaper when demand is low - like in the middle of the night - and higher during peak times.

The concept of higher prices at peak times concerns me greatly. I see the impact of unaffordable energy bills daily and many people struggle to understand their energy bills - how will they react to a significant bill from maintaining their usual evening routines? I'm particularly worried about dynamic time-of-use tariffs, which are popular among those considering our power system's efficiency. These tariffs will likely follow a consistent pattern, but the exact times leading to the highest prices will vary depending on energy usage. This could lead to confusion and unexpectedly high bills if these tariffs become the norm. Avoiding such peak prices requires significant investment in self-generating and storing power (usually with solar panels, an electric vehicle, and a battery), which isn't feasible for the majority.

This is where research comes in. I've extensively reviewed academic research and listened to participants in the Citizens Advice research. Based on this, I've identified four cohorts of people we need to ensure are not harmed by the new energy system.

I’m engaged when you speak to me

I’m independent and can manage my home energy use when communicated with in the way I need.

Some consumers can fully participate if prices and options are communicated clearly, possibly through an accessible in-home display or an app compatible with screen readers.

I’m engaged when I get support

Sometimes, I need support from a carer or friend for stressful or complex decisions, like discussing a large energy bill.

A further group of consumers can fully participate if they have support from someone in their network. This support could come from a formal carer, personal assistant, or family member. With options to include these supporters in decision-making, supported individuals can engage fully.

Locking in inclusive design and focusing on ensuring engagement options include identifying, responsibly storing, and acting on support needs can lead to a more inclusive transition. This transition can introduce new products making a difference and securing a lower-cost energy system to help us all save money. However, I'm concerned about consumers who cannot adjust their lives around energy prices.

My routine is set right now

I have less control over my routine. I can't choose when carers visit or when I need to prepare formula for my newborn.

Not everyone has the flexibility to use energy optimally for the system. If making a formula bottle, you need to boil a kettle. If you have carers helping with personal care, you need to shower when they're available. We cannot penalise people with peak prices for meeting their basic energy needs.

My safe routine is set

I rely on equipment vital to my health and well-being. Being cut off or facing much higher prices at certain times could be harmful.

Surprisingly, discussions about dynamic pricing often overlook those most at risk of harm. Many homes need consistent energy throughout the day for life-saving medical equipment, regular access to hot water and lighting, and digital tools and alarms for safety. Many of these households cannot afford the significant investment required to store energy for use during peak pricing or buy new appliances with timers for nighttime use.

For these two cohorts, we must act swiftly to identify who they are and protect them from peak prices. Targeted bill support remains beyond government intervention scope. As we move forward with assumptions about dynamic tariffs encouraging less evening use, we must ensure this does not price people out of safety at home.

I’m sharing this segmentation to help decision-makers focus on an inclusive transition that includes all consumers, especially those in vulnerable circumstances. This means insisting on inclusive design to include the maximum number of people, a system for identifying and meeting support needs fit for the future, and a safety net for opting out to protect health and well-being where necessary.