Plans for flexible energy tariffs to help households cut electricity bills
The Government wants to offer consumers new ways to take advantage of off-peak, lower electricity prices, through flexible tariffs and smart technology.
This includes helping electric vehicle (EV) drivers get discounts on their electricity when using public chargers at off-peak times.
It also plans to ensure suppliers make information on smart tariffs more accessible to consumers, while taking the next steps to offer tailored products and services based on electricity usage.
The so-called Clean Flexibility Roadmap comes as part of the UK's net-zero aims, while also helping lower bills and boosting the resilience of the power network.
Britain will need to shift towards more flexible energy use as the UK becomes more dependent on wind and solar power, such as charging EV batteries when wind is generating a lot of electricity.
Mr Shanks said: 'This roadmap gives households and businesses the choice and control over when and how they use their energy.
'The flexible electricity system we are working to build will help make that a reality for consumers across the country, by supporting them to bring down their bills through using new tariffs and technologies.
'In this way we will protect working people's pockets and ensure they are the first to benefit from our clean power mission.'
A flexibility commissioner will be appointed to lead the policy work, and an annual forum will be set up to track progress on the initiative.
Akshay Kaul, Ofgem's director general for infrastructure group, said: 'A more flexible energy market will be a real game changer, giving households more control over what they pay for their energy.
'Small lifestyle tweaks such as programming a dishwasher or tumble dryer to run overnight when costs are low or charging your electric car during high winds can have a material impact on people's bills.
'At Ofgem we're opening up flexibility markets to bring better tariffs and products to consumers to make cheaper bills a reality.'
The Government has also launched a two-month consultation looking at how more consumers can be supported to use energy flexibly.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Telegraph
2 hours ago
- Telegraph
Thames Water faces rocketing demand for supplies
Thames Water has warned that plans to build 100 new data centres across London and the South East will pile more pressure on its creaking infrastructure. The utility giant said it had identified 108 'hyper or large' data centres that will drive up demand in its region, with bosses suggesting it will have to manage water supplies carefully to ensure there is no impact on households. Each data centre is equivalent to thousands of homes being added to a water network, meaning the pipeline of new data centres is on par with a new small city being built. In its annual report, Thames Water said that building data centres 'needs to be carefully managed from a demand and UK growth perspective'. The company, which is battling to avoid nationalisation amid pressure from a £17bn debt pile, has previously raised the prospect of rationing water use for data centres or charging more at peak times. Data centres contain giant racks of computer servers that need to be cooled to avoid overheating, often with water piped in. The facilities are crucial to the rise of artificial intelligence and are a key priority for Sir Keir Starmer's growth push. However, the vast number being built has sparked concern among water companies such as Thames Water, which is now engaging with the Government to prevent potential shortages in future. 'The south-east of England is a water-stressed region and data centres can use a vast amount of water, equivalent to the usage of thousands of homes at peak draw,' a Thames Water spokesman said. 'With a large proportion of the proposed data centres earmarked to be built in the Thames Water region, it brings a challenge between safeguarding our finite resources while supporting the UK's growth strategy. 'It is important that we work collaboratively to meet this challenge and to avoid exacerbating water stress and impacting service for customers and the environment.' 'We are engaging with the Government regarding the challenge of water demand related to cooling data centres and how this can be mitigated. We are also working with a number of data centre providers about opportunities to reduce demand through innovation.' A corridor of land between London and Slough, much of which is served by Thames Water, contains Britain's densest collection of data centres. An independent review of the water sector last week cited data centres as one of the factors that are likely to mean water bills rising by 30pc over the next five years. The report, by Sir Jon Cunliffe, a former deputy governor of the Bank of England, said that national infrastructure bodies should be consulted when deciding where to build them. The Government has welcomed investment in new data centres, including designating them as critical national infrastructure. Thames Water last week started a hosepipe ban for more than 1 million people in Gloucestershire, Oxfordshire, Berkshire and Wiltshire. The company is also seeking to agree a rescue deal with creditors, but has warned it may fall into special administration if talks between the lenders and regulator Ofwat fail.
Telegraph
3 hours ago
- Telegraph
Britain risks following France into a terrifying debt crisis
Last week brought more bad news about the UK's public finances. June's figures for public sector borrowing came in at £20.7bn, well above the OBR's forecast and City expectations. What's more, £16.4bn of this was accounted for by debt interest payments. Yes, that's right: £16.4bn in one month. We are borrowing enormous sums to pay the interest on past borrowings of enormous sums. We are getting dangerously close to what economists call 'the debt trap'. This is when, under the pressure of rising debt interest payments, the debt ratio starts to explode. It goes without saying that it is good to avoid this, if you can. But can we? Be warned, you may need a ready supply of hot towels for this next bit. The key players in the debt drama are: the budget deficit, the debt ratio, the growth rate of the economy in money terms (which is equal to the real growth rate plus the rate of inflation) and the rate at which the Government can borrow. If the rate at which the Government borrows exceeds the growth of the economy (in nominal terms), then debt interest payments and the overall debt will rise as a share of GDP. In order to stop this process from leading to an ever-higher debt ratio, the Government must run a primary budget surplus (meaning a surplus on its budget without interest payments), requiring higher taxes and/or cuts in government spending. And the higher the initial debt ratio, the larger the surplus needs to be to stabilise the debt ratio. The debt dynamics are merciless. When emerging market countries become stuck in the debt trap, the result is usually default or much higher inflation, or both. Remarkably, given our pitifully low to non-existent real growth rate, the nominal growth of GDP (i.e. expressed in money terms), exceeds the average rate at which the Government borrows by a small margin. Phew! But this is somewhat misleading because the average cost of government debt is heavily influenced by past borrowing, some of which was at lower interest rates. When this debt matures, there is a risk that it will be refinanced at higher interest rates. So we are currently just avoiding the debt trap, but with the deficit so large, the debt ratio is still rising. In these circumstances, it is hardly surprising that the gloom is still gathering about the fiscal prospects that the Chancellor faces in the Budget this autumn. It hardly makes our position any better, but we are not alone. Amid all this domestic pessimism, few people have noticed what is happening to our close neighbour across the channel. France is facing a fiscal predicament every bit as serious as ours. For a start, France's ratio of government debt to GDP is higher than ours – 113pc of GDP compared with our 100pc. And its deficit is higher too – 5.8pc last year compared to our 5.1pc. And ours is set to be just under 4pc this year. In both countries, GDP growth has been weak, and prospects are clouded with uncertainty. The one area where France is better positioned is the cost of borrowing, and this really does show the weakness of the UK's position. Whereas 10-year bond yields here are 4.6pc, in France they stand at about 3.5pc, similar to other euro-zone members. In this regard, however, something extraordinary has been happening. French yields have been converging on Italy's. The gap between them is now only 0.18pc, the lowest for almost 20 years. It doesn't seem too fanciful to imagine that French yields will soon surpass Italy's. Admittedly, after a recent period of comparatively strong growth, it looks as though Italian economic growth is set to be slower than growth in France, returning to the long-established norm. That certainly does not make the job of stabilising the public finances any easier. And, at 135pc of GDP, Italy's debt ratio is a good deal higher than in France. But Italy possesses two striking advantages. First, its fiscal deficit is only 3.4pc of GDP, compared to France's 5.8pc. And excluding interest payments (the so-called primary budget), it is in a surplus of 0.5pc, compared to France's deficit of 3.7pc. The result is that to stabilise the debt ratio, Italy needs to tighten the budget deficit (through a mixture of higher taxes and expenditure cuts) by only 0.5pc of GDP. By contrast, to stabilise her debt ratio, France needs to tighten fiscal policy by over 3pc of GDP by 2027. Italy's second advantage is surprising to anyone who has followed Italian politics over the past 80 years. She seems to be more politically stable than France. Giorgia Meloni looks likely to be Italy's first post-war prime minister to complete their term. In France, there have been six prime ministers since 2020, and the current incumbent, Francois Bayrou, who heads a minority government, could be ousted any time soon. He recently announced a plan to tighten French fiscal policy by 1.5pc of GDP. By comparison, Rachel Reeves' Budget last October increased taxes by 1.2pc of GDP, but this was more than offset by increases in public expenditure. There is little chance of the proposed French tightening getting through parliament unscathed. The failure to pass a budget for next year, leading to the fall of the present government, could cause French bond yields to flare up. And then there is the presidential election in 2027. On voting intentions in the first round, Jordan Bardella, the likely candidate of Marine Le Pen's National Rally, is well ahead of the other candidates. Obviously, there's many a slip twixt the cup and the lip. But if the markets were to view a victory for the National Rally as likely, then they would surely send French bond yields much higher, thereby putting France in a dangerous fiscal position. We cannot gloat. There but for the grace of God go all of us.
Edinburgh Reporter
4 hours ago
- Edinburgh Reporter
Festival venue takes a step towards a greener Fringe
Sustainable souvenir scheme tackles single-use cup waste FRINGE-GOERS picking up a drink at one of the capital's busiest venues are being asked to make a small change with a big impact – as part of a bold new drive to reduce waste and support charitable causes. In a new initiative Surgeons Quarter, the commercial arm of the Royal College of Surgeons of Edinburgh, has introduced a £2 reusable cup policy, replacing throwaway plastic with souvenir-style cups that support good causes. Customers pay a one-time £2 charge for a reusable cup, which is theirs to keep. When returning for another drink, they'll receive a fresh, clean replacement cup at no extra cost. Surgeons Quarter has a longstanding reputation for leading with innovation through environmental initiatives and investing heavily in the wellbeing of its staff. Ten Hill Place Hotel, part of the Surgeons Quarter portfolio, was first awarded a Green Tourism Gold Award in 2008 and has proudly retained this accolade for 17 consecutive years. One of the hotel's many sustainable efforts has been the removal of single-use plastic bottles from guest bedrooms. It's a change which has saved over 100,000 bottles to date. In their place, guests are gifted Scottish wildflower seed packets to take home, encouraging biodiversity in their own gardens and extending memories of their stay at the hotel. Other green initiatives have included a £20,000 investment for installation of EV charging stations at the hotel, as well as a £60,000 investment in new staff members uniforms made from recycled plastic bottles with each uniform preventing 45 bottles from reaching landfills or oceans. But sustainability is only part of the picture. Surgeons Quarter also goes above and beyond for its team. Recognised by the Living Wage Foundation (LWF), it ensures all staff, regardless of age, are paid above the LWF Living Wage. In addition, all employees contribute at least 12% of their salary toward their pension, with 7.5% of that contributed by the employer, more than double the required minimum. Surgeons Quarters Managing Director Scott Mitchell said: 'We're always looking at how we can help improve the planet, improve the guest experience and also improve the working environment for our team. That's why we continually invest in initiatives prioritising long-term sustainability and staff wellbeing. We believe these aspects go hand in hand.' The reusable cup policy reflects this commitment. Surgeons Quarter invested over £20,000 in the upfront cost of the cups, making the £2 charge fair and necessary, so it can continue running operations that pay staff fairly, reduce environmental impact and maintain the support for its local charity partners. Scott added: 'This step is a part of a wider commitment to doing what's right, even when it costs more. That's why we're asking the public to support the reusable cup change as it helps us improve standards across the board.' Some of the reusable and dishwasher safe cups feature the striking silhouette of the iconic Playfair Hall, while others are branded with the logos of theSpaceUK, which hosts the largest and most diverse programme at the Festival Fringe, and Surgeons Quarter itself. The variety of designs provides visitors with eye-catching tangible reminders of their Festival experience as well as supporting the drive to reduce single-use waste. Scott Mitchell said: ' After testing the concept in 2024, we've streamlined the system and are excited to launch the full initiative. We're trying to shift the mindset. Rather than something disposable, we want people to see these as souvenirs that do good. 'We know some will be resistant to change but when it's a minimal cost for an item that supports local and global causes, we hope people will get on board.'' A portion of proceeds from cup sales will support three key causes: carbon offsetting initiatives through Ecologi; a special Supper Soirée hosted by Surgeons Quarter in support of Cyrenians, the homelessness charity tackling isolation and homelessness; and the Royal College of Surgeons of Edinburgh's global efforts to improve patient outcomes around the world. Under the new guidelines, festivalgoers are welcome to bring their own clean reusable cups for wine, spirits, bottled beer and soft drinks only — provided the cup is visibly clean. However, if the cup is not SQ-branded, it is your responsibility to ensure it is hygienic, as staff are unable to wash or handle personal cups. Single-use plastic cups, including supermarket-style cups, will not be accepted. Scott added: 'This isn't about jumping on a trend. It's a long-term commitment to reducing our footprint and boosting our social impact. 'A single-use plastic cup has an impact of 0.07kg CO2e, and a reusable equivalent has an impact of 0.0084kg CO2e per use. Every cup that isn't thrown away is a small win for the environment and every cup that helps someone in need makes that win even sweeter.' Surgeons Quarter promotes, sells, and manages all commercial activities held within the RCSEd campus. These include facilities for conferences, meetings, private events, parties, and weddings, as well as its own four-star hotel, Ten Hill Place, Café 1505, and SQ Travel. Like this: Like Related
