Consumers could get greater control over their energy usage and save money on their bills under plans for an energy smart data scheme.

Smart data is the process of securely sharing customers’ data, such as information on their energy consumption, with businesses known as authorised third parties (ATPs). These third-party providers then use the data, which is only shared at the customer’s request, to provide customers with bespoke products and services which can be tailored to consumers’ needs.

Smart data has the potential to give customers more control over their own data which will help them better understand their energy usage as well as access more personalised services that help them save money. For example, new services could help customers compare prices, change suppliers and switch to low-carbon tariffs.

Smart data has already transformed Open Banking in the UK, giving customers 24/7 access to their own data, as well as new products and services. It has driven huge innovation and economic growth in the banking sector and the government’s ambition is to achieve similar success in the energy market.

By paving the way for the creation of a new range of technologies, a potential scheme would provide British businesses with scope to innovate and help them to attract investment.

In turn Britain’s world-leading data economy, which drives investments worth up to 6.7% of UK economic activity, would be stimulated to grow even further.

Minister for Energy Michael Shanks said:  “Data and digitalisation will be an essential foundation of our mission to deliver a zero-carbon electricity system by 2030. Reforms will help consumers and businesses to benefit from the new era of clean power.

“Following the world-leading example of open banking, energy smart data could help consumers find the best tariff based on their actual consumption, providing personalised solutions, better services and greater choice, whilst saving them money.

“We look forward to working with industry and other key stakeholders to explore how we can implement an effective and safe smart data scheme in the energy market.”

An energy smart data scheme would aim to replicate the success of Open Banking, which allows people to share their financial data with ATPs who help them manage their money. Open Banking, the only active example of a smart data scheme in the UK, is now regularly used by over 11 million consumers and businesses.

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82 firms alone have raised over £2 billion in private funding through the scheme.

This call for evidence is the next step in the government’s roadmap to repair Britain’s broken energy market.

It follows the announcements of plans to empower Ofgem, the energy regulator, to protect consumers, to support more households to benefit from home upgrades this year through the Warm Homes Plan, and to drive a new era of clean electricity by 2030 through the Clean Power Action Plan.