Making energy work for everyone: How flexibility helps households out of fuel poverty

Across the UK, fuel poverty remains a pressing reality, with families forced to choose between heating and other essentials, and more than ever as we have seen the fragility of the energy market highlighted in recent weeks. Against this backdrop, the transition to a cleaner energy system must be designed not only to reduce carbon emissions, but also to deliver clean, sustainable local power, that does not rely on foreign gas and oil. 

Traditionally, when the electricity network comes under pressure, the solution has been to invest in new infrastructure—bigger cables, upgraded substations, and expanded capacity. While necessary, these upgrades are expensive and take time, and the costs are ultimately passed on to customers. There is a growing recognition that relying solely on this approach risks increasing bills and fossil fuel reliance, at a time when affordability is already stretched, an access to imported and fossil fuels isn’t a given. 

A different solution is now gaining momentum: flexibility. At its simplest, flexibility means using electricity in smarter ways—shifting when energy is used, storing it when it is cheaper, and reducing demand at peak times. By smoothing out pressure on the network, flexibility can reduce the need for costly upgrades optimise existing distribution infrastructure, and lower overall system costs. 

This matters because, as DESNZ has set out in its vision for the future energy system, reducing system costs ultimately leads to lower bills for consumers. Flexibility is not just a technical fix; it is a way to make the entire system more efficient and more affordable. 

However, there is a risk that these benefits are not shared equally. Many low-carbon technologies—such as home batteries or smart energy systems—require upfront investment, digital access, or confidence in navigating new tariffs. For households in vulnerable circumstances, these barriers can be significant. Without intervention, the energy transition could unintentionally widen the gap between those who can participate and those who cannot. 

Evidence from our recent trials and engagement highlights this challenge clearly. Some households miss out not because they are unwilling, but because they lack awareness, the ability to invest, or the support needed to take part. This is where new approaches are beginning to make a difference. 

In cities like Coventry and Glasgow, integrated support programmes have been developed to address fuel poverty directly. These schemes combine multiple forms of assistance: energy efficiency improvements, help with energy debt, mentoring and the installation of home battery systems. Crucially, these batteries allow households to store cheaper, off-peak electricity and use it when prices are higher, delivering ongoing savings without requiring behavioural change. 

But our trials don’t end there, we’re looking at the benefits of flexibility across the board. From removing barriers to adoption (cost) in our Next Gen Home pilot, looking at how flexibility can reduce both grid constraint and curtailment costs (the money spent to switch off wind farms when there is not enough demand for the production), as well bills in our pilot with Northern Powergrid, to making meaningful inroads into alleviating child poverty in Glasgow, we’re looking at the whole picture of how flexible assets can deliver affordable energy now.  

For many participants, the impact has been immediate and meaningful. Households participating in our Northern Powergrid trial have reported significant reductions in their energy costs, in some cases up to 30% of monthly bills. Just as importantly, the process has been designed to be simple and accessible, removing the complexity that often prevents people from engaging with new energy solutions. 

Building on these insights, a new model—known as Firm Flexibility—is emerging as a way to scale these benefits more widely. The idea is straightforward but powerful. Instead of expecting customers to invest in technology themselves, energy providers install and manage equipment such as batteries directly in homes, often at no upfront cost. In return, the electricity network can draw on this flexibility when and where it is needed, and customers receive guaranteed reductions in their bills. 

This approach changes the relationship between households and the energy system. Rather than being passive bill payers, customers become active participants—without taking on risk or complexity. At the same time, it allows support to be targeted more effectively. Areas with higher levels of fuel poverty can be prioritised, and social housing can become a key focus for deployment. 

The potential scale of this approach is significant. Analysis suggests that flexibility could address a large proportion of future network constraints, avoiding unnecessary infrastructure investment and delivering substantial savings across the system of up to £4 billion. For participating households, this translates into predictable, visible financial benefits—savings of £220 for nearly half a million social housing families alone. 

But beyond the numbers, the broader significance lies in what this represents. Flexibility is no longer just an engineering solution; it is becoming a tool for social impact. It offers a way to align the needs of the energy system with the needs of customers, particularly those who are most vulnerable. 

For this to succeed, the right regulatory and policy framework will be essential. Ofgem has already recognised the importance of removing barriers to participation and ensuring that flexibility works for all consumers. The next phase will be about enabling long-term, stable models that can attract investment while delivering consistent benefits to households. 

The transition to a low-carbon energy system is often discussed in terms of technology, infrastructure, and targets. But ultimately, it is about people. If designed well, it can reduce bills, improve living conditions, reduce poverty and create a fairer system that doesn’t rely on outside fuel sources.  

Flexibility offers a path to get this right. By combining innovation with a clear focus on affordability and inclusion, it has the potential to make the energy system not only cleaner, but also more accessible and equitable. 

Find out more and register your interest to take part here.