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Consumer engagement for consumer-led flexibility

DESNZ·consultation·low·23 Jul 2025·source document

This consultation is open for responses

Respond to this consultation

Summary

DESNZ consults on creating a consumer engagement framework to increase uptake of demand-side flexibility through information campaigns and coordination between existing organisations. The consultation explores government's role in promoting voluntary demand shifting but proposes no specific mechanisms, charges, or market changes. This is a consultation about whether to consult further on detailed proposals.

Why it matters

This addresses information failures rather than pricing failures — consumers already face time-of-use tariffs where suppliers offer them, as such the constraint is supplier willingness to price dynamically, not consumer awareness. The focus on voluntary engagement and information provision avoids the core issue: half-hourly settlement and cost-reflective pricing that would make flexibility economically rational rather than dependent on consumer goodwill.

Key facts

  • Consultation focuses on voluntary consumer participation in demand shifting
  • No specific market mechanisms or pricing structures proposed
  • Potential second consultation mentioned for detailed proposals

Areas affected

retail marketflexibilitybehind the meter

Related programmes

MHHS
Memo

Consumer-led flexibility (CLF) refers to consumers voluntarily shifting their energy usage to help balance supply and demand in our energy system. This can allow them to take advantage of low prices when energy is abundant and avoid the periods when prices are highest. Optimising and sustaining uptake of CLF will benefit consumers, businesses and our energy infrastructure. As a voluntary activity, CLF relies on consumers being informed and willing to participate. This consultation seeks feedback on the best approach to engage consumers in CLF to help optimise and sustain uptake over the short, medium and long term. It seeks to determine the appropriate role for government and other extant organisations as a part of that. It explores what could be in scope for core functions of a potential CLF consumer engagement framework. The feedback from this consultation will help to inform the case for further work in this area, including which functions could be considered in scope for detailed proposals, which would be subject to a further consultation. Read the [consultation document on GOV.UK](https://www.gov.uk/government/consultations/consumer-led-flexibility-consumer-engagement).