The UK’s journey towards net zero is revealing complex challenges that extend far beyond technological innovation. As the National Energy System Operator (NESO) has determined, achieving clean power by 2030 demands more than technical solutions – it requires a fundamental reimagining of how consumers engage with energy systems.

The Centre for Sustainable Energy has been at the forefront of understanding these intricate dynamics through its pioneering Smart and Fair research programme. Spanning multiple years and encompassing comprehensive research across energy vulnerability, consumer capabilities and systemic inequalities, the programme has developed innovative approaches to social inclusion in the energy transition.

Our work includes in-depth analysis of market structures, consumer engagement strategies and the complex socio-economic barriers to energy innovation. The Smart and Fair research has drawn insights from thousands of participants across various flexibility service projects, uncovering critical vulnerabilities in the emerging energy landscape.

The current UK energy market presents a bewildering array of smart energy products and tariffs that have rapidly outpaced traditional consumer understanding, and traditional energy advice too. Households without advanced digital skills, smart meters or the capacity to manage variable billing are increasingly at risk of being excluded from new market offerings.

Our research has exposed significant disparities in energy service participation, with some people facing substantially higher barriers to engaging with innovative energy services. In practical terms, our Demand Flexibility Service research revealed that while most participants had positive experiences, specific demographic groups struggled to benefit equally.

Smaller households, those with complex health needs, and families managing household routines or tight budgets found it challenging to adjust their energy consumption patterns. The project highlighted how one-size-fits-all approaches fail to address the nuanced energy needs of diverse household types, reinforcing the importance of flexible, personalised energy advice.

A particularly pressing concern is the potential emergence of a two-tiered energy market. While some consumers can seamlessly access cheap green energy, others risk exclusion or face disproportionately higher costs. This stark inequality threatens the very principles of a just energy transition.

The current UK energy market presents a bewildering array of smart energy products and tariffs… households without advanced digital skills, smart meters, or the capacity to manage variable billing are increasingly at risk of being excluded.

How can we make sure that no consumers are left behind?
To address some of these challenges, CSE has developed the Smart Energy Capabilities Lens – an innovative framework designed to analyse the diverse capabilities required for different smart energy offerings. This tool helps identify and support consumers most at risk of being left behind, ensuring that the energy transition becomes truly inclusive.

Addressing the complex challenges of the energy transition requires a comprehensive, multi-faceted approach. We need robust methods to assess how costs and benefits are distributed across different consumer groups. Energy suppliers and service providers must proactively evaluate their smart products, services and tariffs, and standardised information must be mandated to help consumers make informed comparisons.

This also means creating flexible, adaptive services that can support households with varying digital literacy, financial situations and energy management capabilities.

Also critical to this transformation is the development of a national strategy for smart energy advice. CSE advocates for comprehensive funding of in-depth energy advice and support across the UK, a national communications campaign to support improved public understanding of the energy transition, and collaborative efforts across energy industry to enhance transparency and accessibility of market offers.

The path to a green, smart and fair energy transition is not merely a technical challenge – it is a profound social imperative. By understanding the nuanced needs of different consumer groups, we can drive the development of more inclusive policies and services that truly work for everyone.

As the UK stands on the cusp of a radical energy transformation, change must be both rapid and equitable. The future of our energy system depends on our collective commitment to leaving no consumer behind.

The views and opinions expressed in this article are strictly those of the author only and are not necessarily given or endorsed by or on behalf of the Energy Institute.

• Further information: ‘10 recommended measures to roll out a just transition’. Sam Fankhauser, Professor of Climate Economics and Policy at the Smith School of Enterprise and the Environment, University of Oxford, and a Co-Investigator of the FCDO-sponsored Climate Compatible Growth programme discusses 10 measures recommended to triple renewables capacity by 2030 in accordance with the COP28 Agreement.
• The concept of a ‘just transition’ has increasingly become a compulsory issue for discussion amongst climate policymakers. But what does this mean, and will it really make any difference? How can any organisation or individual align with this process, asks Dean Cooper, Global Energy Lead at WWF.