The idea is that using smart appliances in conjunction with time-of-use energy tariffs will save consumers money on their energy bill if they shift their energy usage to times of lower demand.
The new standards for smart appliances have been announced as part of Labour’s Plan for Change.
What are smart appliances?
Smart appliances are household devices equipped with internet connectivity and sensors, allowing users to remotely monitor and control them via smartphones, voice assistants, or other smart devices.
Energy smart appliances allow consumers to shift their electricity usage to times when it is less costly for the energy system. When an appliance’s smart function is activated, it will respond to price signals and can then use energy when it is cheapest, such as overnight.
Under the plans, there will be new requirements for heat pumps to be sold smart-ready, in line with regulations that already apply to EV chargers.
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This will give heat pump owners the choice to activate smart functionality and make savings by heating their homes when energy is cheaper. Ministers claim this can save around £100 per year compared to the costs of a gas boiler.
Time-of-use tariffs
To benefit from the plans, consumers will need to be on a time-of-use energy tariff, which offers cheaper electricity rates during off-peak periods.
Several energy suppliers offer time-of-use tariffs for electric car drivers, while E.ON launched a mass market time-of-use tariff last week.
The Government said it will ensure that a range of appliances including EV smart charge points, heat pumps, and battery energy storage systems must be able to operate across different tariffs.
This will mean that devices are not tied to one energy supplier, and so consumers will not be locked into one plan.
Michael Shanks, energy minister, said: “From EV chargers to heat pumps, smart appliances can do the hard work for consumers by automatically using energy when the price is low. We want to put more money in people’s pockets as part of Our Plan for Change by making it easier for people to benefit from cheaper off-peak tariffs in their home.
“These new standards will also bring a common-sense approach to smart appliances by ensuring different brands and models can operate across different energy suppliers, allowing consumers to shop around for the best deals.”
