Smart functionality to be required in many energy-efficient appliances as part of the government’s wider Clean Power Action Plan

New regulations requiring smart functionality in many energy-efficient appliances are set to benefit households across the UK. These changes form part of the government’s wider Clean Power Action Plan, which focuses on lowering energy bills and supporting the shift to renewable energy. Under the new standards, appliances such as electric vehicle (EV) chargers and heat pumps must be sold with built-in smart features. These features allow consumers to use electricity during cheaper off-peak hours.

Although the smart function will be optional, those who activate it will have the opportunity to reduce their energy costs by taking advantage of time-of-use tariffs.

Smart appliances are designed to respond to signals from energy suppliers, enabling them to operate when electricity prices are at their lowest.

For example, many EV owners are already saving hundreds of pounds each year by charging their vehicles overnight. Similar savings could be achieved with other smart-enabled appliances, particularly heating systems.

The new framework will extend existing regulations for EV chargers to a broader range of devices. These include hydronic heat pumps, storage heaters, hot water heat pumps, heat batteries, and hybrid heat systems with capacities up to 45 kW.

Smart functionality required in energy-efficient appliances must be capable of working with multiple energy suppliers

All new models sold must be capable of working with multiple energy suppliers, preventing customers from being tied to a single tariff or provider. This flexibility will make it easier for consumers to shop for the most cost-effective energy deals.

Why is the government mandating that smart functionality is introduced to energy-efficient appliances

The aim is to use smart appliance regulations to help reduce pressure on the national grid. They lower peak electricity consumption by spreading demand more evenly across the day. This could reduce the need for large-scale infrastructure projects, potentially saving between £40 and £50 billion by 2050. The savings could be passed on to all energy users through lower long-term costs.

As part of these changes, new cybersecurity standards will be introduced to ensure that smart devices are safe and secure. This includes protecting customer data and minimising the risk of cyberattacks on home energy systems.

Smart functionality to be required in many energy-efficient appliances

The upcoming Market-wide Half Hourly Settlement, scheduled for 2027, will further support smart energy use. This system will require suppliers to bill consumers based on near-real-time energy usage. It will improve the accuracy of charges and allow greater access to smart tariffs, enabling consumers to benefit from better prices and control over their consumption.

These measures are based on consultation findings from the Smart Secure Energy System proposal, which ran between April and June 2024. The government plans to introduce secondary legislation within the next year. Once approved by Parliament, manufacturers will have a 20-month transition period to adjust their production lines to meet the new standards.

So, what is smart functionality on energy-efficient appliances predicted to save?

The Department for Energy Security and Net Zero (DESNZ) has conducted internal modelling on potential savings if smart functionality is introduced to key energy-efficient appliances. For example, households that switch from a gas boiler to a heat pump using a smart tariff could save up to £100 per year. When combined with other smart devices and tariffs, these savings can add up significantly for consumers.

The reforms reflect a growing recognition of the role consumers can play in energy transformation. With 84 per cent of UK households reportedly willing to adopt more flexible energy usage, the government is positioning smart appliances as a key tool for economic and environmental gains.

By making smart features standard, the plan supports individual savings and broader energy system efficiency. It promotes competition among energy suppliers, giving households more freedom and better value while helping the UK meet its clean energy targets.

FAQs

What appliances will be affected by the new smart standards aimed at reducing energy consumption by the government’s wider Clean Power Action Plan?

Appliances such as electric vehicle chargers, heat pumps, storage heaters, heat batteries, and direct electric hot water cylinders will need to be sold with smart functionality.

When will the new regulations take effect?

Legislation is expected within the next year, followed by a 20-month adjustment period for manufacturers before the rules are enforced.

Do consumers have to use the smart functions?

No, smart functionality will be optional. Consumers can choose to activate it to take advantage of cheaper, off-peak energy tariffs.