• • • AI • • •
THE BENEFITS AND PITFALLS OF OPEN DATA IN ENERGY
It is well known that more data helps improve both statistical confidence and actionable intelligence. Once the amount of data that could be processed was bound by the amount of hours in the day. Now, however, the emergence of artificial intelligence (AI) has broken down these barriers and enabled datasets to learn effectively from billions of data points without collapsing.
By David Sheldrake, Global SVP of Sales360, POWWR
n the past, energy suppliers have looked at data as being a currency that must be held on to due to its intrinsic value. However, increasingly they are understanding that opening up the data to others can be a win-win.
I Added intelligence
Ofgem is certainly on board. One of the main catalysts for the current move towards Market-wide Half Hourly Settlements (MHHS) is to provide energy usage information to consumers so that they can know what energy they are using, and when. It is hoped that this added intelligence will provide a pathway for more consumers to move to flex deals. This will lead to increased grid resilience as suppliers will be able to purchase energy in blocks to match time of use needs. This added intelligence will also lead to consumers being more likely to self-generate their own energy. Also offset their home usage through the new breed of enhanced battery storage solutions. This will not only reduce demand on the current grid but would lead to a reduction in energy costs.
A consent wallet
Making data available to consumers means that they can check they are on the right tariff and only use energy at the most cost-effective times. Consumers have been used to providing their MPAN/MPRs (Meter Numbers) when exploring new tariffs. However, this didn’t include details of energy consumption that is personal to the user. Because of this, it will be important that the
industry goes about opening up data the right way. After all, data protection regulations such as GDPR will be looming large if there is any misstep. Ofgem clearly agrees and is scheduled to introduce a Consent Wallet by the end of 2026. With a Consent Wallet, a customer will need to provide consent to their supplier before they gain access to their data, either for their own means or to share it with other suppliers, brokers, or comparison websites so that they can obtain the most cost-effective tariff. This eliminates confusion and provides protection for the industry. The energy industry can learn from what the banks did through the introduction of open banking. However, this needs to work for consumers, suppliers and energy brokers alike to be effective.
A period of education Of course, such a move will require a robust technology infrastructure to allow for such data to remain secure yet be able to be accessed on demand. There will also be a period of education needed, so that consumers know they need to give their consent to the data to a broker or supplier before they can consider switching. This is easier said than done. After all, over 40 per cent of UK consumers are still not on Smart Meters despite a decade or more of marketing.
But this is certainly preferable to making such data available to all without consent. Yes, it may make the customer journey easier and smooth the transition. But breaking stringent data protection regulations would be a compromise too far.
Multiplying value As long as the data is clean, more data will always equal more diverse, accurate and reliable learnings for the industry. Making this data accessible will only multiply its value. It will become a powerful tool to help consumers ensure they are on the most effective time of use tariffs, brokers provide more valuable insight, and the industry maintains a robust and relevant grid. The latter is important. After all, the goal of all of this is to provide a more resilient national energy infrastructure that will be less reliant on external factors and help protect our energy future. Opening up the ever-growing big data mountain will not only ensure this but also empower the consumer to reduce their energy bills at a time when it is most needed.
https://www.powwr.com 40 ELECTRICAL ENGINEERING • NOVEMBER 2025
electricalengineeringmagazine.co.uk
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52
