The Federation of Small Businesses (FSB) has proposed ‘Open Banking’ style measures to the energy market to make it easier for small businesses to switch providers and access cheaper tariffs.
Commissioned by the FSB and produced by Fingleton Associates, ‘Open Energy: Using data to create a smarter, cheaper and fairer energy market’ highlights how data can be used by customers – and those who represent them – to help make better and more informed decisions about their energy service.
The Open Energy concept would bring a number of critical reforms to the market, including:
- Standardising tariffs and other relevant market information in machine-readable formats to allow automated comparisons of energy tariff offerings.
- Making smart meter data available through a secure standardised Application Programming Interface (API) to approved third parties.
- Allowing energy customers to delegate contract switching powers to third party intermediaries.
These reforms would increase switching rates and create opportunities for innovative uses of data, including for demand-management purposes that could increase the proportion of the total energy mix from renewables.
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Email JaimeFSB National Chairman, Mike Cherry, explained, “Small businesses are often the worst hit by an energy market that simply doesn’t work for them. Too often we hear stories of smaller firms being overcharged or being stuck on the most expensive tariffs.
“This is why we need an open and transparent energy market that allows smaller businesses to take control of their data and use it – via an intermediary if they choose – to find the best energy deal, switch providers, take advantage of smart technology, manage when and how they use their energy, and even how it is generated.
“Open Energy, like Open Banking, has the potential to transform the market – if implemented correctly. It would help small businesses to be more energy efficient and empower them to make energy choices that are cleaner, greener and more sustainable.
“Smaller firms are already playing a critical role in helping the UK become more energy efficient and reducing our reliance on dirty energy. If adopted, these reforms would make it easier for more small businesses to play their part.”
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