Flex Assure welcomes several positive developments for consumers in the 2026 Autumn Budget. The Government has announced measures that will reduce or help with households’ and businesses' energy bills, including:
- - Keeping electricity VAT at 0% until July 2027, which will take about £50 off the April price cap.
- - Abolishing gas standing charges, aiming for the end of 2027, and committing to reform electricity standing charges, with details next year.
- - A £100 Household Energy Payment for bands A–D in England from January 2027, and an Energy Debt Circuit Breaker expected to save households around £30 by 2030.
- - Cheaper on-street electric vehicle charging, worth about £150 a year to drivers without home charging, from spring 2027.
- - The Cost Control Framework keeping new policy costs off bills, which could open up demand turn-up across domestic, commercial and industrial demand.
At the same time, Flex Assure notes causes for concern:
- - The Warm Homes Plan has lost £1 billion of its grant, and VAT on energy-saving materials such as heat pumps, batteries and solar panels returns from 0% to 5% in April 2027. These changes risk fewer and more expensive flexible assets in homes.
- - Confirmation of 20% VAT on public and workplace electric vehicle charging from 1 November 2026.
- - The British Industrial Competitiveness Scheme helps about 10,000 energy-intensive manufacturers but nothing comparable reaches smaller businesses, and there’s no targeted support for industrial electrification.
The Budget offers a vision for the future that has room for energy flexibility:
- - Reforming standing charges could mean that shifting demand delivers more value for consumers.
- - The new Data Centre Covenant will expect data centres to support grid flexibility.
- - The Regulation for Growth Bill creates sandbox powers which could be used to trial new flexibility products “under strict controls and safeguards.”
It is important for government to maximise opportunities for flexibility and ensure consumer protections, particularly in the following areas:
- - The 10-Year Plan will contain details on reforming and improving the efficiency of the electricity market. This is an opportunity to make sure that flexibility pays.
- - The planned review of accountability across the energy system (NESO, Ofgem and DESNZ) must establish a clear home for consumer protection in flexibility services.
- - The Energy Independence Bill, due to be introduced shortly, must include protections for consumers using smart energy and flexibility services.
- - Any scheme from the Government’s new taskforce on letting EV drivers use their home tariff at public chargers must have clear consumer rules where smart charging providers are involved.
