Government Unveils New Standards to Slash Energy Bills and Cut Costs

The UK Government has unveiled a sweeping plan to future-proof household energy consumption. It mandates that all new heat pumps and electric vehicle (EV) chargers come equipped with smart functionality. The goal? To help Brits tap into cheaper, off-peak electricity and accelerate the shift toward low-carbon living.

Imagine a home that knows when electricity prices drop—and adjusts itself accordingly. That’s the future the Department for Energy Security and Net Zero (DESNZ) envisioned. Smart-enabled appliances, such as electric vehicle (EV) chargers and heat pumps, can automatically draw power during low-demand hours, like overnight. The payoff for consumers is tangible: families charging their electric vehicles (EVs) using time-of-use tariffs are already saving up to £332 a year, according to government estimates.

The new proposal aligns heat pumps with existing rules for EV chargers, requiring that all such systems be sold “smart-ready.” This means consumers can opt into automated savings by heating their homes during lower-tariff periods, potentially reducing their annual energy costs by around £100 compared to traditional gas boilers.

But the vision goes beyond a single appliance. The incoming regulations will cover a wide range of devices, including hydronic heat pumps, hybrid systems, heat batteries, electric hot water cylinders, and more, all with a thermal capacity capped at 45kW. These smart appliances must also be interoperable across different energy tariffs and suppliers, ensuring consumers aren’t locked into rigid plans or vendor ecosystems. Importantly, smart functionality remains optional. Consumers will still be able to run their devices manually if they prefer.

Energy minister Michael Shanks 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 homes.

“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.”

The previous regulation of smart energy appliances raised concerns about data collection on consumers’ energy usage and the potential for manipulation by “threat actors.” The DESNZ said “tough” new cybersecurity standards would be introduced for smart appliances to protect customers and their data from cyberattacks.

Legislation to enforce the shift is expected within the next year, with a 20-month grace period to allow manufacturers to adapt. This legislative move is part of a broader strategy tied to the upcoming Half Hourly Settlement—an initiative launching in 2027 that will require suppliers to use real-time data to offer more innovative and dynamic pricing models.

And the clock is ticking. Earlier this month, Energy Secretary Ed Miliband and Ofgem chief Jonathan Brearley warned energy providers that there would be no more delays. The smart energy revolution, it seems, is no longer optional—it’s overdue.