You might have come across the term ‘energy flex markets’ recently and wondered what they are and how they might affect you. We understand – the energy market and industry is dynamic and fast-moving and it can be hard to keep up. Fear not though! We’re here to guide you through it. In this blog we’ll run through what energy flex markets are, why they’re important, and how you can get involved. So, without further ado, let’s dive in!
What are energy flex markets?
Put simply, energy flex markets are systems or initiatives that allow consumers and businesses to shift their energy used based on price signals and incentives. There’s a couple of reasons they’re an exciting and important development in energy markets. First, they can help to keep the electricity grid and system operators stable and efficient by balancing supply and demand. Second, they can reward customers who cut back on energy during peak times.
So, imagine a future where your energy bill isn't just a cost, but an opportunity. Energy flexibility or ‘flex’ markets are a way to make that happen. At peak times, when electricity demand is at its highest, or when renewable sources like solar and wind aren't producing as much, the grid needs a little help to stay balanced.
That’s where homeowners like you come in. By being flexible and shifting your energy use – perhaps running your washing machine later in the evening or charging your electric car overnight – you can help stabilise the grid and get paid for it. Energy flex markets can also help us to use renewable energy more effectively, so they’re a key part of the energy transition – building a cleaner, more affordable energy future for everyone.
What do energy flex markets mean to consumers?
For home energy customers like you, time of use tariffs are the way to access energy flex markets. Time of use tariffs offer different electricity costs depending on the time of day. Our Next Drive and Next Pumped tariffs are two great cases in point. We’ll cover these in more detail a little later. There are also schemes like the National Grid ESO’s Demand Flexibility Service that help customers save energy and a bit of money by reducing energy use at peak times. As a ‘flexibility service provider’ in industry language, we alert our customers to schemes like this and help you to participate.
What’s more, flexibility markets can help us to reduce our reliance on fossil fuels and lower our carbon emissions. Cutting demand during peak times means a more even distribution of demand for electricity throughout the day, which means that less fossil fuels need to be burnt and more renewable energy assets can be used instead. This also helps balance the load on the grid, making it more reliable and efficient. The result: blackouts and ‘brownouts’ (when voltage drops) are less likely. This is particularly important during cold snaps, when demand for electric heating rises, putting lots of pressure on the grid.
How can I participate with E.ON Next?
At E.ON Next, our goal is to make new energy work for everyone. A big part of this is about making it simple and easy for people to make better energy choices. Time of use tariffs are central to this – putting the power in your hands to use energy how you want.
We currently offer three time of use tariffs – Next Drive, Next Pumped and Next Smart Saver.
With Next Drive, EV owners can get cheaper overnight charging between 12am and 7am. With the E.ON Next Home app and a compatible EV, you can schedule charging directly from your smartphone. And because Next Drive’s cheaper charging times are the same everyday, you’ll only need to set this schedule once. Plus, Next Drive only uses 100% renewable electricity, so it’s an eco-friendly choice.1
Next Pumped is our time-of-use tariff for heat pump owners. They get two periods in the day with cheaper electricity rates – between 1-4pm and 4-7am. By changing energy habits and scheduling appliances to run during these times, customers on these tariffs could save both energy and money. Like Next Drive, it’s also powered by 100% renewable electricity.2
The Next Smart Saver tariff helps customers like you unlock energy savings with cheaper electricity between 7pm-2am every day.3.
A new era for the UK energy market.
As you can see, energy flex markets are an exciting innovation for the UK’s energy system – for every player in the market, from grid operators to energy companies like us, and most importantly for customers like you. We’re always working on ways to make new energy work, and that includes offering cutting-edge, flexible time of use tariffs. Explore our range of time of use tariffs and see whether you can start saving both pounds and power while doing your bit to speed up the energy transition.