Energy smart data and potential consumer detriment
In short: On 14 October 2026 the Department for Energy Security and Net Zero (DESNZ) proposed that named data holders must share energy smart data with accredited third parties at the consumer’s request, under the Data (Use and Access) Act 2025, with Ofgem as enforcer. With access to their own consumption and tariff data, consumers could compare tariffs against how they actually use energy and switch to a better deal. DESNZ is accepting responses until 8 January 2027.
Consumers can lose out in different ways depending on how a market is structured, and access to data can enable different ways to avoid those potential harms. Smart data is data that regulations require a business to share with its customers, or with third parties that its customers authorise, or to publish. Government departments are now using the smart data powers in the Data (Use and Access) Act 2025 sector by sector: the Secretary of State has made regulations for road fuel prices, the Department for Energy Security and Net Zero (DESNZ) has proposed a scheme for energy, and HM Treasury has proposed one for open banking. The common legal machinery is set out in the post on DUAA smart data schemes.
Potential consumer detriment in network markets
In energy and telecoms a small number of networks serve retailers that compete with one another for consumers. Electricity and gas distribution networks are regional monopolies; in telecoms, cable and alternative fibre networks compete with Openreach in parts of the country. The potential detriment in these markets is that consumers stay on deals that no longer suit them, because a consumer cannot compare deals against their own use without data held by a network, a central body or their current retailer. For example, a household may be on a flat-rate electricity tariff that does not suit how it uses energy (DESNZ consultation, 14 October 2026).
Under Chapter II of the Competition Act 1998 (the prohibition on abuse of a dominant position), a dominant firm’s refusal to give access to data is an abuse only in exceptional circumstances: where the data is indispensable to competing, the refusal is likely to eliminate effective competition and there is no objective justification. Where a dominant firm gives access, the terms must not be unfair or discriminatory. In 2022 Ofwat, using its concurrent competition powers, accepted commitments under section 31A of the Act from a water wholesaler to give retailers and third parties access to smart meter data on fair, reasonable and non-discriminatory terms, and closed its Chapter II investigation without a finding of infringement. With access to their own data, consumers in network markets can have a third party compare deals against their actual use, switch on that evidence, and use services such as flexibility and energy advice that depend on the same data.
What DESNZ proposes for energy smart data
In its energy smart data legislative framework consultation of 14 October 2026, DESNZ proposes that named data holders must make three categories of data available to accredited third parties at the consumer’s request: consumption and metering data, tariff data, and data on assets behind the meter such as batteries, heat pumps, solar panels and charge points. Elexon, which administers the electricity balancing and settlement arrangements, would be the data holder for electricity consumption data, through its Smart Data Repository, and for asset data, through Flexibility Market Asset Registration. Suppliers that must provide tariff data under the tariff interoperability programme would be the data holders for that data. Domestic and non-domestic consumers would both be in scope.
The regulations would be made under Part 1 of the Data (Use and Access) Act 2025 (DUAA). Under section 2 the Secretary of State or the Treasury may make regulations requiring a data holder to provide customer data to a person the customer has authorised, and under section 3 may limit authorisation to persons who meet specified conditions and name a person to decide whether they do. Accredited third parties could choose to take part. Consumers would grant, review and revoke their consent through the Consumer Consent Service that the Retail Energy Code Company (RECCo) is building, and DESNZ proposes consumer journeys designed for people in vulnerable circumstances and with low digital confidence. The government plans to introduce energy regulations in 2027 or 2028, subject to the outcome of the consultation and parliamentary time, according to its Smart Data Strategy of March 2026.
DESNZ’s initial view is that the decision-maker role should be shared between a digitalisation coordination function, which has yet to be established and would take sector-wide decisions such as accreditation, and the relevant domain coordinators, which would take decisions for their own domains: Elexon for metering and asset data, RECCo for consumer data and the National Energy System Operator for core system data. Ofgem would be the enforcer, and the Energy Ombudsman would resolve consumer disputes. DESNZ considered Ofgem and itself for the decision-maker role and did not favour either, having concluded that both “may be less suited to technical and operational decision-making” given their roles as policy lead and regulator. Under section 8(2) the enforcer must be a public authority. Section 6 does not require a decision-maker to be a public authority, and under section 6(11) the regulations may provide for decision-maker functions to be exercised by more than one body, jointly or concurrently.
Telecoms smart data
No government department has yet proposed a telecoms scheme. Although the government names telecoms as a priority sector in its Smart Data Strategy, it has not set a timetable, and states that “a smart data scheme might offer further benefits in telecoms, and this will require further consideration, including the merits of a voluntary industry-led scheme”. Consumers already have the benefit of easier broadband switching (Smart Data Strategy, March 2026). Ofcom regulates communications providers under the Communications Act 2003 and the General Conditions of Entitlement. Like energy, telecoms consumers may also remain on deals that no longer suit them, and a telecoms scheme could follow the energy design, with a duty on named data holders, coordinating bodies accrediting participants and Ofcom as enforcer.
Payments: a different market failure
The potential detriment in payments is a market failure of a different kind from the other sectors. In its market review of card scheme and processing fees the Payment Systems Regulator (PSR) found that competition did not effectively constrain Mastercard and Visa in setting those fees, and that merchants either pass increases on to consumers or absorb them. Access to bank account data and payment initiation can give merchants and consumers an alternative to cards in account-to-account payments. In the commercial variable recurring payments scheme, a pricing committee independent of the scheme’s shareholders and participants sets a central access fee subject to various safeguards, and the Financial Conduct Authority (FCA) and the PSR recognised the role of a centrally set price in driving adoption towards a critical mass (joint statement of 20 January 2026).
In its Modernising Payment Services Regulation consultation, which closed on 6 October 2026, HM Treasury said it intends to make regulations under the DUAA giving the FCA power to make rules for account providers and third party providers on interfaces and standards, including guardrails for the pricing of commercial open banking services. Under sections 14 and 15 of the DUAA the Treasury may make regulations enabling the FCA to make interface rules, including rules about the fees payable under them. HM Treasury has committed to lay the open banking regulations by the end of 2026. The competition position of schemes once open banking has a statutory basis is considered in the post on the open banking competition regime after the smart data SI.
Road fuel: price transparency
In road fuel many retailers sell to drivers, and the potential detriment is weak price competition between them. The Competition and Markets Authority (CMA) found in its road fuel market study of July 2023 that competition between fuel retailers had weakened since 2019 and that average annual supermarket fuel margins rose by 6 pence per litre between 2019 and 2022, and it recommended an open data scheme so that drivers could compare live prices. The Secretary of State made the scheme under section 4 of the DUAA in the Motor Fuel Price (Open Data) Regulations 2025 on 17 December 2025, the first use of the Part 1 powers (Explanatory Memorandum, para 6.3). Since 2 February 2026 every motor fuel trader must report a change in its pump price within 30 minutes to an aggregator appointed by the Secretary of State, which publishes the prices to registered recipients, such as the satnav and map apps the CMA had in mind, and the CMA may issue compliance notices and impose penalties. Drivers can then compare live prices in those apps. The scheme covers business data about prices, so it operates without consumer consent.
Business water: one route to consumption data
Water networks are regional monopolies. Business customers in England have been able to choose their water retailer since the business retail market opened in April 2017. The potential detriment for a business with many sites, and its advisers, was the cost and difficulty of collecting consumption data from many retailers or tenants, which the proposer of the change said impeded environmental, social and governance (ESG) reporting. Ofwat approved changes to the market codes on 18 May 2026, with effect from 19 May 2026, so that the market operator may share non-household consumption data with authorised third parties where the customer or building owner has consented. The proposer sought the change to support ESG reporting and water efficiency, and cited the energy sector’s centralised access model as its precedent. An authorised third party can now make a single request to the market operator for a customer’s consumption data across its property portfolio, under a data sharing policy the market operator must adopt.
| Feature | Energy | Telecoms | Business water | Road fuel | Open banking |
|---|---|---|---|---|---|
| Market structure | Regional network monopolies; competing suppliers | Few networks, some network competition; competing retailers | Regional monopolies; business retail competition in England | Many retailers; no network bottleneck | Account providers and payment initiation providers serving payers and merchants |
| Potential consumer detriment | Staying on unsuitable tariffs | Staying on unsuitable deals | Costly collection of consumption data across sites | Weak price competition between retailers | Card fees passed on to consumers; few alternatives to cards |
| What access to data can do | Comparison and switching on actual use; flexibility services | Comparison and switching on actual use | One third-party request for data across a property portfolio | Live price comparison | Account-to-account payments and data-based services |
| Legal route | DUAA Part 1 (proposed) | None yet | Ofwat-approved market codes | DUAA s 4 (in force) | DUAA, with FCA rules (proposed) |
| Enforcer | Ofgem | No proposal; Ofcom regulates the sector | Ofwat | CMA | FCA |
| Status at 23 October 2026 | Responses accepted until 8 January 2027 | Under consideration | In effect since 19 May 2026 | Price reporting since 2 February 2026 | Regulations committed for end-2026 |
Accreditation across sectors
A firm accredited under one smart data scheme would need separate accreditation under another unless the regulations for the second scheme provide for accreditation under the first to count. In its multi-sector call for evidence of July 2026 the government described third parties as able to take part in a scheme only if accredited under that scheme’s rules. DESNZ asks whether accreditation from other smart data schemes and regulated regimes should be recognised for energy, and describes three models: mapping requirements between sectors, recognising accreditation from a firm’s home regulator, and a hybrid of mapping with targeted energy checks. DESNZ is minded to explore the hybrid, and notes that energy data could be combined with financial data, for example to assess green finance products. Depending on the model DESNZ chooses, an account information provider authorised by the FCA that wants to offer energy services could have its authorisation recognised outright, show equivalence against mapped requirements, or pass targeted energy checks. Whether a data service needs authorisation or accreditation in more than one sector is covered on our regulatory perimeter and market entry page.
Viewpoint
Each department has designed its scheme around the potential consumer detriment in its market, with a different body enforcing each. In energy, where consumers need data held by networks and central bodies to compare deals, DESNZ proposes a duty on named data holders, coordinating bodies to accredit participants and Ofgem to enforce. For road fuel, where drivers needed to see prices, the Secretary of State required publication through a single aggregator, with the CMA as enforcer. In open banking, where card fees are the potential detriment, HM Treasury proposes to give the FCA power to make rules on interfaces and standards, including guardrails for pricing.
If a department proposes a telecoms scheme, it could adopt the energy design. A firm that will take part in more than one scheme will need to track whether and how DESNZ decides to recognise accreditation from other regimes, and the government plans to consult on cross-economy governance in early 2027, according to its multi-sector call for evidence.
Frequently asked questions
Which data would be shared under the energy smart data proposals?
DESNZ proposes three categories: consumption and metering data, tariff data, and data on assets behind the meter such as batteries, heat pumps, solar panels and charge points. Elexon would be the data holder for electricity consumption data through its Smart Data Repository and for asset data through Flexibility Market Asset Registration. Suppliers that provide tariff data under the tariff interoperability programme would be the data holders for that data. Both domestic and non-domestic consumers would be in scope.
Who would accredit third parties and enforce the energy smart data rules?
DESNZ’s initial view is that the decision-maker role under section 6 of the Data (Use and Access) Act 2025 should be shared between a digitalisation coordination function, yet to be established, which would take sector-wide decisions such as accreditation, and the relevant domain coordinators (Elexon, RECCo and the National Energy System Operator), which would handle onboarding and assurance in their own domains. Ofgem would be the enforcer under section 8, and the Energy Ombudsman would resolve consumer disputes.
What can consumers do with energy smart data?
A consumer could authorise an accredited third party to use their consumption, tariff and asset data to compare tariffs against their actual use, switch to a better deal, take part in flexibility services and obtain advice on low-carbon technology such as heat pumps and batteries. Consumers would manage their consent through the Consumer Consent Service.
Has any scheme been made under Part 1 of the Data (Use and Access) Act 2025?
Yes. The Secretary of State made the Motor Fuel Price (Open Data) Regulations 2025 (SI 2025/1356) under section 4, the first use of the Part 1 powers. Motor fuel traders must report price changes within 30 minutes to an aggregator appointed by the Secretary of State, which publishes them to registered recipients. The CMA enforces the scheme, and the price reporting duty has applied since 2 February 2026.
When must responses to the energy smart data consultation be submitted?
DESNZ will accept responses until 11:59pm on 8 January 2027. The government plans to introduce energy regulations in 2027 or 2028, subject to the outcome of the consultation and parliamentary time, and DESNZ will publish a summary of responses with its decision on whether and how to proceed.
For advice on smart data accreditation, data sharing duties or the use of customer data across energy, telecoms, water and payments, contact Rob Bratby at Bratby Law.
