The Climate Change Committee (CCC) recently warned that high electricity costs are posing the greatest risk to the UK’s journey to net zero. In fact, recently, UK energy regulator Ofgem announced that it was increasing the price cap on energy providers by 2%, paving the way for higher household energy bills this Autumn.

Rising energy prices undermine electrification of heating in homes, businesses, and public services – a cornerstone of the nation’s decarbonisation plans – and could result in the UK delivering just 38% of its legally binding emissions reduction target by 2030.

Achieving these goals requires not only a rapid shift to renewables, but also a smarter, more cost-effective way of transforming energy infrastructure. To supplement traditional emissions reduction measures, the UK must simultaneously focus on making the energy transition affordable and accessible for all energy users.

Smarter energy systems for a smarter grid

The government has made progress by fast-tracking renewable projects and expanding grid capacity. However, its “” connection model has faced criticism for inefficiency and failing to reflect today’s energy challenges. This further impacts the energy efficiency capabilities of SMEs and community energy projects who might not have sufficient resources to access the connection model as it stands. The “first come, first served” connection model has faced criticism for inefficiency and failing to reflect today’s energy challenges. This further impacts the energy efficiency capabilities of SMEs and community energy projects who might not have sufficient resources to access the connection model as it stands.

While much attention has been given to expanding supply, far less emphasis has been placed on the other half of the equation – using energy more intelligently. Efficiency, flexibility, and smarter consumption must now sit at the heart of the transition.

Demand Response: balancing consumption and cost

Demand Supply Response (DSR) technology is emerging as one of the most effective ways to boost grid flexibility and keep costs down throughout the year. By shifting or reducing demand during periods of peak use, it alleviates pressure on the system, balances supply and demand, and lowers consumer bills, all without compromising comfort.

In fact, the National Energy System Operator (NESO) has already seen momentum in this area, with around 2 million households and businesses already registered for demand flexibility provisions last winter.

DSR technology has various advantages. It integrates seamlessly with low-carbon technologies such as heat pumps and rooftop solar, helps counter the variability of renewable generation through interoperability, and reduces dependence on expensive fossil fuel backup power. By automatically adjusting usage in real time, it minimises waste, lowers costs, and reduces emissions.

Cutting costs while cutting carbon

The transition to net zero should not be perceived as a financial challenge. DSR technology can be deployed in homes and commercial buildings at no upfront cost, giving users the ability to optimise consumption during critical hours. DSR also reduces carbon-intensive “peak load” periods and therefore lowers prices for all users.

Evidence from other markets underscores its potential. A study by Compass Lexecon showed that 10 GW of demand supply response capacity in France by 2030, could lower peak prices by around €40/MWh.

For energy-intensive operations such as campuses, hotels, and office complexes, even modest participation in DSR can yield significant financial and carbon savings.

Flexibility at scale: the foundation of a resilient energy system

Britain’s energy grid is moving into an era where resilience and flexibility are no longer optional but essential. DSR helps stabilise markets, curb price volatility, and reduce the need for costly new generation capacity.

Advances in smart automation and artificial intelligence now make it possible to coordinate millions of decentralised devices, from EV chargers to heating systems, with little or no manual input from users. The result is immediate cost savings, reduced system stress, and a faster path to decarbonisation.

The technology is no longer the barrier, but deployment is. Scaling up adoption of demand response is vital for the UK to become a leader in delivering a fair, affordable, and sustainable energy transition. The energy transition is not possible without flexibility. Urgent action is therefore required, or the UK risks falling behind other markets that are already seizing the advantages of a more flexible energy grid.

Article written by Dr. Randall Bowen, Managing Director UK, Voltalis

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