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Insight
Scaling ambition
These are early days for the Just Transition and pockets of good work, carried out by SSEN and other forward thinking organisations, have yet to scale up to create a robust evidence base for viable new market models and support schemes.
With people in the most disadvantaged groups often facing a backlog of debt, on energy bills and due to the wider cost of living crisis, the idea of innovative DSR technologies and flexibility markets is unlikely to be high on their agenda.
“We really aren’t there yet, in terms of what the low-carbon transition actually means for people in their homes and neighbourhoods.”
Charlotte Johnson, head of research programmes, Centre for Sustainable Energy
As a result, there may be a need for a major public awareness campaign to communicate the opportunity decarbonising the energy system represents and why the sector is taking it seriously.
“We really aren't there yet, in terms of what the low carbon transition actually means for people in their homes and neighbourhoods, how their network is going to change, how the price is going to change,” says Johnson. “We need a concerted effort to consolidate, simplify and clarify some key messages, starting with, ‘you need a smart meter’.”
SSEN’s work has already demonstrated the importance of understanding consumer perspectives and designing and tailoring strategies and technological solutions to fit their needs, not simply focusing just on the affluent middle classes or early adopters.
The loss of the public’s trust is a major issue faced by energy suppliers, a situation that could encourage DSOs from taking a more visible role in engaging with the public on Just Transition issues. “Taking on some responsibility for the fairer transition piece, supporting people to take up new technologies, even just smart meters, to make sure that they're captured and on the radar, will be an important first step,” says Stewart.
Changes to government and/or regulation could also make a difference. RIIO-ED3 is expected to embed policies needed to support more consumers on the road to net zero; regulation for flexibility service providers and aggregators is also on the radar.
In addition, the Department for Energy Security and Net Zero’s Smart and Secure Electricity Systems programme is working to introduce minimum product standards for Energy Smart Appliances, such as EV charging, heat pumps and battery storage, and a new licencing regime around load control services, including consumer protections, data privacy, and cyber security and interoperability.
Such initiatives and continued collaboration will be key to tackling Just Transition issues and creating meaningful solutions that are tailored to everyone, regardless of circumstance.
SSEN plays its part in advocating for consumers
For the past decade SSEN has been exploring the issues associated with our transition to net zero. More recently, our attention has increasingly turned to the impact of the transition on consumers. We know that changes in consumer behaviour will be the driving force of net zero, so we have a growing role to play in advocating for consumer needs in a net-zero context, particularly those who may find themselves with new energy-related vulnerabilities. Committed and collaborative action from industry, government, and individual organisations such as SSEN will be vital if we are to achieve a just and inclusive transition to net zero. As part of advocating for that just transition, our Fair Energy Future report detailed a series of commitments we have made as a business along with additional recommendations for industry and government to galvanise wider action at national level.
“We know that changes in consumer behaviour will be the driving force of net zero.”
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