Government published its Energy Smart Appliance consultation response

The government published its response to the National Infrastructure Commission's study, "Electricity distribution networks: Creating capacity for the future", in April 2025¹. The study itself was published on 21 Feb 2025 and set out 14 recommendations across seven themes, including connections, price controls, skills and flexibility¹. The government says it agrees with all 14 recommendations, with what it describes as small caveats on implementation process in a small number of cases¹.

The response states that electricity demand is expected to at least double by 2050, driven by the electrification of heating, transport and industrial processes¹. It cites the finding that flexibility can reduce the amount of investment needed in the distribution network by around 15%, with consequential benefits in reducing costs for electricity consumers¹. The government committed in the Clean Power 2030 Action Plan to publish a Clean Flexibility Roadmap in 2025, previously called the Low Carbon Flexibility Roadmap¹.

On reliability, the response agrees that government and Ofgem should review security of supply standards for distribution networks, and notes that the full review may need a more flexible timescale than the NIC's recommended completion by the end of 2028¹. It states that requiring distribution network operators to identify "no regrets" activities that improve security of supply forms part of the current ED2 price control, through the Worst Served Customers funding stream and the Storm Arwen Re-opener, with Ofgem allowing £86m of funding for Worst Served Customers and £149.64m in the related allowance¹.

"Following a thorough review of the study, the government agrees with all 14 recommendations. In a small number of cases, our response includes some small caveats on implementation process."

On price controls, the next electricity distribution price control period, ED3, will run from 2028 to 2033¹. The response welcomes Ofgem's publication of the ED3 price control framework on 30 April 2025¹. Regional Energy Strategic Plans are intended to improve planning and data, and Ofgem wrote to the National Energy System Operator on the scope of the transitional RESP in February 2025¹.

Why it matters for households

The distribution network is the part of the electricity system that carries power to homes. The response links its approach to household technologies directly, stating that expanding and upgrading the distribution network will ensure households can embrace technologies such as heat pumps and electric vehicle charging¹. The flexibility finding matters because the response says reduced network investment carries consequential benefits in reducing costs for electricity consumers¹. The reliability section concerns security of supply standards and the protection of vulnerable customers, and the response notes that automation, digitalisation and the use of flexibility change the nature of security of supply risk¹. For a household considering energy smart appliances and automated load control, the planning and price control decisions set out here shape how much network capacity is available and how quickly connections are made. The consultation process behind these decisions is run by DESNZ with Ofgem.

What happens next

A public consultation on draft transitional RESP outputs is listed for September 2025, with final transitional RESP outputs in January 2026¹. A Sector Specific Methodology Decision is listed for spring 2026, and ED3 begins on 1 April 2028¹. The response states that the full review of security of supply standards should be completed by the end of 2028, though it notes this may need a more flexible timescale¹.

Sources1 cited

1. Electricity Distribution Networks Study: government response (accessible webpage) - GOV.UK, gov.uk