The National Engineering Policy Centre (NEPC), led by the Royal Academy of Engineering, has warned that the government must urgently prioritise the digitalisation of the GB electricity system in order to deliver against the UK's Clean Power 2030 target, maintain system resilience and reduce energy costs to consumers1. The warning comes in a report published on 21 May 2026, Smart Systems for Clean Power: Why faster, better digitalisation is critical for Clean Power 2030 and beyond1.
The report calls for work to establish a permanent digitalisation coordination function to be accelerated, and a dedicated system integration function to be established1. It notes that at present there is no designated body who has overall responsibility and ownership of digitalisation strategy, and warns that without addressing these challenges there is a risk of developing multiple incompatible systems, technical divergence, cyber security risks and rising costs1. It recommends using the National Energy System Operator's (NESO) Sector Digitalisation Plan as a near-term foundation and embedding feedback loops to capture learning and improve performance1. The National Energy System Operator runs the GB transmission system.
On skills, the report cites recent analysis showing an additional 200,000 workers are needed by 2030 across the energy sector1.
The report also sets out figures on smart meters, which it describes as key to providing the underlying data for a smart, digitalised electricity system:
| Measure | Figure |
|---|---|
| Households in Great Britain with smart meters | Around 70%1 |
| Household adoption needed for the stated benefits | 86 to 90%1 |
| Smart meters needing replacement or upgrading by 2033 | Seven million1 |
Professor Sir Jim McDonald, Chair of the NEPC Clean Power Advisory Working Group, said:
"At present, there is no designated body who has overall responsibility and ownership of digitalisation strategy - this lack of clarity and direction risks the delivery of systems that fail to integrate. We therefore call on government to urgently create an effective coordination function, with senior strategic oversight within government, for this crucial part of our ongoing system transformation"
The report states that digitally enabled flexibility services, including via smart tariffs, would allow abundant renewable electricity to be used at time of generation, relieving curtailment and balancing costs that are currently high and projected to rise1. It adds that this could help to reduce system costs and consumer bills as well as saving energy1. It also argues that a well designed digitally enabled system, with a permanent digitalisation coordination function, would be able to minimise systemic risks including cyber-attacks on critical infrastructure, control rooms or digital platforms1.
Why it matters for households
The report's argument is that the digital layer of the electricity system determines how much value a household's own equipment can extract from it. Smart meters supply the data that dynamic tariffs and flexibility services depend on, and the report puts current GB household coverage at around 70% against the 86 to 90% it says the benefits depend on1. Seven million existing meters are said to need replacement or upgrading by 2033 to access advanced digital services1.
For a home with rooftop solar, a heat pump, an electric vehicle or a battery, the report's framing is that coordination across millions of assets is what allows supply and demand to be matched in real time, and that curtailment and balancing costs, described as high and projected to rise, feed through to bills1. The governance gap it identifies is not a household-level matter: the report says no body currently owns digitalisation strategy overall, and that uncoordinated delivery risks incompatible systems and higher costs1. The UK home energy regulation and policy guide covers how such national decisions reach household tariffs and metering.
What happens next
The report calls on government to urgently create an effective coordination function with senior strategic oversight within government1. It also calls for a dedicated system integration function to be established and for work on a permanent digitalisation coordination function to be accelerated1. No timetable, responsible department or funding commitment for these functions is given in the report as reported1. The Department for Energy Security and Net Zero, covered in the DESNZ guide, has not responded in the material available1.