Introduction
In January 2024, research from UK charity Citizens Advice revealed that 5.3 million people were in debt to their energy supplier. Against a backdrop of cost-of-living increases, there’s been a strong focus for UK households, businesses, and public sector organisations on rising energy costs and water bills. Opportunities to reduce the size of bills, and for utilities companies to find more efficient, cost-effective and accurate ways to receive and manage payments, as well as assess future payments, are critical.
Open banking is already playing a key role in delivering some of these opportunities, and with the advent of smart data – as set out in the previous Government’s proposed 'Smart Data Big Bang' – there is now the opportunity to expand open banking’s benefits across the economy.
Powers in the Data Protection and Digital Information (DPDI) Bill, which failed to make it on to the statute books, would have mandated open banking data sharing initiatives to unlock innovation, competition, and economic benefits for consumers and SMEs across seven key sectors:
Banking
Energy
(Including fuel and utilities)
Finance
Home-buying
Transport
Telecoms
Although the DPDI Bill failed to make it through the parliamentary wash-up, Open Banking Limited (OBL) is working with industry, policymakers, and regulators to urge government to prioritise the Digital Information and Smart Data Bill that will support the future development of open banking and smart data schemes, as set out above.
Marion King
OBL Trustee
“Open energy promises a future where consumers have greater control over their energy consumption, costs, and environmental impact. By seamlessly sharing energy usage data, consumers can make more informed decisions, reducing waste and promoting sustainability.”
Our guide explains how open banking and smart data can help to transform how energy and utility services are consumed, managed, and paid for. We also set out how both can offer transparency over pricing, improve the effectiveness and speed with which energy and utility services are provided to consumers and businesses, giving them greater control over their energy usage and costs.
