26 August 2025

Low public awareness and perceived lack of incentives are discouraging British households from switching to time-of-use energy tariffs, even if this switch could save them money, a new report by The MCS Foundation reveals. 

More than two in five households (41%) say they are unlikely or very unlikely to switch to tariffs which offer cheaper electricity outside of peak times, and nearly four in five (78%) said they had no awareness of demand side response schemes that offer households financial incentives to turn down energy usage during certain times, according to a YouGov survey commissioned by The MCS Foundation.  

The MCS Foundation’s new report, Unlocking flexibility: how to engage households in demand side response, states that households should be encouraged to shift electricity usage in order to balance demand on the grid, as heating and transport electrify. Balancing electricity demand would reduce the need for costly infrastructure upgrades, help avoid the use of gas power plants to back up renewable energy, and offer consumers the chance to save money with cheaper tariffs. The report cites research showing that this “triple win” could represent savings of £375 a year by 2040 on an average households’ electricity bill.  

Yet The MCS Foundation’s findings demonstrate that consumers are far from ready to engage with so-called demand-side response programmes, and Britain is therefore at risk of unnecessarily high electricity costs.  

Respondents from a representative sample of British households cited lack of awareness, perceived lack of ability to shift energy use away from peak times, and a perceived lack of financial benefit as some of the main reasons not to participate in time-of-use of demand-side response schemes. 

The MCS Foundation’s report also warns that those who are not digitally-literate and those on lower incomes are currently much less able to participate in demand-side response, with the risk that they will be excluded from the benefits of lower bills. In particular, The MCS Foundation says that households must be supported to access low-carbon technologies such as heat pumps and batteries, as these can enable participation in demand-side response schemes.  

Among its recommendations to enhance uptake of demand-side response while supporting vulnerable groups, the charity is calling for: 

• Energy suppliers to offer risk-free trial periods for time-of-use tariffs 

• Energy suppliers to be obligated to engage digitally-excluded groups and those on low incomes in demand-side response 

• Ofgem to enhance consumer protections with clear redress processes if demand-side response schemes go wrong 

• Government to allocate funding from the Warm Homes Plan to support low-income households in accessing technologies that can enable demand-side response, including batteries and heat pumps 

• The remit of the public engagement body Smart Energy GB to be broadened, enabling them to play a wider role in raising awareness of flexibility and supporting public understanding

Garry Felgate, Chief Executive of The MCS Foundation, said, “The transition to net zero cannot be just about the roll-out of technologies like heat pumps and electric cars. It must also be about empowering and encouraging households to reduce their bills through the flexible energy usage enabled by low-carbon technologies.  

“Greater flexibility across the energy system will unlock the triple win of reduced infrastructure costs, carbon emissions avoided, and lower bills. We need coordinated action from energy suppliers, Ofgem, and Government to make sure that households can play their part in achieving that, and see the benefits in their pockets.”