The UK Department for Energy Security and Net Zero opened a call for evidence on developing an energy smart data scheme. The initiative aims to empower consumers by securely sharing their energy data with authorised third parties, fostering innovation and personalised services. This approach seeks to enhance customer control over energy usage, promote informed decision-making, and support the transition to a low-carbon economy.
The government’s vision for a smart data economy builds upon the success of Open Banking, aiming to replicate its benefits across various sectors, including energy. By establishing a robust framework for data sharing, the scheme intends to stimulate competition, drive economic growth, and facilitate the adoption of clean energy solutions.
This response addresses the key questions posed in the call for evidence, providing insights into the potential benefits, challenges, and design principles of an energy smart data scheme.
This is important for us because we need to transform financial and energy data infrastructure to enable real-time, trusted, and automated decision-making that accelerates the transition to net zero. Without this, SMEs will continue to face barriers to green finance, financial institutions will lack reliable emissions data, and policymakers will struggle to track progress effectively. A well-designed energy smart data scheme will ensure that sustainability reporting is seamless, scalable, and actionable across the financial and energy sectors.
Question 1: What are your views on the benefits of an energy smart data scheme? This might include (but is not limited to) benefits to customers, decarbonisation, the economy and wider society
An energy smart data scheme can drive decarbonisation, improve efficiency, and stimulate economic growth by enabling secure, automated, and standardised data sharing.
For consumers, smart energy data would enable more informed decisions when buying, renting, or improving a home. More accurate energy measurements would help homeowners and tenants compare costs, shop for better deals, and assess potential savings from sustainable upgrades. This would encourage more energy-efficient home improvements by demonstrating clear financial benefits. Banks could also use this data to develop green financial products, such as sustainable loans, that incentivise efficiency improvements and make them more accessible.
Smart energy data would help overcome these barriers by offering more precise, real-time insights than traditional EPC ratings, which are often outdated and unreliable. Financial institutions could also use this data to develop tailored products and services that address affordability concerns and support a smoother transition to lower-carbon living.
Bankers for Net Zero (B4NZ) and Icebreaker One have developed the Perseus programme, a whole-of-market solutions to create rapidly scalable, low-effort, and low-friction sustainability reporting for SMEs.
Building on the principles of Open Banking, Perseus unlocks access to capital by automating greenhouse gas (GHG) reporting for every SME in the UK. A key challenge for SMEs is the complexity of sustainability reporting and the lack of standardised, reliable energy data. The UK Net Zero Strategy highlights that SMEs account for nearly half of UK business-related emissions, yet they lack the tools to measure and manage their energy use effectively.
A solution to this problem is Perseus, which facilitates automated data flows between the real economy (energy companies) and the financial economy (banks), ensuring that SMEs can seamlessly report their emissions and gain access to green finance. This system improves the quality, security, and impact of sustainability data, reducing the burden on businesses while enhancing the transparency of emissions reporting.
The Perseus pilot, running from November 2024 to June 2025, involves real data sharing and loan-making. Participants include the Development Bank of Wales, Sage, Perse, and Smart DCC. The pilot focuses on automating access to assurable SME electricity smart meter data and its carbon intensity at the time and place of use. SMEs can receive emissions reports generated from these data and share them with banks or lenders to unlock green finance.
The UK Government’s Green Finance Strategy has already recognised Perseus as a crucial part of the decarbonisation architecture. The programme’s live pilot has successfully demonstrated how automated reporting can unlock green finance for SMEs by enabling them to track and reduce their carbon footprints with minimal effort.
A scalable energy smart data scheme must build on Perseus’ model to ensure that sustainability data is standardised, reducing reporting burdens and enabling greater transparency in emissions tracking. This will allow financial institutions to better assess sustainability performance and drive investment towards greener initiatives.
Finally, the scheme aligns with government efforts to use data for public good. The Digital Information and Smart Data Bill seeks to unlock the potential of data to drive economic growth and improve people’s lives.
Question 2: What can we learn from Open Banking that would be helpful to consider when developing an energy smart data scheme? This might include (but is not limited to): phasing, structure, funding, participation, growth, implementation or governance.
The success of Open Banking demonstrates how secure, standardised, and automated data-sharing frameworks can drive market-wide adoption. Perseus applies these principles to sustainability reporting, enabling SMEs to share energy and emissions data seamlessly
The UK Smart Data Council (2023) highlights transparent, consent-based data sharing as a fundamental success factor. Perseus ensures that data flows only with SME permission while maintaining financial-grade security. A similar governance approach should be adopted for an energy smart data scheme to improve data integrity, security, and adoption.
Standardised, automated reporting also benefits financial institutions by ensuring high-quality sustainability data, reducing compliance burdens, and integrating with net-zero strategies. Perseus has already laid the groundwork for this transition, providing a tested model for scaling energy data sharing.
Question 4: What additional value could an energy smart data scheme deliver alongside existing data sharing initiatives? Please include your views on how an energy smart data scheme might support or hinder existing data sharing and digitalisation initiatives.
An energy smart data scheme would enhance transparency, simplify energy information, and make it more user-friendly for consumers. Many people find the current data options complex and difficult to navigate. Clearer and more accessible insights would help homeowners and tenants make informed decisions about their energy use. Consumers could compare tariffs more easily, understand their consumption patterns, and identify opportunities for efficiency improvements without needing specialist knowledge. Greater transparency would also build trust, giving people more confidence in their choices when managing energy costs and considering sustainable upgrades.
A key advantage of an energy smart data scheme is its ability to integrate with and build upon existing frameworks, such as Perseus and Open Banking, by providing automated, real-time data exchange that financial institutions and businesses can rely on. This supports the digitalisation of sustainability reporting, ensuring that financial products and lending decisions are based on accurate, real-world energy data rather than estimates or self-reported figures.
However, to avoid fragmentation or inefficiencies, the scheme must be interoperable with existing data-sharing models, ensuring that energy data can be effectively integrated into financial reporting systems, emissions calculators, and sustainability disclosure platforms. The Perseus model highlights the need for strong governance and data assurance mechanisms to maintain trust and prevent misuse, while also ensuring alignment with regulatory standards such as the UK’s Green Finance Strategy and Smart Data frameworks.
Question 5: What energy customer needs could potentially be addressed by an energy smart data scheme?
Financial institutions focus on education and awareness, helping customers improve energy efficiency, reduce costs, and build financial resilience. They play a key role in supporting individuals and businesses through tailored financial products that make sustainability more accessible. Access to green finance solutions enables customers to fund energy efficiency upgrades and achieve their sustainability goals. The lack of real-time, verifiable energy data prevents SMEs from tracking their emissions and accessing sustainability-linked finance. Perseus resolves this by automating Scope 1 and 2 emissions reporting, ensuring data flows efficiently between SMEs, energy providers, and financial institutions.
The Perseus 2024 Pilot is already demonstrating how direct access to SME electricity smart meter data can streamline sustainability reporting. SMEs receive detailed emissions reports, which banks and lenders can use to assess eligibility for green financial products.
An energy smart data scheme should follow Perseus’ model to provide assurable, standardised data-sharing, reducing costs for SMEs while enhancing transparency across the financial sector.
Question 8: How can we build and maintain customer trust in an energy smart data scheme?
Trust is essential for any smart data initiative. Businesses will only engage if they have full control over their data, understand how it will be used, and see tangible benefits. Perseus has already ensured that businesses retain full control over their data while benefiting from automated, accurate sustainability reporting.
Data security is a top priority. The UK Data Protection and Digital Information Bill (2023) sets clear requirements for privacy-first, consent-based data sharing. Perseus aligns with these principles by ensuring that SMEs retain control over who accesses their energy data while maintaining financial-grade security measures.
Transparency and standardisation are also key to building trust. The British Chambers of Commerce’s SME Digital Adoption Report (2023) found that SMEs are hesitant to share data unless there is a clear value exchange. Perseus provides a clear incentive by reducing reporting burdens and improving access to capital. SMEs that engage with Perseus gain a competitive advantage by demonstrating credible sustainability credentials to investors, customers, and financial institutions.
An energy smart data scheme can build trust and accelerate adoption among businesses and financial institutions by establishing clear governance structures, implementing secure data-sharing protocols, and providing tangible benefits for participants.
Question 10: A. What are the potential incentives and barriers for established energy market actors to provide access to customer data (e.g. operational, commercial, legal)? What interventions might be necessary?
Energy providers benefit from participating in smart data schemes through enhanced customer engagement, improved service offerings, and compliance with emerging sustainability regulations. Access to customer data allows providers to develop more accurate pricing models, offer personalised efficiency recommendations, and strengthen customer relationships. However, barriers such as data privacy concerns, integration challenges, and potential commercial risks may limit participation. Ensuring that data-sharing frameworks align with existing regulations and provide clear value to energy providers will be essential for widespread adoption.
- What interventions might be necessary?
Perseus enables automated, real-time access to SME energy data, allowing providers to create tailored offerings such as dynamic pricing models and personalised energy management solutions. To maximise participation, an energy smart data scheme must align with regulatory frameworks and ensure interoperability with financial markets. Leveraging Perseus’ established governance principles will support a seamless integration, addressing both commercial and operational concerns while ensuring that all stakeholders benefit from enhanced data access.
Question 19: What common principles are needed to support the development of an energy smart data scheme and why?
For an energy smart data scheme to succeed, it must be interoperable, secure, and scalable. Perseus has already established a trusted framework that ensures automated sustainability reporting is accurate, verifiable, and widely accessible.
Standardised data governance is essential. Perseus’ model ensures energy data can be integrated into financial decision-making, reducing compliance costs while increasing transparency for investors.
Additionally, the scheme must deliver clear benefits to businesses and financial institutions—lowering compliance costs for SMEs while enhancing banks’ ability to assess green lending risks.
Question 26: What challenges and risks should we consider when developing an energy smart data scheme and how can we mitigate these? This might include (but is not limited to): competition; customer exclusion; data quality or data misuse; ethical, operational or technical concerns.
A common concern regarding access to smart meter data is the ability to determine when a property is occupied. Limiting data access to appropriate levels of granularity would help mitigate this risk and address potential privacy issues. In many cases, monthly data could provide sufficient insights without compromising security. Implementing safeguards to control the level of detail available would ensure that energy data remains useful while protecting consumer privacy.
Additionally, oor data quality, lack of standardisation, and security risks are the main challenges in building a scalable energy smart data scheme. If energy and emissions data are inconsistent or inaccurate, sustainability reporting loses credibility, reducing trust in financial incentives linked to net-zero strategies.
Perseus mitigates this risk by implementing a structured governance framework that ensures secure, automated, and verifiable data-sharing. The scheme’s pilot phase has demonstrated that direct smart meter data integration significantly reduces reporting errors and enhances financial institutions’ confidence in emissions tracking.
By adopting Perseus’ approach, an energy smart data scheme can minimise data inconsistencies, ensure privacy-first standards, and prevent customer exclusion—creating a trustworthy, scalable model for long-term decarbonisation efforts
Contact:
Elena Perez Celis
Head of Policy
elena.perezcelis@b4nz.co.uk
