Personalised Energy Tariff Launches in the UK
An energy supplier is set to introduce a new, innovative approach to energy pricing by using smart meter data to create a tailored peak time for each customer. This initiative, which marks a first for the industry, will allow So Energy to offer a unique tariff based on individual consumption patterns.
What Is the So Unique Tariff?
The So Unique tariff will analyze energy usage over the past 12 months to establish three distinct pricing tiers: peak, off-peak, and super off-peak. These tiers are designed to reflect the specific habits of each household. The goal is to encourage customers to adjust their high-energy activities, such as doing laundry or running the dishwasher, to times when they are charged less.
So Energy, which was established in 2015 and currently serves 300,000 customers, claims that this personalized approach could save households up to £150 annually compared to standard variable tariffs. By shifting just 20% of their energy use to off-peak and super off-peak windows, customers may even save up to £200 per year.
Balancing the National Grid
Energy suppliers are increasingly urging households to shift their energy usage away from peak hours, typically between 4pm and 7pm. This effort aims to maintain balance on the National Grid and prevent blackouts when electricity demand surpasses supply.
A recent report indicated that the risk of blackouts is at its lowest since 2019-20, though there may still be “some tight days.” Many energy providers already offer cheaper rates for customers who adjust their energy use outside of standard peak hours.
For instance, British Gas’s PeakSave scheme offers half-price electricity between 11am and 4pm on Sundays. Octopus Energy also rewards customers for reducing power usage during peak times. Some tariffs even monitor the wholesale energy market, enabling households to avoid using energy when prices are higher.
A Customized Approach
So Energy’s new tariff follows a similar concept but with a key difference: the timing and rates will vary for each customer. The company aims to move away from a “one-size-fits-all” model for energy pricing.
For example, a household of nine-to-five workers and school-aged children who are out during the day may have very different peak times compared to a household of shift workers. This personalization allows for more flexibility and fairness in energy billing.
Addressing Rising Energy Costs
Households across the UK are facing another increase in energy bills this winter. Many consumers are paying more than necessary if they are on a standard variable tariff. There are growing calls to abolish the energy price cap, with some arguing that it hinders innovation and discourages customers from switching to more cost-effective options.
So Energy’s head of trading previously mentioned that the price cap limits innovation, as customers tend to remain on variable tariffs without exploring alternatives. Co-founder Charlie Davies emphasized the importance of recognizing individual energy usage patterns, stating:
“At So Energy, we appreciate that everyone is different and has their own ways of using energy – and that’s a good thing. This is the first truly personalised energy tariff available to UK consumers, and it’s designed to be fairer, smarter and more aligned with how people actually live.”
This new approach not only offers potential savings for consumers but also promotes a more sustainable and efficient energy system. As the energy landscape continues to evolve, personalized tariffs like So Unique could play a significant role in shaping the future of energy pricing.